Focusing on the process. What causes distractions during options trading

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Focusing on the process. What causes distractions during options trading?

When analyzing private traders on the options market as a group, you can clearly say that the bulk of these market players are non-professional investors. Often these are people who come to the market on account of advertising and rumors about fabulous earnings. Of course, this audience does not understand how the market actually functions or what processes are most important when it comes to obtaining a stable financial result. In this regard, we also needn’t talk about how much private traders know concerning the psychological aspects of financial speculation on the market. Thus, it turns out that the binary options market is filled with non-professional, or rather, casual, players, who seek to profit, completely unaware of all the complexities of trading and its technical processes. Against this backdrop, we offer material that clearly addresses the topic of concentration in trading, and you will be able to see some practical recommendations that will really influence your trading results and help you get a step closer to professional trading on financial assets.

So, a lot of investors who work on the futures market today started in this field of activity simply after seeing advertising from binary options brokers, or reading articles about how an average person made fantastic money simply by clicking on buttons and guessing where the financial assets market would move. As you can see, we’ve already touched on the psychological aspects of trading – marketers and brokers played on your greed and lured you to the financial market. We can’t really say that that is a bad thing – you did something acting completely consciously and you risked your own funds, clearly realizing that you could lose everything. The negative aspect of this is the limited information about all the complexities of trading that an investor may face. But, as they say, it is what it is! You have already become a trader and want to succeed, but your trading is still chaotic and isn’t producing stable indicators, so what should you do?

First of all, you need to concentrate as much as possible on the process of working on the options market. The fact is that trading on the financial market is not only clear, multilevel analysis of quotes and financial statistics, it’s also psychology! As you can see, the success of an investor depends on a lot of factors, and the trader’s concentration level has a very big influence on the final trading outcome. Of course, we are not talking you being so concentrated that you have to sit for hours at the computer and watch trading instrument quotes nonstop – no, it’s about focusing on the most important aspects of trading and the technical trading processes. You must eliminate all the noise and distractions to increase the quality of your trading. Here are a few recommendations that will lead any trader to maximum concentration and help them achieve the highest and most stable performance indicators for their trading on the options market.

Manage your trading time

If you are a systems binary options trader and view your trading as your main source of income, you should clearly understand that this is currently your day job, which, like classic paid labor, requires a certain regime. Try to establish a clear schedule for yourself: this will allow you to develop a specific set of reflexes for trading during the day. Here it is worth noting that your trading time should be balanced, both in terms of physiological indicators and purely technical ones. Do not work at night if you are physically unable to maintain such a trading regime. Do not work at those times when you could be easily distracted by other issues. You should understand that in the process of trading you will need to conduct complex market analysis which requires certain calculations, errors in which may result in losses of your trading capital. Therefore, clearly choose your trading time – this will not only help you get rid of the negative factors that distract you from trading, but also help you determine the optimal trading regime for yourself.

Do not inflate asset listings

Unprofessional traders sometimes work to the point of absurdity. In fact, you can often see the following situation: in the pursuit of huge profits and, of course, wanting to do so in the shortest possible time, the investor tries not to miss any opportunity to register a trade. Moreover, the trader is simultaneously trying to analyze a dozen charts at once, thereby wasting their attention on useless analysis processes and minimizing the quality of their trading. This old saying is pretty relevant for options trading: “Don’t put all your eggs in one basket!” And that definitely doesn’t mean that there should be several dozen different financial assets in your listing for one day. It’s much simpler than that: just choose a few of the most productive assets that you will be comfortable trading – 5 tools are enough to get the most excellent trading stats for the day. Let’s put it this way, professional investors usually make a trading case which is filled with assets of different types and formats. They usually combine shares, currency pairs, metals, and commodities. By doing this, it is easier to concentrate on their work and conduct qualitative technical analysis of operating asset quotes. Therefore, by focusing your attention, you will be able to get much more profit than you would working in a chaotic mode on a variety of trading assets.

Work on simple strategies

Here is another surprising psychological aspect characteristic of unprofessional investors – the majority of these market players believe that the more complex the strategy is, the more professional and effective it will be!

As a result, we often see market players using such complex systems that it is simply impossible to fully understand the technical principles of those types of systems. Investors usually abuse the number of indicators that are used in a trading strategy. Often the quotes aren’t even visible behind the markup of indicators and their signals. How could you possibly concentrate on anything and make a profit in this way? Concentrated, professional traders tend to apply the simplest and most understandable strategies to their daily trading. This is one of the main secrets of their success: simplicity and a clear understanding of their own trading system makes it possible to concentrate and leads to improvements in the quality of market analysis.

