How to Become a Successful Trader in 3 Easy Steps

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  • Binarium

    Best Binary Options Broker!
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    Free Demo Account! Free Education!

  • Binomo

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How to become a successful trader?

The world of trading is full with excitement and interest, the binary option provides a variety of trading tools and opportunities to gain profits, in order to become a successful trader you need like any other business to have a plan, the plan should include budget (initial deposit), money management, broker, and strategy.

It doesn’t matter if you wish to increase your income or take it as your main profession, the way to success requires insistence and persistence, one of the key reasons to become a succeful trader is to constantly learn from your actions and optimize the way you trade.

Here are the main elements you should have in your plan if you wish to success with binary option trading:

How much money you are willing to risk?

For a trader that makes his first steps at the market, the initial deposit should be the amount that you are willing to give away, of course you should aspire and be smart to increase the initial deposit but you should also take into account that the first amount can be your training fee towards your goal – to be a good trader.

Which broker you should choose?

Before you search every broker you should be aware that some of the countries allowing you to open an account for specific brokers, usually it’s due to regulation, leverage levels and trading instruments.

After you check that and you select a list of brokers you may find some differences between their trading instruments, such as ladder options trading, one touch trading and more

As you make your first steps to the binary option market it will be great if you can have a nice bonus for your initial deposit.

That basically the things you should check, but eventually what’s more important is how your actions as a trader will bring you closer to your goal.

Demo or real account?

The advantage of opening a demo account is that you get to know the brokers platform and you can try a few of non risk trades, yet, most of the binary option platform are so intuitive and easy that it’s possible to hit your first trades without any difficulties.

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo

    Honest broker!

A big disadvantage when you initiate with Demo account is that you don’t risk any real money so it doesn’t reflects a real actions on the markets with all the thrill, money management and risk.

So in-fact the effect of the demo experience causes you to adopt bad habits from the very beginning that will be very difficult to change, once you gain confidence with non-risk money in most cases it changes when you switch to real account.

The best way to become a professional trader is to jump into the water to the real trading world, it can be with small amount of money to begin with, take it as a learning fee that you might gain more at the first chance.

How to choose the right strategy?

Before you search and embrace yourself a strategy you should ask yourself three main questions:

  1. What timeframes you are wish and able to trade?
  2. Which trading hours you would like to trade?
  3. How many trades you need to have to achieve your goal

The Binary option strategy you choose should be simple and clear to understand, if it’s too complicated or if it needs high maintenance it will be difficult and almost impossible to win the game, the strategy should have strict instructions which explains three main aspects:

  1. Which assets to use (currencies, stocks, commodities etc..)
  2. A definition for the right setup (with the right timeframe)
  3. A trigger that will tell you when exactly you should hit the trade

Once you decided on a specific strategy, begin with small amount of risk.

Here are couple of great and simple strategies:

Determine the amount of each transaction and document your activity in order to follow with your own rules and to learn from loses and winnings.

Write down your monthly goal and plan how to get there while keeping in mind that some of your trades will end up with some loses – it’s part of the business.

Control your emotions

This is the most important key elements to become a successful trader, It’s all about controlling your emotions, no matter what happen you should stick to the rules and method you set for yourself, the best thing you can do after you experience a bad trade is to back off, try to learn from the bad trade you had and relax, only after you accept the lose you may back to trade, rule number one is not to trade when you anxious or frustrated it will only cause you damage and will keep you away from your goal.

On the other hand, you may experience sequential number of successful trades, It’s important not to get in hubris and to remember that loses are natural thing when you trade.

Anyone can be a successful trader on the binary option market, it’s all about managing yourself like a standalone business, and like in every business that has its own offices, working time and method it’s exactly the same, determine the amount of your initial deposit you are willing to risk, choose the right broker, embrace a strategy that will fit to your character and abilities, create a plan for money management and always work on controlling your emotions in order to stick to the plan.

Wishing you great journey and a successful trading

10 Steps To Becoming A Successful Trader

It’s easy to see the appeal of trading. It’s an exciting, fast-paced career that has the potential to make you a lot of money.

While TV shows and movies make it look easy, it’s not actually that simple to become a top trader – otherwise, everyone would be doing it.

Learn more about making a success of investments with these ten steps to becoming a successful trader.

1. Learn the basics

Before you can go anywhere in the world of trading, you need to learn how it all works. Learning the basics of trading will give you the foundation you need to support your career and give you a deeper understanding of how the industry works.

Once you’re comfortable and familiar with trading basics, you can start to look for more advanced information that will help you further develop your skills as a trader.

2. Absorb information

The more information you can get about trading, the better prepared you will be. You can learn a lot about trading from books, webinars and other online resources, while experienced traders could be the best option to give you a first-hand account of the industry.

Find a trading mentor who is willing to share their knowledge with you, and perhaps even let you shadow some of their work to help you get to grips with trading.

3. Try a practice run

Traders are fortunate that they can try out life as a trader before taking any risks.

