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Is Your Heart or Head Controlling Your Trading Strategy When Trading Options

by | Mar 24, 2020 | Financial Accounting, Financial Services

There are two ways that people trade stock options. One is with their minds, and the other is with their hearts. You have usually arrived at a good decision when the two meet, but that may seldom happen.

Your brain likes to rely on predictable patterns that are usually determined by mathematical principles. On the other hand, your heart makes emotional decisions.

Decisions based on mathematical principles usually are based on 24 to 36 months of data. Emotional decisions are typically based on data collected over two to three months.

You usually can point to a single number that is your key to act with trading options made with the brain. When you make trading, decision-based on your emotions, there is seldom a single piece of data that is paramount to your choice.

You may change your mind regularly if you trust your emotions when trading options. On the other hand, you will seldom change your mind when you make your trading decisions with your brain.

What you honestly believe is in your head while your heart conveys what you think you believe. If the stakes are low, then the head usually wins. If the stakes are high, then your heart usually wins. Therefore, it is essential that you use the best stock advisory services to arrive at decisions where your heart and head both agree. Decisions made using the advice of the best stock advisory services will leave you extremely comfortable that you have made the right decision.

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