1. Selecting a good binary option broker is important for assistance.– It makes a great difference finding a competent expert as a broker, and various, reliable sites are available for traders to compare and choose the right binary option for them.
2. Don’t ever overtrade.– Overtrading will most like result to losing one’s money quickly. There will be losing trades; therefore, it’s vital to manage losses in order to move on to other trades.
3. Keeping a clear head is essential to make better decisions.– While in an emotional state, it’s so easy to make the wrong decision.
4. Utilize the short term trend.– Because commodity trading is about percentages in the long run for success, one should continue to purchase strength and sell the weakness. Also, the probability of success will be higher when going on the path of the least resistance. A commodity hitting around a 20-day low or high will be considered a trend, but when the trend is about to near an exhausting period, one must stop going in that path. Besides, the 2% maximum loss rule applies when one is wrong is going in the direction of what is trending up or down.
5. Don’t ever add to a losing position.– Doing this will lead to losses much higher than 2%. In some cases, people’s trading accounts drizzled down to zero due to one or two bad trades.
6. Adopting a trading plan is important.– A predetermined, operational method is very important because emotional stress is subject to arrive in any speculative situation. The operational method includes rules set that are operated and adhered to, and thus, this will protect against oneself.
7. Don’t trade, if unsure.– A loss would most likely occur when trading under the influence of various unimportant and extraneous details.
8. Cut the losses and let profits ride.– some people have done the opposite and have experience detrimental losses.
9. Affording to win is only possible if one can afford to lose.– Losing sometimes is naturally a part of trading. Therefore, if one is not in a position to accept losses financially or psychologically, he/she shouldn’t trade. As a matter of fact, trading should only be done when there are surplus funds available that are not important for daily expenses.
10. When a market is too thin, don’t trade.– With lack of public participation comes the difficulty or impossibility of liquidating a position at or near a price desired.
11. Never attempt to sell the top or buy the bottom.– It’s only a better propensity of profiting when waiting for a developed trend.
12. A margin call should never be answered.– A margin call acts as a final warning that the position has severely gone awry.
13. It’s important to stay apprised of trading news.– Keeping one’s eyes and ears open for breaking news concerning the market condition will give the trader clarity of current situations which make it easier for him/her to trade during market crashes.
14. Hedging trades against one another is not a good idea.– Doing this will only decrease the probability of earning more profits.
15. Last but not least, enjoy trading.