Trading is comparable to gambling. At least you can hear this almost always from people who have little or nothing to do with trading. At first glance, it always looks like trading has nothing to do with the system. And that one hears or reads more bad than positive about trading is also due to the fact that criticism in the media is more popular than praise.
Nevertheless, it cannot be denied that many who come to trading, want to trade for the same reasons, but approach the matter in a completely different way. One statement that could aptly describe this is that traders have to be very risk-conscious. So you have to take risks.
Any reasonably experienced trader will be able to tell you that this is not entirely true. The problem is that players in particular are too risk-sensitive and tend not to consistently pursue their risk management. Many professionals who have been in the business for years will also tell you that the risk is rather frightening for them - but that is precisely the reason why people think about adequate risk management at all and do not act carelessly.
How do you know whether you are a player?
Of course you are further with the above-mentioned knowledge, but that is far from all, because often our own psyche plays a trick on us and we recognize ourselves not whether you belong to the first or second type.
So on the one hand you can try to set up risk management while on the other you don't follow it consistently enough. And if you don't follow it, you like to talk yourself into being a risk-taker type of trader.
As already mentioned, this is just an excuse so that you can safely ignore your risk management to take a chance that you see but that most likely doesn't fit our set of rules. You don't notice that our fear of missing a chance has gotten bigger than losing something - and that's a clear sign of the player's brain.
So check from time to time to see if that happens It applies, so whether you would like to justify non-compliance with your rules by saying that you are supposedly entitled to take more risks than usual. Behind it is nothing more than the pure fear of missing a chance. That has little to do with the famous affinity for risk, which one likes to compare with a thirst for adventure.
Incidentally, this is also a fallacy: sitting in front of the PC and pressing the buy or sell button, has nothing to do with adventure. Before you see trading as something like a fun or hobby, on the one hand, but on the other hand, you want to make money with it. Both can exist independently of one another, but it is highly unlikely that they will work together. Which is not to say that trading cannot be considered fun. It should just be seen as fun at work.
How do you avoid self-deception?
So we inevitably come to the question of how to avoid yourself, wrongly to understand as an adventurer with a great sense of risk and thus to face the success of trading instead of approaching it? The answer to this should already be derived from the knowledge.
If one finds a very high affinity for risk in oneself, then it is advantageous to bear in mind why this is so. If it is due to the good chances that you do not want to miss, you should be careful. In practice, this could not only mean that you do not adhere to your risk management, but also that you suddenly define completely different entry rules.
For example, a trader whose rule it is could always follow one to get a clear bottom or top formation, to be willing to start suddenly when breaking out of a relevant zone without this pattern - and only because he is afraid to jump on the train too late. To avoid this fear, you should always say to yourself that there are enough opportunities in the markets, even without missing one.
What can you spend $10 on?
Conclusion - don't be a player
All in all, it means once again that general statements about trading can be misunderstood very quickly; this also includes those such as "as a trader you are fundamentally affinity for risk" or even better "adventurous". As a rule, such statements are often used by our psyche as excuses for why we should not abide by our rules. In this case we are closer to the player brain than the professional trader, because the right name for a good trader would be "Risk Manager".
With the Binary Broker Band you can now find out whether you have what it takes Have risk managers or are just one player.