Numerous fresh options traders choose to start trading on Binomo only because of their desire to earn money easily. It is easy to trade options, isn’t it? You just need to forecast correctly that the price for a selected asset will increase or decrease and start getting your profit.
In reality, money cannot be easy in options or in any other variety of trading. You are competing with other traders who hope to get your money. And there is one more player in the game. We mean the broker who hopes to get his piece of pie and it is of no difference for him who wins a trade or loses.
Here is the truth, you are doomed to losses trading options unless you change the situation yourself. But you do not know what to do? Keep on reading and you will find out this.
- 1 Are you Acquainted with Digital Options?
- 2 Two Causes Why You Lose Money Trading on the Binomo
- 3 What is the Best Route to Follow Trading on Binomo?
Are you Acquainted with Digital Options?
Options are created to let you earn money on the ground of a chosen asset’s price changes. It is not necessary to have the asset. You are just to play the market that the cost will increase or decrease by the time when the trade expires.
Your actions greatly depend on the asset and the time for the trade. Binomo will add a percent of your deposited sum as profit. Generally, you can get 70% or more.
Everything seems so straightforward. So, why don’t you earn money trading options on Binomo? Trading demands knowledge on not only the way options function, but on how to trade too. It is important to be able to read charts with prices.
This will help you to find out when it is the best time for trading and when it is better to remain aside. In addition to charts, you need to be aware of how some indicators operate. If you know how to read the charts and use indicators, you can easily make up a personal trading plan.
One more vital skill to master is which assets are the best option for a trade. For instance, it is better to avoid cryptocurrencies if you hate extremely volatile markets. And as soon as you have chosen an asset, you are to determine the most suitable time for trading it. Plenty of assets face volatility influenced by news.
Furthermore, the return on a trade will alter permanently during market hours. Having mastered these skills, you are free to begin trading. But in most cases, you lose money in the process of very trading. And here are 2 causes of this.
Two Causes Why You Lose Money Trading on the Binomo
You neglect the time when you must stop
It is thrilling to trade options. But in this excitement rush, you can forget one vital rule – when you must stop. If you do not have a trading plan, you will be unaware about the time to stop.
Constant trading can have certain affect on your mind. When you cannot concentrate, your chances of losses are higher. A simple way to make up your mind to stop is if you answer these 2 questions:
- What profit do I wish to get before finishing trading?
- How many consecutive losing trades do I need to have before stopping to trade for a day?
Applying too many tactics
All traders like to ask the question about the best working strategy. There are always some new strategies to appear. But in reality, none of the strategies is more beneficial than the other. An important thing is when the strategy is used.
You need to determine which of the strategies are convenient to you. After this, you are to probe it in the markets to assure that it is workable. Discover when it works most of all. Then apply it to get profit. When you apply too many strategies, you cannot concentrate. As a result, losses are guaranteed.
What is the Best Route to Follow Trading on Binomo?
The route to succeed in trading on Binomo is grounded on knowledge, firm trading tactic and perseverance. Let’s stop at the last two aspects.
Making up a firm trading tactic
The greatest trading tactics are the easiest. We recommend start trading with only one asset and one tactic (trend following, 3 candles, price action, etc). Then determine which charts and markers to apply when trading with the strategy you like.
Why? This will give you a chance to check if the strategy is valid. For instance, trend following just needs to join in a trading position when you determine a clear trend. To achieve this, you are to concentrate on analyzing the behavior of the market.
Make certain to test your tactic on the Binomo practice account a couple of times prior to investing real money into a trade. After this, determine the amount you are ready to spend on each trade. This is a biased decision, but we recommend not to invest more than 5% of your balance account on one trade.
Apply the tactic persistently and thoroughly
One of the basic skills you need to master as an options trader is perseverance. It is necessary to wait for the suitable conditions to reveal themselves prior to joining in a trading position. You might need to wait for minutes, hours or days.
RemeBear in mind that your money is at serious risk. If you trade only because the market ‘feels well’, will bring you money losses. The greater part of the time you will only spend sitting idly and staring at charts on your Binomo trading interface. In this way you will wait for the suitable conditions to reveal themselves. This is all what is required if you have a firm trading tactic.
Your first aim: Wait for the suitable conditions to reveal themselves
If you trade on a Binomo live account for $10, you might need a couple of minutes or hours prior to the suitable conditions reveal themselves. In this case, it is better to select one asset and use it for trading on the practice account for a start.
Thanks to this, you will learn to feel when the markets are the most advantageous for trading. The positive moment in this is that you will not experience any emotional pressure to trade. In this way, you will boost your chances for a successful trading.
Your second aim: Determine the sum you want to earn a day
If you have a fixed profit aim for a day, it becomes simpler to determine the sum for investing per trade. For instance, if your target is $50, you can choose to make 5 trades and every trade will bring you $10 as a profit.
This implies that you will just be searching for 5 cases where the market conditions are suitable.
Thanks for the time spent on reading this post. Success to you!
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