Some people say that binary options trading is a very hard market to master. Just like a savage creature that never sleeps and wakes up the whole day, the market may be cranky and unreasonable. And with just a bit of disturbance, this creature can simple go in an unpredictable manner from submissive to unstable and then go back to its previous state in a second. Based on the reality that we are in an ever changing environment and uncertain events, it will always seem like this growing vagueness will just make a fiercer creature.
As the world economy is facing the probability of being sluggish and as leaders fight with each other to solve such economic conflicts, what can traders like you do to stop this ambiguity from crippling you with fear? The good news is that there are two easy ways to battle such uncertainties and do away with your fears. The first way is by accepting reality and the second is by preparing for it.
As stated by Birdgewater Associate’s founder Ray Dalio, “No matter how hard you work, you can still b wrong.” His quote has a very literal meaning and this applies to all of us. It does not actually matter how long and hard you have been in the business, you cannot escape mistakes. Errors are natural phenomena. In trading, this phenomenon can happen every second which is why acceptance is necessary. Otherwise, when you do not accept the fact that you can always lose or make mistakes, you will go crazy from trying to make the perfect move.
Even if you think you have great skills in analyzing trends and that you have the right mathematical formula towards tan unblemished trading record then you might want to think twice. The truth is that unless you are a clairvoyant and can see what is up ahead then you will cannot predict and assume market movements perfectly. You will have losing trades. If you cannot put deeply in your mind Dalio’s principle, then you will always be blind about reality and you will not be able to adjust to shifting conditions.
However, not all people are the same. Thus, the vehicle towards a shift to accepting reality can occur at varied moments for all of us. Nonetheless, it is more than a reality that this realization will not come until after the last experience.
When you want to minimize risks you have to prepare. If you are serious about what you are doing then you need to plan seriously. For example, your physician would say, “I think you are going to die. But let’s see what I can do with your body before it gives up.” This a statement that can lead to numerous lawsuits not unless the doctor has a better way of saying it and a better plan of action. However, truth be told, it does not matter how many years of practice that physician has, he would still need to have a plan by stating with some tests and doing necessary procedures. Just like a typical medical operation or procedure, trading is also very serious. And since unforeseen elements will always be there, improbability will notably be minimized through the right planning. Taking time studying and controlling things that you can, will help minimize uncertainties. This is because you have already assessed and prepared for the worst. If you have already assumed your trade outcomes regardless of market increase or decrease, then you will not be very afraid.
Preparation and acceptance seem like too easy to understand and too easy solutions for overcoming feelings that you get from facing unknown factors. However, it is always easier said. Doing it can do away with the principle that if you work harder and realize the reasons that made the market move, then you can make it as your edge. Yes, the binary trading market can be quite illogical and this can stay this way longer than it can be solvent.
Being a trader can be lonely. Trading is a lonesome industry not unless you are working for a bank or a huge financial institution or you control an investment firm. This is probably the closest experience you can have with other traders but other than working for banks or firms, you work alone. Most traders rely on themselves especially when it comes to finding a mentor that can guide them on the journey towards becoming a constantly profitable trader. If you are one of these traders you might need to scan through trading books, look at blogs and forum posts in order to look for the right mentor and information.
Dictionaries commonly describes mentor as a trusted guide or counselor. However, this definition is not enough because there are some qualities that mentors should have other than being just a guide. Here are some of the other qualities that you should look for from your binary options trading mentor:
Trust is always the key to any profession. If you do not trust anybody around you then it is hard for you to understand your environment. This is why it is ideal to have a trustworthy mentor. Your mentor should be someone whom you can open up to because you will not only be following his or her trading style but your mentor will constantly assess your skills. If you do not trust your mentor’s critiques or judgment, you will find it hard to have an open mind. Without an open mind, you will not grow as a trader. Moreover, on your trading journey, you will surely do live trading. Ask yourself if you fully trust your mentor to teach you so that you will not throw away hard earned money, effort, and time.
