Binary Options Success – Discipline & Patience
As I explained in the previous post, Binary Options Profit Potential, a 75% in-the-money accuracy is very realistic and achievable. I went out to prove that, showing you just how easy it can be practicing a little patience while staying disciplined! Over the course of 4 days I placed a total of 10 trades resulting in an 80% (8wins 2loss) accuracy. This just shows that there will be some losses although I felt that I could have hit a 10/10 if I did not trade the Friday session. As we all know Friday’s can be much harder to trade as it’s the last day of the trading week. This may cause ranging or choppy markets making it somewhat more difficult to trade.
It all pays off in the end…
Arguably one of the hardest skills to learn in life becomes just so much harder when it involves money. Although the brightest financial minds in the world know and understand the utter importance of mastering the skill of patience and discipline, most of us only realize it when it’s too late. Sitting at your desk staring at the screen while the pips tick down against you, watching the last bit of your account getting wiped out for the third time… That’s when that horrible feeling of regret kicks in, asking yourself why you forced that trade. That’s when you start questioning yourself… Is my trading strategy not working? Am I risking too big of a percentage of my account? Should I trade a different pair? No! You simply need to teach yourself to be patient and disciplined. Let’s have a look into how you can go about teaching yourself this.
There Is No Shame In Demo Trading
Swallow your pride and practice. Whether its paper or demo trading. Although there is a big difference between a live and demo account you still get the opportunity to prepare yourself for the real deal. “Practice makes perfect.” This quote applies 100% to the binary options industry as well.
How many times have you heard someone say: “If you can’t profit on a demo account you can’t profit on a live account”. Although this is true to some extent, the most important thing is to treat your practice account as if it was your own money. This is an excellent way to experience the thrill while still learning that magic virtues called patience and discipline.
Question Every Trade – Confluence Is Key
Trading is all about stacking the odds in your favor leading up to a high probability trade setup. Without confluence it’s just as good as flipping a coin. By questioning your trade before executing it you learn to separate the A+ from the 50/50 trades resulting in a higher ITM accuracy. Waiting for at least 2 or more thing to match indicting price is heading in a certain direction is called confluence. This helps you to maintain patience rather than just jumping in.
Getting to the discipline side and actually following this plan might be slightly harder. The best way to remind yourself to look for confluence is by writing it down or making a note in notepad.
Confluence we look for:
- Definitely one of the most important factors is to be sure you are trading from a level of importance. Asian session high/low, Daily high/low and Strong Support & Resistance levels.
- We also look at 2 moving average which is very popular amongst retail traders. The 50 & 200 Exponential Moving Average is a great way to look for Bank manipulation.
- Stop Hunts followed by a supporting candle formation at a level of interest indicating manipulation.
- Candle patterns like the “M” & “W” at a significant level.
- Using VSA (volume spread analysis) to identify when Smart Money (Banks, Hedge Funds) are buying into buying or selling.
- Before you enter any given trade you want to make sure you tick at least 2 or more of these, indication that you are taking this A+ setup based on confluence. A simple yet affective way to keep you disciplined.
Getting to the point
As you can see that waiting for those perfect high probability setups is critical to your success. Donald J. Trump, successful business man, once tweeted: “Knowledge requires patience; action requires courage. Put patience and courage together and you’ll be a winner.” Wise words we should all apply when it comes to any form off trading! Easier said than done. It will take time and a great deal of focus to properly understand what it means to have patience. None the less, it all pays off in the end!
If you have questions about joining the Day Trading Forex Live recommended Binary Options Broker or need more information about the FREE Skype room when joining TopOption please feel free to contact Allen Henn. He is a current member and the DTFL Binary Options host. He will answer any questions and give you an idea of what the service involves and support we provide.
If you have any questions about the FREE Binary Options education when you sign up with TopOption you can contact Allen Henn at email@example.com to set up a time for a conversation over the phone if you like or call his SA phone line at 0836564432 or Skype at Allen.Henn