Any profession requires the person engaging in it to have highly specialized knowledge in a particular field. The same applies to trading. Trading on the futures market and financial exchanges is an area where having real knowledge is a necessary requirement for success. The salary of an options trader who works on futures markets on the internet depends primarily on their practical experience.

A specialized degree is enough for most professions, and it is rarely necessary to take additional advanced training courses. But the situation with trading on the exchange is different – a successful trader never stops learning and gaining new knowledge because information in this field quickly becomes obsolete. Therefore, we’ve decided to write an article that will answer the question of how a binary options trader can always be on trend. Just by keeping up to date with current trends and innovations, you can continue to profit for a long time.

 

How can a binary options trader always be on trend

 

As we have already said, a successful trader is one who never stops training. And the process of self-education implies an integrated approach that includes many aspects. This is not only the assimilation of new, relevant information, but also the improvement of one’s emotional management skills, which is so important for trading on the exchange, in addition to the acquisition of other skills. Therefore, this article will mainly focus on the issue of education but in the context of a long-term strategy for years that will allows us to constantly raise our own level of professionalism and, accordingly, profit volumes.

Who is a successful trader?

We are not going to describe the image of a “successful person” who earns a lot of money, regularly vacations at the best resorts around the world, has a collection of sports cars, etc., but rather we will focus on issues that relate more to reality and trading as an activity. So, a successful trader, as a professional in their field, differs greatly from beginners in the following ways.

1. Emotional balance. Beginner exchange players are unduly susceptible to emotions. This is the main enemy of successful trading, and this has been confirmed even publicly by many prominent people in this field. Therefore, with the accumulation of practical experience comes the skill of control over your emotional state. One unprofitable trading day does not affect their mood in a significant way because they are sure that the drawdown will be compensated in the near future.

2. The right psychological attitude. Successful traders associate the process of trading on the market as work. It is by no means a game or something similar. It is a regular profession in which, if desired and with sufficient persistence, outstanding results can be achieved. The trader’s knowledge is instantly converted into real earnings. The newbies that prefer to “play” instead of work are eliminated at the second stage of becoming a trader, as will be discussed later in this text.

3. A burning desire to develop something new. The profession of trader implies a certain amount of curiosity, which includes a desire to learn new strategies and indicators. Every day we encounter new promising tools, techniques, and other developments, which, when mastered, will increase the efficiency of even a time-tested trading system.

4. Constant development. Successful traders never stop at what they’ve achieved. And they can make progress in relevant fields as well. For example, having accumulated sufficient practical experience, many traders start sharing it with others by creating blogs, leading educational programs, or even writing books. The main thing is that there shouldn’t be too much stagnation at any given level.

5. Having relevant knowledge in their field. Trading on the exchange requires knowledge of current trends. For example, the main one of recent is cryptocurrencies. This is a very promising direction in terms of earning on options. However, in order to profit, you need to understand the area well in order to figure out the subtle mechanisms of pricing for a new type of asset and, consequently, to learn how to make effective forecasts.

The process of becoming a trader: from beginner to professional

For a better understanding of the topic, let’s consider the stages of development that each trader goes through. Any professional was once a beginner in their field and started from scratch. The steps described below are in chronological order. Very few people make it through the entire path, from the first to the fourth stage, and of the total number of users it is less than 0.1%. However, trading could still be your calling. Until you try it, you won’t know.

Level one: beginner — getting to know the topic

At this stage, the user is introduced to a new method of earning. Of course, they are guided a bit by advertising which promises fabulous profits without any effort. Once on the trading platform, the user is surprised to find out that it really is all quite simple. After all, options trading is indeed the simplest way – just press “up” or “down” to make a profit.

Many start with a demo account. After trading on it for a while, they switch to a real account. After that, there is a period which can most appropriately be referred to as playing. It is characterized by completely unsystematic trading. The newbie trades at random, or follows some extremely primitive signals, for example, using the “traders’ choice” indicator, which can be found on all trading platforms. Losses on unsuccessful transactions are almost always compensated by doubling down, i.е. the good old Martingale. And in the short term, this often allows you to get tangible profits, which results in optimism and strengthens the beginner’s belief in the possibility of obtaining “easy money.”

