Psychological deposit limit for Binary options trader
Psychological deposit limit for Binary options trader
Every beginner, and many experienced traders, are haunted by one very serious misfortune that they are not even aware of. Moreover, the danger is so serious that you can forget about making money for a long time.
I'm talking about exceeding the psychological deposit limit - this is the moment when the trading account has grown so much that the trader cannot cope with it on a subconscious level. What can we say about trading strategies and techniques - in such a situation they are useless. The purpose of this article is to tell you about the psychological deposit limit, teach you to recognize it, and also indicate ways to deal with this problem.
This idea causes the most harm the first time – when the trader has just started making money and showing stable results. It is logical - having knowledge of profitable trading and having proven it in practice (over several months), the trader wants to use it as profitably as possible. It was not in vain that he spent so much time and effort on training, which lasted for many months. It's time to collect the fruits of your trade.
The first thing an experienced trader is faced with is the understanding that the deposit is growing, but not as quickly as they say on every corner. There is no talk of any doubling in a day or even tripling of the trade balance in a week. 10-30% per month, and only if you're lucky. But what is 10-30% on a $300 trading balance? Even if the balance is $3,000, then the monthly income is $300-900. Did a person come into trade for such a salary?!
Everyone wants to earn serious money - money that is enough for a life that they never even dreamed of. Every trader, starting to study trading, thought not only about the opportunity to work for himself, with all the ensuing advantages (a lot of free time, flexible work schedule, no bosses and deadlines, etc.), but also that this occupation would completely cover all his appetites.
Whatever one may say, every trader depends on money. Money, for a trader, is not only a way to afford everything your heart desires, but also a tool for work. In trading, the meaning of the phrase “Money makes money!” is very well understood. A trader without money cannot trade, which means he cannot earn money. But, as I already said, the real growth of the deposit is not as large as on the advertising banners of Binary Options brokers, so almost all traders sooner or later have a desire to earn more. How to achieve better results, materially? That's right!
The trader decides to increase the deposit amount several times! From the outside, this may seem very logical: using all the same knowledge and trading strategies, increasing the trading deposit several times will allow you to earn several times more with the same risks (as a percentage of the deposit). But that was not the case...
Every experienced trader is a formed personality with his own psychological cockroaches. Some people need an open window and fresh air to trade profitably, others need an aquarium with fish and green wallpaper in the room, while others are unable to trade profitably without music. For an ignorant person, all this looks as if he entered a psychiatric hospital, where every trader is a patient with an incurable disease - put such a trader in other conditions and that’s it, there is no longer a profitable trader.
Moreover, this is far from a joke - experienced traders are always in “protected” conditions. This is their comfort zone or trading zone. I myself once used a wristband and a keychain, which I subconsciously associated with profitable trading: there is a keychain - I trade confidently and with good results, there is no keychain nearby - that’s it, there’s no point in thinking about profitable trading. On the other hand, what the hell is a keychain? How does it help in trading? Helps! Psychologically…
As soon as a trader has a desire to sharply increase the amount in the trading account (and, no matter, through replenishment or increasing risks), he takes the first step towards the abyss, stopping just above the cliff. But thoughts and desires are just thoughts and desires. Nobody forbids us to think and dream - the only important thing is that this will develop into action. And if a trader decides to sharply increase his trading balance, then there is simply no support under his feet - he is already flying down this very abyss.
Why did you get into trading? Personally, I saw in Binary Options trading a very good opportunity to work only for myself and decide for myself how much I will earn this month. When I started studying trade, I had nothing - sometimes there was not enough money even for three meals a day. Yes, there was a job that I really liked, but it did not meet my financial needs. Who am I telling? You, dear reader, know what it’s like to go into a store and always buy products only on sale - what a pleasure it is! Everyone wants to get out of this, but the salary is fixed and it is only enough to survive, not to live.
Trading Binary Options allows you to solve this problem. Advertising for Binary Options brokers constantly talks about the simplicity of such earnings, and fantastic stories about lucky people who broke the bank and earned tens of thousands with $200 only fuel interest.
And here it doesn’t matter at all whether you are a beginner trader or have already eaten a dog in trading - as soon as you start to think that you have become a professional trader and sharply increase your trading deposit, the market gives you another kick in the ass so that you do not forget your place. In practice, trading strategies that have worked for months stop working, risk management rules begin to work against you, everything falls out of your hands, and you don’t know what to do about it.
From these micro-deposits I earned 3-10 dollars a day (the minimum bet was 1 dollar) - this was enough to feel like a profitable trader. I had several trading strategies at my disposal, which I tested personally. For every day I had a trading plan , which I carefully compiled before trading, and recorded all trading in trading diary. In addition, I also kept a a psychological (emotional) trader's diary, where I recorded all the changes in my emotions.