Overloading the workspace on the chart generally surprises system market players. Judge for yourself: if you closely analyze all the automatic indicators, you can clearly see that the algorithm of the majority of the analysis tools is built on the calculation of the price of the asset and the volume of trading. Of course, we can see tools that combine these technical approaches of analysis, but in general that’s how it is! So why put a dozen indicators on the chart with practically the same systems of calculation and building? You can just choose 2-3 tools that will display the full technical picture of market fluctuations and develop a system based on them that will be an understandable analysis tool for you personally. In addition, indicators are not a means of predicting market movements. They are tools that show processes that have already occurred on the market, and the trader, after studying this data, can generate a relatively probable forecast for trades in certain conditions. Therefore, blindly following indicator signals often does not lead to a positive trading outcome.

For this reason, in order to maximize your concentration in the trading process, it is recommended that you use analysis systems with the simplest mode of generating forecasts, for example, the Price Action strategy, and indicators will be used as an aid to filter short-term market noise.

Develop your personal style of trading

Binary options traders typically make a huge mistake: they tend to register trades at every single opportunity! By doing this, they overload themselves with unnecessary information and a huge set of technical approaches to market valuation. Thus, they lose their concentration, their trading efficiency is reduced, and, as a result, they lose some of their operating capital.

To fix this situation, establish your own trading style. In fact, this is your own strategy taking into account certain external factors: the trading time, the set of assets, and ways of generating forecasts. For example, you only trade during the European session on three major currency pairs and on an analysis system in which the main method of trading forecast formation is the identification of candlestick patterns! Thus, by having determined the sequence of your actions, you will be able to register effective trades and steadily increase your capital while maintaining maximum focus. If you are working on candlestick patterns, don’t let yourself be distracted by identifying, say, chart figures or wave patterns of market reversals! Of course, expanding your technical tools of market analysis makes you a professional player, but only if you stay fully focused and have a clear action plan.

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Information overload is the main enemy of effective trading

Unprofessional traders often use all sorts of information services on a daily basis to study the opinions and calculations of other traders and analysts. Often the day of such a market player begins by studying analytics posted on specialized sites and forums. As a result, the investor has an opinion on the daily trends of the market. In principle, this is useful information, if not for all of the “BUTs”! First of all, you cannot be sure of the professional level of the analyst making the forecast. Secondly, you have your own analysis system, and you do not need to use third-party analytical calculations of questionable quality. Thirdly, investors begin to convulsively adjust their strategies to be suited to these materials, thus disrupting the system’s settings. As a result, we get a negative trading outcome. For this reason, get rid of third-party information overload – be always confident in the correctness of your actions and calculations, and don’t think that anyone else is smarter than you or can better calculate market fluctuations! You have your own style of working on the market, a profitable trade strategy, and you don’t need to study the opinions of others – concentrate on your own calculations and make a profit!

Get rid of distractions

And here’s the last recommendation for maximum concentration during the trading process. Trading options, like any other process, requires the creation of optimal working conditions. Therefore, when embarking on the path to becoming a trader, try to create a workspace for yourself where you will not be distracted. You should have a comfortable area to work in, as having the ideal working conditions will become a factor that will lead to your success.

As you can see, the process of concentrating on trading and the psychology of a successful investor are built on completely natural concepts – comfort, a clear understanding of your actions, and an effective algorithm for investor behavior. This is how you reach new financial heights! At the same time, ignoring these important aspects of options trading will always lead to a loss of capital! Make the right choice and your activity will start to bring you not only pleasure, but quite tangible financial results.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Utilizing the Moving Averages with Binary Options

Trading on the fixed-term contract market is correlated with a high-yielding method for earning a profit on the financial market. However, to achieve stable results and trade effectively using this tool, you need a specific set of methods and strategies, which help with analysis, assessing market indicators, and accurate forecasting trading positions. Usually, in this situation, investors use multi-faceted trading strategies, based on automatic indicators. The list of such analysis resources and trading systems is practically endless, however, in the list of basic indicator tools, there are several which are considered to be classic and more effective tools for modeling market movements, which are worth acquainting yourself with. In this case, the Moving Average is one of the most famous and popular, the function of which we will examine in as much detail as possible in our piece.

So, the Moving Average is a strategy for defining the market trends of a specific financial asset. It functions through a simple and effective algorithm, which calculates the average asset prices within a set time range. To put it simply, the indicator forms a dynamic trend line on the chart, which reflects the statistical average asset cost indicator within a defined time range. Therefore, we receive from our method the chart liquidity, from which is provided the flattest market indicators without any reflected sound or narrow short-term asset fluctuation.

