I think it’s safe to say that for most novice traders, where your own money is involved, trading can be emotionally hard on the individual. One of the first barriers to get over when trading is the psychological attachment and emotional investment in each trade. This links into both demo trading and money management, which will be explored in a future post, as well as discipline.
When trading, there are general rules you will follow and guidlines you’ll stick to in order to complete the fundamentals of trading binary options, however, each trader should, and I strongly advise this, have their own set of targets and personal rules. Even going as far as having them written out in front of you will aid your ability to stick to them and not get t0o emotionally involved with each trade you make.
Basic rules and steps to follow should include confirming all actions in your strategies; not allowing one rule to slide just because you have 2/3 confirmations for example. A good trader will know when a set-up is ready for the taking – eliminate guesswork and you keep your ITM rate high and your OTM rate low. You should also keep each trades investment to an equal amount, so to avoid the negative feelings of losing a high invesment trade verses a low invesment win. Another suggestion being; once you have identified a set-up, confirmed it and placed the trade, move on. Look for your next se-up on a new currency pair – following these types of rules will help to minimalise the feelings attached to OTM losses and keep a level headedness with ITM winnings.