18 factors affecting the effectiveness of investments on binary options

In today's article, I will introduce you to 18 specific factors that affect your results. I tried to take into account the most important factors that have a real impact on the quality of the opened positions. Remember that investing requires a lot of practice and in most cases your first deposit will be lost - I don't want to discourage you, but binary options it is exactly the same business as any other. You need to invest in your knowledge first, and then you can develop your skills to such an extent that the money invested returns with a significant excess. Also remember that learning to invest is not assigned forever - if you earn regularly for 2 years and then take a one-year break, you will have to learn many things from scratch. The market is changing all the time and there will certainly come times when the markets will be absolutely unreadable (as it sometimes happens on Mondays and Fridays) and you will have to adapt to it. Therefore, never rest on your laurels and educate yourself, develop your knowledge and practice constantly.

Strategy - the enormity of beginners focuses primarily on finding the best possible strategy. Of course, it cannot be denied that there are better and worse strategies, but the fact is that the compilation of indicators alone will not do much if you do not observe the market or understand what is happening. I recommend that you focus primarily on Price Action and understand how the markets work. I think that if you are just starting, choose a simple strategy and on its basis try to choose better markets and avoid false signals

Trend recognition - Don't cheat yourself. Trading in line with the trend is always easier because you know at least what direction the price may be moving in the near term. The only complication is to open options right after the correction is completed - thanks to this, the price has the longest distance to travel, and thus the probability of winning the position is much greater.

Support and resistance - many people wonder how to determine the time or length of the opened position and the matter seems quite complicated at first glance. But if we think about it deeper, we will realize that price tends to fall back when it reaches a level that is too hard to beat. The key is to learn to set support and resistance levels because it helps us better define the distance where price will bounce. Of course, the distance mentioned must be determined by eye and try to imagine how many candles of an average size will fit between the current price and the level of support or resistance.

Price formations - Probably the most hated topic by most investors. It's always hard to find price patterns in the market at first, but a few weeks of practice allows you more freedom when investing. The patterns tell us in which direction the price is likely to go. These are not nonsense or magical inventions - the formations have been repeated on the market for years, which is why they are considered one of the foundations of technical analysis

psychology - What like what, but investing in the stock market requires eggs. If you can't deal with stress, you make irrational decisions just because your first few options ended in taxation, then investing like this is probably not for you. It is best to train psychology by investing in real money - at the beginning of small and gradually increasing rates. This way you will get used to stress and eliminate the fear of failure to a large extent.

Follow the blow - Many people believe that if they start their investment well (e.g. with a dozen or so wins), their streak begins. Unfortunately, not the stock market, this approach is a half-and-a-half solution - you will either lose everything or earn a lot. Unfortunately, if you earn a lot, you will want to repeat it again and again and sooner or later it will end in a disaster. Set the amount you want to earn per day or the number of positions you want to open and stick to that. This way, you won't be too crazy and end the day with your saved deposit.

Willing to play - Ambition is something really good as long as it doesn't involve gambling, which is exactly what the willingness to play is. If you lost half of your capital by being careless and not following the rules of imposing investment limits on yourself, just accept it - acting under stress will not help you recover your capital. There are also people who, on the basis of Martingale, put up all their capital to save themselves a loss - as long as I think that the MG is okay as long as we can use it, putting all the available capital on one position is madness and pure lottery.

Experience - At this point, I mainly mean the fact that the longer you look at the charts and try to understand them, the better you are able to "predict" what will happen. It is not about clairvoyance, but about simple rules that exist on the market, for example, if a trend has appeared, but the correction has not yet formed, it is better to wait for the aforementioned market slowdown. An experienced investor knows perfectly well that if he opens a position on a trending market where no correction has formed yet, he will risk losing money. And these are the flavors that you acquire with experience and intelligent looking at charts.

Lack of concentration - Not everyone has time to invest. Many of you ask me whether it is worth investing on the phone at work - I think that this is not the most convenient option, especially if we open the options for a few minutes. In such short moves, precision is important and if you open the option slightly too late, it may turn out that the position will end in a loss. Therefore, make sure that you have peace of mind when investing. Find an hour for yourself and cut yourself off completely from the world - not for too long, of course, because long investing can make you mentally tired, which also translates into decisions made, and thus - effectiveness.