Even though the computing algorithm is simple, the Moving Average is an incredibly effective tool for forecasting. It’s especially of note, how effective it is with a binary options trading regime. It’s possible to explain the approximate working format of a set-time contract, where the most important profit producing indicator is an accurate forecast of an asset rate’s direction of movement. Once you understand that the Moving Average is a trend indicator, the purpose of which is to define the direction of market movement at any current time, you have a more effective tool at your disposal.

When working with the MA, professional financial analysts note the number of advantages: the lack of the redrawing of indicators, the relatively accurate reactions to shifts in the situation of the market, the indicator’s wide selection of different types and variations.

The last fact enables, on the basis of the strategy, the creation of a long list of professional strategies and other indicator tools for technical analysis

When working with the MA, the following are worth emphasizing as the most traditional and popular types and formats:

  • The Simple MA – It is the simple and classic MA, employed using the standard algorithm. Usually, for a specific trend, investors use the SMA with a period of 50, meaning that the MA highlights the asset price value, factoring in the indicators of the last 50 rate candles.
  • The Exponential MA – It is a MA with an exponential regime, which takes into account when calculating the dynamic MA, not only the average asset cost indicator within a defined period, but also the cost change coefficient as it relates to the opening and closing price of the rate candles.
  • The Weighted MA – The WMA is the asset cost value. For this one, the indicator’s algorithm is more complicated, factoring in not only the opening and closing candles’ rate but historical information as well. To put it simply, we receive weighted market movement trend indicators with analysis of indicators within the context of their historical chart movements.

Today, there are dozens of various MA modifications and configurations. Becoming acquainted with them all would take a substantial amount of time. Therefore, we recommend only the basic variations of the MA. Undoubtedly, even this minimal selection is more than enough to develop an effective trading strategy and achieve results in the market for binary options. We recommend considering the classical strategies as methods, which work off of the various MAs.

The Classic System for the Moving Average

In this regime, set up the SMA indicator on the chart with a period of 50. As a signal for placing a set-time contract, the approximate formation direction of the MA is used, which reflects the general dynamic growth of the asset trend rate movement:

This method is very effective as a strategy for day trading or package trades. Therefore, when you use stable and well-forecasted market movements, you can obtain as many financial indicators as possible.

The MA Breakdown Strategy

The MA, when formed on an active asset chart, has the ability to generate a multitude of trade rate formation signals. So, when using the classic MA, we can accurately identify, on the chart of the trading tool, the turning points of the trend movement, which are amongst the most profitable conditions for earning profit from a binary contract. In this MA method regime, the signal is the asset rate breakdown of the MA, noting that rates must be opened in the direction of the breakdown:

This format of indicator trading signals produces more than 80% successful options, which creates the opportunity to quickly and consistently increase the profitability of your trading indicators.

Combined Trading System

This type of analysis system works by combining MAs with several format customizations and market price indicator periods. To employ this strategy, set up on your chart MAs in this format:

For the EMA change the color of the MA. Therefore, we are given the opportunity to analyze the market in several time and technical periods at once, increasing accuracy, the quality of the trading forecast, and leading to more consistent trading results. When using this strategy to trade, use simple indicator signals as a short-term concentration of MAs in one point, followed by divergence in the defined direction:

The advantage of this strategy is in its universality. This method produces accurate trading signals on any asset chart timeframe, on all financial tools without exception, at any time of day. Therefore, the basic MA variations form a highly effective strategy for trading with binary options.

In conclusion, even though the MA has been well known by market participants for a very long time, it still is one of the most effective and in demand strategies for technical analysis and forecasting around today.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

How To Become A Profitable Trader With A 9 To 5 Job – 12 steps

How To Become A Profitable Trader With A 9 To 5 Job – 12 steps

If you still have a 9 to 5 job, becoming a professional trader in your spare time can be quite a challenge as I know from experience. Pursuing the goal of quitting your day job to become a profitable trader often seems like an unrealistic task for most people but there are certain steps that can help you improve your trading while working 9-5 and finding time for hobbies and your family at the same time.

The problems which keep traders from making the next step are:

  • No structure
    • Most traders are all over the place, always changing their approach, every trade looks different, they jump from one timeframe to the other, change indicators, chase price and so on
  • No vision
    • It is very demotivating if your results are all over the place and nothing you try seems to work. System hopping and the “gambling” mentality are often the consequences.
  • No accountability
    • Trading can be very lonely and if you don’t have people around you that help you grow, trading can become very frustrating. And even if you are in contact with other traders, often it’s not supporting your development as a trader.

