If you want to become a serious binary options trader then managing your emotions is paramount. If you start letting your “gut” determine how you trade then you’ll lose every time.
If you let fear rule your trades, you might work too conservatively to make money. If you are too optimistic, you’ll make trades you shouldn’t, and you’ll drive your win percentage down.
Learn Trading Strategies
Binary options trading seems simple on its surface, but there are strategies you should learn. This will come with a whole new vocabulary: Bollinger bands, candlesticks, trading signals, and more.
If you’re getting started, then you might want to take advantage of a wealth of free training that can be found across the Internet. For example, Binomo.com offers an extensive free knowledge base designed to help traders learn how to be profitable from the very beginning.
The more you read, study, and watch prior to making your first trade the better you’ll do. If you’re a person who learns by doing you should take full advantage of a demo account. Don’t start trading with real money until you’re scoring 70% to 80% wins consistently on the demo platform.
Learn the Markets
Most serious binary options traders don’t try to trade anything and everything. They choose a lane: Forex, commodities like oil or food, precious metals, the stock market. They find something they take an interest in. They read the daily news and know what might impact those markets.
They look beyond the graphs and charts to find out what might be behind the dips and shifts in the trends. They learn how quickly those markets typically move. They do their best to get a very good sense of what might happen from day-to-day or hour to hour so that they’re trading on more than hope.
Keep a Journal
A journal can help you see where you’re winning and losing with binary options trading. It will help you determine which strategies are working and which might need a little fine-tuning. It will let you conduct experiments so you can find out what works for you.
Journaling also helps you control your emotions by giving you hard data to work from. If you’re approaching every trade as a way to make more data instead of hoping this trade will be the one that brings you the “big win” you’ll have a reason-based experience with a steady stream of improvements.
This also allows you to check and test internet strategies without having to rely on faith. You can see how well they work for yourself, and you have the documentation to prove that they’ve done well for you.
Stick With It
Few people become highly successful binary options traders in a matter of weeks. It can take several months to really understand how to make a consistent income. Going in with the mindset that this can take a little time will keep you from getting too excited or too discouraged too quickly.