The Role of Failure in Binary Options Trading
We all like to think about success. Not too many of us like to contemplate failure. Your attitudes toward failure are important, though, and may even determine whether you ultimately succeed at binary options trading. Failure while trading means losing money, confidence, and time. But the fact is this: failure is inevitable. You will always have setbacks and pitfalls to deal with when trading. That does not mean you will not eventually become successful, or that you will not trade successfully overall.
One more brutal reality concerning failure and trading is that the vast majority of binary options traders will never succeed. Technically, failure is nothing more than the non-presence of success. Failure means you might one day succeed, but only if you stick with your trading and learn how to stop making the mistakes which are costing you money. If you give up, or never learn from your failures, you will continue to lose money—or wash out of trading altogether.
Here are 3 reactions to failure which are useless:
- Denial is probably the most common reaction. How do most people deal with failure? They simply refuse to acknowledge it is happening at all. When you deny the presence of failure, you make unintelligent trading decisions. You may neglect your record-keeping, refuse to fix a broken trading system, and ignore the declining amount of money in your bank account. Denial is incredibly dangerous, because it cripples you from correcting mistakes. If you deny the realities of failure in trading, you will ultimately become a failure.
- Fear is another useless reaction to failure in trading. When you become frightened of failure, you may avoid trading at all. You may test and research indefinitely without ever going live, or you may trade live, but forego a lot of great setups because you have failed in the past. Because you fear to fail, you may sink into a hole of inactivity which makes success impossible. Fear of failure itself breeds failure.
- When you react to failure with anger, you can cause all kinds of problems for yourself. You might become vengeful, and chase your losses by investing recklessly, leading to more losses. You may also start looking for someone to blame. You might blame yourself (rightly), but also learn to loathe yourself. None of these reactions are in any way helpful, and all of them generate more failure, which leads you into a vicious cycle. The result can be a breakdown, psychologically, and in terms of your account.
How should you respond to failure in trading?
Sometimes you may hit a point of despair in your trading career where you think it is just too late to succeed. This is the point at which most traders burn out (and the majority do eventually). But the only thing that can make failure permanent is your choice to accept it as such. Instead, look at failure in a positive light, and see it for what it really is:
Failure is a step along the road to success.
This is the case not only with binary options trading, but also with other aspects of life. When you fail in business, in relationships, or with personal projects, you have a chance to learn and to make yourself into a better person. It is only when you give up completely that you lose the chance to succeed one day. The lessons you learn in trading can also be applied to other areas of your life. This is just one more reason trading is such a great activity.
Learn from your failures in trading, and each of those failures will bring you closer to the SMART goals you want to achieve. Yes, the setbacks will consume time and energy, but what you learn from them may make up for it. Do not react to failure with denial, turning your face away from your mistakes. Do not look toward the future expecting an effortless, smooth road. But do not let fear of those steps freeze you in your path, and do not react with anger when you encounter them. Instead, acknowledge that you are struggling, and get to the root of what is holding you back. Once you do, you will take another step forward. Be prepared to be adaptive in response to future failures, and you will handle them better and better.
Will you fail at trading? Yes. But you may also someday become very successful. Never lose perspective on the role of failure for successful people. Any person who tells you that binary options trading was effortless, and that his life took an overnight turn for the better, is selling you failure, not success. Failure is a part of life, but it holds not only danger, but opportunity. Choose the opportunities, and you will become a better trader. And one day, you may reach those riches you are striving for.