Are you a binary options trader with an intermediate skill level? Here are the 3 most important tips you need to become a true professional!
What you need to know to take the next step with binary options
Once you have got the hang of binary options basic features, of how to handle your broker’s trading platform, and of what trading strategies and money management options are out there, you need to take the next step to becoming a successful binary options trader. For many trader, this isn’t easy.
Continue reading below the table…
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1. Trade less, not more
When many traders have reached an intermediate level, they start to feel like they know what they are doing. Therefore, they start to make more trades per day to maximize their profit. They think that a successful trader can make money in any market situation, and that they must aspire to become this ideal.
Unfortunately, this ideal is far from true. In reality, more advanced traders trade less and less opportunities.
In that way, binary options resemble regular education. We start out in school, where we learn a little about a lot of different topics. When we go to college, we specialize. We learn a lot about a specific. If we stay in academics and become professors, we will continously learn more and more about a constantly narrowing field.
Successful binary options traders follow a similar path. They start by learning a little about everything in technical analysis and binary options. With that knowledge, they can tell which aspects of technical analysis suit them best and which binary option type they like most.
They continue down this path. They learn more about what they like and leave everything else to other traders. After a while, they have found the one event they like best and can trade with the most success. From now, they only trade this event.
Successful brokers might only trade market openings. They place one or two trades when the European markets open, and one or two trades when the American trades. They win 75% of their trades with an average payout of 70%. This approach makes them money every week and keeps their account balance rising steadily.
You should aspire to become like these traders. Those traders who try to show off by claiming success in lots of different fields are usually not trustworthy. The most successful traders do only one thing, but do this one thing masterly.
2. Learn to let opportunities go
The most challenging aspect of following this strategy to success is being okay with missing some opportunities that do not fit what you are trying to do. Many intermediate binary option traders try to grab every opportunity – they want to trade trends, the news, and breakouts with all types of binary options.
This broad approach to the market stops them from specializing in one field. This specialization, however, is necessary to become successful. Much like good football players cannot play every position on their team, but are highly specialized in one field, you need to develop the mental toughness to let a few opportunities pass to make good use of others. Those traders who try to catch every opportunity usually catch none.
Admittedly, this advice is counter-intuitive. But that is why it is so valuable.
3. Stick with it
Once you have found a strategy that works for you and that you can continuously narrow down, you are on a good way. Unfortunately, though, it will still be a bumpy ride.
Binary options work with probabilities. This means, by the sheer force of the odds, you will sooner or later suffer a losing streak, even with the perfect strategy for you. During a losing streak, you mustn’t abandon your strategy. As long as you stick to what you know works, you will come out of your losing streak eventually. The surest way to extend a losing streak is to try to force your luck. Then you will always end up one step behind the market.
Successful traders have narrowed their strategy down so far that they know without a doubt that what they are doing works. That gives them the mental strength to stick with their strategy, even during a losing streak.