Several Tips for Successful Binary Options Trading

Most traders lose in binary options because of many factors but the most significant factor is they don't know how successful trading be like or they are influenced by emotions that make them take careless decisions. I hope after reading my post, you will become successful and consistent traders. Consistent traders are not necessarily someone who are able to turn a lump sum of capital 100$ into 3000$ in a matter of a month. They are those who have trading as their regular activity and do it for a long time. They don't leave any aspect to guess work and random chance of the market. They don't care about how much they make but how their system is working in the market. Three main aspects have been raised below from my personal experience.

They don't use martingale in binary options.

Martingale is the most dangerous trading method. If someone claims they can use it for a long term winning, that is a trap. We don't know when we will lose 3 or 5 even 8 times in a row. Only two or three traders in the Forex market can make your trades a loss. Using martingale is nothing other than a gambling mentality. One more thing is when you lose so much money in martingale, your emotion cannot tolerate the risk you have taken so emotion will lead you to take careless trades. It is difficult to deal with emotions that are so strong. Martingale strategy means you are leaving your trading to a guess work or pure chance of random markets. If you lose the first trade, it doesn't mean your next trade has more probability of winning in the markets. In fact, achieving even 70% success rate is very hard job. Binary options can win you some money with only 60% or a little less success rate.

They use a fully tried and tested trading system.

We don't have holy grail indicator or system in the trading world. However,  there are systems that have more success rate than others but as long as your system has a consistent success rate, you are confident to use and profit in the long term. Any system can be improved through your experience in using it in the markets. To ensure a consistent success rate, we need to test it for many trades, at least 21-50 trades. For example, a system has very high success rate of up to 9 wins out of 10 trades but you have tested only in 10 trades. So this result cannot prove your system is 90% success rate. Some system works up to 100 trades to realize it consistent success rate. The more trades, the better the accuracy of testing. We need to test it ourselves. Depending on the sellers or others who claim the success rate is not reliable so you need to see for yourself. I hope you can find and download many free systems like trend trading strategy I have written on this blog.

They have plan and follow their plan no matter what.

To leave out their emotions intact and eliminate any destructive emotions, successful traders swear to themselves they must follow their plan no matter what situation they are in during their trading. Following plan can help you reduce your emotional impact towards your account. Plan functions as your insurance to secure your account living for a long term business. In addition, following plan can help cut down your stress as a trader. The emotion is the biggest enemy in trading so taking care of your emotional well-being is an important traders' job.

Successful traders don't often focus on the profit they earn but they do their trading just like testing their system in the real market. For example, they want to test their system in 20 trades so their plan is to follow the system strictly and see how many wins and losses their system has performed so far.  After they finish twenty trades, they will do some analysis about success rate and some improvements and mistakes they have to change in order to make their system more success rate. Then they will continue to test for another 20 trades. Rather than thinking trading as a way to make money, successful traders regard trading just like a way to test their predictive ability and system inside the real markets or something fun they do in their hobbies.

Trading plan should also dictate the number of maximum trades you will take per day. Over-trading will always result in losses because the more time you take to trade, the more risk you are exposing yourselves to in the markets. In trading it doesn't mean the more time you have in trading, the more profit you will gain. In contrast, more time of exposing to the market will make you become the victim of it and more stress during the day often causes you to open careless trades. Don't let greed to make you trade non-stop, 3 or 4 trades are enough for a day and it doesn't make any difference to strictly think that you have to at least take three or 4 trades for today. It all depends on whether the market has signaled you to take or not. If you can't find 4 trades for today, it is okay as you still have tomorrow endlessly.

In conclusion, the pillars of successful trading are no martingale, consistent winning system, and strict plan implementation. I cannot find any other aspects besides these three points. Trading should be a hobby rather than a day job. It is not still too late to refresh your trading ability and follow my tips above because everyone has to learn the hard lessons, especially how their emotion is responsible for the blowout of their account. We learn it all the time but most still repeat this mistake.