Have you been trading binary options for a while but feel as if you are not making any progress? Perhaps you have had some success but seem to have hit a plateau? There are many reasons why your binary options trading may not be improving as you would like. Since it is never too late to evaluate your progress and figure out what you must do to bring your trading to the next level, ask yourself the following questions; these will help you pinpoint why your trading is not improving, as well as give you the motivation you need to turn things around.
Have you set goals?
For those only interested in casual binary options trading, goal setting may not be a priority. However, if you are serious about increasing your profits and improving your skills, outlining your short and long-term goals is key to your success. Creating a plan will not only help you maintain your focus, but it will also make you accountable and help you manage risk better.
Your goals can be as detailed as you want them to be. At the very least, you should work on determining your basic investment approach, which includes the assets you plan to trade, how you plan to trade them (i.e. 60 Second options, Above/Below), and which broker you intend to use. Of course, you can get into a lot more details than these three elements but as long as you include these basics, you will be on the right track.
Have you devised a money management strategy?
Since binary options trading is sort of like the high-speed version of more traditional investments, you can easily get lost into spending more money than you can afford to lose. You may be making considerable profits, but if your losses are just as high, you are not making any progress. By creating a money management strategy, you can determine just how much you are willing to lose. Generally, financial experts believe you should not risk more than two percent of your active balance. It may sound counterproductive at first, but risking less money over time is the smartest strategy to a sustained success in binary options trading.
Are you able to keep your emotions in check?
Most traders who are struggling to be successful have one thing in common: they make trading decisions based on emotions rather than facts and legitimate strategies. Although it may work a few times, you cannot develop a long-term successful trading strategy based on hunches or what ‘feels’ right. Trading binary options requires that you develop a solid trading psychology. You must be level headed in order to maintain control over your decisions. Strive to be a rational trader rather than an emotional one.
Are you using the right trading strategy?
Sometimes, your trades may not be improving simply because you are not using the right strategy. Choosing which one to use can be overwhelming so the best way to proceed is to select one with a proven track record that is appropriate for your level of expertise. Stick to it until you make it work; if you strategy jump, you will never allow yourself to hone in your skills. This requires commitment but it will be worth it in the end.