Avoid Distractions in binary option trading
It is very important to avoiding distractions while trading in binary option is very important. What is also important is to understand what distractions are present so you can make the right adjustments to avoid them. Not all distractions are the same which means that you won’t be taking the same steps to alleviate them from your environment. I want to touch base on a number of distractions that can affect you effectiveness as a trader. I have broken them down into a couple of categories in order to help you understand what they are and how to avoid them.
Types of Distractions in binary option trading
Mechanical distractions are another obvious area of hazard to avoid, once you realize it is getting in the way. Mechanical distractions can range from old computers to viruses and other impediments to the functioning of your trading station. One thing I want to point out for you guys doing the mobile trading; mobile trading is mechanical impediment to successful trading. The platforms aren’t as good, the speeds are not as fast and your connections are a lot more unreliable. Wrestling with an old slow computer that freezes up, or one with a virus that requires you to restart on a regular basis and plain old slow connection speeds are the biggest ones to avoid. Trading is an investment in yourself, you need to invest in your trading and provide yourself with the tools you need to be successful.
Market distractions are the small, day to day and minute to minute moves and news that can drive the uninitiated mad with frustration. Market distractions exists in the form of news, economic data releases, geo political events and even comments from well know market participants. Unfortunately, the only real way I can think of to avoid these types of distractions is with experience. You can stop watching the news and reading the news and trade solely on technicals but I don’t think that is the best option. Being involved with the market, hearing the news and watching how it reacts is fundamental to market speculation. You just have to learn to recognize the importance of what your hearing, refrain from making knee jerk reactions and stick to your analysis and trading system.
This is perhaps the easiest to define and to recognize. Environmental distractions are things around you that may draw your attention or get in the way of your trading. For one person it may mean sitting next to a window, for another it may mean having the kids around and for someone else it may mean that the significant other is sitting in the room chattering away. The point is, you need to identify which of these things may be distracting you or causing you to pay less than full attention. As a longer term week to week and month to month trader I don’t have the same concerns as a 60 second or 15 minute time frame trader. If my girlfriend is in the room and wants to talk she may require some of my attention but she is not going to get in the way of my trading the way she would if I were trying to trade 60 second options. In the same light, sitting next to a window or somewhere with a pleasing view may help one trader while providing another with multiple places to focus on that are not his analysis.
Internal Distractions are the hardest to recognize and the hardest to avoid. These include all the little voices, the gut feelings, the fear and the greed that drive you to trade on emotions, or to not trade because of emotions. Fear and greed are what drive the market and they are also the two most primal emotions and hardest to control. As with Market Distractions Internal Distractions can be overcome with experience, but not experience alone, there are still many experienced traders affected by their own internal distractions. The best way is to develop a trading strategy and system. A strategy is why you trade, a system how you trade. Together they provide a completely objective framework of rules for you to follow that are intended to help you achieve you goals of long term success and profitability.
How To Avoid Trading Distractions
First you must recognize what your distractions are. Then you must develop a plan of action that will help you alleviate these distractions from you life. These steps might include creating a quiet and peaceful place where you can make analysis and do your trading. You might make sure your computer is up to date, that you have no viruses and that your internet connection is sound. While doing that getting a grip on current events is crucial, by doing this even the unexpected becomes expected which leads into the last and most important method of removing distractions; your trading system. Develop a system, use a sound strategy and stick to your rules.
Set Your View
- When at your trading station, what do you see around you? Some traders prefer sitting by the window as the view outside calms their nerves.
- However, if sitting by the window always gets you distracted by the activities happening outside, consider placing your workstation away from the window.
- You can also opt to close the window altogether. If there are pictures on the walls that take your mind off your price charts or a television set that takes away your focus then consider moving to another room.
Choose the right broker for you
- Successful traders have the benefit of choosing to work from home or wherever they like.
- The downside is that the people closest to you may not understand that you need some quiet time to earn your bread.
- A spouse or kids may make demands on your time and attention and this may affect the profitability of your trades.
- If working from home, you should make sure to inform everyone within the household that particular times of the day are “no disturb” times.
- If you are working from a public place such as a café, make sure to order your food and drinks well before your trading hours.
- Inform the wait staff that you do not want to be disturbed. Remember to give a generous tip for the privacy and space!
Use the Right Tools for investment
- Are you trading using all the wrong tools? Using an app that’s meant for your smartphone on your computer may lessen your chances of making profits.
- Using an old platform may slow you down yet your contemporaries are using the latest software.
- Relying on a slow internet connection may frustrate and distract all your trading efforts and cause you to make poor trading choices.
- Use the right gadgets and pair them up with the right software for best results.
Have a good Mindset
- You are only as good as you think you are. If you think you are not going to make profits trading, then you might just as well donate to your favorite charity and expect nothing in return.
- As a trader, you need to have utmost faith in your abilities and in your trading strategy.
- Use sound methods for your analysis and believe that they will provide positive results.
- If your strategies fail, learn from them and create better ones and keep gunning for the profits you know rightfully belong to you.
Use the Ideal Time Frame for trading
- If you are the kind of person who gets impatient staring at a price chart for 10 minutes it makes no sense to trade 4-hour time frames.
- You will get distracted and this will ruin your trading strategy. Knowing the best time frames for you to trade will keep your interest high, your mind sharp, and your trade orders on point.
Wise selection of News
- Whenever you switch on the TV set, there are always all these experts predicting doom and sometimes boom.
- You can take your chances and follow the ones you think are trustworthy but you cannot follow all of them.
- For every expert that predicts boom, there is always another with facts and figures showing imminent doom.
- Additionally, the news is always full of news that seem to have an impact on economics, trade, and currency prices.
- Know which ones really matter to your trade and which ones don’t.
Do not use unnecessary tools
- Most traders spend a lot of time online searching for trade news and sometimes simply socializing.
- With the “internet of everything”, we now have more gadgets connecting us to Facebook, email, Instagram, LinkedIn, YouTube, Skype, and all sorts of chats and entertainment.
- If like most people you find this a distraction, log out of all social media and email accounts when settling in to work.
- Switch off your phone, radios, television, and all other gadgets that may cause distractions during those critical times when you are conducting your analysis and making your trade orders.
Get Your Emotions under control
- If you have ever been to a racetrack, you might have noticed a few people in the audience mimicking the actions of the jockeys on the horses.
- These are usually gamblers who have placed heavy bets on their favorite horses and hoping against all hope for a win.
- Traders usually face the same excitement when price charts start showing erratic behavior or when there is a steady increase or decline in prices.
- This gives rise to emotions such as fear, anxiety, and greed and these may induce the trader into messing with his strategy.
- Trading on emotion is self-sabotage and professional traders should always keep their cool to maximize on their trade decisions.
Develop your own Strategy and stick to the System
- Most traders come up with the best trading strategies and systems. A strategy is simply why you trade while a system is how you make your trades.
- Nonetheless, these superb systems and strategies are nothing if they are not followed to the letter.
- Letting outside influences interfere with your trade is financial suicide. Develop a good trading strategy and a working system and stick to them to avoid harmful distractions.
The bottom line
Trade distractions will always lead to financial destruction. You need to stay focused to reap the maximum benefits of trading. These tricks are easy to implement and they are important actions that should form part of your daily trading habits. Hope, this article will guide to have a great trading journey!