Your emotions and mood and how you feel contribute to how you trade binary options. You can trade too much or too little and this could cause your account to blow out. To be able to have a good mindset and attitude it is important to know the right emotions.
Those who have lost a lot of money or who have felt fear when doing financial transactions on binary options platforms should learn how to detach themselves from the value of money. The disadvantage of fear is that it doesn’t let you take risks or grab the opportunity to earn profits. Fear also causes over thinking and overcomplicating things and scenarios. Being careful is good, but being too careful and when this makes you miss the chance to earn profits is not so good at all. Fear gives you the tendency to enter the market late for no apparent reason as soon as the paranoia takes over. You start doubting yourself and therefore delaying entry to the market which should have been earlier to make better yields. Let’s imagine that after ten minutes of thinking and considering you finally decide to enter. You believe that there is a good chance, but then it’s probably already too late, because you are already in the low probability zone. This leads to dealing less than normal.
The opposite of fear is greed, but this can also influence a trader directly and it can make you do things that you normally wouldn’t do. And as soon as the thought of money takes over, the game is already over for you because your emotions are being controlled by the desire to earn more money. There are two forms of greed: happiness and anger. Happiness comes from feeling of winning or gaining, while anger comes from the feeling of losing and the need to recoup the losses. With angry greed you tend to want more and invest more and taking what you shouldn’t be taking.
Anger as an emotion is another thing that can influence your decision making. If you’ve just had an argument with someone or if you’re losing a lot of your investments, this could lead you in rage and that’s when you make a lot of careless mistakes. In poker, this is called ‘going to tilt’ and it means that you’re prone to make more mistakes once you’re in that zone.
Happiness is another direct influence. This could push you to invest more in binary options assets and this could result in another change of mood. Happiness may be the best state to be in, but don’t overdo it either.
If you don’t have a clear mindset, you can still make mistakes even if your binary options trading methods have been proven to be profitable. You might take a lot of probability trades or take unnecessary risks when investing in options assets. Not having a clear mind and thinking properly won’t exactly influence the way you invest, but it may cause you to make inefficient decisions.
The best way to avoid rash decisions and spending all your funds is to try to catch yourself from slipping. When you can do that you’ll be able to stop the deal and avoid the emotions taking over. Stay calm and clear minded. Everything will be easy if you stay neutral when placing trades.