I won’t say here martingales are bad. They can be quite helpful in several ways and an important tool for the growth of our balance. The only problem is that they shouldn’t be done when we are emotionally disturbed. Otherwise we’ll chose the worst trades possible. When eomotionally disturbed, we tend to take trades we normally wouldn’t. If your strategy requires a martingale in the next candle (in case of loss), try to stick to one martingale, and in case of a second loss, I highly recommend you let it go. Nobody stays 100% normal after a martingale loss. Chances you will want to pursue that sequence and double the trade amount each time are huge. And there’ll be a day when a trend will not reverse even if you took 5 martingales. It needs to happen only one single time to have all your patrimony destroyed (your account balance).
If you are a beginner, I want you to start off on the right foot. If you are struggling to have consistency in binary options, I want you to achieve it. And that’s why I chose the martingale topic to be the first thing talked about here. Chasing a candle sequence one after the other and martingaling it as if there was no tomorrow will make you win 99 times, but it requires one single time to ruin you. So, let’s not do it. 😉
The best thing to do is to accept the loss, calm down and have the certainty you will recover in the next confirmed signals. The market will give you tons of good signals if you can wait. You can even use higher trade amounts in the next confirmed signals, but not on that same sequence. This is the secret of a well done martingale. The one where we use the math in our favor, not against us.
It’s very common people will start trading thinking in making money, but soon enough the main motivation turns into an adrenaline addiction, even if their financial gains are being sacrificed by it. Watch yourself in this aspect. The best thing to do is to close your MT4 after having reached a goal and do something else that has nothing to do with Trading.
This is only my personal experience, but I’ve only found consistency after I stopped trading all day long, everyday. I always preach that the longer we stay exposed to the market, the more likely we’ll be to lose what we made. Not mentioning that overtrading can become a harmful addiction. Harmful to our personal lives and our wallets. A lot of times we stop eating properly, we don’t give anough attention to our families, we become sedentary, stressed out and we no longer enjoy other things in life as before. Weekends become boring and we can’t wait for the London market opening. Spending time with family and friends is no longer that interesting. Don’t let it happen to you. These are symptoms of being addicted to trading. But that’s not the whole problem. Whoever is addicted to trading tend not to make money consistently in the long run. The anxiety will make us see trade opportunities where there are not. It will end up making us lose what we already made. Have you ever traded after having reached a daily cap and ended up losing what you’ve made and even more? That’s a classic, isn’t it? I imagine you started trading looking for a better quality of life, so avoid overtrading because that’s where the danger lies. 😉
If your daily cap (daily goal) is for instance $100 and you’ve made $95 by now, I advise you to stop for the day. Chances you’ll lose $95 because of $5 are high. I strongly recommend you don’t try to round gains. Wanting to continue after a satisfactory profit is counterproductive. We are creatures of habit. What you do now everyday is what you are going to be doing in the future as second nature. So it’s better to think: Slow but consistently.
Fear, anxiety and sadness
The worst thing you can do is to trade while expriencing feelings of fear, anxiety or sadness. Be it for losses or personal reasons. If you don’t feel ok, it’s better to be back tomorrow. Those emotions will make you choose the worst possible trades and you’ll be trading from a luck mode and no longer based on an intelligent strategy.
Creatures of habit
As said before. We are creatures of habit. The way you trade your $100 account will be the same way you’ll trade a $1,000 account and I fool you not, it will be how you’ll trade a 100k account. I am sure 99% of you might think it’s not the case. Nahhh Lisa, if I had a 100k account I’d have more leverage, etc. No mister/m’am. Sooner your broker would “kindly” raise your trade amounts (I’ve seen that happening) as a special treat for a special customer (a-hum!) and you would bring along your trading habits. I say that with no fear of being wrong. So treat your $100 account as if it were 100k, seriously.