BT100 Training Course

1. TRADING
PSYCHOLOGY
BT100 Binary Options Training Course

2. Reasons Why Most Traders Fail
• Greed
• No patience
• No goals
• Not being realistic
• Gambling mindset
• Can't take a loss
• Consistency
• Money management

3. Greed
• Many traders have a bad habbit of over trading and are
completely addicted to trading. If you find yourself placing more
and more trades even after you have already gained a good
amount of profit, your probably greedy. As a trader, you should
be satisfied with making small and steady gains, rather than fast
inconsistent gains, which will eventually fail in the long run.
Remember, the more time you spend in the market, the more risk
your exposed to. The goal is to enter the market, make some
profit, and exit the market for the remainder of the day. If you
spend more than 2 hours trading binary options, you are
definitely GREEDY!

4. No Patience
• Having patience is essential in trading binary options, in fact
patience might actually be the most important factor. You should
keep in mind that trading takes time and the market does not
move on your time. As a trader, you should be prepared to wait
long periods of time for a trading opportunity depending on your
trading strategy. Many traders fail when they begin to create
setups that aren't there, thus they are forcing the market.

5. No Goals
• Having no goals in trading is like having no destination when
your traveling in a car. Many traders fail to realize this simple
concept of trading. If you don't set goals for yourself, you'll have
no direction when trading and you will not know when it is
appropriate to stop. When setting goals you should be
completely honest with yourself and know your experience level.
If you have a small account, ie $200, you shouldn't expect to
make $100/per day, but instead, you should expect to make
anywhere betweeen $25-$50/per day (in traditional forex and
stock trading, that is considered a pretty good daily profit or
Return On Investment).

6. Not Being Realistic
• It's important when trading binary options that you be completely
realistic when setting your goals. Many Traders expect to become
rich over night and see binary options as a "get rich quick
scheme;" these are the traders that don't last very long and end
up destroying their account. You shouldn't look at other traders
trading accounts in comparison to yours. Every trader has
different results even if they're using the same strategy. As a
binary options trader, you should trade with your mind, not your
ego, meaning you should always trade at your own paste.

7. Gambling Mindset
• Many forex traders believe that binary options is nothing more
than gambling and should not be taken seriously. The problem
with this is, traditional forex trading is completely different than
binary options trading. In binary options we are trading against
time as well as predicting market direction, and this brings the
gambling aspect to it. The difference between gambling and
trading is that in gamblinng you aren't using any analysis and are
relying solely on probability, ie coin tossing. In binary options, we
use high probability analysis in predicting the market direction,
therefore, we are not relying so much on probability. Some new
traders are allured to binary options because of the high payouts
in a short amount of time that it offers. This can be a double-
edged knife, as it increases the risk of you losing money.

8. Can't Take A Loss
• In binary options trading, you should understand that you cannot
win all of the time. In fact, over 95% of traders actually lose the
majority of thier trades. Also, over 60% of new traders don't make
it past thier first 3 months. Many traders expect for binary options
to be easy but in actuality, it is the hardest form of currency
trading. Being able to take a loss will seperate amatuer traders
from professional traders because amatuer traders usually give
up after a lossing streake. As a skilled trader, you should expect
to have lossing days, even lossing weeks in trading. But this
should not discourage you or make you quit. It is important to
always keep an open mind and remain positive.

9. Consistency
• It is important to be consistent in binary options trading. You
should know as a skilled trader that not one sinlge strategy works
100% of the time. Often, new traders search for strategies that are
100% successful and they always fail. Traders try different
strategies hopingthey've found the "holy grail," and the minute
thier strategy begins to fail, they stop using it and continue the
cylce. As a professional trader you should have a multitude of
strategies that produce a decent success rate meaning 65%-70%
accuracy. Just because you have a lossing streak using a
particular strategy, doesn't necessarily mean that strategy
doesn't work. You should learn to adapt to that strategy, or alter it
to make it work for you. You should remain consistent and
continue to use the same strategies until you perfect them.

10. Money Management
• Having money management is one of the most important factors
in being successful in binary options. Most brokers offer a payout
of anywhere between 70% & 85% on standard binary options;
knowing this, you will have to keep a success rate of at least 65%
to be profitable. This is where money management comes into
play. If you're risking too much on a single trade, you will have to
win a lot more on your trades because one single loss could wipe
out a series of winning trades. Let's say your starting balance is
$200 and you take four trades for $5 with the payout of 70% per
trade. At 70% that is a a $3.50 profit, multiply that by 4, that a $14
net profit. Now you place a trade for $100 and the trade loses.
This will not only erase your winning trades, but it places you
under the amount that you started with. In trading, you should
only risk at the most 5% of your total balance.