My top tips for becoming a professional

Here are our top 13 steps and tips that will help you improve your trading while still working in your regular 9 to 5 job:

1. Find a trading style that suits you

It’s important to have a trading style that fits your personality AND your schedule. The two broad categories and trading styles traders have to choose from are swing-trading and day-trading.

Usually, swing-trading is better suited for traders who have limited time and restricted access to charts throughout the day. As a swing-trader, you do your chart analyses during the weekends and before/after work and you manage and execute your trades when you get back from work. Swing traders also don’t need to observe the markets all day long which can free up even more time.

If you are a Forex trader, you could also fit in a few hours of day-trading in the evenings since you’ll usually always find some active currency markets at any given time – but make sure that you can remain focused after your 8 hours work day.

ForexFactory offers a great tool that helps you understand which markets are active during different times and it also shows how liquidity changes during the day so that you can find the best currency pairs based on your schedule:

Tip 1: Decide whether you want to be a swing trader or a day trader. Audit your weekly schedule and your personality to see which style suits you best. Then, choose the markets and instruments accordingly.

In our premium course, you get access to both a swing trading and a day trading system at the same time.

2. Don’t ride the learning curve

This is the cardinal sin of trading; “system-hopping” refers to traders who frequently change their trading method every few weeks or months – or sometimes even days. Those traders usually never see any real improvements in their trading and profitable trading is impossible if you don’t fully commit to making one thing work.

If you always change your approach and don’t follow any rules consistently, all your trades will look different and you cannot analyze and make sense of your data. The only thing that will become obvious is that you lose consistently but you won’t find out what your greatest struggles are (except for a general lack of structure), what you should work on and what already works well.

You need to get a consistent approach and even though your results won’t look great in the beginning, at least you can start making sense of your trade review and slowly work on becoming better.

Tip 2: For the next 12 months, pick one system and make a contract with yourself that you will not change your method again. No matter what.

3. The money is made by waiting – trade your plan

Your weekend should be your most important day of the week. I personally do 80% of all my trading work on the weekends and then I do very little throughout the week. I mostly just follow my trading plans and do a quick trading plan update every 2 days.

As Jesse Livermore nicely put it:

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”

Most traders easily over-trade because they don’t have a plan and they don’t fully know what to look for in a chart or a good trade. Become clear about your rules, then you can create trading plans and then it’s just a matter of waiting for the price to come to you. No more chasing and impulsive trade execution!

Tip 3: Price alerts are the ultimate time-saver and the most overlooked trading tool. Use them after you have done your weekend analysis. This means you have to do your weekend preparation as well 😉

4. Active improvement as a trader

I mentioned that you should avoid system-hopping at all costs, but the question that then naturally comes up is: “how do I turn my current (losing) trading method into a winning one?” Here are 2 tips and things you should focus on to improve as a trader:

#1 Identify your biggest problems and take responsibility

Traders often mistakenly believe that their lack of trading success is caused by their trading method which then usually leads to system-hopping. However, failure typically comes down to undisciplined trading, a lack of professionalism and a pure gambling mentality.

Unless you trade 100% automated, YOU are the weakest link in your trading routine.

Thus, the first step for you should be to identify your greatest problems and your most commonly made mistakes. Traders who always try to blame their system avoid taking responsibility and look for excuses instead of doing the work that is necessary.

Tip 4: Over the next weekend, review your past 30/40 trades and see what caused your losses. Then come up with a top 3 list with your most commonly made mistakes.

#2 Process-oriented thinking

Most people act from a goal-oriented mindset where they automatically connect winning trades with good trades and see losses as failures. Such a way of thinking shows an amateur mindset.

The professionals, on the other hand, act from a process-oriented mindset where they look at how well they have executed their trades and how disciplined they perform. Thus, for a process-oriented trader, a loss does not necessarily equal a bad trade if they have done everything they could.

Tip 5: Avoid monetary goals and for the next 2 months, stop looking at your P/L. This will be tough but the impact will be huge.

5.В What do you really want out of life?

There is an interesting survey I came across and it shows how people structure their day. The average employed American spends 7:45 hours at work on a regular workday. At the same time, the average American watches 2 hours and 9 minutes TV each day and only invest 25 minutes per day in education.

Also, the average sleep time is at 8 hours and 48 minutes which exceeds the recommended 8 hours per day by almost 1 hour.

