Now, in this article you will be able to find information on when is the exact moment that you should stop when doing your day trading.
What is your trading plan?
Before starting to trade you must create your own trading plan, this will help you to be clear about your goals as a trader. Without a plan you will not be able to become an experienced trader, you will not have a goal to strive for and this will also help you learn to control your emotions when you are day trading. Remember, that you must have a plan in every aspect of your life, it is not exclusive to the field of virtual commerce.
More trade, more money
A common mistake among beginner traders is that they have the thought that if they trade more, they will be able to get more money than they already made in their daily trading. Remember, the market will not be available all the time to win a trade because that is due to the unstable nature of the market. This will affect your emotions in a negative way, you will become greedier and there is a possibility that you will lose all the money or a small part of the money you just won. I recommend that you stop when you reach 4 winning trades in your account, to avoid losing the money you just won.
5% rule
This incredible rule is an important key in Binary Options trading. This rule is based on the fact that you should not carry out operations that exceed 5% of the money you have to trade. The importance of following this rule is because many beginner and experienced traders constantly think because they constantly think that the strategy they use has 80% of effectiveness, the market has the nature of being unstable. So, if you bet too many percentages and you get a loss, you would be losing too much money in one trade. But if you use this wonderful rule, you will be able to grow your account in a safe, reliable way, without bad emotions and obtaining more knowledge, since you will be able to understand how the market works in more depth.
2 Losses
This rule is based on the number of losses you should allow yourself to make per day. If in your daily trading it does not matter how many operations you have won on the day and you get 2 losses, it means that you must stop trading so as not to lose the money you generated before. But if you get 3-win trades and lose the next signal, you can continue trading but you must be 100% sure that you will win the next trade to prevent your capital amount going down.
You should also stop when you get 3 wins because this will help you control your emotions when trading. In addition, you will be able to take care of the money that you manage in your real account because you will not allow a loss to enter during your trading time and you will more easily become an expert trader who seeks the well-being of your emotional and financial state.
Mondays and Fridays
Now, I will show you the reason why it is dangerous to trade on those days so that you avoid trading on those days of the week.
- Friday: You should know that every Friday is when the markets begin to close, since the markets are completely closed on weekends. For this reason, it tends to be too unstable and the levels of obtaining a loss are higher than the other days of the week. I recommend that you use your demo account to trade on Fridays to avoid an unwanted loss in your day’s trading.
- Monday: In general, Monday is when it stabilizes due to the market closing on the weekend and for this reason it is unstable, so I recommend that you also use your demo account to prevent this stabilization from affecting your capital.
The best days to trade, as they are not as volatile as Friday and Saturday, are Tuesday, Wednesday, and Thursday because the market is stable and the chance of making a loss is low. Remember that you must constantly check the news because most of the pairs have news that causes instability in them.
Conclusion
Being an expert trader, I can tell you that if you follow this list of tips so that you learn when it is the right time to stop trading, you will be filled with wisdom when operating in the virtual market. You will also be able to avoid losing large amounts of money by not being properly educated on this important topic while trading. Now, I will show you a video that can help you understand this topic in more depth: https://youtu.be/ERrAtzkOCFM