Money management is an essential but often overlooked prerequisite to successful trading. Traders that generate substantial profits over their lifetime can lose it quickly in just one or two bad trades if you don’t manage your money properly.
No strategy can increase your odds several times, however they just can increase your winning chances by informing you how to trade effectively. To help you increase your trading profits we’ve derived these simple strategies:
1. Binary Options and Roulette – Binary Options trading isn’t related to roulette and there is no roulette strategy for binary options.
2. Never Risk More Than 8.5% on One Trade – This will give you the opportunity to be wrong 11 times have money to keep trading. For example, if you are trading with $10,000, you shouldn’t risk more than $850 on one trade. That way if you do not get a high return on your investment, you’ll still have enough money to keep trading.
3. Confidence is Key – Trade only when you are confident that you have researched and analyzed thoroughly. If you’re not sure about trade wait out for a while until you feel confident about your options.
4. Diversify – Never put all your eggs in the same basket. Trade options on a number of different assets, markets (e.g. Forex and Indices), dividend industries (e.g. Google and JP Morgan) and expiration times.
5. Watch for Financial Announcements – Usually you’ll need to wait before a large economic announcement is announced and then predict the direction you would like to trade on. You can also anticipate financial announcements and use binary options to trade on the volatility.
6. Follow Trends – Always keep your eye out for developing trends. For example, if Microsoft’s stocks appear to be increasing, perhaps Apple’s stocks will too.
7. Expect Loses – If you’re a real winner, you’ll accept losses as a part of winning.