Besides trusting your mentor, he/she has to be someone that inspires you. This is way beyond the trading scope but an inspiring mentor can be a good influence on your part. Trading should surpass the binary options market. Discussions with your mentor should include subjects like relationships, faith, and of course, goals.
This is probably one of the most important qualities that every professional should have. This goes side by side with being trustworthy. As mentioned in so many trading articles, the binary options market is unforgiving. If your teacher makes you a promise that you can be a hundred percent successful you have to think twice about it. He/she has to be realistic and must able to let you understand reality and tell you that binary trading is not a simple business. As a mentor it is part of his job to get you ready for rough times.
A trustworthy mentor must have proof that he/she knows everything that he is talking about. When choosing a mentor, you must look at his/her track record most ideally having at least three years of experience along with a complete record that talks about his trading strategies and processes.
5. ENCOURAGE INDEPENDENCE
In trading, it is hard to find mentors who stick with you until the end. Thus, you need to find one who will be with you until you trade live but at the same time encouraging you to trade on your own. A good teacher must be able to allow you to recognize and become confident that is ideal to trade alone because in the end you will rely on yourself to make the calls.
With all of these traits present in your mentor, you can be successful in your binary trading venture. All you have to do is be careful and be keen on the prices that they offer.
The Swiss proverb says, “ Greed is the most dangerous emotion.” This is very true for most traders. It is an undeniable fact that a lot of traders have suffered a lot due to greed. This is actually were the famous trading saying “Bulls and Bears make Money and Hogs get slaughtered” came from. Hogs are the greediest of the animals an in trading there is no mercy for traders who embodies hogs. Because of the risk for people falling into the pit of greed, it is pretty much ideal to understand what it truly is.
WHAT IS GREED?
Common dictionaries describe greed as a selfish and extreme longing for more of anything (including money) than what is needed or necessary. This sounds familiar right? Yes, many of us are guilty of being greedy. It is our longing to get more returns that push us to trade and such desire is no longer healthy and then become dangerous when done excessively. This is why it is often deemed as a very dangerous emotion for anyone involved with trading. This is considered as something worse than fear. Fear paralyzes you and keeps you away from trading however; you still have your capital preserved just as long as your hands are in your pocket. On the contrary, greed lures you towards acting in times and even in ways that are not good. This is why greed is dangerous.
WHAT ARE DANGERS OF GREED?
Greed can let you act in an irrational way. As a trading greed may come on various ways including, overtrading, market chasing, and over leveraging. These are things that you should exit once you know it is happening to you already. As a matter of fact, greed is similar to alcohol and drugs. It allows you to do foolish things especially when you have too much already. When greed has already clouded trading judgment, it is then that you are drunk with it.
HOW TO OVERCOME IT?
Just like other necessary gestures, conquering greed needs more discipline and effort. It is not that easy but overcoming it is possible. It’s just about how to tame the ego. You need to accept your fault and admit that every call is not always right. There are times when you cannot grasp the full move of the market. There are also times when you will miss out on a good set up.
This is how trading is. The moment you learn how to accept that you are smaller than the market and that you will surely commit errors, it is by then that you can be more focused on following your plans and not submitting to greed. Many successful traders believe that it is better to be lucky rather than simply be good. For these traders, it is better to depend on luck rather than trust on their capabilities. This is not good for the ego, but it is great for the trading psyche. Don’t let trading be a blame game because of greed but rather make it a thinking an analysis game.
In Binary Options trading, preparing yourself and your tools is just half of a long or short battle. So what is that other half of the battle? Execution makes the other half. Managing open positions properly is as vital as thinking about a great and strong trade idea. Here are three tips that can help perform trades with success.
1. SYNC YOUR MIND WITH BINARY OPTIONS MARKET
It does not matter if you are a professional fundamental or technical trader, it is impossible to deny the fact that economic changes and reports in the market sentiments influence in price actions. For this reason, it is idea to update yourself in occasions which influences open positions.
