It is the mindset (your beliefs about your capacity to manage uncertainties) that you bring to the uncertainty of trading (and life) that creates the difference.
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New York, NY (PRWEB) August 26, 2014
Trading in binary options systems can have investors standing face-to-face with a number of different fears, with the most prominent type being the "fear of missing out." And while traders can exercise various means to take control of their emotions before they can negatively impact their trading activity, most find themselves frozen — unable to latch onto a rational, results-driven strategy. A recent blog post from New York-based trading consultancy The Binary Options Experts traces the triggers of this crippling fear and helps new and experienced traders gain a better perspective of the ways to keep this emotion in check.
Many problems experienced by traders as they manage binary stock options and other vehicles are cause by different forms of this fear of missing out. Duane Cunningham, Vice President for Global Operations of The Binary Options Experts, identified three different areas in which this fear is most likely to manifest.
The first type "...can show up in the form of fear or greed, or a combination of both." People, Cunningham states, are biologically hardwired to seize every opportunity to gather needs, like food, regardless of whether they are hungry or not. This imperative helps ensure that the individual survives in lean times. A similar concept is at play in many trading situations. "The trader sees opportunity arise outside of the parameters allowed by his trade plan. The greed to seize opportunity (or the desire to acquire) hijacks the trader’s discipline and impartiality," Cunningham points out.
The second form of the fear of missing out comes in the combination of fear and impulse. Traders may find themselves being pressured into jumping into a trade, simply to relieve themselves of the discomfort of being faced with a potential win and being uncertain about pushing through with their desire to acquire. The hasty decision, ultimately, will turn out to be the wrong move. Because the trader was, simply put, not thinking and was merely reacting, internal chaos ensues. "In the resulting confusion," Cunningham says, "poor trading decisions arise from the lapse in internal discipline."
The third and last type of fear of missing out points to the fear of losing profits. In forex binary options trading, for example, a less disciplined trader may watch his trade bounce around, from below to above his entry point, and back down to negative territory; he will then grab any opportunity to make even a small profit just so he can finally exit the trade.
What can be found at the core of this highly negative kind of fear, the trading expert explains, is the trader's beliefs regarding his own "capacity to manage uncertainty to his advantage." If he truly takes to heart that he would be unable to demonstrate power and discipline during uncertain scenarios, then his trading will suffer the blows.
"The 'fear of missing out' is exposed in the act of trading, but it will have been in operation in other domains of the trader’s life," Cunningham explains. "Eventually, the trader embraces the assumption that all life is uncertain and that certainty is not possible long term."
The key to dispelling this assumption is to acknowledge that the threat is not external — the trader himself must look within to find the solution. "It is the mindset (your beliefs about your capacity to manage uncertainties) that you bring to the uncertainty of trading (and life) that create the difference," says Cunningham, as he rounds out the blog post.
To read the full blog post and learn about the ways this fear can manifest in a trader's life, visit The Binary Options Experts' website today.