Binary Option The Trading Zone

If your trading strategy is consistently successful on your demo account, then what’s the difference when you go live? Mindset! It all is reduced to that in your trading (in my view, this is true of living in general. However, you view the results immediately in trading-especially day trading).

I really hate to call what we do with index futures and binary options, day trading. That is only as a result of the negative connotation the term brings to mind. Stock trading is what most people think of when they hear the term day trading. Regardless of what kind of trader you are, you’ll have to reconcile with the fact that each trade depends on YOU. What frame of mind you’re in at the time you place those trades will have a HUGE impact on how many of those trades are successful.

Looking at the daily S&P 500 chart below as an overall barometer of risk sentiment, here’s a summary of the primary market drivers behind the daily moves, which accurately reflects what was driving risk assets each day. Markets worldwide were modestly higher on hopes for ECB, Fed stimulus. They were hoping for a significant shock and awe program from one or both leading central banks. While the moves higher were modest, when you consider that they occurred against a dour backdrop …

Another way by which you’re able to reduce dangers is in making sure you know as well as to determine your margin balance; you should usually make certain the bar is found in the green zone, because it’s much more favorable to trade at this state. When the margin switches to an orange or red zone, then you ought to be very cautious because that indicates the risk of making a reduction or getting the front desk near all of your pending transactions to minimize loss is very high. Due to this purpose, it is always advisable for one to become careful with what he trades with, as well as watches over the margin stability at all times. Most trading platforms will provide you with a warning whenever you’re about to set up a wrong move, usually referred to as stop risk perform. If you are uncertain of the stock you wish to trade with for your initial time, then you definitely need to take this function to stop loss in the situation.

Most traders think that it all is reduced to the technical and/or fundamental analyses of the markets. This is where they spend all their time and money. However, they never get around to working on the mindset. They feel the real key is in becoming a great market analyst. However, the world is FULL of good market analyst (just watch CNBC or Bloomberg for examples) who’re not able to trade. They too did not have the right mindset and had to take jobs instead.

So what is the right mindset for a trader (or day trader)? That would take volumes of articles to answer. A good start is to read Mark Douglas’ book’ Trading In The Zone‘. Don’t end your mindset training there, however, it is a good start.

It’s amazing how the human mind is in a position to pick up on the general mood of the market. Douglas calls this being’ In The Zone’. We have always submitted to it as getting a’ Market Feel’. Some traders have considered that it was impossible, while others gain that market feel advantage rather quickly. The difference is still in the mindset of the person. Some people are naturally much more in line with their emotions. They do not let them effect their mind while trading.

Many traders get hung up in all the technical tools that are available today. They reason that unless they can just add the right tools, they’ll become successful traders. I can tell you for certain that you’ll NEVER be successful unless you have the right mindset after working with hundreds of traders over the years.