One of The Binary Options Experts “7 Pillars of Success” is patience. and along with patience is the discipline required to practice it.
Discipline and patience are key factors to successful binary options, or digital options, trading.You may have all the knowledge and skill in the world, but without patience, you are unlikely to be pulling consistent and stable profits. Losing patience can lead to a lack of self-control in your trading and the following three things may happen.
Chasing Trades: When you enter a trade (late) in the middle of a range or after a spike in prices. Making ill-thought out and reckless decisions will only add more damage to any losses that you have already made.
Over-trading: Most common for new and novice traders. Binary options trading can be very addictive and newbies might get into this when they first discover this type trading. To avoid this trap you need to avoid letting your emotions get the better of you.
Impulse Trading: Similar to chasing, as far as you are more likely to enter into lower probability trades more often and for no good reason. You need to perfect your ability to strictly follow your strategy, instead of making impulsive decisions. This can be harder than you might think but is absolutely necessary if you want to be successful.
We cannot stress enough to our clients how important patience and self-discipline are in trading. Your psychology when trading is more important than your skill!
So ask yourself a few questions. Since we are talking about patience, how much time do you have to trade? For this you need to plan out your day and then follow that schedule. Once you have worked out the times you have available, you can then work out which markets you are able to trade. There are precautions to take for each market that you trade. Another question that you should ask is how many trades you really need to take per trading session. This is something you will set for yourself depending on your goals and risk profile. It doesn’t have to take a lot of trades in order for you to earn good profits because you can compound and that can go a very long way to increasing your account size. You can increase your trade size slowly as you progress or you can keep a fixed trade size.
Of course you know that you can’t and won’t get rich overnight. Compounding profits take time. It could take a month, a few months or even a year depending on what your risk levels are and how fast you do it. Don’t expect to be a thousand dollars richer in just one day. Like anything, it makes sense to start slow and build your way up. Just remember that it’s okay to make mistakes as long as you learn from them.
A lack of patience is the downfall of many binary traders. In order to avoid this, you need to have discipline. You have to make the effort to build up these skills because if you don’t, then you will find yourself with an empty trading account faster than you can imagine. Without discipline and patience, your trading will be unsuccessful in the long run – no matter how effective your believe your strategy to be.