Your choices affect you in any way you do. All of your choices have an impact in your life. Big choices can mostly affect you for a longer period. Of course, choosing milk chocolate over dark chocolate may not have a huge impact in your life than choosing a three bedroom house in the city than choosing a three bedroom house in the countryside. Decisions like these have stand alone impacts which mean that a single decision can have major consequences. However, there is another kind of decision – smaller decisions which can lead to the outcomes. For example, gambling which is not good for your overall financial life. But gambling in general is made up of hundreds of smaller decisions take for years. Every time you make your bet and make that risky move, you made a decision. Nonetheless, that decision can only affect you when it is a part of a whole. A single small bet cannot generally affect your funds as much as a serial gambler does.
No, this is not an article about gambling or buying houses. But as this article progresses and talks about binary options trading decision you may keep the concepts in mind. Remember that in trading a single loss will not actually affect so much on your binary options account. Think about fifty loses? Yes, this will surely wipe your life out. No matter how much you do not care about bad trade, you have to put in mind that it is part of a bigger whole which will then destroy your trading account. This is why it is vital that you consider every trade the vitality it needs and often times make complex decisions.
HOW COMPLEX CAN IT GET?
When you lose something, your emotions will be triggered. You do not have to fight these emotions because your DNA dictates it. Thus, you have no choice but to learn how to control it. When you lose a hundred bucks to the market, you will most likely have the urge to get it back. This is what you call a vengeful combination because you want to prove to yourself that you are right. The idea of greed, financial concern and vengeance can make you a certified gambler. The distinction between a gambler and a trader is that the former will capitulate on those feelings and then will tend to lure towards making another trade or dice one more time. Thus, if you trade based on a prearranged plan, you are making Binary Options to a business. On the other hand, when you trade based on your emotions without even controlling then, then you are simply a gambler who fits in a casino and not on the trade market.
We mentioned about trading based on a plan. This plan has to be laid out prior to starting trading because this is when you free your mind from emotions. This is when your brain’s analytical part can triumph. When your emotions kick in, it will be hard for you to think properly. Without a doubt, you have to have a plan. However, what makes it hard is following your plan and trusting it to help you manage risks and manage your money as well. A simple trading plan is knowing when you will stop trading even when you are on a winning spree. For example, you may have decided that you will stop trading on that day after you will have three losses or three wins. By doing so you are limiting your risks and you know that the worst thing that may happen is losing three trades in a day. Stopping trading is quite tough and after losing thrice you will most likely feel angrier than before. Thereby, you have slimmer chances of success.
The same thing applies to winning trades. After you have made three in the money trades, you will most likely become over confident and this is when you mistakes begin pouring in. you do not pay enough attention to analysis or to your strategies and make rushed decisions towards making more profit because you believe it to be more fun and efficient. This actually makes you a gambler because this is what gamblers do. If you have a job and trading is just your hobby then you have to stop when you have finally reached your trading goal. Or if you consider trading as your job, you still need to stop when you have reached your daily quota or your goal.
As you see, at the end of the day it is you who will have to make your own luck. You can just make better decisions if you learn yourself aboutall possible outcomes and therefore minimize your risks.