There are three general things you must have in order to be a successful Binary Options Trader:
#1 – You must have a good Binary Options system!
The system should be profitable over the long term and must be easy to implement. It should be of no mechanical nature, allowing and requiring little or no discretion or judgment on the trader’s part. This is especially important if you are just starting out trading and it is critical that you follow mechanical hard-and-fast rules. The reason for this is simple; there are a lot of emotions which come into play when trading. If you have a set of rules to follow then you know exactly what to do and no matter what your feelings are telling you, you can ignore them and simply follow the precise rules dictated by your system.
#2 You must have a good set of money management rules.
Through my career as a trader, I have come to appreciate that success in trading is not only about having a good trading system (of course that is very important) but also about having a good set of money management rules and principle. Trading without following three precise money management rules is a sure way to fail. For those of you that are new to the business of binary options trading, let me explain what I mean by money management. The term refers to the principles and discipline you use in order to control your risk exposure when entering a trade – how much of your total capital you will risk on any individual trade, your profit objective, etc.
#3 You must be able to control our emotions
This is a very important rule and something that a Binary Options trader must learn to master. Whilst trading, you are constantly presented with feelings such as fear, greed and excessive excitement (for example, as a result of a winning streak.
The reason many binary options traders experience these type of feeling is simple – they don’t have a good trading plan. They don’t have a good and clear set of rules to follow. They will trade based on emotions rather than on signals issued by a robust and profitable system. They will not respect their daily profit objectives, loss limits and when to stop/ leave the markets. All these are essential for a profitable binary options career.
I strongly believe in emotion-free trading. It is essential for success and that is how you will be, the best of the best – by following a precise set of rules that re both easy to implement and require absolutely no discretion.