This subject is mostly unheard and may be untouched, but there should be a discussion on the psychology a trader faces while he turns up for a trade. This may sound out of concern, but may help a lot, if all those emotions are understood. It can be easily said that, the moment a binary trade is on, the cycle of emotion of a trader follows uncertain paths, as his predictions may. It keeps on repeating itself, time to time and follows a certain cycle, without being noticed by anyone, even the one who faces it.
Few of those emotions are given below, which leave a psychological effect on a person.
Optimism
Strongest of all emotions, it acts as a driving force. Every trader is very optimistic about his/her predictions and feels that it is the move which will earn them lot. Its natural, as no trade would be considered on a negative note.
Excitement
This emotion firms the grip when a trade is live. This may be at the peak when predictions are moving in right direction.
Thrill
Next to follow, as the asset price moves further in right direction and expiry time nearing in.
Euphoria
The peak point when a maximum risk is related to maximum gain. If profits are coming that easily, trader’s brain starts telling that whatever move he makes, it will end in a profit.
Anxiety
This feeling comes when a trader realizes that every investment he does, cannot make profit, regardless of current record of success. The feeling is not strong enough to stop someone from investing, as other feelings draw him further.
Denial
Hard to accept the fact that a strategy was not applied properly, everyone believes that he has taken the right decision. It shows this emotion.
Fear
The fear of losing money while making a trade is common for all traders, even for those who are well experienced.
Desperation
It comes when trader loses some money on previous investment and start believing and relying on a particular asset or number of investment, to recover the loss
.
Panic
When a trader starts thinking that there is no predictable nature of the market and loses cannot be controlled. He finds himself in a panic situation.
Hope and Relief
Hope to get best results when a trade is initializing and taking place, and relief when a deal makes profit as assumed.
