If you’re reading this sentence, there’s a 90% chance you have:
understanding of the technology of conducting transactions in the binary market (asset – rate – expiration – forecast: above / below – result);
a trading algorithm that has been tested on the history of the chart;
A personal goal because of which you decided to learn how to trade (most often it is financial freedom).
The only thing you lack is self-control skills. The prospects of making money in any financial market affect a person worse than any drug. Those who cope with this condition will sooner or later succeed and begin to receive a stable income from trading. Everyone else will lose money at best. At worst, yourself.
Today we will talk about how to make money on binary options without risk. Take the topic seriously and outline the recommendations described. If you do not complete this exercise, then after the next loss, stand in front of the mirror and ask yourself: “Why am I trading: for the sake of the game or a promising future?”.
Only absolute honesty with oneself can suppress the inner ego. It’s difficult, but now we’re going to try to make things a little easier.
Give an ultimatum
Near the workplace you should have a detailed trading program, in which all your actions are described step by step:
- the start and end time of the day;
- list of tools used;
- the method of determining the entry point;
- expiration time;
- special conditions;
- actions during the publication of news;
- non-trading days, etc.
Attention! If your plan is not set out on paper or only general points are spelled out, then do not continue reading, close all transactions and proceed to draw it up.
When this part is finished, here are the following steps:
- on the last page of the plan, write your personal data;
- describe in a free form the obligation to never violate the trading algorithm;
- come up with a punishment that will overtake you in case of violation of at least one of the prescribed points (it is desirable that it be associated with material liability);
- put a signature at the bottom;
- Find someone who will check on you regularly. Let it be your boss or a strict “uncle” who does not hesitate to say a few affectionate words. If you break the rules, you will get your portion of criticism;
- Keep statistics: write down the days when you lost money due to a violation of the algorithm. Compare the amount received with the losses, which are associated with the ineffectiveness of the trading strategy. You’ll be surprised.
Minimize your trading arsenal
Is it possible to make money on binary options with a small amount of knowledge? The answer is: yes and how. In fact, redundant information is too harmful. Instead of actions, the trader tries to decompose the market into components, which is initially impossible. Thousands of players make millions of trades every minute. What indicator or strategy can predict their behavior?
Your task: learn to understand one small part of the market, in which the chances of making a profitable forecast are about 60%. The better you do it, the more you earn.
Once again, delve into this idea: if you learn to understand what the crowd is doing in a small market segment, then in 60% of cases you will be able to make the right decisions. You don’t need more. Everything else will be done by your strategy and systematic approach to trading.
Limit risk
No one is immune from unsuccessful trading days. They can occur even when you work in the “robot” mode and strictly follow all the prescribed rules. Remember: this is normal. The most difficult thing is to wait out the “black streak” and not move away from your system.
The best method to do this is total loss control. Allocate a separate page in the plan for this aspect. You need to know after how many losing trades you need to turn off the chart and stop trading. Never violate a given limit.
To limit risks, use strategies for binary options. Also, the basic rule for successful trading is RISK MANAGEMENT.
Choose a reliable broker
You can know absolutely everything about how to trade binary options, but without high-quality service, you are unlikely to be able to realize your ideas. Here’s a short list of companies you can trust:
An extended description can be found here. Additional information that may be useful:
- Market signals.
- Trading strategies.
- Useful tools.
- Control of the psychological state.
Stable earnings on binary options by only 15% depend on your knowledge and selected strategy. Everything else is self-control. It is formed by:
detailed trading algorithm, for violations of which real liability is provided;
the minimum stock of trading skills brought to automatism;
strict risk management, expressed in the maximum amount that a trader can lose during the day;
The right broker with impeccable service.
P.S. Friends, why do you think most traders lose? Share your opinion in the comments.
Tagged with: The Psychology of Binary Options Trading
