One quality all great traders have is patience. Successful investors will only enter into trades when the odds are stacked in their favour. They would much rather be the house rather than the average guy on the street trying to win big.
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New York, New York (PRWEB) September 16, 2014
Who wouldn’t want to be the next Warren Buffet? Widely hailed as this century’s most successful investor, Buffet, son of a stockbroker turned congressman, has made some of the most followed investment decisions in the world. While the highly regarded investor may have started making his money in the stock market at 11 years old, The Binary Options Experts say it’s not necessary to turn back the hands of time to start making money. But it is necessary to practice the traits of successful traders.
The Binary Options Experts examined the habits of successful traders and condensed these into the top 10 traits to emulate. The binary options trading system experts recently released the list and shared how amateur investors could end up achieving what Buffet has so far achieved.
According to The Binary Options Experts, successful traders only trade when there is an opportunity in the market. “One quality all great traders have is patience. Successful investors will only enter into trades when the odds are stacked in their favour. They would much rather be the house rather than the average guy on the street trying to win big. They are focused on the bigger picture and are willing to wait and have the patience to only trade when the right opportunity presents itself.”
Another trait amateur traders should practice is having a trading plan. Duane Cunningham, vice-president for global operations, shares his own experience, “When I first started trading I would just place random trades based on how I was feeling at the time. I’d put on a bull call spread, then I’d try shorting stocks I thought were over-valued and then I’d be making volatility trades. Needless to say, I was not very successful during this time. While some of my trades were winners, it was like I was taking one step forward and two steps back. All the great traders have a clearly defined trading plan. This is crucial to your success as a beginner binary options trader.”
A good way to practice a trading plan, or to develop one, would be to start with a binary options demo account, which could also work for practicing the next trait of a successful trader: having a risk management plan.
The Binary Options Experts explain, “Beginner traders have trouble getting a handle on how much to risk on each trade. When starting out you do not want to have 90 percent of your capital tied up in one trade. One thing for beginner traders to consider is to split your trading capital in half, place half in an interest bearing account and use the rest to trade. This way, no matter what happens, you will never lose all of your capital.”
Incidentally, also included in the top 10 is being properly capitalized. Not having sufficient capital is, according to the Binary Options experts, a very common mistake beginner traders make.
Cunningham adds, “Beginners see the power of leverage option trading offers and think they can turn $2,000 into $20,000 in a matter of weeks. Before they know it, a couple of losing trades have completely wiped out their capital. I must admit I was also guilty of this. I was living in NZ and had just started trading. I think in my first six months I broke just about every trading rule possible.”
Other traits included in the list are: low tolerance for risk; ability to control emotions; discipline; focus, and commitment.
Whether it’s trading binary options forex or commodities, the trading consultancy firm remarks, “You need to be on top of your game all the time. Any time you stop paying attention to the market, you will get burned. Not only do you need to keep an eye on your trading performance, you need to be staying abreast of the current news, market cycles and investment outlook.”
For more insights and an in-depth look into these successful trading habits, read The Binary Options Experts’ post on being the next Warren Buffet, and achieve consistent performance, no matter what cycle the market is in.