Opening multiple positions - This point delicately touches the previous sentence. If you open many positions, you lose your concentration and spend too much time on it. I assume that it is better to open 3 positions for higher stakes than a dozen or several dozen options for lower stakes. It's just easier to win 3 times in a row and complete your investments than to win a dozen times and add some losers to that - it will come out the same and you will save a lot of time.

Glass pressure - There is a belief on the Internet that binary options it's fast, easy and pleasant earnings. Nothing could be more wrong - as the classic says. Investing in binary options requires a huge amount of work and skill. If you've never dealt with stock market charts then you have to learn everything again and before you start earning anything it will be months.

Ignorance of indicators - If someone asks about what parameters should be set for indicators for a specific strategy, they probably have not understood yet that the indicators are a derivative of the price and show only average information from the last time. Of course, this is not a bad thing because indicators allow you to better find yourself in the market, determine the trend and other useful aspects - but remember that the parameters for the strategy are set so that the results are satisfactory recently. For example, today I can use the EMA (8,20), but tomorrow I can change the parameters to EMA (10,22) because they have generated better and more effective signals recently.

Price Action - Very important thing. Price Action is the absolute basis and everyone should understand how the price moves, what the price and candlestick patterns are and how the market behaves in certain situations. Without even knowing the basics, you won't be able to earn money regularly in the long run.

Bad beliefs - It is really amazing that there are people who do not believe that binary options can be profitable and still try. I really don't understand how you can do something you completely don't believe in. Of course, I can convince you that it is possible and you can get money out of it, but if you assume in advance that it is impossible to earn any money with binary options or Forex 'and that's really give it up and don't waste your money trying to do something you don't really believe

Lack of capital management skills - I recently wrote an article on how scammers cheat, and I mentioned there that investing a large percentage of your capital is practically an inherent part of any scammer. Believe me, investing 30% or 50% of your capital is just stupid and it is actually like playing roulette. There are very few people in the world who can with absolute certainty know what will happen in a deposit - however, these people rely on fundamental analysis and probably have information not available to the average investor. So don't invest such a large percentage of your capital as you will quickly zero your deposit and you will be done.

Selection of charts - I mentioned in one of the previous points that our task is to adapt to the market - unfortunately it does not work the other way around and we are not able to adjust the market to the strategy we are currently using. But fortunately, brokers give us a very wide range of assets on which we can invest - so don't be afraid to observe many charts and try to find something for yourself. In my opinion, it is most convenient to trade with the trend because at least we know in which direction to open the position. Here is a short advertisement - I have been working on a system that detects trends on the chart for some time - so you do not have to sit in front of the computer and wait for something to appear (70% of the time the market is stagnant), but you will receive an email notification that the chart e.g. EURUSD a trend has emerged and it is worth trying to invest there. Currently, the work is being completed, and if you want to test the system, click here and subscribe to the list.

Group trading - I used to do a separate article on this topic. Despite my skeptical opinion, under pressure from people, I decided to introduce a chat on my website, the main purpose of which was the exchange of views, and not group trading. Unfortunately, many people used this element to hang out and wait for signals from other people - the lack of independent analysis and investment, in the group of non-advanced people, usually ends badly. I admit that this approach allows you to relieve yourself mentally, but if you do not learn to invest yourself, you will have a problem in the event of a failure or complications related to the signal sender. Many people wrote to me that their results deteriorated and it was most often caused by the chat, so I advise against using the chat to people who are beginners and want to exchange views on where to open positions.

Market fluctuation - Many investors focus too much on indicators or on Price Action itself. Unfortunately, it is quite difficult to find a balance because there are always many exceptions and strange situations on the market. However, I noticed from the screenshots of people who send me their games for analysis that very often investors open positions when the market fluctuates. By this I mean long candles of different colors next to each other - this situation in the market creates confusion and to play on the signals that have been generated in this chaos is pure risk and it is better to just hold back and wait in which direction the price will eventually move.

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