Online stock simulators are great for helping you test out your skills as an investor and to see if you have what it takes. U sing a fake trading platform will teach you the basics, helping you to grow in confidence before you try out the real thing.

4. Make sure you’ve got the capital to get things moving

While anyone can start to trade, if you’re going to make a living from it then you need to get serious about your capital.

Some people have had success by starting to trade with just $1,000 , but these are among the lucky few. With only a small amount of capital to play with, you could find yourself falling at the first hurdle because you haven’t got enough funds to see you through the dips.

Make sure you start with a strong amount of capital to protect yourself from failure right at the very beginning.

5. Create a trading plan

Successful traders know how to create a trading plan that details their entry, exit and how to manage money in-between. It might seem like a chore to put a trading plan together, but it’s one way to help you become a more confident trader.

You can make the most of online platforms to help with the backtesting, which allow you to try out different strategies without the actual risk. This is very popular with traders who use algorithmic trading principles, and there are plenty of platforms out there to help you with this.

Backtesting and optimization are key ways to develop your trading skills and should form part of your continued learning for becoming a top trader.

6. Treat it like a job

It’s easy to become complacent with trading, but it’s not something you should approach like a hobby or something you don’t need to take seriously. The best traders are those that approach trading like a job, seeing it for the business that it is.

Like other types of businesses, you’ll make and lose profits, deal with taxes and other elements that will impact your life. Treating trading like a job will make you work harder to succeed and stop you making careless decisions.

7. Learn when to take risks

Taking risks is an important part of trading, but when and how you take those risks can be what separates you from the top traders.

Adopting risk management principles for traders will help you to better assess risks so that you can protect your capital, and doesn’t need to be as difficult as it sounds.

Your earlier trading plans will be crucial for helping you to manage your risks and stop you making costly mistakes.

8. Keep learning

While you might think you know everything there is to know about trading, there is always an opportunity to expand your knowledge.

Current affairs can have a significant impact on the trading world, and staying on top of the latest news can help you stay ahead of the game. There are some great financial news sources to help you stay on top of the market , so make sure you spend time each day reading about the latest developments.

You can continue to develop your skills by attending seminars and talks, investing in formal training and continuing to self-educate.

9. Know when to stop

It can be difficult for traders to realize when to stop trading, which is why you should be prepared to follow the trading plan you’ve set up initially.

If you’re starting to make bigger losses than expected, get out – don’t be tempted to wait it out and see what happens. There are always other opportunities that will come along.

Strong traders keep their emotions in check and think with their heads – don’t get sucked into the common trap of taking misinformed risks.

When other things are happening in your life that are clouding your thinking and judgement, take a break from trading – it will still be there when you’re ready.

10. Enjoy it

Trading offers the potential for you to truly love what you do. While the money might be an incentive, it’s the thrill of the chase that helps people to fall in love with it.

If you find that trading is stressful, keeps you up at night and has made you anxious – it might be time to pursue a different career.

One of the benefits, of course, is that you could retire before you’re 40 as part of a successful trading career – so it could be a case of short-term pain for long-term gain for many traders.

Trading isn’t a career for everyone, but if it’s something you’re interested in pursuing, then it’s worth exploring to find out if you could make a success of it and become a top trader.

10 Steps to Becoming a Day Trader

In a world where everyone has easy access to online trading, why are there only a few succeeding as day traders? After all, what investor has not dreamed of becoming a day trader – working comfortably at a home computer, being your own boss, watching profits roll in? While many aspire, few actually succeed.

Key Takeaways

  • Day traders actively engage with the market, employing intra-day strategies to profit off quick price changes in a given security.
  • To become a day trader, you must be sure to be well-enough capitalized and have access to an affordable and functional trading platform.
  • Day trading can be a lucrative undertaking, but it also comes with a high degree of risk and uncertainty.
  • A thorough understanding of markets, financial securities, and behavioral finance – along with personal discipline and focus – are necessary for success.

What Does a Day Trader Do?

A day trader actively buys and sells securities, often multiple times during the day, but without carrying any open positions to the next day. All buy/sell positions taken during a trading day are squared-off on the same day before the market closes. Day traders are different from active traders who may hold a position for multiple days, or from investors who invest for longer periods. Day traders also use leverage to increase their intraday trade exposure.

How To Become A Day Trader

1. Conduct a Self-Assessment

Successful day trading requires a combination of knowledge, skills, and traits as well as a commitment to a lifestyle. Are you adept with mathematical analysis, full of financial knowledge, aware of behavioral psychology (in yourself as well as others), and do you have the stomach for entrepreneurship? Contrary to the perceived notion of an easy life or easy money, day trading actually requires:

  • Long working hours
  • Very little leave from work
  • Continuous self-learning with no guidance
  • Risk-taking abilities
  • Never-ending commitment to daily activities of the job

The right mindset is the most important (and the very first) requirement in becoming a day trader. Unless one is prepared to devote time, self-learn and be mentally prepared to take risks and suffer losses, do not try day trading. Books like “Trade Your Way to Financial Freedom” by Van Tharp and “The Psychology of Trading” by Brett N. Steenbarger are good resources for learning more about day trading and performing a self-assessment.

