My Biggest Binary Options Mistakes – Okane Style!
Trading is tough and failure is always lurking in the background, one little mistake and it will cost you money $$$ you can’t afford to lose! Learning from your mistakes is really good but how much are you willing to pay for them? Well, I can tell you I paid thousands for my many misconceptions. Fortunately for you, I will gladly share them here – for free! I’m going to tell you about 5 of the mistakes that I believe are very common among beginners. Read them, avoid them and hopefully you won’t have to pay for them too. But before we continue, a very special friend of mine wanted to say something for nation:
The Market Adapter
One of the most common mistake traders make; the attempt of adapting the market to their own strategy! Thinking they’ve found the ultimate & most unbeatable strategy in the world and the entire forex market should bow before them. Yes, thinking the candlesticks MUST dance in whichever direction their strategy indicates they should move towards. This leads to picking lousy expiry because not a single scrap of thought was given about what the market was actually doing. Trading is much like fighting, you have to adapt to your opponent or you’ll get crushed.
Remember this famous quote by Bruce Lee; “…You put water into a bottle and it becomes the bottle. You put it in a teapot, it becomes the teapot. Now, water can flow or it can crash. Be water, my friend.”
Meaning you have to adapt in order to succeed. The same goes for trading, let the market alter your expiries and shape your strategy likewise – not the other way around!
Skill Level-Up Cheater
Oh man, if only you knew how much time I spent Googling profitable strategies, thinking I only needed to find a and copy a profitable strategy. If I had spent that time studying the charts instead, I would’ve had my own office in Wall Street by now… OK, perhaps not, but hey, at least I could’ve gotten to where I am today much faster! To use a profitable strategy, skills are required. You can’t cheat your way up to getting skilled. The only way is the hard way, it takes time and effort. Although it’s not a bad idea to learn from other binary options strategies, you should not expect them to be as profitable for you as they are for the creator of the strategy. The reason a strategy works for someone is because of the trader’s personal experience and skills. You can’t pick a strategy and start trading live the first day, believing it will lead to success. Focus on studying the tool or the strategy you like, try to understand it and eventually and gradually you’ll level up, getting skilled! Maybe you’ll even create your own mega-profitable strategy.
“Absorb what is useful, discard what is useless and add what is specifically your own” – Bruce Lee
I remember that during a period I had about 16 charts open in MT4 at the same time, I didn’t want to miss one single trade! So many opportunities, why miss a winning setup? It didn’t take much time before I realized why multitasking was a stupid idea. Allow me to explain. Trading is about making money, you want to win as many of your trades as possible. We are not looking to break the record for number of trades in one day! The more assets you trade, the less you know about one specific asset. Why? Because you’ll never have the time to patiently analyze 10, 15 or 20+ assets. Before you are done drawing your trend lines and S/R-lines on one chart and one time frame all the other assets have moved millions of pips away from where they were before. You’ll get stressed out keeping up with all that is happening in all of the different markets, you’ll get careless and the mistakes will just pile up one after another. Start with one or two assets, get familiar with them and I can guarantee you’ll reach a much higher success level in far quicker time!
Do you know how much it sucks to lose something valuable you just paid lots of money for? It’s obvious isn’t it, it really sucks! The same goes for making a costly mistake and then ignoring the reason behind the failure. I mean, you just paid for it, so at least take a moment and look what you paid for. Keep avoiding why you lost a trade and you’ll end up paying for the same mistake over and over again! So stop being ashamed of admitting you made a mistake, analyze them and learn from them by keeping a journal. Don’t know how to start? Read my article about why you should start a trading diary.
“Mistakes are always forgivable, if one has the courage to admit them” – Bruce Lee
The Win-Rate Chaser
I had 8/10 wins today with this new strategy I found! I have an 80% win-rate!!! Really? So if I win 10 trades in a row, my win-rate is 100%? I guess I never ever lose then. What if I win 1 out of 1 trade, that’s 100% too! Wow, so many times I can remember that I have been winning 1 trade out of 1 trade, my win-rate must be like 100000% by now… Seriously, just stop chasing win-rates. Know this, a win-rate just depends on how many trades you choose to take into consideration, under an X-day long period. Your win-rate will always vary, ALWAYS! Stop chasing win-rates and focus on money-management and as I mentioned above already; get skilled. Furthermore, whatever you do, you will just have to face the fact that some days, weeks and months you’ll end up having bad trades and horrible win-rates. However, what never fails you is a good plan for money-management. So stop iwith the pointless rate chase!
One-Inch Punch for Victory!
In conclusion, Bruce Lee would’ve made one heck of a trader! Haha, no really I think he would’ve…
And so can you! Just stay away from making these silly mistakes. ‘Listen’ to what the market is trying to tell you, take your time getting skilled, focus on fewer assets, learn from your mistakes and stop chasing ghosts. In time, your trading will improve, you will adapt to various market conditions, have a working strategy that will generate a steady and profitable win-rate and you won’t repeat previous mistakes. Don’t forget, “Be water, my friend!”
- These are my Biggest Binary Options Trading Mistakes – by the Geek
- Learning from your own mistakes by Bogdan