The 10 Commandments to Trading Binary Options
Success in Binary Options Trading isn’t rocket science. Follow a few basic rules and you will be on the right path to making more winning trades than losing ones.Below are the 10 golden commandments that will safeguard you from losses and also serve as a guide for you to achieve success.
- Take Care of Your Emotions
Before diving into binary options trading, it is vital for a trader to work on his feeling specifically. Fear and anger can cause great havoc. All a trader need is to be disciplined and self-controlled. Separate your emotions from trading.
- Take Your Time to Learn the Basics
If you are a newbie you need to take your time to learn how to trade. Don’t go just jumping in no matter how easy it looks to place a trade in Binary optionsTaking your time, practicing and researching will stand you in good stead throughout the rest of your trading career.
- Don’t Gamble with Binary Options.
Binary options is not a game or football bet where you can gamble. Trade binary options only when you are sure it will yield profit or when you are convinced to do so.
- Learn From Your Losses
Acknowledge your loss, to learn the trade more. When you lose, do a critical analysis of your mistakes not to repeat them again. Loss is inalienable, but learning from it will make you a better binary trader.
- Be Persistent
There is nobody born as a professional binary options trader. Professionals are borne out of constant trading. Learn the trade, trade with patience, learn from your mistakes and be consistent then you will make it from binary options. Do not allow the results of your previous trade to influence your next trade. If you have done the correct research and have a strategy that normally works, stick with it!
- Take Responsibility for Your Trade
Do not blame your broker or the market for your loss. You are responsible for your binary options trading and you alone. Take the responsibility, don’t blame it on anyone, and do some self-analysis rather than look for an excuse.
- Have a Feasible Trading Strategy
It is your trade, master it by designing a realistic trading strategy that suits you. It might take time, but when you have a plan like the price action strategy perfected, it will be much easier for you to make consistent profits. Practice a strategy on a free demo, master it and then go use it for real.
- Be Passionate About your Trading
Before you can excel in anything in this life, you must be passionate about it. Be excited about your trading activities and not about your money. Your love and passion for trading will bring you more success than if you make nonchalant detached trades.
Although it is recommended to focus on just a few assets, it is important to diversify what you are trading. Try to mix up the assets. For example, gold normally trades inversely to the US Dollar. So you can focus on the commodity and the EUR/USD currency pair, thus creating some diversification in your portfolio.
10. Create Time for Your Trade
If you are the busy type that is not able to devote the time to trade, do not go into binary options. Binary option requires optimum monitoring. You need to create time to do the research and make the trade.
Binary options is a trading business with huge profit potential. You just need to adhere to the above 10 golden commandments and your chances of success will be greatly improved.