Role of Emotion in Binary option trading
Role of Emotion in Binary options trading.
Is emotion a part of technical analysis?
How to control emotions while trading Binary options?
Your emotions are your worst enemy in financial market including Forex and binary options.
Emotions are quite natural to human being and plays an important role in many aspects of our life. The decisions we take depend on our emotions either directly or indirectly. It is no different in binary options trading. Although it is impossible to keep our emotion out while trading binary options, it is important to keep it under control. In fact, the success rate of our trading decision (PUT or CALL) depends directly on this factor.
The Emotion affects us the following way in Binary options.
- When the trades go against our expectation , we can not accept the fact and stick to our belief that it will behave as per our expectation. By doing so we keep on losing money.
- During trading we get too excited to calculate the risk involved in buying a position or we get too depressed to identify a potential trading opportunity.
Striking the balance between our emotion and trading is an art. It can be practiced over time. There are several channels, magazines and hundreds of trading recommendations which occupy our mind and drive us through Forex , Stock and Index forecasts. It is this drive which takes us to the extremities of emotions.
- We never think abut who gives these trading ideas?
- How much money they make for their own recommendations?
- What is their intentions behind the recommendations?
Following the recommendations from spurious sources is very much equivalent to gambling. Hence you must find out how to take a balanced and informed decision. Well, there are many simple tools & techniques to identify the movement of a stock or Forex pair. There are many money management strategies to protect your investments in case of continuous losses. You must understand the risk capability and stick to the money management rules even in worst scenarios. Don’t trade any recommendation blindly, try to understand the idea behind it and trade responsibly. Try to learn and understand some simple technical analysis and trade with the trend.One can learn technical analysis but mastering it requires years of hard work and experience.