2. Arrange Sufficient Capital

No one can generate profits consistently. Intermittent and extended losses are part of the day trading game. (For example, a day trader may suffer eight loss-making trades in a row and only recover with profit on the ninth trade.)

To handle these risks, a day trader must have a sufficient cushion of capital. As Van Tharp explained in “Trade Your Way to Financial Freedom,” entering the trading world with only a small amount of money is a sure path to failure. Before quitting your job to trade full time, Tharp recommends having at least $100,000 for trading. Novices can start with smaller amounts, depending upon their selected trading plan, the frequency of trading, and other costs they bear. To actively day trade it is required that you maintain a balance of $10,000 in your trading account.

3. Understand the Markets

Day traders need a solid foundation of knowledge about how the markets function. From simple details (like exchange trading hours and holidays) to complex details (like the impact of news events, margin requirements, and allowed tradable instruments), a trader needs to have a broad knowledge base.

4. Understand Securities

Stocks, futures, options, ETFs, and mutual funds all trade differently. Without a clear understanding of a security’s characteristics and trading requirements, initiating a trading strategy can lead to failure. For example, traders should know how margin requirements for futures, options, and commodities significantly impact trading capital or how an interim assignment or exercise of an option position can shatter the trading plan completely.

Lack of knowledge about these necessities specific to securities can lead to losses. Aspiring traders should ensure full familiarity with the trading of selected securities.

5. Setup a Trading Strategy

Novice traders entering the world of trading can begin by selecting at least two established trade strategies. Both would act as a backup of each other in case of failure or lack of trading opportunities. One can move on to more number of strategies (with more complexities) later, as the experience builds up.

The trading world is highly dynamic. Trading strategies can consistently make money for long periods but then fail at any time. One needs to keep a close eye on the effectiveness of the selected trading strategy and adapt, customize, dump or substitute it depending upon the developments.

6. Integrate Strategy and Plan

Selecting the right trading strategies alone is not sufficient to succeed in the market. The following considerations need to complement the strategy, to come up with the trading plan:

  • How the strategy will be used (entry/exit strategy)
  • How much capital will be used
  • How much money per trade will be used
  • Which assets will be traded
  • How frequency to place trades

7. Practice Money Management

Let’s say you have $100,000 as trading capital and an excellent trading strategy that offers a 70 percent success rate (7 trades out of 10 are profitable). How much should you spend on your first trade? What if the first three trades are a failure? What if the average record (7 profitable trades out of 10) no longer holds? Or, while trading futures (or options), how should you allocate your capital to margin money requirements?

Money management helps you address these challenges. Effective money management can help you win even if there are only 4 profitable trades out of 10. Practice, plan and structure the trades according to money management and capital allocation plan.

8. Research Brokerage Charges

Day trading usually involves frequent transactions, which result in high brokerage costs. After thorough research, select the brokerage plan wisely. If one intends to play with one-two trades per day, then a per trade basis brokerage plan would be appropriate. If the daily trading volume is high, go for staggered plans (the higher the volume, the lower the effective cost) or fixed plans (unlimited trades for a fixed high charge)

Apart from trade execution, a broker also offers other trading utilities, which includes trading platforms, integrated trading solutions like option combinations, trading software, historical data, research tools, trading alerts, charting application with technical indicators and several other features. Some features may be free while some may come at a cost which can eat into your profits.

It is advisable to select the features depending upon your trading needs and avoid subscribing to ones which are not needed. Novices should start with the low-cost basic brokerage package matching their initial trading needs and later opt for upgrades to other modules when needed.

9. Simulate and Back Test

Once the plan is ready, simulate it on a test account with virtual money (most brokers offer such test accounts). Alternatively, one can backtest the strategy on historical data. For a realistic assessment, keep consideration for brokerage costs and the subscription fee for various utilities.

10. Start Small and Then Expand

Even if you have sufficient money and sufficient experience, don’t play big on the first trades of a new strategy. Try out a new strategy with a smaller amount and increase the stakes after tasting success. Remember, markets and trading opportunities will remain forever, but money, once lost, may be difficult to re-accumulate. Start small, test to establish, and then go for the big ones.

The Bottom Line

Aspiring traders should beware of websites and courses that promise foolproof day trading success or endless profits. The limited percentage of day traders who have managed to be successful do so by investing their time and efforts into building trading strategies and following them religiously.

A day trader is on his own in this big trading world. Before giving up your job to become a day trader, be sure that you have the motivation to continuously learn, design your trading strategies, and take accountability for your decisions and actions. If you’re looking to jump into the world of day trading, you can use one of the best stock brokers for day trading.

Best Binary Options Brokers 2020:
  • Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo

    Honest broker!

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