These are My Biggest Binary Options Trading Mistakes. The Geek Explains
The world of binary options trading can gain you large profits and success, but if you don’t make the right choices it can also land you heavily in the red. Successful traders often make it look easy; they make it seem apparent that any investment made will result in large profits. This however is not the case. They run a meticulous design inside their minds before making the big decisions. The key is to work hard, but not so hard that you become stuck on the trading boat without a paddle. If you’re trying to trade binary options but are having little or no success, then you should mark my following words very carefully. There are many mistakes that people make in binary tradingthat equal little or no success, I myself have made many of them. It took me a long time to start making profit, but the beauty of it is that I have learnt along the way, and no longer make the same mistakes. Today I’m going to highlight some of the biggest trading mistakes to my name, this is granted a little bit embarrassing, but highlighting my mistakes may very well help you out.
Diving Straight in, Before Understanding the Process
This was my biggest mistake at first, binary trading looked simple so I dived straight in. Little did I know that I had jumped straight into a pool of hungry piranhas with a blindfold on. A friend of mine first got me interested in binary options; he was getting very good at it and raking in profit daily. I observed him, and the process didn’t look too difficult, so I thought I would give it a try. Typically, every investment he made tripled his money, and with this in mind I bought some binary optionsfor a largecost. Looking back on it now it’s clear that I didn’t have a clue what I was doing, and I ended up losing all of my money. I wouldn’t have minded too much, but I invested 50% of my entire life savings. My friend took a look over my figures and the options I had bought, and laughed. I ofcourse did not see the funny side. He informed me that the options I had traded were ridiculous, and that it was very evident I hadn’t done my research. Bemused, I listened to him further whilst he explained the process to me, and I burst out laughing myself.
Sure it wasn’t funny that I had lost 50% of my savings, but once he explained the process to me it was evident how foolish I had been. It took me 3 months of training and doubt, but I eventually got my head around it and starting being able to see which options were worth investing in. If you don’t want to immediately lose money and be laughed at by fellow traders, then you’re really going to want some training. Fortunately I had my friend to teach me, but the internet is also full of useful information that can teach you how to trade effectively. My advice: Do plenty of research before you invest, and I mean plenty. Learn exactly how the process works and make sure that you know 100% if a binary option is worth your investment. Practice for a few months first with paper trading, evaluate yourself, and decide if you’re ready. If you don’t feel ready then don’t start trading, or you’re going to lose a lot of money.
Trading Without a Plan
Once you understand how the system works, you probably want to dive in. When I thought I understood the process I tried again and invested a small amount of money. I ecstatically made profit, and re-invested. The second time round however I traded blindly. I thought the odds were in, but it turned out that they weren’t. I hadn’t followed the market properly, I didn’t check for patterns, and I didn’t think about the potential slump in my options. I invested a larger amount of money because I assumed that the chances of profit were high. It turned out that they really weren’t. If I had a mental plan I would have been able to follow the trends and hopefully meet success. It is imperative that nomatter what you have a plan that you can follow. Your plan is in place for a reason, and without it you’re like a deer in the headlights of an oncoming truck. It will be easy for you to be tempted by the options that stray you away from your plan, but most of the time they will result in failure. If you follow a plan then you always know exactly what you are doing. If you leave your plan and meet failure you’re going to be kicking yourself for months.
Not Thinking Clearly
When I first stated binary options trading I honestly thought it was going to be as easy as my friend made it look. My friend sits at his computer and trades like a wizard, little did I know that his brain is working on overtime and he has meticulously set up his environment for a clear mind. If you jump into trading thinking it’s going to be easy then you’re probably going to meet failure. The trick is to treat it like a very serious job. Make yourself aware of the fact that you are doing something very risky, and get yourself ready for loss as well as gain. Successful binary traders have a very professional attitude, and they always focus on the task at hand. When you sit down to trade you’re going to want a clear work space, and a clear mind.
Not Being Patient
Gaining large profits from binary options trading does not happen overnight. To make large profits you’re going to need a very clear mind,a professional attitude, and lots of patience. Your profits(if any,) are going to be meagre at first. Don’t expect to be making thousands or even hundreds in profit overnight. Not making instant profit is not the sign of a bad trader,it is simply the way the system works. For the first six months of trading my profits were not worth the time I spent at my computer.The one thing that got me through however was patience. If you realise that you’re not going to be making millions overnight, and that you need to work on yourself as well as the trading, then you can meet success. If you start trading with the attitude of “well this is going to be easy”you’re going to be twiddling your thumbs at the screen for weeks, getting angrier and angrier that nothing seems to be working in your favour. Success with binary options trading is a long and monotonous process. If you enter with the mind frame of knowing that it’s not going to be an instant replacement for your full time job, make a plan that’s great for you, and be very patient, then you’re on the right track to success. The time for large success is not counted in days or months, but years. You need to treat it as a full time job in which you start on apprenticeship rates or sometimes even lose money. Every day that you trade you should work on your plan, be patient, and know that at some point all of your hard work will pay off.