CALL or PUT: How I profit using Binary Options by Preston Dennis

Author:Preston, Dennis [Preston, Dennis]
Language: eng
Format: epub
Publisher: Preston Publishing
Published: 2016-09-13T16:00:00+00:00

7

Hone Your Skills

In this chapter, I’ll go into more detail on how you’ll need to decide whether or not to act on the data you see in front of you. It’s not enough to just know the strategy, you have to understand the strategy and use your judgement to make the right decisions .

So now we have some basic knowledge on how to look for the indications that a market's price will become lower or higher … we need to make sure we're sticking to the ‘rules’ and really understanding what's happening at all times.

Be disciplined. You might be waiting a long time to find that perfect signal. You may have just switched from GBP/JPY to EUR/USD (I trade solely on currency pairs) to find that you missed a great signal 10 seconds ago.

You’re disappointed because you can literally see you would’ve made £500 or some amazing amount of money if you’d only switched sooner and traded.

You may start getting desperate, lowering your standards and opening positions when a candlestick just touches the Bollinger Bands and the RSI is almost at 80 etc. but don't. Don’t do it .

Be patient. I'd rather miss a signal and make no profit than get impatient, make the wrong decision and lose money.

I’ll give you a real example of how loosening your grip on the strategy can make a massive impact on your success rate and lose you money.

A good friend of mine who I used to work with recently asked me to teach him how to trade. I met up with him and taught him my strategy.

Then I helped him practise a few times on video calls, pointing out any mistakes he was making, explained to him why he shouldn’t have done X and should’ve waited for Y etc .

Well after a while of ironing out his approach, he started doing really well on his demo account.

He’d listened to everything I had taught him and I could see him doing really well.

Before long, he started trading with real money and made £150 profit in 3 days. I was really impressed at how well he’d picked it up since he had no previous experience in trading whatsoever.

Then I get the phone call …. “I’ve lost all the money” he tells me. My first thought is guilt, did I forget something when explaining it to him? Did I fail to spot that he wasn’t ready to trade real money yet ?

Nope. Everything went fine until he got a little tipsy and totally threw the rulebook out the window. He started opening high-value positions, forgetting the money management strategy I’d taught him, and was getting bored so he wasn’t waiting for the right signals.

So he had doubled his money using my strategy then lost it all by veering away from it. It’s easily done and it can be very boring waiting for the right opportunity to trade.

He’s doing well now, luckily he could afford to lose the money and start again. The point still stands though, don’t mess around, it’s not a game.

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