Character Traits For Successful Traders
One of the most overlooked aspects of trading binary options is psychology. You’ll find fewer resources dedicated to this at this point in time than pretty much anything else, which should tell you something about the mindset that a lot of people approach binary options with. Most people who trade binary options are gamblers who are going to blow their bankrolls overnight and be out in the cold the next day. If you’re serious about succeeding as a trader, however, you’re going to have to start by examining your own personality and traits.
Consistency Is Key
One of the most important traits you can develop as a trader is consistency. If you’re not consistent in your actions and choices and the basis for those choices, you’re not going to achieve consistent success. You might achieve intermittent success, but eventually you will lose everything since you’re relying too much on luck. Consistency requires that you come up with trade rules that have some specific basis; that you test those trade rules and see how they work before going live; and that you then continue to use those trade rules when you trade in real life. Making arbitrary decisions only results in arbitrary profits and losses. Adjust your methodology as needed when the market changes, but do so with specific reasons and testing behind your decision, not because you’re arbitrarily changing things.
Discipline And Motivation
In order to trade consistently, you’ll need to be disciplined and motivated to do a lot of hard work. No one becomes a successful trader overnight—not for the long term. Would you rather have one huge win and then blow all your money, or would you rather have a lot of small wins which eventually add up to something huge you can hold onto? This will also take a lot of patience. Most people who trade successfully in any market take years to get there—that’s right, years. When you see advertisements which say, “Turn $500 into $50,000 in 1 week,” those advertisements are aimed at people who are not going to succeed.
Honesty Is #1
The most important quality in a trader is probably honesty. If you can’t be honest with yourself about your strengths and weaknesses, you have no way to improve. There is nothing wrong with gambling purely for the sake of entertainment, and budgeting your gambling money as entertainment money. There’s also nothing wrong with deciding to trade seriously and professionally with plans to do so over the long term.
There is a problem when you’re a gambler but you’re telling yourself that you’re a pro. That’s the kind of thing that leads to foolish financial decisions, like spending money which you need to get by on something which for you is ultimately a form of entertainment. There is a problem when you tell yourself you’re a market expert and you’re not. So start out by asking yourself why you really want to trade, and if you have realistic expectations. Always know what you want and what your real strengths and assets are before you start investing your money.