In the world of binary options trading, success is not solely determined by the strategies and techniques we employ. Our habits and behaviors play a significant role in shaping our trading outcomes. I decided to write this post as a reflection on some of my worst habits in binary options trading and the lessons I’ve learned along the way. It’s only when you recognise and acknowledge problems that you can improve on them.
You might be able to relate to some of these, and I hope this post guides you to identify some areas of improvement of your own. Feel free to share! Email me or Comment below!
Over-relying on Indicators
One of my worst habits is over-relying on indicators and obsessing about how to interpret them. While indicators can provide valuable insights into market trends, they should not be the sole basis for making trading decisions. On many occasions I let a cluttered screen of 4-5 indicators cloud my judgment and lead to counterproductive trades. This is also why nowadays, you’ll notice I usually trade with just 2-3 indicators on my chart.
It is crucial to balance technical analysis with intuition and consider the broader market context before executing trades.
Check out my recent 60s method of trading with the Ichimoku Cloud indicator HERE.
Re-inventing the Wheel
Another habit that has hindered my trading success is constantly tweaking and adjusting my strategies, even when they have proven to be effective. While it’s essential to continuously improve and adapt, unnecessary adjustments can be detrimental.
In fact, through the years I’ve noticed that some of my students who followed the original strategy without excessive modifications achieved better results than me. I actually also want to commend the female traders in my community, who generally seem to be better at sticking strictly to trading methods!
Recognizing the value of consistency and sticking to a proven strategy can lead to more consistent profitability.
Overtrading has been a recurring challenge for me. At times, I would find myself in a favorable position, having surpassed my initial trading goals, yet the temptation to squeeze in one more trade becomes irresistible.
9 Wins? Let’s make it 10! Just one more! But the one-extra is what breaks the horse’s back!Julian Wong, Binary Lab
I’m not perfect. I do have such inclinations too!
Such impulse often leads to unnecessary risks, as I may trade during unfavorable market conditions or ignore important news releases. It is vital to exercise discipline and recognize when it’s appropriate to step away from the market, even if the desire for more gains is strong.
Meddling With “Rules of Trading”
As a trainer, I have set certain rules and guidelines for my trading students to follow. However, I have a habit of challenging these rules myself, often driven by the curiosity to explore alternative approaches.
While questioning the status quo can be valuable, deviating from established rules without substantial evidence or testing may not be good!
It is essential to maintain discipline and adhere to proven strategies rather than succumbing to the temptation of untested methods. Tweaks should ALWAYS be tested in Demo, before going on Live Account!
Trading When Not in the Right State of Mind
Maintaining emotional stability and being in the right state of mind is crucial for successful trading. However, I have found myself trading when I’m not in the best mental or emotional state.
Whether it’s trading out of boredom or after a disagreement with a loved one, these distractions have negatively impacted my focus and decision-making ability.
I’ve learned the importance of recognizing and addressing these emotional triggers, taking breaks when needed, and ensuring I am mentally prepared before engaging in trading activities. I actually do meditate alot! Jeffrey Allen and Burt Goldman are my favorite guided meditation speakers.
By acknowledging and addressing our worst habits in binary options trading, we can make significant strides toward improving our results.
Over-reliance on indicators, constantly reinventing strategies, over trading, challenging established rules, and trading without the right mindset are pitfalls that can undermine our success.
It’s crucial to maintain discipline, seek balance, and develop a focused and strategic approach to trading.
By learning from these lessons, we can elevate our trading skills and strive for consistent profitability in the dynamic world of binary options trading.
Wish you all good trading!