Trading requires lots of dedication: one needs to learn and practice their skills, understand the platform, constantly monitor instruments and the market, review and adapt strategies, manage emotions, and much more. Even though this might be just a hobby for you, trading certainty requires lots of devotion. Let’s have a look at some of the general guidelines a trader might consider to stay committed to trading on Pocket Option.
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A trading commitment
What does being a committed trader actually involve? Many think it means making stable large returns. But to achieve that, one needs to consider a bunch of things before: not giving up when some minor difficulties arise, drafting up, following and re-evaluating the trading plan, strategy, and style you have chosen, persistently learning, practicing, and working on making returns. This might not sound too difficult, but how do we get there in practice? Let’s look at some problems you might come across while trying to stay committed and ways to overcome them.
Barriers to trading commitment
Lack of Focus
It is natural that anyone wants great results as quickly as possible. And it is equally easy to become lazy when this doesn’t happen immediately. When you realize the strategy you have chosen does not bring in results as fast as you want, it can be very tempting to leave it and find something new, rather than analyze what exactly lead to a failure and try to work on these reasons. It is easier to drop a strategy that doesn’t immediately generate returns rather than examine it and practice. Such attitude is not the way to success: a trader requires persistence in uncovering issues and patterns that lead to errors, finding solutions, and implementing changes. You can compare trading to getting an education in a certain field: it needs a certain amount of time daily/weekly dedicated to the process.
Emotions
Markets are extremely volatile and change every second in unpredictable ways, which can bring lots of emotions, excitement, anger, and adrenaline to make you forget your rational approach. But trading requires lots of patience and observation while waiting for the right market conditions to form and create opportunities to enter a position or close it down. Waiting for the right trading setup is not always exciting either; in the end, trading requires a rational approach and an ability to be patient and yet reasonable in case something goes wrong.
Not accepting losses
Remember, every trader, even the most experienced one, runs into losses from time to time. The fear of losses can easily confuse your judgment and make you freeze whenever the market turns against you rather than take meaningful action, especially if you place large portions of your funds on single trades. The key here is to learn how to manage your risks, minimize them, and move forward. Setting up a good trading plan that specifies the amount you can dedicate to each open position, how to reduce losses and manage risks in each trade is a good start.
Not planning
Even though trading may be just a hobby for you, opening positions at random is not the best idea. A plan can make the process more focused, outlining what kind of market and instruments to trade, what chart type and indicators to use, specify time frames, entry and exit conditions. Planning is key for both capital and risk management. It also makes your life easier when it comes to analyzing what went wrong, where, and why.
A trading plan can also include more broad aspects related to trading, such as your overall trading goals, possibly with some deadlines, time horizons, performance metrics, etc. Following such guidelines may help develop a commitment with clear objectives you strive to achieve.
How to stay committed?
We have identified some of the possible issues that lead to unsuccessful trading. What are some of the ways to fix them?
Identify the problem
If your trades are continuously unsuccessful and you don’t see any improvement in your trading, it might be time to analyze and identify the issues. Is your strategy appropriate for the instruments and is it correctly implemented? Might there be a problem with your approach to timing? Are your trade sizes in line with your strategy, risk aversion, and account balance? Do you interpret trading signals correctly with the right set of instruments? There could be a myriad of reasons that lead to losses on your trades and it is important to analyze them and make changes accordingly.
Do not get overly optimistic
You might identify a strategy and market setup you are absolutely sure will work but do not forget that markets can turn within a matter of seconds. Often traders place funds on each position that they are prepared to lose. Or on the opposite, you might be constantly unsure about placing and managing each position and fear a loss.
In either of the cases, it is your emotions getting in the way of a thoughtful approach. Some traders distance themselves completely, separating themselves from the trading process and treating it like a business. Some imagine what would happen in the worst-case scenario: what are the consequences, what would their reaction be and how can they minimize losses? Visualizing such a situation may help approach the situation in a more thoughtful and adequate manner.
Use Pocket Option Tools
Trading is an extremely competitive and fast-paced field and many traders take full advantage of the latest available technologies. Pocket Option provides you with many options for charting and a variety of trading indicators to facilitate the process of monitoring and analyzing markets. There is also a section with an economic calendar and analytics on key events affecting various trading instruments (can be found under the “A” button on the lefthand side of the screen). These have the potential of saving some time and improving your performance:
Trading can be a successful occupation when one really outs their time and mind on it. As you have hopefully realized, it is not a fast road to success, but one that requires commitment and not giving up easily. Developing, analyzing, and practicing your trading plan, strategy and approach are a good start, and you can do that easily on Pocket Option Demo account.
Take your time to plan and practice, beware of the risks and enjoy trading!
Remember, planning, practicing, and analyzing are key. Good luck with your trading journey on Pocket Option!
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.