As I later found out, more than 90% of traders do not do this. In general, everything was fine for me: stable trading, good results. But I didn’t have any monetary earnings, as such – $50 a week was terribly little. By that time, I had already accumulated free money that was lying idle. Of course, I decided to deposit them with one of the Binary Options brokers.
At the very beginning of my trading career, I noticed one very interesting thing - traders who show their trading have impressive deposits and earn large sums. I don’t know why I decided that a large deposit guarantees a stable, large income, but this thought was firmly stuck in my head. The time has come to act, and besides, the knowledge was already there.
Having replenished my trading balance by $1400, I started trading. On the first day I lost $200, on the second another $150. At the end of the week, $750 remained in the trading balance. Three weeks after replenishing my trading account, my trading balance was $100 and I began to slowly gain profit.
For three weeks, I did not understand why trading strategies that had worked for months began to show losses. All at once! I also couldn’t understand why my trading plan completely broke down - trying to adapt to my trading, I rewrote the trading plan several times, but the result was always the same.
Something happened that I could never have foreseen! By increasing my trading balance by 28 times, I significantly exceeded the psychological deposit limit. As it turned out later, my ceiling was no more than $250 on the trading account. Of course, I was not ready to trade the amount of $1400, which is what happened in the end.
I learned a very good lesson that showed me my very serious mistake in trading - you can’t just go ahead and increase your trading balance. This lesson cost me $1300, which took 4 months to recover, and then another 3 months for me to raise my psychological deposit limit.
The psychological limit itself is formed in us from childhood - it is formed by the society in which we live, the financial situation of the family, the achievement of any goals (or, conversely, their failure to achieve them), etc.
Not everyone has what they want in childhood. Even then, $15 for a week's expenses as a teenager is an untold wealth that is only available to a select few. And then the job where you get your $400-5000. If you're lucky, your family's total income will be as much as $1,000 per month. If you're unlucky, your total income will be equal to half - just under $500.
And this is for a WHOLE fucking MONTH of work 5-6 days a week. And it would be fine if the work brought pleasure, but, as a rule, it is a very routine, monotonous activity that you don’t want to do. The boss is not happy with his employees all the time - what does he expect from them by setting such a salary?! It’s not surprising that every day, sitting at such a job, you realize that something has gone wrong - life is sliding into the abyss!
Hence everything that follows in our society: the iPhone has become a symbol of wealth, not because it is a phone with extraordinary functions - no, it is the same as all the others. It just costs an order of magnitude more - the latest models cost $1200!!! Of course, with our salaries, if you own apple products, then you are “elite”. The rest of you don't need to know that for the next 4-5 months you'll be eating only instant soup while trying to pay off your loans.
You always want to live better, and not the way you live now. And if someone has the money to at least try to change something in their life, then most can only dream. Dream about a good car instead of traveling on public transport. Dream about a good apartment, and not about a rented room in a dorm, with a bunch of noisy neighbors who don’t allow you to have a good rest.
I want to dress well in expensive stores, and not run around the market and choose what I have enough money for. I want to go into a store and buy what I want, without thinking that “it’s too expensive - I can’t afford it.”
And you want to relax in comfort - in a five-star hotel overlooking the sea, and not on a nearby lake with a bunch of mosquitoes, sitting in the trash. Personal life is also not working out, because there are eternal quarrels about the fact that there is always not enough money, and all romantic dates take place not in expensive restaurants, but on a bench in the park, with a cheap burger from McDuck.
All this accumulates in you! I know what I'm talking about. As an inexperienced trader who was constantly losing his deposits, I have seen those who succeeded in trading or in any other business. These people had the opportunity to dress in very expensive stores; they had more money in their wallets than I earned in my entire life. Yes, I understood that we were moving in different circles: they dined in restaurants, and I spread mayonnaise on a piece of bread, sitting in the hostel... There was nothing in common between us and I didn’t give a damn about them - I have my own life, they have theirs. But the residue remains - they live their lives in pleasure, and I, being a loser, am obliged to collect the crumbs from their table.
We all want to live better, we want our lives to have what we have been missing for many years: our own home, a good car, delicious food, travel. All this accumulates inside us, creating a certain barrier that does not allow us to go further - we simply do not have all this, we do not know how to behave in a situation when all this suddenly appears. This causes fear - what if it doesn’t work out? What if I can’t grab onto this saving thread and will forever remain in my flawed world?
A sharp increase in the trade balance is the very barrier that we cannot overcome. We just don’t know what to do, how to do it - we were never prepared for this. There has always been something that limits us, be it high prices for things we want but can’t afford or dreams of a vacation that we still can’t save up for.
