As the head of the senior account managers in Banc De Binary’s Cyprus office, I had the great privilege of working with several of our largest and most profitable clients every day. From some of the world’s top business brains to those who trade for a handsome living, I now consider many to be good friends. In most respects, they all have different stories to tell - they are from a variety of countries and cultural backgrounds, of all ages, and have been high achievers in many different walks of life.
Yet there is something remarkable that unites this successful group of people. Time and again, I see how they keep things simple. They pay attention to detail when details matter, but they never over complicate things. They identify what’s important, and they cut to the chase. I think this attitude and perspective can be a great life lesson for us all.
For this blog post specifically, I want to identify ways in which they keep their trading simple.
1. Don’t panic.
When you remain composed, you can react logically to the markets. A losing trade is not worth panicking over - not even our top analysts get it right 100% of the time! If you calmly focus on the next move, you are more likely to start winning again. You can either hedge your bets and place a trade in the other direction, or wait until the losing trade is over, and reassess the latest market position.
2. It’s all about timing.
Timing is central to binary options trading. Instead of trading too early, you should watch the trend, say on the EUR/USD, and if you see the Euro dropping after an ‘uninspiring’ comment from a public official or an ECB rate decision, that’s the time to place your trade - not before.
3. Do your research.
Trading a binary option is not a gamble. You have to know what you’re doing. That means following the markets and conducting the right analysis. Are you trading Gold? Then you have to understand the factors that influence Gold, its latest price trends, and make reasoned predictions about the future movement. Don’t just hit UP or DOWN. Know the reason why you’re executing any particular trade.
4. When trading stocks, watch the (short-term) bottom line.
Fundamental analysis doesn’t lie. If APPLE has a bad quarter, its share price will most likely drop. That is an opportunity, but you have to understand what the opportunity is. Is the best idea to buy APPLE, or sell APPLE? Because binary options are short-term, high-return investments, you are going to look for the short-term trend. Leave the long-term investments to traditional instruments like a shares portfolio or mutual funds.
5. Become a specialist.
Trying to understand 100 different assets is not necessary. If you have experience or knowledge of particular assets, focus on them, learn about them, and be the best trader you can be in this specialist area. Even if you don’t have a financial background, you are probably already familiar with more assets than you think. A good place to start is your country’s own currency, or the stock of your favorite shop.
So keep things simple, do your homework, and remember that you can always speak to one of our experts for help. Good luck!
By Chris Martin, Banc De Binary. For further information, please feel free to contact [email protected]
