To turn in profit trading options on a consistent basis, you should follow a methodical plan. Write it down in detail and ensure you always stick to it.
There are many platforms filled with current trading tips. There are even some designed for traders to discuss and advice one another. Though the idea for such platforms may be noble, it can do a lot more harm than good to your success.
When executing trades, avoid any discussions with other traders. Opinions that contradict your strategy will only cause you to second guess your strategy and make trading stressful.
This is the quickest route to losing money. Once you’ve set a plan, follow it even if a trader you respect plans to sell when yours says you should buy.
Ensure that you monitor and record every trade that you make. Take time to do thorough reviews weekly and monthly. After a month or so, you can make adjustments to your trading plan based on your observations.
The daily reviews should not be skipped as they are a way to see if you deviate from your strategy.
As a trader, failing to plan is indeed planning to fail. Develop your trading method and stick to it. The only changes you make to it should be prompted only by your experience executing it.
Get a Trading Referee
Having a trading strategy and sticking to it are two different things. You will need to have a lot of discipline to ensure you never deviate.
This is easier said than done. Even the most seasoned traders suffer from lapses in discipline.
It is therefore important that you find a trading referee that will keep you accountable for your trades. This will help keep the lapses and costly mistakes at a minimum.
The referee you choose should be someone who will demand the highest standards from you.
It could be a friend, relative, coach or your mentor. They do not have to be traders themselves, but you have to let them in on your trading interests.
Set a schedule for updating them of your progress. It should be daily if possible but not longer than a week.
This will ensure that any lapses in your discipline will not last too long. With the knowledge that you will have to report your trades to someone, you will be able to stick to your strategy.
Having a trading strategy is the foundation of successful trading. However sound your trading plan is, you may not be able to execute it perfectly from the onset.
Though it dictates when you will trade, the market conditions you trade-in and how you enter trades, it may still prove to be difficult to execute perfectly.
Start by practising on the components of your strategy individually. Once you have mastered each, you can practice them all together. This is how you will instil habits required to sustain the discipline required for success.
Trading conditions change every day and with every trend. For you to be able to identify the suitable conditions for you on time will require a lot of practice. It is better to test your trading plan on a demo account until you master it.
As you get better, you can start making tweaks to improve your trading plan.
Seek Mental Clarity Before Starting a Trading Session
Ensure that your sole focus is on trading before you start any sessions. This is not the time to watch funny videos, check your email or social media accounts.
Eliminate all distractions and take a minute to clear your head to ensure that you are focused on the present.
Create your own pre-trading routine to help you become more mindful of your goals. Close your eyes and turn all your attention to your trading plan.
Visualize it and commit to not deviate from it. You can even summarize it with a list of affirmations that you can use as your trade.
Before you begin trading, make sure you check the economic calendar to find out any events that may affect the market. This will help you make more informed trading decisions and avoid surprises.
Make it a habit to follow your routine. These small steps may not seem like much but they will give you more control over your trading.
Set up Measures to Manage Risk in Option Trading
Risk is an unavoidable aspect of any investment. The key to becoming a successful trader, in the long run, is your ability to manage your risk exposure.
Having a trading plan and sticking to it is the first step, but it should be backed by a sound baseline for how much you can invest in any one trade.
You should always be comfortable with the level of risk that comes with any trade. Putting a huge chunk of your investment in one trade is not a sustainable approach.
Even the best traders have losing trades. If you put too much into one trade and lose you will end up with the pressure to recover your loses, which could lead to more losses.
Set up Measures to Manage Risk
Options trading has its own risks, but it can be very fruitful with the right approach. However, becoming a successful trader requires patience and commitment.
Keep in mind that the most profitable traders are not those with the most winning trades but those with the fewest losing trades.
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The strategy is regarded to be among the best strategies that beginner traders can apply. Unlike similar previous strategies, this strategy is specifically for beginners. The strategy involves using the chart to get a triangle before trading. The triangle pattern displays an inevitable breakthrough price. Kinds of triangles are rising and falling, indicating price increase and decrease respectively. Traders can trade on a price increase and decrease after understanding the pattern.
The 15 minutes strategy
It is one of the best strategies for beginners in South Africa intending to make quick profits. When using the strategy, South African traders are guided by a 15minutes timeframe. Candlesticks charts are used in this strategy and you only need to find 3 candles of the same colour and wait for the rollback.
Among the 5 binary options trading strategies for beginners, this strategy relies on the market situation, the price of assets and market movements. South African traders can quickly get a good start if they use a good strategy. However, the traders of South Africa require a clear analysis and an organised approach. In all 5 binary option trading strategies for beginners, traders should know that all strategies can be applied in various moments and times. In addition, traders should mostly use the diversification strategy among the 5 binary options trading strategies for beginners as it enables them not to invest all their money at once. To avoid losing high amounts at once, traders should get sufficient options to invest small amounts per trade and make 10 investments. This strategy allows you to trade continuously when making an unprofitable trade.
This method is less risky and excellent for traders who are interested in taking slow and secure steps. The strategy works on the basis of doubling investments when the previous one fails. Traders can use the strategy even after winning, but they need to ensure that they are not overtrading. To utilise the strategy efficiently, you should first get an asset moving either up or down. The strategy can be combined with varies tools provided by their broker, such as market indicators.
The 5-minute strategy
The method is considered to be the easiest and entirely important for beginners. You do not require an understanding of binary trading when using the strategy, and its rate of accuracy is also high. When used appropriately, traders will gain from this method that can be applied in any market, anytime. As the name suggests, the method allows getting a position 5 minutes before the expiration time. However, you need to get assets moving in a steady direction and determine the highest value of the assets as it is the point of the trend reversal.