Of course, there are no keys to success in trading. Otherwise, everyone will be trading online, working from home and making millions without sweating. We don’t live in such world. There is no secret formula or absolute strategies to predict financial market moves and make money. There is not a single set of steps you can follow to achieve success with trading and with binary options. Nevertheless, there are a number of rules and personal disciplines you can work on to maximize your chances of success. If you follow these rules, you may not become a millionaire overnight but you will avoid many of the mistakes made by binary option traders that end up broke in no time. The road to success is long and difficult. You will have to keep learning about binary options and financial markets while applying the guidelines and risk management tips explained below. It takes time and mistakes to become good at something. It is not linear. You will have periods of euphoria and periods of depression but if you stick to it, you will become a successful trader.
Keys to success – Always do your homework
This is the single most common reason of mistakes and losses from traders. If you are not ready to do your homework before you enter a trade, you will never make money. Whether it is about technical analysis or fundamental analysis of the specific asset you wish to trade, you have to perform it and keep learning how to improve and sharpen your analysis skills. I don’t think you’ve reached your position in one day. It is the same thing for trading, you have to work and learn every day to achieve success in trading.
Keys to success – Stick to one simple strategy
In many areas of life, change represents a key aspect of your self-development. This is not the case for trading. If you only jump from asset to asset and try new strategies every day, you will have a hard time making money. At the beginning, it is important to stick to one simple asset and one simple strategy. You will have to repeat this strategy and understand the reasons behind your losses or your profits before you can really make money with it. Most of the time, we don’t learn when we make money or when we believe that we fail just because “life is unfair and markets are manipulated”. When you fail, you have to take a step back and analyse the causes behind this failure. Keep repeating the same strategy on the same asset until you are able to precisely identify why you are right or why you are wrong.
Keys to success – Timing is everything
Option trading and binary options trading more precisely is all about timing. When you buy an equity stock, you can keep it forever unless the company goes bankrupt. Timing is thus less important since you can keep the stock long enough for it to recover after a strong correction. With binary options, you don’t have this privilege. Binary options are short-term trading instruments (binary options are not gambling). It means that you not only need to have the correct market scenario, you also need this scenario to materialize before the expiry of your option. More often than not, traders end up being too early and there is nothing more frustrating than to see your market scenario realize after your option expired worthless. Remember that you don’t need to be a genius to be a trader. You need to feel the market sentiment and trade in line with it, not before it. Identifying a trend before the other is only worth it if you wait to pull the trigger when the other market participants jump on the trade.
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