It is not something that traders like to think about but it is a natural part of the trading system. You win some, and you lose some.
The losses can be more deeply ingrained than the wins, however, and they can certainly hurt a lot more. Therefore, it is quite common for people to get frustrated and even turn their backs on trading completely.
Although it is not easy, there are ways of dealing with a losing streak with binary options trades. Here are some helpful tips to help you through this turbulent and disappointing time:
Examine the Streak
The first thing you need to figure out is just why you are ending up out of the money on all of these trades.
It could be that the market is simply not favorable towards your asset or that there is a great deal of volatility. Perhaps you are deviating from your trading plan or are not using the strategies that you typically do.
It can be difficult to admit to yourself when you have made a mistake. It is important to do, however, as it can help you learn from the error and make the necessary changes to improve the circumstances.
What is really essential is that you don’t just keep making the same mistake over and over again. You should also keep in mind that rarely is there just one aspect at fault. It is more likely that several factors are responsible for your current downfall.
Go Back to Your Demo Account
Clearly live trading is not working out for you so it is time that you take a break from that.
This doesn’t mean that you have to give up on trading altogether, however. Rather it is about reassessing the way in which you are placing your trades. It is also a good way to evaluate your strategy.
By using it in a non-risk environment, you are better equipped to determine if there are flaws in your strategy. It may turn out that you simply have been using the wrong strategy for the wrong trades.
Take a Break
As hard as you may try, it can be difficult to not let a losing streak get to you. This can cause you to doubt your strategy, yourself, and the entire form of trading.
This is why, every now and then, it can be good to take a little break. Sometimes you just need a week or two to help you clear your mind and get your head back in the game.
This also helps you get some fresh perspective on your situation. Even if you continue to experience losses, it will be a little easier to bear with them as they will not have been back to back.
Manage Your Money Well
One of the biggest risks with losing streaks is that you can stand to lose all of your money. As tempting as it may be, avoid pouring in additional money to stem the loss. Instead, continue with your money management strategy as long as it is a safe and logical one.
Of course, if your funds are running low, you may want to reduce how much you are placing on each trade.
This is quite important if your strategy carries a high amount of risk. If your strategy is not quite so risky, you don’t have to lessen your investment by all that much.
These are some pointers for dealing with a losing streak with binary options trades. You need to remember that this streak will not last forever. Eventually, you are going to start placing in the money trades and making a profit once more.