There are two types of traders in this world: those who can earn money from trading and those who can’t.
On Binomo we’ve got plenty of both types. We’ve got those who seem to have the magic touch for trading and we’ve got those who simply can’t get any success, no matter how hard they try. And for those who can’t earn anything, it’s only natural to keep wondering why. What exactly are they doing wrong?
In all honesty there are many, many reasons for why you’re not earning money while trading on Binomo. You can find some answers in our article, Guide for Every Beginner Binomo Trader to Avoid Losing Trades. However it also can’t be denied that the reason for this, more prominent than one wished for, is linked to the kind of trader you are.
4 types of traders that you will find on Binomo
Curious which one suits you best? In today’s article, we’ll tell you all about the four types of traders you’ll encounter on Binomo!
Traders who don’t know anything about trading
The truth is, a vast majority of traders only join online platforms like Binomo because they heard that it’s easy to make money through trading. Their goal is to earn quick money and not really to learn the ins and outs of investing. They think that they can just deposit a small amount and quickly turn it into hundreds of dollars in no time at all.
Some traders will at first try practice on a Binomo demo account. If they manage to make it work by earning from a few successful trades, they will start to believe that they’re ready for the real thing.
Well, they couldn’t be more wrong. The Binomo demo account hopes to get interested traders familiar with trading, but it can’t teach you everything you need to know. Real trading is more complicated than just depositing money into an account and clicking a higher or lower button.
Indeed, simply knowing how the platform works isn’t enough to actually actually trading. You have to know how to read price charts on Binomo. You have to know how to implement various trading strategies and how to use indicators. You also need to have a good money management strategy in general so that you know when to continue depositing or investing money and when to stop.
If you don’t know anything about what I just said above, it’s fine – you can always learn more in the future. But you should never try to ‘play’ with real money until you’re fully equipped with all the needed skills and knowledge.
Traders who know too much about trading
On the other hand, there are also traders who know too much about trading. These types of traders have already familiarized themselves with the platform. They may even be part of various trading forums and groups hoping to seek out more knowledge. These types of traders are always on the lookout for new trading strategies and techniques that will help them land their next successful trade.
While having knowledge is good, it’s also important to hone your practical skills. So the biggest problem with these traders is that they always end up focusing on their techniques rather than the actual trading skills. They keep changing their strategies until they find ‘the perfect one’ and they’re always using the maximum number of indicators, making the entire process a lot more complicated than it should be.
In the end, although they may end up gaining in a couple of trades on the Binomo platform here and there, they’ll still end up losing more than they made.
Traders who are way too emotional
If there’s one thing that you don’t need to have if you want to make it big in trading, it’s emotions. Emotions can cloud your judgment. Emotions can make you throw caution out of the window and trade based on what you feel, not based on the facts in front of you. When it comes to trading, you should never use your emotions if you want to trade consistently and successfully.
However, emotional traders didn’t seem to get that memo. Most likely, they got their first advice from an already successful trader, which means their hopes were already up from the get-go. They know that they can make money through trading, and they would like to earn as much as they can in the fastest possible type.
At first, they might follow a specific trading plan. They will seem like the model trader, equipped with both the knowledge and practical skills to complete trades.
Sadly, this phase rarely lasts long. As soon as they make their first ‘big’ profit, they’ll immediately scrap their plans and let their emotions dictate their next steps. They might even take some huge risks. Obviously, this often leads to losses.
On the other hand, some emotional traders are way too scared to lose money. The moment they get consecutive losses, they start getting scared to lose more, and thus, stop trading altogether. They may not have lost more money, but they’re definitely losing out on the opportunity to profit simply because they’re too scared.
If you find yourself slowly becoming an emotional trader, it’s best to take a step back and relax for a bit. Trading should always be done with a logical mind, not an emotional heart. Only come back when you feel like you can already control your emotions.
Traders who are earning money
Last but certainly not least, we’ve got the type of trader who everyone aspires to be: traders who are earning money.
These types of traders typically started out without any knowledge in trading, but through sheer determination and hard work, they eventually started learning the ins and outs of not just the Binomo platform, but also of investing in general. They usually have a personalized trading plan, since they already know what works and what doesn’t work for them. They manage their money well and only invest a certain portion of their gains.
They know how to build their wealth on Binomo and they’re very consistent in their trading. They’re also constantly on the search for new opportunities to earn more from the markets. Even though they may have committed some mistakes in the past, such as trading based on their emotions rather than logic, they learned through those mistakes and eventually came out on top.
Which one of these types of traders are you?
No trader has ever become successful overnight. And even the most successful traders out there have already lost money at one point or another, perhaps due to lack of sufficient knowledge, having too much knowledge, or trading with emotions rather than logic.
If you want to be the fourth type of trader, you need to have lots of patience, dedication, and commitment. It might takes months or even years, but trust us, it’ll all be worth it in the end. By taking your time to study about investing and to learn how to control your emotions, you’ll be well on your way to becoming a successful trader soon.
Excited to become a trader? You can try your hand out at trading by signing up for a free practice account on Binomo!
Good luck on your trading journey!