The ‘Marida’ Type of Traders
Many Binary Options Traders think that they can become rich in a couple of days, this kind of traders are what is called in my country “The Marida” traders. Actually, Marida is a tiny kind of fish that feeds a lot of undersea predators. Either you are trading Binary Options or any other kind of financial instrument (Shares, Forex or CFDs) never join the Merida team.
A Winning Strategy
Avoid false instincts and try to concentrate into facts and figures while doing your math. If you are a beginner, use a demo account, and by this way, buy some trading experience for free.In order to define a winning strategy, we must first understand what I call as the ‘Trading Triangle’. The ‘Marida team’, mentioned before, has usually no strategy and ignores completely the following triangle.
Based on this simple model is very easy to understand why you need to widen your time frames to trade any market. A wide trading time frame maximizes your profit potential while it minimizes your overall trading risk. Proof comes from statistics, 99% of all day traders are loosing their total capital after some time. Simply because when you are trading on a daily basis, your trading cost (commissions etc) is getting very wide and that means your profit potential is minimized. It is better not to become a day-trader. Take long-term positions and make clear decisions, always avoid time pressure.
□ Strategy -The Trading Triangle