Experts in trading psychology (and even seasoned traders themselves) agree that a professional trader's mindset is a valuable factor that can determine a trader's consistent success or failure.
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New York, NY (PRWEB) October 14, 2013
Like any other trading platform, the binary options trading system has a learning curve — although compared to other ways of investing in the financial markets, it does not involve overly complicated technical information and can thus be tackled by novice and experienced investors alike. It also does not require sophisticated technologies or equipment — any computer with a steady Internet connection, anywhere in the world, is all that is needed.
Basically, it does not take much to get started on generating income using binary options. However, having the means and the basic requirements for trading does not guarantee successful outcomes and extraordinary wealth. According to the newest blog post from New York-based binary options trading consultancy firm The Binary Options Experts, trading success — and failure — hinge on just one thing: discipline.
The concept behind binary options trading is simple; in contrast to traditional trading environments where an investor would buy an asset, a person would only need to speculate on the direction that an asset will take. There are only two possible outcomes (hence the term "binary"): the asset (a stock, commodity, index or foreign exchange) will either rise or drop in value within a specified timeframe for expiry.
Any binary options review will show the simplicity of this form of trading; if an investor, for example, places a Call Option and the price of the asset goes up (even by a single cent), the investor makes a profit. Likewise, if he makes a Put Option and the asset's price decreases within the indicated expiry time, he also makes a profit.
But while the trading concept appears to be easy enough to handle even for beginner traders, The Binary Options Experts still sees many traders failing in their financial endeavors. In its new infographic, the firm is quick to point out that failures in binary options trading cannot be attributed to the lack of education. "While education in the technical analysis of trading is absolutely needed, most who really try, receive that education," Duane Cunningham, VP for Global Operations for the Binary Options Experts, explains. "However, anyone can understand the education material once presented, and many who receive the education still fail, so lack of education, while critically important, is not making my top three list (of causes of trading failure)," he emphasizes.
The number one cause of failure, he says, is simply the ability to do what needs to be done, and do it now — and the word for that is discipline. "Initially, it may be the lack of discipline to take a loss. Later, it may be the lack of discipline to reach a profit target. The problem is, even those who know what to do and when to do it, do not do it. Lack of discipline."
Experts in trading psychology (and even seasoned traders themselves) agree that a professional trader's mindset is a valuable factor that can determine a trader's consistent success or failure. Conflicts and mistakes are inevitable in trading, but a solid mental framework can effectively guide an investor to stay focused on his profit goal, become more aware of the trading environment, and practice flexibility in adapting to changes and challenges.
Cunningham further points out that lack of discipline can manifest in various trading scenarios; a trader may not have the discipline to review material learned, review trades, create and use a trading plan, honestly analyze trades, identify a binary options scam, and others. "All of the key things in trading are easily learned by someone who wants to learn them. However, they are not easily done. Lack of discipline is a number one reason traders fail."
For more trading tips and advice that can help you improve your trading strategy, visit The Binary Options Experts' website today.