Successful Trading Is Boring, And That’s A Good Thing

In Blog by Michael Arnold

concept of bull stock market. positive trend on stock exchangeOften times, trader-storytellers talk of wild market swings, fortunes made and lost and unbelievable rushes of adrenaline mixed with canyons of despair. While these things definitely do happen, the real truth is much less exciting. Successful trading, including successful binary trading, is boring.

For a trader to be successful long-term, they must trade for a long time. That statement might seem like “theatre of the obvious”, but the best way to last for a long time as a trader is to avoid the excessive danger that comes with massive boosts in your adrenaline. The emotional ups and downs that the gambling-style trader experiences, only fosters negative trading habits. Irrational behavior such as “I need to get my money back from the market”, ( as if the market bogeyman took money from the traders account rather than the trader losing it to another faceless, but complicity market participant) starts to permeate the trader’s their behavior, their mind and subsequently their behavior. When that happens, both trading losses and trading wins become bad. The losses being bad is obvious, but gains made on bad behavior may actually be worse, because it encourages the behavior that leads you account to eventual ruin.

The fact is, if you trade for the excitement of trading, there’s a good chance you will either be disappointed or unsuccessful.  Mike Arnold of Path Trading Partners describes those wanna-be-traders as people who are addicted to the “juice” of trading. Successful trading consists of analysis, careful planning and disciplined execution. This is why we a such strong advocates of Nadex products. The controlled risk and reward characteristics, whether the trader knows it or not, go a long way to controlling that adrenaline, by controlling big monetary swings in either direction (as long as the trader trades a consistent number of contracts). So, if you’re struggling with the emotional side of trading, try binary trading or spread trading with Nadex. Control the number of contracts and if you feel yourself being bored, you may be on the right path. Just remembering if you are trading a successful and boring method, your life outside of trading will get much more exciting.

Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results