- 1 Over 90% of Traders lose money on Binomo. But why and how can you join the 10% make a consistent profit on Binomo?
- 2 The main reason why only 1 out of 10 traders make money on Binomo
- 3 Understanding markets you trade
- 4 Why stick with only one trade instrument when starting on Binomo?
Over 90% of Traders lose money on Binomo. But why and how can you join the 10% make a consistent profit on Binomo?
Binomo statistics show, that nearly 90% of all active trading accounts produce losses. This brings us to the conclusion that only 10% actually make money on the Binomo platform.
Nevertheless, even these 90% of trading accounts make a profit from time to time. But still, they have more losing than winning trades. Obviously, such trading activity reduces the balance on these accounts. The big question is why most traders lose money or struggle to make any?
The main reason why traders lose money is inconsistency. They know dozens of trading strategies and try to use them in every market they trade. They also trade several markets at the same time.
Most traders have no clear trading plan and no strict rules for trading. These traders might have multiple trading strategies and trading all available assets on Binomo. But perhaps the key to success is consistency. Stay with one strategy and one instrument for an extended period of time. Losses are inevitable, but if you stick with your strategy, you will be consistent.
What most traders do, is jump from one strategy to another after every losing trade. They jump to different trading instruments use different indicators and each time increase the trade size. Does it sound familiar?
It is ok to try out various trading strategies and different money management rules. The problem is, these traders do it on a live trading account. But, if you want to experiment, always do it on a demo account because this is the actual purpose of this type of account.
As you experiment with a trading strategy, you might find what works best for it. Let’s say it works best at a specific time or day of the week. Maybe on a specific timeframe or trading instrument. Or perhaps in a specific trading condition such as ranging or trending market.
This is the key to success – consistency! Now you know the “secret” to avoid guaranteed losses when trading on Binomo. Its time to dive deeper into all aspects of consistent trading.
The main reason why only 1 out of 10 traders make money on Binomo
As already mentioned, consistency is the key element as to why only 10% of traders are able to make a profit on Binomo. But what they are actually are consistent at? The answer is the consistency at following one strategy. The strategy has proved to be profitable over an extended period of time.
(In fact that none of the strategies can guarantee a 100% success and profit.)
It could be a surprise for many, but there is no holy grail, and most trading strategies are able to show good trading results. Although successful trader must be very specific at choosing trading instruments, timing, timeframes when applying a strategy. Having said that, profitable traders make it as simple as possible and reduce the number of trading strategies they use to the very minimum.
Each strategy has a unique purpose and a very specific use-case. For example, one strategy works best in the Forex options market and another strategy works best with the long expiry times. Or one strategy works best in a ranging market while other work best in the trending market.
How to join the team of successful Binomo traders
When you find a trading strategy that you like, the first step would be to test it on a demo account. Not just try it for one trade, but apply it to multiple instruments, multiple market conditions, multiple expiry times and do it multiple times.
Some strategies will show good results, while some will make your balance go down. Strong statistical data will provide a good understanding of which strategy works best. It will also give a good idea about how and where to use it for maximum profitability.
Each trader is different and has his own preferences. Therefore, it is important to have a strategy that you love. And at some point, you will discover a strategy you are comfortable trading with.
Get very specific when trading. What means by this, is that from the start, you should try to limit yourself on the number of strategies and instruments for trading. Because when trading only few markets at a time will allow you to study them.
Its like getting to know a person, once you see him/her every day, you know his habits and can expect certain behavior depending on the situation. The same is with financial markets, each instrument is like a living creature, just take your time to get to know it better.
The next and very important step is to apply proper money management to your trading approach. Money management plays one of the most important roles in trading, along with trading psychology.
The term “money management” speaks for itself. You must learn how to manage your money. To be more specific, you must apply a set of rules within your trading strategy which tells you exactly how much and when to invest. This will protect your capital from huge losses and will help to produce profits consistently. There many money management techniques, but you must apply the one that you are most comfortable with. This will remove the psychological pressure and allow trading with a peace of mind.
While there is are good and bad strategies, it is not that hard to find a profitable one. The problem is once a trader finds it, the strategy continues to perform well, but the trader fails.
Be consistent, and you will avoid failure.
Use money management and you will avoid failure.
Don’t get emotional, and you will avoid failure.
Understanding markets you trade
It is extremely important to distinguish the market condition you are trading in. It will enable you to be more effective when making a trading decision. The ability to understand whether the market is ranging or trending will help to choose the right trading strategy and the best timing to initiate the trade.
Sometimes the best thing to do is sit back and relax. Wait for the market which looks familiar and where you can recognize the pattern. This will remove any doubts when placing the trade, as well as remove any stress from the fear of the unknown.
Why stick with only one trade instrument when starting on Binomo?
If you are a beginner trader, perhaps best would be to trade only one trading instrument. For many, Forex options is easiest to grasp as this market is being very consistent in relation to the stock or cryptocurrency markets. There are no huge moves in price and it much less volatile. These are the main reasons why the Forex options market is the choice for new traders.
If you are serious about making money, stick with one financial instrument. Get a deeper understanding and find the best Binomo trading strategy for this instrument. This should help to increase your profit ratio and of course the profitability.
If you’re starting out, I would recommend trading with one financial instrument and preferably a currency pair. Why? Your primary objective should be to make money.
Focus your energy and attention on one thing, one strategy, one approach. Learn it, understand it, master it, get confident with it and make a profit with it.
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