When you begin to do trading of binary options, it is very common that you have a series of losses, what possibly might diminish your confidence. This must not you disappoint, since almost all the traders have happened for this process. You have to use basically these experiences to promote your trading skills and to improve your psychology.
To go so far as to handle correctly a money strategy is a long way and it will allow to the trader to maintain the things under control. This implies knowing the adapted quantity to invest in the trading. Most of the experts advise to the raw traders to continue a strategy of handling of primary money in which there should not be used any more than 2 % of its capital by position. This way, the trader will be capable of expiring with the popular motto in the world of the forex that implies “without risking too much your balance”.
If you are capable of surviving the losses, you will do the trading of a correct way, if you start this strategy. For example, if you have a loss of eight followed, and good-looking positions 2 % of your patrimony in every position. With this the trader assures to have 85 % of its sure patrimony. If, on the other hand, we have a very ambitious trader who bets close to 15 % for trade, it means that at the end of eight losses of position, it was moving back with only 27 % of its balance.
Since the first method is seen it is adapted for any person, what guarantees that the trader is in good market conditions and it would have more time to perfect its negotiation skills, while it gains more knowledge on the trading of binary options. The second case, on the other hand, will demand from the investor to do some additional deposits if he wants to continue with its activity – this is something that all the traders have to avoid. The investors have to do rather different trading in a long period of time without need to realize additional deposits to its account. This is feasible if one tries to put into practice the skill of 2 % of the handling of the money what indisputably was safeguarding your account balance. Let's tabulate some of the problems associated with the detractions, by means of the visualization of the effects of persistent losses of 10 % in an account with capital of US $ 20.000.
The previous picture shows clearly that the detractions not only generate a harmful accumulative effect, but also it shows the percentage of profit that would be needed to be able to return your account to its initial state. The drawdowns are not good for the investors, and therefore it is necessary to guarantee the protection to avoid a problem and to safeguard the patrimony of the merchant.
If the merchant limits its exhibition to the risk concerning 2 % of its account size, then it is possible to avoid any insidious problem. It is advised the beginners to begin for centring its attention in improving its skills faced to the reduction of the losses.