Jan 12

Playing to win when you trade

After a couple of years on the financial trading scene I feel like I have gained some valuable experiences, especially when it comes to how important it is to keeping the balance between risking too much and playing it safe. This is what we call risk management, and it can really make or break a trader. During my first two years of trading, I didn’t really think too much of this, and thus my result would swing up and down like crazy –I would have periods where I would profit thousands of dollars from successful traders, and other periods where I would lose it all again.

As I said, the key to everything is balance. A trader that is super careful and never takes a risk of losing money will never make large profits unless he has a massive capital. In my opinion, when it comes to binary trading and forex trading, which are the two forms of trading that I’m involved in, it’s really not about making small and slow profit. These are fast paced trading instruments, and therefore we are looking to make money fast. On the other hand, a trader that is absolutely crazy and take huge risks might make a ton of money, but the more risk that is involved in a trade the more of a gamble it is. Therefore, he’s likely to come across a streak of bad luck where he will lose most of his money.

So where is this perfect line between safe and risky? It’s hard to say, but it all comes down to knowledge. Sometimes, even most of the time, you will make trades are a safe and low risk, but in order to make real money of forex trading you will also have to take risky trades. The key is to know when the time is right to make a risky trade.

So how do you know which high risk trades to go for? Again, it all comes down to how much you know about the market, and the assets that you trade with. The more you know about the asset you’re about to invest in, the more likely you are going to be predict the future value of this asset. So to conclude this, what you have to do is to gain knowledge. What’s best to do here, is to frequently visit portals for binary options (if that is your preferred type of trading), read up on the news and guides in order to get a clear picture of what the market looks like today. The more you read, the more likely you are going to be to profit from your trading.

So, I’m guessing that after reading this, you might think that it all seems like pretty hard work? Well, it is, just like any other job. However, I can promise you that trading is a lot more fun when you are making money rather than losing it, and all the work you put in learning about this stuff is going to pay off in the end, so my advice to you is to keep at it!

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