Some financial assets are easier to trade than others. Certain kinds of financial derivatives, for example, only need you to correctly predict the price of your traded asset after a specific duration. The existence of these assets and the ease by which one can begin trading them is the reason new players are choosing to start trading on Binomo – individuals new to trading often see it as easy money.
In truth, there are many pitfalls to trading. No matter the kind of asset, financial vehicle, or market you are trading in, there’s always going to be risks. More than that – you’re competing with a lot of characters in the trading arena, not only other traders who are aiming for the same thing as you but also against the broker who is not going to consider who wins or loses as long as they get their cut.
The bitter truth is that you’re always going to experience losses if you’re not prepared for it, and the market will not accommodate you so you’ll have to work yourself if you want to change things.
Wondering why you’re losing trades on Binomo? Don’t worry – that’s what this article is for.
Acquainting Yourself With Financial Derivatives
As mentioned, some financial derivatives are easier to trade than others. Some will just give you the chance to bet on where the market direction will go on a certain asset, even if you don’t own the asset itself. You just need to predict whether or not price increases or decreases. This type of asset is what is traded on Binomo.
Market decisions will depend a lot on the movement of the price and the duration of your order. The platform will often add a certain percentage of the sum you deposited as profit, often 70% but sometimes more.
Right – so everything seems so simple, so why don’t a lot of people become successful trading these financial assets?
This is because, in any trades you do, every decision must require knowledge about the way your traded assets work, as well as be able to understand charts and prices.
This knowledge and understanding will be able to help you tell things such as when it is best to enter the market and when it’s better to simply be an observer. More than charts and prices, you have to be able to know how to use indicators and interpret what they say. If you are well-versed on both of these things, it’ll be easier for you to make your own trading strategy.
Another important skill is being able to determine what kinds of assets suit them most. As an example, you wouldn’t want to trade cryptocurrencies if you do not want lots of price movements in a short amount of time. If you have an asset and you understand it deeply, then you may be able to acquire a feel of when and how to trade it. This will aid you in making the right choices along with your knowledge of charts and indicators.
Now that you know those three very essential skills – you’re ready to make your first few trades. But even if you’ve studied all these, you’ll still most likely lose your money.
And there are two reasons why.
Two Reasons Why You’re Losing Trades on Binomo
You don’t know when to stop
Trading different financial assets is certainly exciting and thrilling. But sometimes, when we’re having too much fun, we forget a cardinal rule of trading: If you have a plan, stick to it. And if that plan calls for you to stop trading when you’ve lasted a certain time or have hit certain goals, then you have to stop. Your trading plan is there for a reason, after all.
Continuous trading can have a psychological effect. Making trading decisions is a huge mental strain – and doing it for long will just take away your attentiveness. If you cannot concentrate, you’ll most likely lose.
One simple way to determine when to stop is by asking yourself these 2 questions:
- How much do I really need to earn for today?
- How many losses should I tolerate before stopping?
You don’t stick to your guns
Maybe you’ve heard that old adage, “Jack of all trades, master of none – sometimes better than a master of one,” before.
That said, trading is not one of those “sometimes”.
When you’re a trader, you have to know which strategies works for you and learn to stick to them. This has a lot to do with your strategies as a trader. Traders just love learning about the different ways that they can beat the market – and who can blame them? Their strategies are their primary weapons, their battle plan.
However, applying too many of these strategies run the risk of not knowing them well enough to be profitable.
In reality, some of these strategies will be better than others. More than that, only some of those are going to fit your particular trading style and will be useful to you. Therefore, it’s better to just know enough strategy so that you can focus on knowing them well and refining them for yourself, rather than knowing a little about a lot of strategies.
When you think of too many strategies, you run the risk of losing concentration. If you lose concentration, your loss is pretty much guaranteed.
In trading, it’s better to be a “master of one”, than to be a ”master of none”.
Trading on Binomo: the Road to Success
Essentially, the road to success is pretty simple. Follow the path of deep knowledge, sound strategies, and constant diligence.
Since we’ve already talked about the importance of knowledge, let’s now discuss the other two to give you a better edge.
Formulating sound strategies
The best techniques are often the simplest – you don’t need fancy-sounding strategies and complicated maneuvers to increase your balance.
Our recommendation is to start in one asset, with one trading tactic. After that, mix and match the markers, indicators, and charts that suits you. When you’ve identified everything, study them until you’ve got it down pat.
Why, you might ask. This is because doing so will give you a chance to thoroughly check if a strategy is working for you. If it does, then you are now a master of one strategy that you can immediately apply in specific scenarios. If the strategy isn’t for you, then at least your losses would have been minimal compared to you trying out a lot of different things all at once.
Binomo has a very useful practice account that lets you put your strategies to the test. Using this demo account, you can now determine the fit of a certain strategy before moving on to actual money. Doing so saves you time and resources. Also, based on our experience, we recommend investing not more than 5% of your balance in one trade.
Be constantly diligent in applying your strategy
If you want to become a successful trader, you need to develop the value of diligence.
Trading opportunities don’t come in a day. In fact, it may not even come after several days, or after a week. However, you must persevere in waiting for the right conditions to appear before entering the market. Remember, always stick to your plan. Going off script is tantamount to throwing your money to the air.
You should also always be diligent. Keep an eye out for the situations that you have mastered so that you can finally enter a position on the market, once you spot it.
Constant diligence and perseverance are important because this is not going to be easy. Most of your time will be spent sitting on your thumbs and staring at moving price charts. You have to resist the temptation of violating your strategy.
However, if you’ve developed perseverance and diligence, then you’re halfway to being a master trader.
Your primary goal: wait for your pattern
Trading on Binomo is just the same as trading everywhere else. Which is to say, if you don’t want to lose money on your trades, wait.
Select one asset and patiently observe until a pattern that you’ve studied reveals itself. Market conditions are, for the most part, unpredictable – so you don’t know when this will happen. Regardless, as mentioned above, persevere and be diligent.
Another advice that we can give is to practice on your demo account while you wait. This will take the edge off your worry and give you more knowledge and experience, to boot, further increasing your chances of success.
Your secondary goal: set your daily limit
If you’re aiming for something concrete, then it is way easier for you to calculate how to get there. More than that, you’ll also set a psychological barrier for yourself so that it’ll be easier to stop trading.
Say you’re aiming to increase your balance by $50 – then you can plan out to make 5 trades that are worth $10 each. You will also most likely not risk further trading, once you’ve met your $50 daily goal.
Did we answer your question regarding why you’re losing trades on Binomo? Now that you know these simple and practical tips to help you minimize your losses and maximize your gains when trading, head over to Binomo to try them out! If you haven’t yet, make sure to sign up for a free demo account now to start trading today.
Good luck on your trading journey with Binomo!