Most traders suffer from fear of pulling the trigger because they know what a loss feels like. The fear can manifest from a series of continuous losses or just from a few huge losses. However, fear is fear and it is always crippling. The good news is that binary options help traders overcome this devastating emotion.
Binary Options Overcome the Fear of Pulling the Trigger
Binary options help you overcome the fear of pulling the trigger in many different ways. They are:
- Fear of the Unknown – When trading futures and forex, regardless of whether you have a stop in place or not, you are trading using leverage. This means that you can lose more than you have in your account. Going into a trade knowing that your entire account (and then some) is exposed to a massive loss can paralyze you. While some may think this will never happen, in January 2015 the Swiss National Bank “unpegged” the Euro to the Swiss Franc and this is exactly what happened. Entire accounts were lost within a matter of seconds and clients found themselves owing their brokers massive amounts of money. With binary options, you know what your worst case and best case scenario on entry. And, you can NEVER lose more than you paid on entry. Plus, you can exit at any time prior to expiration.
- Fear of Being Targeted by the “Big Boys” – Let’s face it — running stops is part of trading futures and forex. The big trading firms have a lot more capital at their disposal than retail traders do. They can afford to take the market down because they have the power to bring it right back up. And, they know where most retail traders will place their stops, making the retail trader easy prey. When trading binary options, you do not have stops and cannot be targeted. In fact, since it is a timed trade, quite often you will see the “big boys” running the stops as you sit safely in your binary option. Then price goes in the direction that you anticipated and you make money while the retail traders in futures and forex are crying over their losses.
- Binary Options Allow Traders to Use Logic – For years, psychologists have recommended using logical thinking to overcome fears. In other words, you weigh the best and worse case scenarios and then decide if the “fear” you are feeling is logical. After all, our brain can be our worst enemy and, quite often, makes our fears even larger than life. By being able to see the best and worst case scenarios, we can analyze the “fear” for what it is. For example, instead of allowing the fear to paralyze us because we could blow our entire account and the world will come crumbling down, with binary options we see that our worst case is $55 loss versus a $45 win. Then we can ask ourselves the all important question: “Is this trade worth the risk?” Our brain calms down because we know the world will not end and, if the setup is not worth the $55 of risk, we simply say “No, I will pass on this one.”
If you have a fear of pulling the trigger, open a Nadex demo account and see how the binary options can help you overcome your fears.