Seven Signs You Will Achieve Binary Options Success

Binary Options Success

Becoming a top trader and gaining access to the wealth that goes with this is the goal of most people who start trading. However  achieving binary options success will not  prove to be the end game for the average trader.

Binary Options SuccessRather than becoming rich and successful, the average Joe trader is unlikely to see such rewards. Even with access to the financial markets around the clock and an array of trading strategies at his fingertips the average trader will likely fail to make money.

Given that is a widely known fact that most traders will not make money despite their efforts, it may seem somewhat staggering that so many people choose to pick up the mantle and try their hand in the markets themselves. Maybe it’s the lure of profits, overconfidence or the genuine belief that they will be one of the 5% of traders to make a profit from trading.

So what does it take to a make money and triumph from your trading? Well here we have put together seven signs that show you have what is required to become a successful binary options trader.  Maybe some you agree with and some you don’t. Please feel free to add your thoughts and comments below.

1. You Know What Your Chart Is Telling You

The cornerstone of any successful trader is knowing how to use your tools. All too commonly traders seem to want to accumulate tools and strategies without ever taking the time out to understand how they can use them effectively.

Learning how to read a binary options chart is an essential prerequisite of trading success. Even before an indicator is loaded you should be able to gain a solid impression of the current price action and whether the price is more likely to rise or fall.

Knowing how to interpret the chart when it is stripped bare is one of the key skills that you should look to acquire. You can then apply this skill to any market or asset that you want to trade.

2. You Don’t Think Indicators Rule the World

A lot people take up trading believing that hunting down prospective trading indicator is a prerequisite of finding the ‘Holy Grail.’ Each time they find an indicator they put it on their account without proper assessment and run it until they hit draw-down on their account. They then bin it as being ‘no good’ and repeat the process of looking for the next ‘big thing’.

Unfortunately 99%  of these traders will never learn that making money from binary trading  is based on more than simply finding a good trading indicator.  While there is nothing inherently wrong with using indicators, they should not be viewed as the cornerstone of your success.

In fact while some individuals find indicators a good addition to their trading toolbox, others have success by shunning them completely. They are simply one part of the trading jigsaw. They are not a requirement to make money.

3. You Have Tested Your Strategy

If you are planning on being serious about your trading then you will have thoroughly researched and tested out your strategy. This is where a using a demo account to test your strategy comes into play. It will allow you to find any weakness in your method and refine it before staking real money.

If you use your demo account seriously you can learn a lot about both yourself and your trading method . You can then take this any lessons of value that you have learned and apply them to your live trading.

If you simply use your account in a hap-hazard approach, taking on huge amounts of risk in an effort to make as much money as possible, then you are unlikely to learn anything.

Even if you are given a strategy that is expected to work you should always test it out for yourself to see how it performs. Variables in markets, brokers and even the approach that you personally take can all affect the performance.

4. You Understand How Emotions Affect Your Trading

The irony of trading is that it stimulates emotional responses in the trader at precisely the moments when we don’t want emotions to cloud our trading mind and judgement.

Learning to discipline your trading and building in emotional ‘triggers’ to you trading that you can recognize will help you to avoid common situations that can impact returns. For example, you might want to take a break if you lose three trades in a row or stop trading for the day at a pre-determined profit level.

Achieving success with binary options requires that you are able to control your emotions.  Ultimately you will want to prevent them from influencing your decisions when trading.

5. You Trade According To Your Strengths

It would of course be stupid to expect to make money from a card game if you played your weakest hand. Likewise to enjoy trading success you need to recognize your strengths and align your trading to them.

A sign of a good trader is one that is able to recognise their strengths and weaknesses. This requires a great deal of honesty and often an admission of failing. However this actually leads to strength and greater success over the long run.

For example if you lack skills in an area or struggle with trading short term positions then remove these from your trading plan. If you can’t stomach high risks then lower your risk. Successful traders will fit their trading around their strengths. This will not only bolster profits, it will also assist their emotional well being.

6. You Only Trade Your Signals

The temptations that exist when it comes to making money can even persuade a hardened trader to abandon their plan and chase the market. However ripping up your rule book on a ‘hunch’ or whim will undoubtedly end in tears at some point.

High probably trading and trading only when the conditions are right should form the core of your approach. Even if opportunities  are few and far between, stick with your strategy. You should have carried out sufficient testing to expect lulls in trading or performance dips.

Looking to trade outside of your strategy is almost always emotionally driven. If you draw up your plan and stick to it, you will be one step further along the road to success.

7. You Don’t Expect To Retire Tomorrow

A large proportion of  people take up binary options in the hope that they can make a quick and easy buck. They are often hoodwinked with stories of new investors turning small investments into huge capital balances in just minutes or hours. They believe these stories and expect to do the same.

The truth of course is that you have to be both committed and realistic in your expectations. Unless you are the 1 in a million that has a natural talent, you are going to have to put in a lot of work in if you want to become a successful trader.

If however, you are prepared to put in the time to learn and commit yourself to the process you stand a good chance. The more serious you take the learning and your investment, the more likely the chance of success.