My 2016 Binary Options Plan by Bogdan
Faster, crazier, bigger, more. Some people want everything to be that way; faster cars, bigger paychecks, crazier parties, more of everything. But that means they have to spend bigger – hey you can’t have crazy parties without big bucks involved – so the green ones have to come from somewhere. Get a job? Well, unless you’re getting a really fat paycheck, I don’t think a job will cover for your eccentricities so you have to finally start making profits from your trading. But to do that you have to… know things.
Know Your Weak Points
We all have them, we all make mistakes, we all can improve in certain areas, but it takes a strong personality to admit it. It’s the dawn of a new year and maybe it should be the start of a change for you, so you need to put together a list of things you did wrong with your trading in 2015. First step for improving something is knowing what needs to be improved. Are you a trigger-happy trader? Do you tend to over-analyze the chart? Are you overtrading or quite the opposite, you’re hardly ever opening a trade? Think about all of this, write it down and be honest about it, don’t lie to yourself. Once you’ve identified everything you need to change, start working on it. I can’t tell you exactly how to do that because each person is different and you surely know yourself better than I do, but what I know is that trading is not like growing a beard! The latter involves waiting and doing nothing. The former needs tough work… but then again, growing a beard never brought me any money.
Know Your Strong Points
Each trader has certain abilities that he or she relies on heavily. Maybe you can easily identify trends or ranging periods, maybe you are a very patient trader, maybe you can feel the “pulse” of the market better than the next guy. Make a list! Don’t just think about these things, write them down because seeing them in front of your eyes will make you more aware of them. Everything you did well in 2015, continue to do in 2016 and don’t change anything. Exploit your strong points and make the best out of your advantages.
Know When to Hit the Brakes
The markets have periods of strong volatility, followed by consolidation and choppy, ranging movement. No asset is forever trending or forever ranging. What you have to do is learn to identify these periods and stop trading when the market conditions don’t suit your strategy. If you use a trend-following strategy but the market is in a medium term range, don’t trade that asset anymore. Hit the brakes and move to another asset that is trending strongly. If you have a strategy that exploits ranging periods, don’t trade an asset that’s in a trend. Know when to stop, there’s no point in swimming against the current.
Know When to Hit the Gas
Oh yeah, hit it. When everything lines up, make the most of it. It’s a fact that trading is a risky game and you can never eliminate risk completely, but you can put the odds in your favor. Just like I’ve said above, the market has cycles and when you catch one that suits your strategy, you have to hit the gas because the probability of you making money is higher. It’s up to you to decide what “hitting the gas” means; to me it could be trading larger sizes or putting on more trades than usual, to you it could mean the same thing or something else, but either way you have to “hit it” when the probability favors you.
Know Your Plan
It’s very important to know what you want. Set a clear, achievable target for yourself, in percentages. Remember, the target needs to be clear (i.e. “I want to increase my balance by 100% by the end of the year”), it has to be achievable (“I want to increase my account by 10,000% by the end of the week” is not achievable) and it has to be in percentages. I say percentages because it’s easier to breakdown: if your target is 120% increase per year (yea, I use that number because I am not very good with math), then you have to make 10% each month, which means 2.5% each week. That’s not so hard, is it? Also, having weekly (or even daily) targets will give you many little victories in a short time span and this will help you win the war by keeping your morale up. There’s some mental warfare for you.
Putting It All Together
If you had a good 2015, make 2016 a faster, crazier, bigger success, if your last year’s trading was disappointing, identify and change what went wrong. Make lists with the good and the bad habits you’ve shown last year, make a plan, do everything in your power to change and finally start making money and always remember that today is the first day of the rest of your life.