Introducing the ‘Marida’ Type of Traders
Many traders believe they can become rich in just a few days. In my country, this type of trader is referred to as a “Marida” trader. Marida is a small fish that serves as food for many underwater predators. Whether you are trading Binary Options or any other financial instrument—such as Shares, Forex, or CFDs—you should never join the Marida team.
True Vs. False Instinct
A true trading instinct comes only from experience. If you’re a beginner and feel like you have an instinct, you're mistaken. It’s simply a trick your brain plays—trying to boost your confidence or seeking excitement by triggering an adrenaline rush. Confidence alone won’t make you wealthy, nor will adrenaline. What can lead to future success is knowledge, experience, and a solid strategy.
Avoid false instincts and focus on facts and figures while doing your calculations. If you’re new to trading, use a demo account—it's a way to gain valuable experience without risking real money.
To build a winning strategy, you first need to understand what I refer to as the ‘Trading Triangle.’ As mentioned earlier, the ‘Marida team’ typically lacks any strategy and is completely unaware of this essential triangle.
What characterizes the Trading Triangle is velocity. Whenever you push one side (Performance, Risk, or Time Frame), the other two sides expand. So, if you want to achieve high profits (Performance) in a short period, your trading risk is expected to increase. Conversely, if you aim to reduce your portfolio risk, your expected return will be lower, and your time frame should be longer.
Based on this simple model, it’s easy to understand why you need to extend your time frames when trading any market. A longer trading time frame maximizes your profit potential while minimizing your overall trading risk. Statistics support this: 99% of day traders lose their entire capital over time. This is mainly because trading daily increases costs (commissions, etc.), which reduces profit potential. It’s better not to be a day trader. Instead, take long-term positions, make clear decisions, and always avoid time pressure.
□ Strategy -The Trading Triangle
