We continue the conversation started in the first part about what novice traders need to know to avoid common mistakes in the trading process and learn how signals for binary options work.
1. Successful binary options trading should be boring.
Advertising and cinema created an image of a trader’s easy and dynamic life: night clubs and restaurants, flights on his plane to exotic countries and constant fun. They spend most of the time in silence behind the trading terminals and it is a rather boring process to be constantly ready to open or close a deal.
It can’t be otherwise: strict adherence to the trading plan, money management rules and lack of attempts to catch the highs and lows on free binary options signals, which many novice traders do on the way to losing a deposit, requires discipline. Professional traders rarely show strong emotions regardless of the result: profit, loss or break-even. Internally, they are ready for any outcome, otherwise, you can quickly “burn” and end up in the hospital with a nervous breakdown.
This does not mean that professional trading is not interesting: it is important to understand the difference between reality and own representations and inflated expectations. This is also a normal job. After all, it is not every day that you get a lot of strong positive emotions from your current activities? (If so, you are very lucky!). Once you reach the level where you remove emotions from your trade, will not hear the increasing heartbeat when opening a deal, will not be angry or humiliated after losses, you will be on the right track.
2. The more money you need from trading, the more difficult it is to make a profit.
The next reason for the loss of the deposit, especially in the long run, about which the websites and forums devoted to trading are silent, will be the trader’s strong attachment to the results. It begins to grow, especially when at the very beginning of a career a period of stable profit appears and a feeling of relaxation or, on the contrary, an almost manic desire to earn more and more. Own ideas are forgotten or not analyzed, how binary options signals work in the current market, the number of doubtful open transactions is constantly increasing based on the opinion of “experts”. The result is obvious: the more effort is applied, the less profit.
But how, you ask, do you need to set goals and persistently achieve them? Full self-confidence will not lead to success and financial independence? There is no paradox. Even though many traders sincerely want to get a positive result, these feelings too much influence the decision-making process. They don’t want to wait a year or more until the deposit grows slowly – it’s better to see that the account grows exponentially every week and makes you rich. The concept of “always make money” makes you trade more often and force events, taking too much risk.
How to get rid of an obsessive desire for money? The answer is simple: accept the market as it is. If trading binary signals are absent for several days or even weeks, this means only one thing – there is NO OPPORTUNITY FOR TRADE IN THE MARKET! (by terms of your strategy). Accept it as an objective reality; otherwise, there were no losers on the exchange. A professional always knows when to act and when to wait to have a constant readiness to open, and it is more important to CLOSE a deal at the right time. If in doubt, it is better to skip the signal!
In the medium and long term, you will earn faster if you trade less often. Gradually an inner conviction will arise, and a sense of goodness will become profitable or risky. But while this feeling is not observed, check the trading plan several times for the fulfilment of all opening conditions, use more strict manic management and do not give up after the first failures.
3. You don’t need to have expensive software and a computer with multiple monitors.
The numbers of monitors, the cost of software and real binary options signals are not critical unless, of course, you are involved in high-frequency trading (HFT). Even a Laptop or Smartphone of average power is enough – the main thing is a stable communication channel with the broker’s server. 4G mobile Internet speed is already enough to quickly open/close a trade or get live trading signals from anywhere in the world.
To summarize once again, we draw the attention of readers that the most important element of success is not desktops to expensive chairs and huge monitors, not indicators with exact binary options strategy, but only YOU. Manage yourself; fight what prevents you from succeeding, trust only you and then you will be several steps ahead of the others on the path to stable profit.