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Thursday, November 14, 2019

Why is psychology a factor that needs to be invested the most in binary trading?

According to the book "Market Witch" by Jack D. Schwager, the success of binary trading is contributed by 10% by binary trading strategies, 30% by capital management, and by psychological factors account for 60%. .
However, I think the psychology is still not the majority of traders interested in candles chart. I made this point clear first. Not that I overlooked the skills of chart analysis. The main thing here is that most traders often pay less attention to psychology. After a failure, they just sought to improve their skills. And ignore the psychological flaws.

Why 60% psychological success  in  binary translation?

I suppose, by some miracle, you can copy all of the  binary trading methods   (including system and capital management) from legendary traders. But you cannot copy their minds and minds. I guarantee that you will also trade as usual as usual.

Why not?

What makes their "legendary" words do not come from  their  binary trading systems   (surprisingly !!!). The author of  the turtle  binary trading system  also said that he did not remember the verbatim. But something like that doesn't matter if his system is copied or not. Because that's not what makes him successful.
The factor that makes traders step into the 1% hegemony is psychology. Facing a chain of 5 unprofitable transactions. You will frantically jump up or calmly study your mistakes. When the trade goes in the opposite direction, do you want to break the rule to move the SL?
All the methods of   binary trading,  no matter how badly you are, cannot make you successful. Because you will ruin all rules from that method. If you do not have the mindset of successful traders.

I still remember a story I read somewhere that I forgot. But something like this: There is a market analyst. The photo analyzer has to say it is very cool, the analysis of any image is horrible. Every type of photo is cool, from ptkt to ptcb, he will tell you why the price moves like this. Why does the market collapse like that, bla bla bla.
BUT, there is a strange thing is, when he traded photos he did not enter the command like what he analyzed. Most of the decisions on his orders go against the times when he slams into the market.
The reason is simple, weak psychology, easier analysis of the market. Without psychological factors, we look at price behavior with 100% logic. When to put money on the market. Facing fear of defeat, where natural logic is lost. That is why psychology accounts for 60% of the success of binary traders. 
Note: Investing Binary options is always very risky. Need to consider carefully before investing.

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