Some traders say that the reaction of the marker to news is more vital than the news. However, you will ask yourself how you can take advantage of that reaction if you do not know what the news is about? Never forget to be attentive to probably game changers which can invalidate or deflect from your trade result assumptions.
2. DON’T BE STIFF ABOUT YOUR TRADING PLAN
If you have done your homework well and learned more about binary options then you will surely be aware of the fact that flexibility is ideal for your trading plan. However, being flexible does not necessarily mean that you have to be really spontaneous. This does not also mean that you should never follow your trading plan. This simple means that you are prepared to have adjustments according to factors which have since changed when you did your primary change.
When you are flexible with your trades, it means that you have to check your set up validity as time goes by. You have to put in mind that the longer time you have open trades, the more it is exposed to varied event risks. Ask yourself how long you primarily planned to have open trades? You also need to ask yourself if your set up is valid after some few weeks, days, or hours. You need to evaluate you’re set up validity in a regular manner by checking whether the currency pair market environment is still in line with your preference.
3. UPDATE POSITION SIZES AND YOUR ORDER
It does mean that you have the perfect reward to risk ratio as well as fool proof plan for trading, you cannot tweak your position sizes and order levels when the situation is calling for it. Just put in mind that you need to minimize risks.
If some factors in your plan are not going towards your desired manner, but you still believe that it deserves credit, you may opt to reduce your position sizes. On the contrary, I you believe that price action resulted to be good than what you have assumed, and then you may make some adjustments on your losses, pressing on our advantage, and getting limited profits. It is much better if such probable adjustments for different scenarios can be included in your primary trade plan. However, you still need to be focused well enough in order to do some ideal trading decisions.
Put in mind that you can follow these simple tips when you do your trade so that you will not be wasting your plan and wasting time.
Your date will surely find you geeky when you blabber about trading during your date. If you want to impress her with your knowledge in trading make sure that you are using the right words, stuff that she can comprehend. However, if you are that desperate to help her understand what you do, then you might as well have the right knowledge in your brain. Binary Options trading isn’t that impressive for most women to begin with, but there are some ways that you can do to sweep her off her feet.
Trading is quite complex. Because when you have made a great trading accomplishment, it would be worth it for you to brag about it to your friends or girlfriend. Nonetheless, before running off and telling your girl about your glory, tell yourself not do it! There are many other ways out there that you can do to brag about your achievement rather than telling your girl about your trading adventure. You have to be realistic because by doing so you will probably scare her instead of impressing her. Letting her see your trade screen, blabbering about jargon terms such as leverage, resistance and support, and technical analysis will make think that you are a gambler.
If you are a girl and you are reading this article right now, you might be so lucky to date some cool guys who love trading, but do not talk about it to you because they don’t want you to be involved with it. Most traders actually believe that trading is risky and total waste of money that can be saved or spent on more important stuff. You can save the trouble of having your date or girlfriend be mad or disappointed at you. There are better ways to shout out your victory. Here are some tips that you can put in mind:
TIP #1 – GRASP THE LIFESTYLE OF TRADING
The very first thing that you need to do is to embrace the lifestyle that you have. Put attention to your job and try to work diligently at trading until the time comes when you can let go of it. When you trade for a living, it doesn’t mean that you let go of everything and then suddenly you become a very successful trader. Just like any other activity in the world, trading takes time. Trading needs a tedious trader honing such skill and building such system can take time. Just put in mind that you need to keep your job and be glad about what you have and have a growing account. Of course, as you progress, you can slowly cut back on your hours and have vacations when possible. When you have earned big from trading, you can then treat your girl and if she asks you where you got the money for lavish spending you can then tell her you worked for it.
One vital thing you have to understand when embracing your trading lifestyle, you have to learn more about trading and consider markets as part of your life. While doing so, make sure that you also grow as a person. Girls will surely love it when you learn great stuff about yourself and grow with this learning. When you share your insights with your girlfriend, she can be proud of you. Remember, never brag about the money involved in trading. Just tell her that you have become more adventurous and reached a better perspective. Trading is a long term venture, and it is something that can help you learn new things through time. The moment you learn something good about it, then you can share it and brag about it.
