“Over trading Binary Options“, is something most traders have been guilty of, especially as a new trader, this is simply because you are new, it is exciting, it gets your blood pumping and / or you have not got a set of rules to follow for your trades, you have no set strategies yet, trying to catch up on the last few loosing trades, thinking that your lucky winning streak will never end etc.
All of the things mentioned above will empty your trading account really quickly, so set yourself a realistic daily goal of say 5 – 10% profit for a small account size ( $50 – $500 ) and 2.5% – 5% for any account balance larger than $500.
Control your emotions, dont let emotions control your trading.
Set yourself rules regrading how to manage your trading account balance, for example,
Invest only the minimum amount set by the broker, usually $25, or less depending on the broker you choose, i.e. IQ Option has a $1.00 minimum and High Low Binary Options has a $10 minimum.
If you hit your daily percentage target, stop trading for the day, or at least a few hours.
If you have two losses, one immediately after the other definitely stop trading and switch over to your
demo account to see if the market has changed conditions for the strategy you are using. DO NOT
chase loosing trades.
Set a “two loss” daily rule for that winning streak, so if you win a couple , loose one, win a few more and
loose one again, that is time to stop for the day. This can be hard to do, but it is a discipline that will help preserve your trading account.
These are just a few simple rules to help manage your trading account and hopefully keep it profitable.