Fear and Binary Options Trading

If you have been trading for a while, then you have most likely managed to understand that trading is a mental activity. What is happening in your mind determines the success that you could have. However, your rational part of the brain is constantly hijacked by the emotions that you experience. That is why we’ll start a new series of articles which will discuss various emotions that could go through while trading binary options.

Fear – the monster that does not exist?

The most common emotion traders face is fear. Since trading binary options requires you to trade in an uncertain environment, your primitive part of the brain triggers the fight or flight response, or in other words, your body is taking measures so you will be protected in case the outcome of the uncertain situation will be negative. We as humans are biased towards negative and that bias is called the survival instinct.



That survival instinct triggers when you are trading binary options as well. Especially, if you have encountered a loss or a series of losses. It is something natural. However, you won’t be able to trade successfully with fear. That is why self-control and emotional regulation is required. Trading binary options is not easy and it takes a lot of work. You have to face your fears and develop healthy habits that can lead you, step by step, towards success.

Think about how many times you’ve faced fear when trading. Maybe you placed an option and even though the market was going in your direction you decided to close it. Or, maybe you’ve spotted a good trading opportunity, but you’ve encountered a series of losses and you were afraid to pull the trigger. The frustration that follows, when you see that the market went in your direction and you were afraid to ask cannot be described.

One of the greatest challenges binary options traders face is to learn how to work with their emotions. It is a tough process and it requires study, understanding yourself and self-acceptance. Hope this article made you aware of the consequences of fear and maybe you’ll manage to start working with yourself in order to overcome it.


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