What To Do With Binary Options Losses
Alex

LEVEL 10 : SENIOR

REVIEWS 9 | REPLIES 84

#2834

Alex

October 26, 2015 at 4:09 pm

I have said it many times before, and I will say it again – losing is part of trading! Whether you like it or not, you will have losses. There is no trader or system out there that will win 100% of the time. The sooner you realize this, the quicker you can move forward to success.

What Constitutes a Losing Streak?

Before we look at ways how you can regain control of your trading, we must first talk about what constitutes a losing streak. A losing streak is a subjective term amongst traders. Some might say that three trades in a row is a losing streak while others might argue that three losses in a row are not that bad. They could define a losing streak as five or more losses in a row. One thing is for sure; one loss is obviously not a streak, and two losses is only a couple of losses. So technically speaking anything more than three losses in a row could be defined as a losing streak.

What is important is that you should define what a “normal” losing streak is and what is not according to your strategy. You can do this by testing your system over a number of trades. This will help you accumulate different statistical information regarding your trading system and your performance. Look at the worst trading streak that your system had. This is the maximum trades that your strategy lost in a row. You can also determine how often a losing streak like that occurred. This information can tell you what you can expect as “normal” trading losses. This analysis will enable you from panicking when you find yourself having a losing streak. Should you, however, find yourself in abnormal losing streak, you might want to find a solution as soon as possible.

5 Ways to Regain Control of Your Trading

When traders face a losing streak, they face all kinds of psychological challenges including anxiety, anger, panic, confusion. These will inevitably cause you to lose confidence in yourself. You might come to a point where you feel helpless and no longer believe that you can succeed in trading. This is a dangerous and vulnerable place to be at. Let’s have a look at a few ways how you could overcome this helplessness and get back on to your feet.

1.Switch Back To Demo Trading

The last thing you should be doing when you are on a losing streak is to carry on live trading. Some traders might also feel the urge to win everything back which they lost. This will only result in bad trading decisions and lead to bigger losses. Instead, you should take a step back and stop trading live for some time. Purely focus on demo trading for a while and prove to yourself that your strategy works. By doing this, you will not only regain confidence in your trading strategy but also in yourself. Sometimes this is all you need to get your live trading back on track.

2.Search For Answers

Before you can get back to trading, live you need to find answers as to why you are losing. If you want to become a successful trader, you need to become an excellent observer and be able to evaluate yourself. While doing this, you need to separate yourself from the situation and be brutally honest with yourself. While evaluating yourself, there are many aspects surrounding your trading that you can look at. Here are a few factors that you can consider:

Have you been deviating from your money management plan? Perhaps you are overtrading or under trading? Maybe you are not sticking to your strategy or trading plan. Sometimes the problem can even lie with the broker you are trading with. It could also be that the market conditions have changed, and your strategy needs a little bit of tweaking. Another problem could be that your emotions are affecting your trading decisions.

The only way you can regain control of your trading is if you can identify where the problem is coming from and fix it. This might sound easier than it actually is. Sometimes there can be more than one factor that could be affecting you so be very thorough when searching for answers.

3.Do Not Search For The “Holy Grail”

Many traders believe that their system is no longer working due to their losing streak that they are experiencing. At times like these, it can be tempting to throw away all their hard work to date in order to search for a different trading system or the “Holy Grail”. Traders need to talk themselves out of this, especially if they have a good trading strategy to begin with. You will spare yourself a lot of time and trouble to tweak your existing system than searching for the “perfect system”. As I said earlier in the introduction – there is no such thing as the “Holy Grail”.

4.Seek Help From Others

Traders, in general, like to help out each other where ever they can. There are some traders out there that will happily take a look at your charts and trades to give their opinion at no cost whatsoever. These traders can point out what they think you are doing right and the mistakes that you are making. This insight information is highly beneficial because it will allow you to focus on your mistakes, build on your strengths and restore your confidence. If you want to meet other traders, it is a good move to join a trading community such as our forum. Participating in forums can be a huge help to your trading. You might also feel like you want to help other traders when you can see they are struggling with something that you also had a problem with.

5.Take A Break From Trading

The last and final thing that traders can do is to take a full-on break from trading. Sometimes all you need is just to clear your head and not think about trading at all. Do stuff that are completely unrelated to trading. Do a hobby of yours such as fishing, hiking, travel, playing a sport, making crafts or just spend some quality time with your family and friends. Whatever you think will clear your head, give it a try. The chances are good that when you come back to trading you might have developed a perspective to see things differently and find a solution to your problem.

It is a very common phenomenon amongst traders to lose confidence in their trading at some point in time. When that time comes, you need to know what to do to be able to face the problem. If you follow the suggestions I mentioned above, you will be able to get back on your feet and gain control of your trading.

Jed Monreal

LEVEL 2 : NOVICE

REVIEWS 7 | REPLIES 5

#2864

Sniper

November 2, 2015 at 1:03 am

Awesome timing, this article could not be published on a better time… I’m currently going a rough losing streak. I’m definitely going to follow your advice. I really hope that it gets me back to where I was. I feel highly discouraged these past few days. It has put a damper on my whole mood. People have asked me what is wrong. It’s actually scary how big a part trading has been playing in my life.

I think I might start off with a break from trading. Maybe Im just overdoing it these last few weeks. If that does not work I’ll move on to the other points and see if they work. Thanks for the tips

Taylor Simmons

LEVEL 2 : NOVICE

REVIEWS 8 | REPLIES 5

#2971

Taylorfx

November 18, 2015 at 5:49 pm

Hey Sniper don’t worry bud. Many traders have been there. Taking a break, being it a week or a month or whatever will do wonders for you and your trading. Trading can be very taxing on the mind and as such it’s good to have a balance. If you overdo yourself you will eventually burn out. I would even say after your break, go back to demo trading to build up your confidence and show yourself that you can still be profitable. Psychology is a major part of this game… believe in yourself and your abilities. Hope it helps

evixar

LEVEL 1 : NEWBIE

REVIEWS 0 | REPLIES 2

#3504

evixar

August 29, 2017 at 9:03 pm

These are the great advices, sometimes we just forget about taking a break after the losing streak

LEVEL 1 : NEWBIE

REVIEWS 1 | REPLIES 2

#3526

Mastery

December 7, 2017 at 8:59 am

Has someone already traded with a verum option? how are the results? can they be trusted?

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