I see a lot of articles published describing what it takes to be a successful binary options trader. Indeed over my time as a trader I have written many similar articles and guides myself.
However most blueprints for success tend to be written from the standpoint that all you need to do is follow a simple set of steps to achieve success with binary options. Consequently they paint a picture suggesting that if you follow a set methodical path, then attaining profits from your trading is something of a certainly.
The reality of trading is however somewhat different. Unfortunately there is no magic formula or blueprint that you can follow that will ensure success. The road to prosperity and good trading results is not linear and to think that there is ‘one size’ formula is to simply the complexities of financial trading.
So to turn this on its head it may prove better to detail what will negatively impact your trading. In this way if you can identify the traits and obstacles to success, then by implication this should help you to succeed.
Here I offer some typical areas of failing that are best avoid as they will impact your chances of success.
Not Doing Your Homework
The number one reason for failure is that people are simply not prepared to do their homework. If you want to become a doctor or veterinarian you would expect to have to train for five years or maybe more. Even then you would expect to continue learning about your profession and improving your skills over a lifetime.
Placed in this context, it is therefore somewhat staggering that many people believe that reading a thirty page guide can provide them with the key to wealth. Spending a few hours looking at some charts is not going to turn you into a profitable trader overnight.
It is this sort of unrealistic expectation and more often than not, laziness on behalf of the ‘would be trader’ that ensures that their careers are short and anything but sweet. In short, if you are not prepared to put in the effort or recognize that success does not come overnight, then save yourself the trouble. Quit now and go do something else.
Constant Change
In many areas of life change can be a good thing. It can at times also be a good thing when it comes to binary options. It is of course important that you keep a flexible approach to your strategies as markets do not remain static over time.
However jumping between strategies at the first sign of a loss and constantly ‘tinkering’ with them is unlikely to improve your results. Spending your efforts trying to reinvent the wheel is unlikely to do you many favors when it comes to making money.
Top traders are able to show patience and stick with their strategies. If you have the evidence that they can deliver, stick with them. Oh, and be prepared to sit out of the markets if the conditions are not favorable
You Over Complicate Things
What many people who want Binary Options Success fail to realize is that not only is this method of trading very simple, so too are many of the strategies which will deliver you results. This is not just true of binary options. A simple approach tends to pay dividends no matter what form of financial trading you undertake.
The constant desire to load up charts with indicators will do you few favors when it comes to identifying profitable positions. The acronym KISS (Keep It Simple Stupid) was created for a reason. Complicated systems may occupy your time, but they are unlikely to improve your results. Simple binary options strategies win out every time.
Poor Timing
Identifying trading opportunities is only one part of successful execution. You also need to know when to pull the trigger. You won’t make profits from miss timing your entries, or exits for that matter. Many traders make this mistake and can’t work out why they don’t make money.
When picking your entry into the market, timing can be the difference between a profit and a loss. Look to both your strategy and your knowledge to see how you can improve your entry and exit points. It is a fine line between entering too early and hesitating for too long.
Lack of Conviction
At some point you will hit a string of losses on your account. This is when it is easy to lose your nerve. Compounded losses can quickly dent a traders nerve and bring emotions into play. Fear of adding further to losses can have a profound effect on a trader. Unfortunately the results are unlikely to be pleasant, leading to mistakes and poor decision making.
If you want to have success when trading you need to demonstrate the ability to show conviction in your trading. You should have thoroughly researched and tested your strategies so that you are able to trade with conviction.
And of course, if you trade within your risk profile with efficient money management you should not be in a position of losing your nerve. Succumbing to fear or any other emotion that clouds your judgement will set yourself up for failure.