Forum Five things that you must do to become a successful trader Here is a list of essential things that I feel a trader needs to have in order to become successful.
June 18, 2020
Stop overtrading! Overtrading is the one thing that will destroy your account like nothing else.
But understand that not trading is a position in and of itself. Honestly, trading too much and trading on a whim is an easy recipe for disaster.
This brings me to my next point. Have a trading plan Having impeccable self-discipline is absolutely vital to trading success. Therefore, you need to follow a trading plan, which first and formost includes how to execute your strategy over and over again with minimal error.
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This is what the bulk of my blog articles cover — how I execute my trading strategy over and over and over again with as little emotion as possible. The second thing that your trading plan should cover is your money management. How are you going to invest your money in each trade? My recommendation is to trade fixed investment sizes. In the past I did not do this given that I was trying to turn a small amount of capital into a larger amount. But by that point I was already very confident in my trading ability due to being profitable in the past.
Now, however, I do trade fixed investment sizes. That is, each trade I take is the same size.
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It sounds counter-intuitive being your goal as a trader is to make money. And emotion-based trading will destroy anybody.
Always define your risk as part of your trading plan. And never ever use the Martingale method of money management to recoup past losses.
Five things that you must do to become a successful trader
I can speak from personal experience on this point. You know how long my account lasted? Two days. But if enough time elapses, the binary options what is the success result is never pretty. It can also be helpful for your trading plan to have set trading rules that you willfully adhere to because you need infallible self-discipline to a successful trader.
And revenge trading is emotional trading, and will only serve to destroy your account.
You could also put into your plan the opposite rule about never trading beyond three winning trades in a row during the course of one day. Trading with a sense of euphoria or overconfidence can often be just as dangerous as trading with frustration.
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To summarize this point, the entire purpose of a trading plan is to keep yourself accountable. A trading plan, in some way, is basically a means of saving yourself from yourself, if that makes sense. Of course, in this day and age it only makes sense for it to be electronic based given that all your trading occurs on a computer.
My blog here on is actually what I consider to be my own trading journal, in addition to my personal thread on the forum here on binaryoptions. Keeping a blog or a thread on an trading-themed Internet message board is a great way to archive your progress.
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But starting a thread in the forum, as other traders have done, is a fantastic way to chronicle your progress and share it with others. It can work to inspire other traders and hopefully help them learn from your own mistakes.
When I first began, I would have some good stretches and also some very bad stretches where I would lose five trades in a row and other similar streaks. I think it would have been cool if I had been archiving my trades somewhere from the very beginning.
But regrettably, I never did keep a trading journal of any sort when I first started out.
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It can also be private if you so choose, by keeping screenshots of your charts with annotations showing where binary options what is the success took the trades and perhaps any brief description of your thought process as to why you took that particular trade.
Choosing the highest paying asset s your broker has to offer can be a good way to maximize your bidding 24 option margin. Choose assets that fit your personal trading preferences. For me, I always avoid exotic currency pairs in my trading.
To me, the chart looks like a mess on most, if not all, timeframes. Overall, skipping around from asset to asset and trading impulsively is never a good thing. Considering your trading timeframe is important, as well.
For short-term binary options, many like the 1-minute chart and many like the 5-minute chart.
Some use both nearly equally. With the common ten- and fifteen-minute expiries, using a timeframe encompassing price candlesticks with a shorter duration than the trade expiry makes sense. Viewing shorter chunks of organized price data can give you a better resolution of how price is acting on a smaller scale.
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For me, I think the one-minute chart contains a ton of noise given the fact that you get a limited viewing window of previous price history and the simple fact that not a lot of action usually occurs in the span of one minute. Therefore, when trading ten- or fifteen-minute expiries, I like to use the five-minute chart, which gives a solid blend of viewing the price action on a more microscopic level while still giving enough of a viewing window to see how price has been acting over the course of the past several hours.
Trading is largely about sticking with what works for you. Always strive to improve Looking toward resources that can help you improve your trading is essential.
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Investing in yourself in the form of education is important throughout life. Learning a new trading strategy or investment technique or anything related to trading can be very rewarding.
The Internet has many great resources binaryoptions. Conclusion Trading successfully boils down to self-discipline, consistency, and putting in the required effort.
Having a passion for trading in the first place is what should ultimately allow you to have success at it and for you to thrive at this pursuit going forward. Top Brokers.