5 Things You Should Learn From The Binarium’s Best Traders

5 Things You Should Learn From The Binarium’s Best Traders
Experienced traders have their own tips and tricks that help them get better outcomes. These tips are not acquired overnight: it takes a long time to test out a strategy, find what works best, practice and see results. Here are five methods used by wise traders  – you may want to remember them for your next trading session.

1. Invest only the amount you are prepared to lose

Most experienced traders never risk their whole capital. It may seem that the more you invest, the higher the possible returns are. That is only partly true: yes, in case of an in-the-money outcome, the outcome may be higher. But on the other hand, it also increases the risk of losing everything. No trader wins every time, this is why investing only a certain percentage is optimal. The amount of 1-3% of the trading capital might be enough: this kind of approach will protect the rest of the balance, making sure that a trader is not left with nothing after one deal. Building the portfolio slowly, rather than taking high risks, is optimal from the risk management point of view.

2. Don’t be afraid to experiment

5 Things You Should Learn From The Binarium’s Best Traders
On the practice balance, of course. There is no need to spend real funds on practicing a new strategy or learning about a new indicator. A trader can train as much as they want with the Practice balance on Binarium. Experienced traders might have their preferred trading approach, but they always look for new assets, new strategies and new possibilities.

Always learning and being open to new things may help a trader find great opportunities and gather more practice. Look through the last 5-10 articles on the blog: have you tried any of the indicators or strategies described? If not, you may apply them on the Practice balance and see how it goes. Another great bonus is that you don’t need any trading plan – you can experiment there as much as you want!

3. Prepare a trading plan before entering the market

This is where a trading plan is necessary. When a trader is getting ready to open a deal with real funds, having it planned is highly important. A clear strategy is necessary not only to give the trader directions, but also to control their psychological state. Having a trading plan to rely on takes away the pressure and uncertainty. Emotions play an important role in trading – they can be a reason for unsuccessful deals, wrong entries and panic exits. Experienced traders make up a plan for each deal and set their outcome goals, as well as the risk management rules.

4. Don’t get discouraged

5 Things You Should Learn From The Binarium’s Best Traders
If an experienced trader gave up after the first loss, they wouldn’t be referred to as “experienced” today. Being unhappy or angry after a failure is normal, we are all humans. But in trading, there are a lot of intense emotions, as it is highly risky. It is important to acknowledge them and deal with them, before they start affecting one’s trading.

Instead of acting on emotions, try to develop emotional discipline. Make sure that the decisions you make are based on the market, not on how you feel. One helpful exercise is expressing the emotions out loud, for instance “right now I feel upset about losing my investment”.  This technique might help to get over the emotion quicker and retain composure.

5. Focus on your own progress

At the end of the day, what really matters is how far you have personally come, not what other traders may be doing. Experienced traders always put their knowledge and success first. Educating yourself and practicing are the key things that a trader can do.
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