There are a lot of traders that get into binary options trading with the wrong mindset, and when they start failing, they choose to alter their trading binary options strategy. The easiest way to turn losses into profit is, however, altering your mindset, not your strategy.
Throughout this small article we will go over some tips on how to alter your mindset in order to start banking.
Don’t jump on live cash trading too soon:
Newbie binary option traders usually are too over-eager to jump towards live trading before practicing, before planning, before understanding the economy – they simply want to trade… but that’s not investing, that’s gambling.
Well we can’t blame them, binary options trading is something that is pretty cool and it drives something within ourselves, probably greed, to delve deeper and deeper within the “rabbit hole”.
For those reading this that are already binary option traders, do you remember the first time you discovered about binary options? We’re sure you were thrilled with the idea and wanted to jump into live trading as soon as possible yourself.
This is one of the things that are part of the wrong mindset for binary options trading.
You need training wheels first:
The vast majority of binary options trading brokers have a feature for members called “practice accounts” or “demo accounts” which consist of an account that is loaded with “play money”, credits that have no monetary value but simulate real currency.
Traders are encouraged to use the practice accounts for, well, practice! Most of the binary option traders don’t do this though, and they end up losing their real money instead of these credits in order to learn – they end up learning the hard way.
You need training wheels in order to ride a bike when you’re little – and it isn’t that different when you’re trying to become a profitable binary options trader. “Onboarding” is required, and your mind should be reinforced on this fact.
Indicators and Signals aren’t a guarantee:
There are a lot of binary option traders that consider that once they got enough money to buy that neat package of fancy indicators that they are going to get rich and rake in profits beyond their wildest dreams.
While indicators and binary option signals can be extremely useful and help traders maximize their earnings while minimizing their losses, they are no guarantee of success – especially if you don’t understand how the market moves to detect “false positives”.
As such, make sure you don’t place too much trust upon external factors such as tools or strategies that worked for someone else.
Nobody can guarantee your Success but you:
This is something you must get inside your head – you’re the only one that can turn your life into a success story, and if you are planning on getting in binary options trading because you’re a lucky guy and manage to have a “mentor” that will teach you how to turn hundreds into thousands… you’re going to have a bad time.
Binary options trading is all about one’s skills to predict the market, and if you lack skill, then you must practice and get better – you shouldn’t rely on outside help, even if it comes from a friend or family member, or you’ll be conditioned by his or her own skill.
Bear this in mind.
Know that you will need to keep on learning:
If you think you’re going to read an e-book or any other resource and you will instantly become a profitable binary options trader, then you are going to have a bad time. Traders spend their lives perfecting their trade – and technical analysts spend years looking at charts and tables – so you have to know that, as in any other job, you are going to be learning constantly.
Fortunately knowledge is translated into earnings, so keep on learning to increase your bank account’s size.
Don’t think you’ll get rich quick:
Binary options trading isn’t a get rich quick scheme, so if you thought you were going to join and multiply your bank account by 2 in under a week – you’re going to get disappointed.
Most binary options traders start by losing a lot of money, and the majority of binary option traders never get in the green – that’s right, most end up losing overall.
Bear this in mind if you’re in it for the greed.
Becoming a “guru” takes time:
If you have a great winning record, you might start to think about positioning yourself as a guru, writing e-books, giving out webinars and promoting your own products. Just remember that becoming a guru takes time, and that projects of this kind need to be backed up by a strong social media campaign.