Being a successful trader requires a lot of different skills (patience, curiosity, discipline…) and years of experience. Even thought it is difficult to identify the precise characteristics that make you a successful trader, it is quit easy to identify the main mistakes that unsuccessful traders repeat over and over. We have been trading all sorts of instruments on all asset class over the last ten years and there exist common mistakes that you should definitely try to avoid if you want to make money with binary options.
There is no magic formula that you can follow to become a successful trader. It all depend on your strategies on the specific assets you decide to trade and on the self-discipline you will apply to your trading plans.
Mistake 1: Don’t try to trade all assets and implement different strategies
You should try to focus on one asset and one strategy and improve it the best you can while taking into account the mistakes you do along the way and learning from them. It is important to be flexible when trading binary options, however, you should try to gain experience in one specific area to be able to accurately understand the relevant factors and opportunities. Successful traders are able to show patience and perseverance and stick with their trading plan. If you constantly jump from one strategy to another as soon as you start to generate loss, you will never be able to fully understand your mistakes.
Mistake 2: Don’t try to make trends happen but follow them
No trader is able to sell the top and buy the bottom of a trend. Successful traders try to identify trends with fundamental and technical analysis. Once their scenario is confirmed, they simply enter the trend while it has already started and just follow it. Timing is the single most important factor for binary options trading. There exists a thigh line between entering too early and hesitating for too long. Try to choose one asset available with binary options and follow it until you are able to understand and identify trend confirmations. This is the only way to effectively improve your timing.
Mistake 3: Perform your due-diligences and wait for strong conviction
Successful traders are able to show their true skills after a sting of losses rather than a string of profits. Successive losses can quickly dent a trader’s nerve and motivate him to open positions without convictions. You should definitely try to resist this matter of fact. You always need to show strong conviction in your trading plan and perform the require due-diligence before implementing any strategy. Never let stress dictate your trading behaviour and always keep a cold-hearted attitude regarding your binary options trading strategy.