Survive Your First Month Trading Binary Options
If you’ve just funded your first binary options account, and you’re getting ready to place your first real trade, congratulations. You did follow our 10 steps to becoming a profitable binary options trader, right? If you skipped any, go back and make sure you have completed them. Otherwise, welcome aboard. Here are some tips to surviving your first month trading binary options. This can be a nerve-wracking time for anyone, but if you stick to our advice, you are more likely to come out on top.
- Start out with half the amount of money you really plan to start trading with. Even after demo testing, it can pay off to actually start trading with less than you intend to. Why? The transition to trading with real money can be psychologically challenging. Do yourself a favor and reduce your risk profile while you learn what it’s like to trade with real money on the line!
- Make the same decisions you would have made while you were testing. When real money is involved, you may feel tempted to be a little more discretionary than you normally would. When you feel doubts arising, always ask yourself, “Is this the decision I would have made while I was demo testing?” If it is, then go ahead. If not, don’t do whatever it is you are thinking about doing. Your demo test results were strong, and you should put your faith in those results and in the method and practices which generated them.
- Don’t panic at the first loss. Losses happen, as even the best test results will demonstrate. If you lose a trade, and the loss was unavoidable, keep moving forward. Just because you are trading real money, that does not mean you are suddenly going to start blowing it. If however you do have an unusual losing streak, pull out of the market and go back to testing to figure out what is going wrong. Read this to learn how to deal with big losses. You may not lose big your first time but it doesn’t hurt to know how to recover.
- Get some rest. Your first month trading is going to be an exciting time. Some days you may feel on top of the world, while on others you may feel like you are drowning. But you will adjust, and these ups and downs will level out over time. Maintain a healthy schedule, and do not glue yourself to the computer monitor. Set alerts for yourself if you need them, and get plenty of sleep. Take some time to relax and enjoy yourself.
- Keep a trading journal. One of the best things you can do during your first month is to keep detailed notes of everything you are doing. This is one of the 10 habits of successful traders which I share. At the end of your first month of trading, look back and review the progress you have made.
Your first month as a binary options trader will be a turbulent time, but it can be a successful time if you stay focused and keep your head in the game. After you have had a profitable first month, you will be able to go forward with increased confidence. It is a wonderful feeling embarking on a brand new trading career, and knowing that one day, you may be able to trade binary options for a living!