Bad trading habits
- VFX Blog
- Strategies
So, you have just funded your trading account again and this time you are sure that you know how to make money on binary options. You understand why the last series of deals was unprofitable, taking the entire deposit, we are sure that you will not repeat these mistakes. You are disappointed with the loss of money, but a new deposit gives you fresh strength, you feel the strength to overcome the market and get on the right way.
Does it remind you of anything? Many traders have been in this situation more than once, getting a false sense of hope after replenishing a deposit, or simply thinking that "this time will be different". Unfortunately, none of these things is a solution to the problems that cause you to lose money. It's time to stop closing errors with new money, reading economic reports, or buying new trading systems. The REAL cause of loss is always in your head.
Let's take a look at the 5 most common mistakes that prevent traders from making money on binary options forex signals, let's look at some solutions to eliminate them:
1. Trade has become a mania
Do you sleep, wake up and breathe markets? Do you count each point for or against your position? Find any minor reason to enter or exit? Do you forget about household chores because you can't break away from your charts? This is a reality for some traders who are obsessed with their trading.
Why is this happening?
The reason for your emotional attachment to transactions is that you have invested too much "must" in making money in the market, you see no other way to happiness in this life. These feelings lead to a lot of risk in a single trade, and/or frequent and unprofitable trading. Once you start doing this, you are DOOMED. You need to WAKE UP, recognize that there are no short cuts; you have to practice good money and risk management, discipline constantly. If there is no emotional attachment to each trade or real binary options signals, profits will quickly appear.
2. The constant discovery of new, modify current terms and conditions of transactions.
This is a very bad habit, so all beginners are advised to use the tactics of professionals when learning binary options: trade according to the "open and forget" rule. This is why it works:
Do you remember how you did not feel emotions trading on a demo account? The reason is simple - THIS WAS NOT REAL MONEY, THEIR LOSS HAD NO FINANCIAL CONSEQUENCES. This model of behavior should be followed on a real account, and then the decisions will be correct and logically justified. Even when the top binary options signal has appeared, the influence of emotions can make the trader less objective, cause a desire to violate money management, etc.
Remember, we do market analysis BEFORE OPENING A DEAL. This does not mean that situations will not arise when you need to close the current option or quickly open the opposite option. But, for newbies, "open and forget" is the best strategy.
3. Too much analysis.
A familiar situation? The trader closes doubts about the correctness of the transaction by constantly reading analytics, economic news and installing the next binary signals software. Example: statistics came out that, in your opinion, cancels the transaction. There is a temporary relief, and after 5 minutes the chart turns towards your forecast.
The desire to get as much information as possible is natural, but if there is too much of it, it starts to interfere with profitable trading. You can find different opinions on the Internet: some say the market is growing, the second is falling. How many traders have so many opinions, and only you can risk money.
To get out of the "analytical paralysis", you just need to accept the fact that the chart reflects all market variables, and then learn how to read and trade the correct live trading signals from the current trend, technical or candlestick pattern. As soon as you have confidence in your ability to read the chart, you will forget about all the controversial news that fills the Internet. Trust yourself, not expensive analysts. Very often, this is just a bad trader.
4. Search for a strategy with 100% profit (Grail).
Let's open a secret for our readers - the Grail exists in trading. In ordinary life, it is known as "patience." Patience indeed is one of the most important success factors in trading any asset. If you know what you are looking for on the chart, your exact binary options strategy will appear. Even if it will be a profit of 5-10% per month, there is nothing wrong with that.
Many people try to earn 100% on the first day after opening an account. This will be a strong desire to search for the Grail among trading systems, and then, when traders realize that there is no perfect trading system, they begin to treat options as a game of chance because they can not stop trying to get rich quickly.
Patience as an emotion is closest to the Grail and trading success. It comes with mastering binary options strategy when you have a trading plan because you know exactly 100% what you are looking for and when to trade it. You must accept and believe in one trading concept and master it perfectly. No need to twitch and change every time after one or two unsuccessful trades. Your doubts, greed and uncertainty must be under control; otherwise, you will never be able to make money all the time.
5. The constant change of tools, strategies, uses "author's super methods".
On many forums and sites dedicated to trading, moderators close topics of discussion of complex strategies and indicators, as knowingly unprofitable. But they continue to appear, it seems that people have a natural inclination for such things. Perhaps someone manages to make money on them, but before using any technique of technical analysis or auto binary signals, keep in mind the following restrictions:
- The market is dynamic and constantly changing. A rigid set of trading rules cannot work effectively in the medium to long term. The situation is new every day, and computer programs cannot reprogram themselves every time the market changes. Here, the human brain is one step ahead of automatic advisors.
- Free binary signals do not know when patience is needed and when it is not needed. A finely developed sense of trading on price movements defeats the computer because there are many hidden factors that only human eyes can see. If the algorithm sees its conditions in the market, it will issue a signal to open or close a trade, regardless of any other conditions that may indicate that it is better to stay out of the market.
- Human emotions and perceptions of "fair price" in the market are the main drivers of price movements in all markets. Then why do you try to trade in the market only with the help of indicators or robots? In other words, a human is the best candidate for reading and understanding price movements, even if High-Frequency Trading (HFT).
- The use of complex strategies can be a consequence of heightened self-esteem hen a trader begins to consider him unique, able to see further than others and open a deal “against all”. Of course, self-confidence is needed, but only when it is under control. Let's not deceive ourselves - only market makers really move the price in the right direction. The rest of the market "crowd" is better to stick together and try to swim not against, but behind them. Otherwise, losses will come so quickly that you will not have time to find the best binary signals provider or simply close the current trades.
Summarize. Price movement shows the thinking process of all market participants and reflects a general view of the market. Thus, having learned to read simple price movements in the market, we will be able to find patterns and setups, understand how binary options signal work with a fairly high probability of making a profit. SIMPLICITY WORKS…