You cant be a successful trader without mistakes. It a common thing place a wrong trade, not doing the right thing before trading, placing a trade blindly. These are part of the common mistakes trade do when getting started.
I made some terrible mistakes in the past when starting up. My mistakes cost me thousands, literally thousands, of Naira. Why did I lose so much money? Because I completely ignored sound binary options trading advice.
The sad part is that you will probably ignore important binary trading advice too. Why? Because 95% of beginning traders do. They think that they are the exception. They think that the rules won’t apply to them.
I want you to read this article very carefully. It has some great advice and trading tips from someone that learned how to trade the Binary the hard way.
1. Practice. Practice. Practice.
It sounds simple. It sounds inconsequential. It even sounds boring. But trading is just like everything else in life – you have to practice to become good at it. The great news is that you can practice trading the Binary options absolutely free – all you have to do is open a demo account with binary.com broker.
Practicing on demo account is a long term thing. You are not suppose to demo trade as a beginner for few weeks and believe you are good at what you do. It doesn’t work that way. We have trades that demo traded for over a year. This is what I mean. After a proper demo trading for 2-3 months, your results on your demo account will encourage you to start real trading. While you start your real trading, your demo trade also should be on and running.
In case you come across a new strategy, its a common thing to use your demo account to test it. Avoid using your real money account to test a new system.
2. Trade a system.
Once you open your demo account, do some research and learn the trading basics. Learn why the Binary market is open 24 hours a day. Learn what market trends are and how to make money from them. Learn about some basic indicators – moving averages, candlesticks, and trend lines. Don’t get overwhelmed; just take it a little at a time.
As you study, things will start to make sense, and you will begin to develop your own system. Trade that system in your demo account like i mentioned in step one until you are comfortable with it. And you can’t be comfortable with a system until you are comfortable losing money with it. Here’s why.
Every trading system will lose money sometimes. If the market is acting strange, the system that worked so well all year might lose 3, 5, or even 8 trades in a row. Unless you have tested your system thoroughly enough to know that it will make money over the long term, you are not ready to trade with live money yet. So find a system and trade it until you are completely comfortable with it.
3. Start small.
Trust me, there will eventually come a time when you are ready to trade with real money. Amateur traders will start trading with real money after just a few days or weeks of trading in a demo account. Real traders – you know, the ones that will make money consistently – will make hundreds of trades in a demo account before risking their hard-earned money.
But when you start trading live, start small. You can make a lot of money trading Binary, but you can lose a lot of money even quicker. Be patient, take your time, and realize that trading the currency markets profitably means that you are one of the few who actually followed good Binary trading advice.