Binary options trading is quite unique and it attracts many people who want to earn money online. One of its advantages is that it is suitable for everyone, no matter the type and level of formal education. You can be a financial expert, a housewife, a teacher or a student – and you can trade binary options and be successful in it. The trick is to get acquainted with the basics before you start trading, and keep learning and practicing afterwards.
Aside from learning, it is very important to create a trading plan. As a binary trader, you need to make rational decisions and base them on logic, reason and information. By making a trading plan, you will have consistent approach to trading and reduce the emotional impact on decision-making. Also, you will be able to define more easily what the problem is if anything goes wrong.
What to include in your plan?
First of all, you can make a general trading plan applicable to each day of trading. It should include which assets you want to trade, how many trades you will execute every day and how much money you are willing to spend. You can also include the minimum and maximum time you want to spend trading, as well as some of your techniques and tactics.
Other than this, it is equally important to make a trading plan before each trading session. Naturally, it needs to be far less detailed and complicated. Observe the potential earnings and losses of each trade you plan for the day. Then, predict the time when each trade is likely to be in the money and set the timeframe in accordance with this. Lastly, decide whether or not you will use an early exit option or not (in case your broker allows it).
Planning with binary robots
If you use an automated binary trading system you should still make a general trading plan. Include the amount of money you can invest over one day, how much you can afford to lose, what you want to trade and how any times. You can set the parameters on the robot based on your plan and preferences, so your plan is still fulfilled. It can be a bit more difficult to plan every individual trade ahead, but there are binary robots with plenty of parameters, so you can set up the trades as you like. Choose one of the best at Top 10 Binary Strategy.
Plan what to do if you end the trade out of money
This is another important aspect of planning your binary trades. No matter how good you are at predicting the outcome, there can always be a surprise and you may encounter a loss. Therefore, make sure to develop a plan to apply in situation when your trades are out of money. Define how much money you can afford to invest loose and decide how you will spread the remaining funds if some of the trades end out of money. Good planning helps you stay realistic and overcome the losses, but also make you earn more money and appreciate everything you achieve.