Mindset Training – Traders Mentality
Mindset Training and Money Management
An efficient winning strategy in binary options also contains money management. Mindset Training incorporates having a good money management plan and trading strategy that will help you predict the movement of certain assets.
Money management is generally ignored by most binary options traders. This is because they believe that it’s enough to be able to predict the movement of the assets and everything else will follow automatically after this. However, if you don’t have the necessary discipline in order to manage your finances you might actually end up losing money rather than winning.
A good binary options money management and mindset training strategy basically has two main parts, which are taking some risks as well as having the discipline to abide to the rules that you have proposed in your money management strategy. It can be seen in psychology through the process of Cognitive Behavioral Therapy, as well as commercial programs such as Neuro-linguistic Programming (NLP) and the Sedona Method.
In simple terms, the most essential moment in personal change is the moment when the impulse toward negative thinking actually arrives in our minds. If we can recognize that impulse at that moment and immediately replace it with a new, positive one, we will fundamentally change the course of events.
The most important part of this process is that, if we are able to change our thoughts and actions in these critical moments, we systematically weaken the impulses. Sometimes, the limiting belief is dissolved the first time this takes place; others can require more time and effort. However, if we do this consistently, we can make this thought-replacement permanent. By replacing these negative impulses with impulses containing the language of hope, high expectations and happiness, we will create a mindset change that improves the course of our lives forever.
Treating trading like any business with prudence , ethics and self discipline. Having the right mindset from the outset can make the difference between being successful and not in the trading world.
Investment amount on each trade
Ideally the best practice is to invest 5% of your total available portfolio. For a $1000 account portfolio, use $50 on your next trade. This is for low risk traders. If you can handle a little bit more risk, you can up the trade upto 10% investment amount. That would be $100 for the same $1000 portfolio.
Do not put all eggs in one basket so to speak. Diversify asset, brokers and signal service wise. When you are making good profits in trading binary options, these become necessary for you to grow and lay down a good foundation even further.
Assets: As you already know, binary options can be traded for currencies, indices, commodities or stocks. It is recommended that you choose a minimum of two asset types. Most trade a combination of currencies and commodities like Gold, Oil in their portfolio. Understanding the economics and trends of these underlying assets can you help you absorb more profits or minimize loss.
Brokers: It is good to diversify brokers for several reasons. Payout, welcome bonus, withdrawal process, their education and training materials, support are all unique to each broker. Pick at least two brokers so you which offer spreads that are close to or near your trading chart software.
Signal Services: With the manual, semi auto and fully automated signals available in the industry, it is wise to take advantage of these services. You can invest time and money as your best bet advanced money management strategy. With the automated signals, you can let your account grow with some set ups of the software. Combining these different types will help expand your profits faster.
Profits: Reinvest or Withdraw? Here’s the make or break for your trading when it comes to advanced money management. Do you withdraw the profits or reinvest in the portfolio? Once you have a good nest amount in your account, consider withdwrawing your inital investment and only trading with profits.
Conclusion and Self-Assessment
Keep a log of your winners and losers and keep adapting and improving as your game. Based on the pattern, you can adopt new combination or continue what is already successful. Keep fine tuning until all you see your profits are optimized. Please let us know how you go and if you have any comments or queries please do not hesitate to let us know.
Thank you for reading this mindset training and money management review.