This period doesn’t last long – from several hours to a maximum of a month. It depends on the intensity of trading and simple luck. The above-described unsystematic approach to trading is guaranteed to lead to a certain amount of losses. And by this stage already more than half of newbies are eliminated, as they become disappointed in this way of earning, realizing that it is impossible to achieve anything without effort. The remaining users come to the understanding that in order to succeed in trading they will need to learn how to do it properly.

Level two: student — the beginning of training

This stage is the entrance ticket to the world of trading. The newbie understands that trading on the market is not exactly a game, and there is no way to do it without reliable signals. Here begins the process of searching for the “one and only” tool that will allow you to get the most effective predictions, again, with minimal effort. It is at this stage that we get acquainted with all sorts of technical analysis indicators, advisers, and even automated trading systems.

The novice trader gets into the swing of things, often starts communicating in the right circles of users, learns professional slang, etc. Particularly advanced beginners already cease to lose money at this stage. This is achieved through pure self-discipline and compliance with the rules of certain strategies, which will, in the very least, help them maintain their money or even come into a small profit.
The duration of this stage is from several months to a year. After that, most users give up, for they finally realize that it is impossible to earn big money trading over a small period of time, but losing it is easier than anything. A distinctive feature of this level is the lack of a personal trading system. The trader uses ready-made solutions, or refines them slightly, but they still don’t have a real feel for the market.

Level three: amateur trader

The transition to this stage strongly affects the internal state of the trader. Subjectively, this moment can be described as “enlightenment.” After several months, or even years, of trading on ready-made systems and all sorts of indicators and strategies, the moment of truth comes when it becomes obvious that there are no ready-made 100% effective approaches. Moreover, the path of each trader is highly individual. Therefore, it makes no sense to look back at others – you need to start thinking for yourself.

It is at this stage that a real awareness of the value of money management and risk management systems takes place. This is, of course, regardless of the fact that they had heard those statements from great traders saying that the management of capital was more important than a trading strategy back in the second stage. Anyway, the trader begins to trade on their own system which suits them best. Their experience, although still relatively scarce, but most importantly, practical, is still their main support. Through trial and error, their skills are perfected. At this stage, there are still financial losses but here a system of risk limitation enters into the equation. This allows them to stay afloat even under adverse conditions.

Level four: professional

Some features of professional traders that can be attributed to success were described at the beginning of the article. However, we can add a couple more points here. An experienced exchange player goes through a minimum of emotions during the work process – just as many of us do at our everyday jobs. Trades are opened in cold blood, strictly according to the signals of individual time-tested trading systems. Traders react calmly to losses because they already know that this is an integral part of the working process. Profits also do not cause the dizziness from success characteristic of beginners.

In fact, there are many such traders. If you simply open any public statistics from a Forex PAMM service, you can see with your own eyes the large number of traders who for many years have been earning stable profits. Yes, there are periods of drawdown, but they always compensate for them and go on to profit. These are the professional traders who usually do not advertise what they do, but rather carry on their business quietly. Anyone has a chance to become one, but it is not an easy or fast path.

How to always be on trend?

Nearing the end of this article, we have come to the answer to the main question which was posed at its very beginning. What does it mean to be on trend? In the context of trading, this means to be aware of what is happening in the world in terms of economics and politics, as well as not to forget about the field of options trading and Forex and continue to watch for key innovations appearing. This approach does not imply that it is necessary to spend several hours a day studying news sources. Information overload will only hurt you, and you need to keep in mind the key aspects only. In conclusion, we will offer some practical advice for options traders in order to keep abreast of current events.

• look at the “Economic Calendar” every day and take into account the schedule of key news releases;

• get involved in communities where traders communicate with each other;

• watch for news related to tradable assets – the situation in specific countries, companies, or commodity sectors;

• periodically visit training events where you can find out about things in the field of trading that you do not know.

By following these simple tips, you can always be in the know about major events that will have a direct or indirect impact on options trading. Of particular importance is the first point. This is extremely important, even for novice traders. This is especially critical if your trading strategy is based on technical analysis.

TRADE CRYPTOCURRENCY

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

How can a binary options trader always be on trend
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