You will learn about the following concepts
- Take some perspective
- Do not stress too much attention on your losses
- Analyze your losses and learn from them
The overall concept of binary options trading is really simple – you are supposed to determine the price movement and gain some profit, if your projections are correct. However, if you are a beginner and you are executing some of your first trades, then you will probably struggle, especially during the first month of trading, as this is considered to be the toughest period for every novice trader. If you recognize yourself in profiles described above, then pay attention to the following pieces of advice, as they might make it easier for you to survive through the first month of your binary options trading career.
Take some perspective
It is always good to get a little perspective, especially in the beginning of your trading career. Binary options trading is all about price determination, you should always keep this in mind. You need to learn how to manage your money – don’t go for too many trades, because in most cases you will end up losing your investment. Do not invest all of your funds in a single trade, because due to your lack of experience you might be easily tempted to go for big returns. Try limiting your trading day up to 4 hours. This time frame is very appropriate for beginners because, it will keep you away from making incorrect decisions.
Do not stress too much attention on your losses
You should not expect to earn on every trade. Traders usually experience severe losses during their careers and it is crucial to get over them as quickly as possible. If a trader feels he/she has made too many mistakes, then he/she should probably take a rest. Risk management is something essential for every trade to master, because it helps avoiding the “black list” of loss after loss.
Analyze your losses and learn from them
It might be a good idea to start keeping a trading journal. Write down the reasons for making a certain bet, but remember to be honest with yourself – this is what the trading journal is all about. For example, you went long in EUR/USD, because it has been trending up for 6 hours. Write down the price, take some notes, and later take a look at your mistakes. This way you will learn from them and become a better trader. Always look back at your track record, even on a monthly basis and consider the types of mistakes you have made.
It is difficult to get over the excitement of binary options trading, especially when you have just started. However, it is always a good idea to take some time and keep up reading. There are a variety of reliable materials about binary options that can be found on the Internet, so invest some time and keep educating yourself. This will only improve the way you think and help you find new strategies and techniques that you can later use in order to generate profits.
Remember your experience
Since this is your first month of trading, you can consider yourself as a beginner, who has almost no experience. As you know, in order to become a successful trader you are going to need a lot of experience. You will not get millions of dollars during the first month of your trading career, and this is exactly why you should always go for small trades and practice different strategies. Losing is a part of the process, so accept it as something normal and keep forward.