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.