6 min read
Even the most experienced traders can sometimes find themselves financially underperforming. Casual losses are inevitable, but if the series of defeats extends beyond the measure, it is only natural to think about it. When traders find themselves in this situation, it is often because they are stuck in a rut and do not know what to do to improve. If this sounds like you, the first step is to determine why you are not performing well, and the next step is to find out how to fix the problem. If you are not sure how to proceed, this article explains what you can do to improve yourself.
Adopt a positive attitude
In the face of higher losses than one can afford, it is human to react by feeling frustrated. When you deal more often with losses than profits, you can start feeling depressed or defeated, and want to give up. The first step on the road to improving your results is to eliminate this negativity. You must be positive in the situation if you want to have a chance to improve it. Recognize that your returns are not what you are aiming for, but take positive steps to implement the improvement.
Consider changing your trading strategy
If you are underperforming in trading, a possible reason might be that you have not found the right trading strategy for you. We are all different, and each of us has our own way of trading that gives the best results. Maybe you have not found your most effective trading strategy yet. If you've relied on technical indicators, for example, you can add important news to your analysis so you have additional bases for your decisions. To help you develop the best trading strategy for you, take a look at our article on the most common trading strategies you need to know.
Focus on practice
One of the reasons you may be underperforming might be that you do not give yourself enough time to practice your strategy on the learning account. This may be because you know it's not the "real thing", but the practice is just as important as real trading. It will show you which aspects of your strategy you need to spend more time on, and getting good results will give you more confidence. Treat the practice as seriously as you treat real transactions, giving yourself enough time to confirm your strategy.
Check your strategy over different periods of time
Many traders are eager to invest their money as soon as trading becomes profitable on the learning account. However, even the weakest strategies can sometimes seem profitable, often thanks to favorable market conditions and without merit. You should know the strengths and weaknesses of your trading strategy and consider validating their accuracy using historical data. Scroll the chart sideways to go back in time and check your trading signals in the past to confirm your strategy.
Start with small investments
Once you have found a reliable strategy on the learning account, gradually return to real trading, starting with smaller investments. Working with smaller amounts will allow you to trade away from the pressure of excessive risk and will open the possibility of resuscitating your trading performance.
Let's trade now
Any reference to historical price movements or levels is informative and based on external analysis. We do not guarantee that such movements or levels are likely to recur in the future.
Trading binary options involves a high level of risk and can lead to the loss of all your funds.
Source: IQOption blog (blog.iqoption.com) 2018-09-07 12:47:43
Article has been translated for informational and promotional purposes. Translations may not be correct and may contain errors we are not responsible for. Please note this article has been translated by using artificial intelligence. If you are having problems to understand article please refer to original article from IQOption blog.