How to avoid making the same mistakes after a losing trade
Trading binary options requires patience and nerves of steel if you want to get good results. For this reason, you can follow several easy tricks so that you don’t make the same mistakes twice, if a trade ends up being a loss.
Don’t trade compulsively: When you have a losing trade it is always tempting to reinvest on another position without first stepping back. In fact, to see your capital melt in one shot can be very frustrating. The temptation to place another position with hopes to recuperate your starting capital is a dangerous proposition, if you haven’t taken the time to first understand why the trade expired “out of the money”.
Take a break after making a trade: If you have a losing trade, it is important to take a breather to analyze the reason(s) that caused your position to lose. To do this, analyze the asset’s price curve and find out why it didn’t follow the position projected at the beginning.
For example: You trade a Zone option and the price finishes outside of the predetermined zone. This will be a losing trade. The mistake to avoid is to rush to place another position without first analyzing the reasons contributing to the loss of capital invested on the last position.
What to do? Prepare for your next trade by consulting the history of your transactions and detecting errors made on previous positions. Use technical analysis as well as the different technical indicators such as Rsi and Macd to create an efficient strategy for your next trades. You can also use a graphical analysis tool to polish your trading strategy.
Share your binary options trading experience: Don’t hesitate to comment on our discussion forum. Provide screen captures of your trade to best share your experiences and to receive advice from experienced traders.
Start with a demo account: Before investing your capital on positions, you can practice by using a demo account. Before making “real” trades, it is important to become familiar with binary options and the different transaction modes available, such as Touch and Zone, before you can iron out an efficient trading strategy.