When you are working towards becoming a profitable trader, you have to be clear about your priorities and make sure that your actions align with your goals. Are you willing to wake up one hour ahead of schedule every day, stop binge-watching random TV series, skip a night out with friends every now and then and re-invest that time back into your trading? You can easily find 2 hours right there.

Granted, those are tough calls to make and you might say that “you still need to live a little”, but putting in the work now to reap the benefits in a few years will take your life to new heights.

Tip 6: Audit your week and identify time wasters. Then, just eliminate 1 such time-waster and use it to work on your trading.

“The ability to discipline yourself to delay gratification in the short term in order to enjoy greater rewards in the long term is the indispensable prerequisite for success.”

― Brian Tracy

6. Don’t focus on the when and the how much

I often get the question of how much you can make and how big your trading account needs to be to live off your trading profits. When I then counter with the question how much those people are currently making, it becomes obvious very fast that they are focusing on the wrong things at the right time and they are not even profitable yet.

Don’t try to run before you can walk!

Especially at the beginning of your trading journey, you should not worry about how big your annual return can be and how much capital you need to save to quit your day job and travel the world.

Focusing on those things will get you off track and keep you from making progress – it can also demotivate you when you see how much work is ahead of you and how far away you are from reaching your goals.

Instead, focus on your current problems and struggles. Then you can start making baby steps and slowly (but surely!) become a better trader without all the distractions.

Tip 7: Focus on the immediate task ahead and work on your current problems. Small improvements over time add up.


7. The dangers of demo trading

There is a place for demo trading, but most people stay on demo too long.

What I have seen in my own trading and from the traders that I helped is that demo trading often lets people adopt negative behavioral patterns that are then very hard to unlearn. When your actions don’t have any real consequences, you are more likely to repeat mistakes and engage in the bad trading behavior. I typically suggest staying on demo for the first 6 – 12 months (max!) until you have a good understanding of the nuts and bolts and then take make the next step towards live trading.

When there are no consequences of your bad behavior, you won’t learn any lessons and, in the worst case, you won’t be able to unlearn your negative patterns later in your live trading.

Tip 9: The pecking order is: Demo > small live account > decent live account > an account where your winners are impactful

And make sure that you learn your lessons from the first trading account(s) you lose!

8. 4 tips for growing a (small) trading account

If you are like most traders, you probably don’t have the capital to start with a trading account that allows you to generate a decent income right away and that’s totally fine. But you have to make sure that you follow the right path.

Here are our top 4 tips that will help you grow your account and enjoy the process:

#1 Patience and expectations

Let’s start with the most important point: having unrealistic expectations very quickly lead to frustration when those expectations aren’t met. Always keep in mind that what you are doing is creating a new life and a new career for you. You have to get away from the get rich quick mentality and accept that this is a long-term play.

Traders want “to trade for a living” but then act like they need to retire next month. Stay patient, learn the basics, manage risk & enjoy.

Tip 10: Adopt realistic expectations and avoid monetary goals.

#2 Recognize your true edge as a part-time trader

This is often your greatest advantage over full-time traders. When trading is not your only source of income, you can eliminate a lot of the pressure that often causes traders to make mistakes. Also, when you are not glued to your screen all day long, you are less likely to make bad trading decisions just because you are bored or haven’t taken a trade in a while. Maybe you don’t even have to become a profitable trader and just trade a few hours every day and grow your savings or up your lifestyle?

Tip 11: Understand your motives and become self-aware about how you perform best while achieving your life goals.

#3 Honesty with yourself

The cold, harsh truth is that, in the end, no one cares if you make it as a trader. That’s why it so important to be honest with yourself and with your current situation. Analyze your approach to trading realistically, your level of professionalism and whether you are serious enough about it. The failure rate in trading is somewhere around 99%, but it’s not necessarily that high because trading is so damn hard, but because most don’t give it their full attention and just see it as a quick way out.

Tip 12: Are you serious enough about trading? Be honest with yourself and evaluate your current approach to trading.

Below is a message from David who is one of our pro members. After joining our course, he is optimistic again about reaching his goals and becoming a full-time trader.

Disclaimer: The experience reports and comments shown constitute the personal experiences of our users. These are individual results that do not permit conclusions to be drawn about future developments. In particular, we make no claim that these are typical results that can be achieved by our users on a regular basis. Tradeciety can neither predict nor guarantee the occurrence of certain developments or the achievement of profits nor will it do so.

Best Binary Options Brokers 2020:
  • Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo

    2nd place! Good choice!

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