How to become a good trader?
- VFX Blog
- For beginners
The popular scenario, according to which everyone comes into the trade for only millions, is long out of date. If we exclude the opinion of chronic losers, then successful investors and traders, thinking how to make money on binary options, set completely different goals for themselves.
Those who are hyperactive, but not ready for serious work, "spend" a lot of time and money on the market to prove to themselves (and in general - to others!) that: They are! They can! Earn every day! Then, as a rule, they leave the market forever.
Calm traders set themselves small, but quite realistic goals (treatment, education, compulsory purchases, financial stability), after reaching them they prefer not to risk anymore. Such players leave real trading to invest, usually with a small amount of long-term assets.
These traders prefer to keep a stable profit, constantly develop; trade for the sake of interest and pleasure, only they have the highest chances of becoming a millionaire.
Whatever exact binary option strategies you choose for yourself-do not expect concessions from the market. Before becoming a good trader, everyone should go through a few necessary steps.
The article is recommended for reading:
- very one who is just curious about what a binary option is;
- Beginners with no trading experience;
- Beginners with the first negative experience on a real account;
- Those who are already receiving a stable profit, but understands that they still lack something.
Let's start with a standard wish:
I have 100 dollars, but I want a million!
The understanding that you have to work in the market does not come to beginners immediately. Broker ads look simple: download the trading terminal (for free!), top up your deposit (in any way), see the location of just two CALL/PUT buttons – the earned million is already on the horizon.
However, on the path to understanding how to become a good trader, two main scenarios are possible:
- The market almost immediately goes against the trader, nervous reverse trades only bring losses, the initial deposit is quickly lost, the beginner cannot overcome severe stress (often - financial problems in addition), and therefore does not return. This is the safest solution for those who are not suitable for trading;
- The first trades bring a small profit - the so-called «binary option for newbie’s hit». A trader who does not know anything about money management begins to increase the volume and frequency of options. Money from the deposit "leaves" even faster than in the first case.
Despite the strict selection, the percentage of survivors after this stage is quite high – almost 50%. If the first losses and stress do not break the beginner, he will come to understand the next step.
We continue to trade...
After the first losses, we begin to actively "load the brain": information is consumed in huge portions in any form, as well as books, articles, videos, forums and endless analytics, especially on cryptocurrencies. There are paid training courses, as well as various trainings, webinars, tips and consultants.
The logic "the faster and more expensive the better" forces everything that is seen / heard / read / recommended (without checking by other sources), immediately applied in trading - it is good if on a demo account, well, or at least $ 1 options. Most often, a newbie overloaded with information tries to trade at once and for the entire deposit.
In 80% of cases, after such a "training" they remain without a deposit, but now the answers to the eternal questions "Who is to blame?" and "What to do?"
It is always the fault of a bad consultant/broker/strategy/free binary signals/lack of money (underline the necessary!), and not a trader. Usually such a period lasts 3-4 months, but some may "hang" in it for several years.
What to do?
Continue to learn, but on your. Check any information before using, as well as the trading experience of others. We listen to everyone, but we don't copy anyone, we check all the ideas on a demo account. We believe only in our strategy of binary options.
We trade according to the strategy, and the losses continue!?
Those who survived the first two stages finally understand the need for a money management system.
The stress has not yet passed, the fear of the deal still appears, emotions are still pressing in anticipation of the result, but there is already an understanding of risk as an inevitable market factor.
Because no one has yet discovered how to become a good trader without proper money management.
The problems of beginners are not only in binary options trading without calculating the correct expiration, but in the desire for quick earnings on trading assets with high or unstable volatility. Or without taking into account the profit on the transaction and other broker commissions. Without checking the risk management methodology on a demo account, we do not trade for real money!
These three stages are considered technical, if the enthusiasm has not disappeared, then now traders have a legitimate right to congratulate themselves - you have come to a thorough understanding of how to make a stable income.
There is a deposit, a strategy, and a money management system. Now you need to understand…
- The market cannot be predicted;
- Price movement depends more on the psychology of the bulk of traders and speculations of market makers than on economic laws;
- Trading is simply a series of winning and losing trades. It will not change the world order.
How to work in such a situation of uncertainty?
You should study your personal reaction to the market, turn off everything that interferes with hard work, and train yourself to open a trade only on top binary options signals, and not under the influence of emotions or external factors.
Prefer fast profit stability. Set realistic and consistent goals, considering not only money but also a sense of victory as a positive result.
We are engaged in psychological training, but there is no profit. All the hype!!
Inspired by advertising and greed, a newcomer to the market is like a hungry cat running after every mouse. Two extremes are possible: either the market analysis takes too long and the reasons for the entry advantage are missed, or there are too many rash trades.
An experienced cat does not run after all the mice, but catches one that he has chosen. Traders have a lot to learn!
There comes a moment when fatigue says that the market is behaving "correctly", the price will definitely go where the trader needs to! Hence, a trade appears with an unjustifiably large volume, multiple opening of new options on free live binary signals, or the expectation of a reversal to critical losses. Greed and ambition add something to the chart that is not there.
So what's the problem?
Your losses and a nervous breakdown do not prevent the market from moving in the direction in which large players need it. Of course, unless you are a market maker and "make" this market in millions of volumes.
Those who know how to become a good trader trade only the most probable signals. No signal - no entry. Even if you really want money.
- Do not believe in advertising: those who are going to trade according to the principle - looked at the market, opened a trade, took a profit, went to a restaurant - the market “eats up” first.
- The time spent in the market depends on the goal: be prepared to devote at least 4-5 hours a day to the market, like any professional.
- An option is the result of a workflow; most of the time will be spent on analyzing information and trading binary signals. As you gain experience, the efficiency of your working time will increase, and gradually the time at the trading terminal can be shortened.
- When it appears (no matter at what stage!) a trading idea that seems interesting, or, for example, there are doubts about the current actions, save it better on paper.
- Try to immediately do something to implement it (or test it), otherwise either the idea will become irrelevant (the market will change), or there will be a negative result, or you will forget, or you will be too lazy to do something in the binary trading platform.