Trading is 30% mechanical and 170% psychological. Two hundred percent is required to become a successful trader.
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New York, NY (PRWEB) June 06, 2014
Like any other profession, trading calls for years of practice and knowledge gained from experience and observation. But unlike the medical or legal fields, for example, which take students through years of formal education to ensure that they emerge as individuals qualified to practice, investors seeking to make a career out of trading binary options must obtain the knowledge and experience on their own. And as expected, the journey will be filled with hits and misses.
In a recent blog entry published by The Binary Options Experts entitled "The New Trader's Journey to Success," VP for Global Operations Duane Cunningham outlines the six development stages that all new traders undergo before they can claim that success has been achieved. Being a seasoned trader himself, Cunningham taps into his own experiences and shares valuable wisdom that he has picked up over the years.
The first two stages, according to the company VP, sees the beginner trader entering the field typically after finding out about other traders that have made their millions or have gotten lucky over a particular stock investment. "In the first stage, every trader is optimistic," he says. Beginners tend to start making trading decisions based on what they may feel to be right, or they evaluate markets as strong or weak without solid logic. By the second stage, traders will have experienced losses, scampered to study technical analysis and indicators from books, and then realizes that losses are still pouring in and that every other trader seems to be doing what they are doing, too.
"At this point, many traders may find it overwhelming and quit," Cunningham says about the third and fourth stages. The stronger-minded among the bunch will push on to begin the next phase of gathering information and knowledge. They will discover the binary options demo and start joining mentor programs, seminars and chat rooms to converse with as many professional traders as they can possibly meet. An effective trading method will begin taking shape. "You will start paper trading, develop strategies and setups, and define risk parameters for every trade. You will go on a hunt for self-understanding to master your psychological game. You will visualize every possibility on a trade before you take it. This is the true learning phase."
By the fifth and sixth stages, the new trader will now focus on maintaining consistency in practicing the training method he has established. His strengths and weaknesses are now known, and he will use these to create a plan of attack for his goals every time. And he now understands the markets and is able to predict their direction in a good amount of time. "Taking trades come naturally and you are able to get in and out at the precise price levels," Cunningham explains. "Instead of having the markets take your stop out, you exit when you know you are wrong. You keep your head high but remain humble on the inside. You have now officially graduated the school of the hard knocks."
While working to successfully trade binary options is undeniably tough, the good news is that there are remarkable rewards that await those who welcome the challenge — financial security, confidence, and a feeling of accomplishment. "Trading is 30% mechanical and 170% psychological," Cunningham ends, rounding out the blog post. "Two hundred percent is required to become a successful trader."
To learn about the new trader's six-stage journey to success in detail, visit The Binary Options Experts' blog and read the complete blog entry today.