Trading binary options is done by a number of rookies but can they really make money from the start? The simple answer is what you all want to hear – of course they can! However, binary trading is not as simple as putting a quick hot streak together or using the latest system. There are few quick wins in life and the trading game is no different.
It takes hard work, dedication and a commitment to learning to become successful in this game. Learning is not reading a couple of articles or summaries either. It requires learning from your wins and losses just the same. Rookies should be learning from all of their trades at the beginning. No exceptions.
If you go into trading binary options unprepared you may well end up eaten alive. This is a common mistake often made by newbies on the circuit. Whether you’re taking too big of a position on one trade, taking a bad loss or staying too small for a few trades are all mistakes and missed opportunities.
Newbies often make too many traders or let their emotions control their trading, meaning they may only win on small trades. They then miss out on the low percentage trades that could have made them real money.
A new trader needs to understand the most common pitfalls in order to avoid overall losses and become a success. Here are some of the most common mistakes to avoid:
Not Trading with Purpose
New traders often take trades based on a feeling, or even out of boredom. This is a sure-fire way to lose. Never enter a trade without knowing why you are doing it. Think rationally. What do you think the chances of you winning are? Make every trade count.
Letting EmotionsInfluence aTrade
Do not, under any circumstance, let your emotions have an influence on your trading. Whether they are good or bad emotions, they will never be of help.
Taking Trades That Are Too Big
You have to respect that some point along the way you are going to have losses. Everyone does – even the professionals. Do not let one loss affect your balance that will have an effect on your future trades. Therefore, don’t trade with a sizeable portion of your account.
Repeating Your Mistakes
You should keep a trade journal to learn from. Whether you prefer to jot down a quick sentence or two when learning something new or just a record of the trades, do what you find best to prevent yourself from repeating any mistakes in the future.
QuittingBefore You’re Good
There can be a narrow line between making a lot of money and losing money. Do not get frustrated or let this effect you from realising your goal. You must learn to accept that there will be some bumps along the way, but there will also be victories. These bumps only make the wins feel that much sweeter.