TIP #2 – GIFTS ARE COSTLY
Buy her gifts! Women love presents from men. Who doesn’t? So if you have earned big time from trading just buy your date a gift and don’t brag about trading to her. You do not have to tell her about your lucky trading ventures. Just tell her that you had a great day! A small thoughtful gift can do the trick
Another impressive gesture would be building your business from your trade earnings. A majority of traders dream of trading for a living but what many do not realize is that they have to trade like it is a business. Make sure to grow it to the extent where it can sustain your life and not ruin it.
TIP #3 – CONFIDENCE MATTERS
Confidence is always the best way to impress anyone. This is the first ingredient for leaving a good first impression to anyone. Learning how to trade and building your own business and becoming successful are some other key ingredients towards trading success. Think of your date will react when you tell them an honest story of your success.
This article was more for fun, to relax you from all the financial terms and seriousness but at the end it has some valid points and if you find anything that could work for you, why not give it a try. Of course, do not stop learning and taking action.
There are many binary options website out there that offers strategies for your trading needs. However, because of the number of websites that lure you to trusting them, it can be hard to decide which one you should trust. If you are trading USD and EUR currencies we have this great strategy than can help you be successful with your trading ordeals. USD and EUR are the most commonly traded pairs in the foreign exchange market. This is why there are some strategies that you have to rely upon. Trading both currencies is a smart move because these are very liquid and is less risky to sudden unstable movements. Another reason most traders chose both currencies is that it almost trades 2/7 and typically has good prices as compared to other currency pairs.
HOW DOES IT WORK?
The EUR/USD simple strategy for binary options was specially created for using low/high and touch or no touch kinds of binary options. It makes use of PSAR and MACD for signals. Novice traders can surely appreciate BO.net. Trades, as well as Analysis, depend on thirty minute charts. This means that is quite a short strategy. Its momentum indicator here is the MACD and the PSAR is for trend determination. PSAR and MACR are set to standards which are 9,12,26 for MACD and 0.20 and 0.02 for PSAR.
This strategy makes use of 2 signals specifically bearish and bullish signals. For bullish signals, you need to wait for PSAR to be below the price action and the MACD has to be bullish. This shows that the trend is bullish and that it has a bullish momentum. The opposite is correct for the bearish signal to transpire. PSAR begins above the price action and the MACD crosses over from a bullish signal to a bearish signal. To enter a trade, you need to have either signal. We suggest a touch or no touch for its trade when there is a strike in price that is below the resistance level for bulls or for bears – an above support. Because this is what resistance and support can offer a barrier towards trade. If this is the case then it is recommendable to take the no touch position.
WHY THE EUR/USD STRATEGY IS NOT SO GOOD?
This strategy may not be so good because it advices your to use the touch or no touch options which is a kind of trading that typically comes with great returns, but also comes with great risks. The fact that it only comes with one touch for pay out makes the required levels quite far from what you will most likely expect on asset movement. Moreover, if you choose the no touch due to support and resistance and some factors, then you are taking risks that the movement will just go as far as the line. It also sucks because longer term trends are not that important here.
WHY THE EUR/USD STRATEGY IS GOOD?
This strategy is quite good because you can use 2 approved indicators with good entry points. These indicators also suggest what kind of binary option you may trade. A likable and commonly used indicator here is the MACD making it a very useful tool. As mentioned before, it is considered as a momentum and confirming indicator. If you have less experience on PSAR, you will come to like it if you use this strategy. It can be used in binary through forex or futures trading and offer great signals. When you use this together with MACD, you can surely improve your binary options. The strategy comes with well defined signals lacks some extra support for long term trends. With this being said, every buy signal needs the two indicators for confirmation thus doing away fake signals.
If you want to trade short term binary options, this can be a great strategy. But it can leave you with some stipulations. The thing that you can change would be the kind of option from the referred touch or no touch to a high or low style position.