Psychology

Focusing on Goals

Every trader has different needs, and knowing yours can help you to become a better trader. The first thing you should do as you start out the year trading is to pinpoint what those goals are and move them into your long term strategy. Every trader, even the ones with the shortest term focuses, should have long term goals, and if you don’t, perhaps this should be where you start. By identifying performance goals, you can ensure that you will be one step closer to achieving favorable results. Looking at certain benchmarks can be a good start, but don’t be too concerned with how your portfolio performs against major indices like the Dow Jones Industrial Average or the S&P 500. […]

March 2nd, 2016|Psychology, Strategies|

Emotions Come into Play

Pretty much every single new trader will lose money at first. That’s just how the market works, there is a big learning curve and it takes time to acquire the skill necessary to make money. This is not the problem. The issue is that beginning something new can be very exciting and it is easy to want to commit yourself fully to it right away. It’s wonderful to approach trading like this, but in the case of binary options trading, the results can be disastrous if you’re not careful. Trading too much too soon will only have negative consequences. The bigger implication here is that in something that involves a lot of money like trading, the negative consequences translates into a lot of lost money. […]

December 4th, 2015|Psychology|

Getting to Know Risk

One thing any seasoned trading veteran will tell you is that you need to diversify your portfolio in order to alleviate risk and increase profits. When it comes to binary options, though, how do you create diversification, especially when your trades are not open for very long? In a marketplace where specialization is the key to success, diversifying your trades can be a bit difficult–but that certainly does not mean that it’s not possible. With some creativity and effort, you can add diversity and take charge of your profit making potential in a way that most other binary traders will never do. […]

April 27th, 2015|Psychology|