Very often, the traders get so excited because of lucrative offers and high payouts, that only when they realize the trading is real – they start to panic. Fear never occurs with demo trading, but shows up only when traders have to make a real investment. Still, we have to keep in mind that fear is not something that is specific for beginners, as it can show up anywhere, anytime. Fear leads traders towards irrational trading and high losses.
Fear is one of the most controlling emotions in life, and trading is no exception. Sure, the basic advice is to calm down and concentrate, but it isn’t really helpful when money is at stake. Fear makes people act unexpectedly, irrational and often in the wrong way. For this reason, traders need more than just a friendly advice, and this article they will find several good strategies for controlling fear.
Control the Emotions
Trading is existing, fun in profitable, but before login, traders should sit down and think about how they feel. It is not a bad idea to write it down. Be honest and realistic, because emotions can highly affect trading results. Tired and sad traders trade differently from traders who had a great day. IT is also preferable to note the results next to the emotions written.
This way, traders can analyze what emotions have the worst effect on trading results. Some traders will have to avoid sadness, or anger, while others will have to stop themselves from trading when they are excited or happy because they tend to have too much self-esteem. Emotions are hard (or even impossible) to control, so sometimes is best to forget about trading until one calms down. Traders are not obligate to place trades every day, so it is better to skip a day than to lose money.
Some traders start well but get under the influence of emotions during the trading process. Once they start to follow the chart and look at the changing numbers they lose all control. They want to ‘fix’ their trade, or trade in other direction, sell it or do something as they feel helpless. This situation can be avoided if traders do a proper analysis, and close the chart window.
Follow Your Transactions
Transactions should be followed only because of money management, but also because of emotional management. Transactions following helps traders to learn more about their trading style and helps them take the ultimate responsibility for everything that is going on.
This way, they can also notice whether or not the emotions are affecting them and in what way. In case the trader has his diary of emotions, it is easy to notice patterns in trading style. The general rule is the more intensive the emotions, the bigger the chances for impulsive trading.
Trust Your System
It is known that all traders should have their system – a set of strategies that defines their trading style. Traders who don’t trust their trading system will often feel fear and lack of confidence. Sometimes, traders don’t even believe their auto trading software and start to trade manually in the middle of the process.
This is because the lack of trust and confidence. Sometimes traders feel like the last-minute change of mind is the right thing and that their guess is the right one. They are ready to neglect all other facts and factors. Signals are useful for them, no matter how generated, as they know the market better.
The truth is quite the opposite, and traders must be aware of that. Traders who don’t follow their strategy or don’t rely on additional tools because they believe to be smarter than that, often learn the hard way. And while there is no ‘one fits all’ solution in binary trading, traders should know that their knowledge on markets is limited.
In the case of a doubt, it is better to wait and eventually change signal provider or adapt the strategy than to rush in.
Try Auto Trading Software
The auto trading software is special computer algorithm that scans the market and then provides signals. It even places trades in the name of the trader. Auto software, like Binary Options Robot, usually has a higher success rate.
It also lowers the influence of emotions on the entire process of trading, as algorithms have no fear. Traders can still adjust some features in order to personalize their trading style on Robot.
Review Your Strategy
Traders should know that they grow and that their trading style won’t stay the same during long periods of time. It is important to update the strategy and investing plan every now and then. If the trading plan is in accordance with trader’s knowledge and possibilities, it will be more profitable.
In case the plan no longer fulfills the needs, it should be reviewed and adapted to the new situation.