And here there is complete freedom, without frames and restraining shackles - a freedom for which we are not psychologically prepared. Having released an animal that was born and raised in a cage, he will be afraid at first - it is not what he is used to. Yes, it was terribly bad (living in a cage), but, psychologically, the animal was accustomed to this way of life, and here there was a whole world, without bars and three meals a day.
It’s exactly the same with a trader - he knows how to trade, but he is not ready for such trading conditions, so he makes a lot of mistakes in a world unknown to him. Mistakes in trading lead to loss of money, but this loss does not make the trader any less experienced. He has reached his comfort zone (back in the cage, which is now always open), in which he feels at ease. But the dreams of financial freedom have not gone away.
It is on these dreams of financial freedom that trading on Binary Options, the Forex market and any other financial instruments is built - all this provides the opportunity to instantly leave your flawed world and move into the world of financial freedom. This is exactly what is missing for many people who are tired of feeling like failures and are not ready to put up with it.
Solving your problems in one go is precisely the reason for the sharp increase in a trader’s trading deposit. You always want to earn not $50 a week, but $1000-1500. So that there is enough money for everything. To make life a pleasure. To forget about financial problems once and for all.
But everything that we have experienced in our lives accumulates into an insurmountable barrier that cannot be detected immediately - you may not even be aware of it, but it is there. This barrier cannot be bypassed, jumped over or broken - it can only be pushed aside. Moreover, this is not done immediately, but after long and hard work on oneself. Having “outwitted” himself and jumped over the barrier, he will immediately make himself known - you are not ready for such a life, it’s time to put you back in your place, upstart!
Of course, the psychological deposit limit is determined in practice. First of all, you need to understand what amounts you can trade without problems in your psychology. You should start trading with optimal deposits, which will be enough for 50-100 transactions, even with minimum investment amount.
For example, you trade with a Binary Options broker whose minimum investment amount per trade is $1. In this case, your trading deposit should be equal to $50-100 - this is risk management rules, you shouldn’t break them!
To trade you will need:
It takes time to overcome the psychological deposit limit - you need to get used to managing your money, or more precisely, this amount. The presence of a resistance level on your balance chart indicates that you will not move further yet, but, as in trading, the levels are broken, and after the levels are broken, a trend follows - i.e. Don’t expect that having overcome the psychological limit of $400, you will meet the next limit at $450. No, most likely the limit will increase to $600-1000, and will form another resistance level on your chart.
On the other hand, it all depends on your psychology - perhaps you will encounter psychological limit levels very often, forcing you to get used to the changed conditions for a long time.
Normal deposit growth is 10-30% per month. This growth occurs very smoothly and the trader has time to get used to such changes. And greed in trading only increases problems!
I have already talked about how to make a million on Binary Options and how much time and money it takes. Your task is to take small steps, gradually increasing your trade balance.
Also, do not forget to withdraw part of the profit - this is necessary so that you feel like a profitable trader. Even if this profit is small, but you earned it yourself - you are no longer among the losers, because you are doing something!
At the same time, do not withdraw all your profits - leave some on your trading balance to gradually increase it. For example, having reached the amount of $350, withdraw 50 and leave 300 on your balance. Next time, leave $400 and withdraw the rest to your real wallets. This is a proven method – it is used by many professional traders.
I am sure that at some point you will get tired of all this and you will succumb to the desire to sharply increase your trade balance - psychologically, it is very important for you to do this in order to at least try. Practically, the market will kick you in the ass and drop you to your comfort level (below the psychological deposit limit).
But this is not scary, and sometimes it is even necessary to stop believing in your uniqueness and continue to do what brings money, and does not take it away. On the other hand, it is always very stressful for a trader, whether he is a beginner or a professional.
But, if professionals understand that they themselves made this mistake, and, in fact, nothing else has changed and they can continue profitable trading: the market is still the same, the strategies still work the same, the growth of the trade balance is stable. Novice traders understand everything differently - the market not only gave a kick, but also hit them in the face, not caring about the self-esteem of the novice trader.
A beginner in trading simply does not understand why this is happening - why he cannot earn more using the same methods as before. Failure to understand the reason for these results prevents us from finding a solution to this problem. It turns out to be a vicious circle that most novice traders cannot leave.
This is the reason that many traders start trading, simmer in this soup for 2-4 months, and then leave trading forever, unable to withstand such psychological pressure.
But it can also be much worse - when a novice trader continues to trade, over and over again crossing the psychological deposit limit, in the hope of returning all the losses at once. There is no point in arguing with your own psychology, so the result is always the same - the trader consistently loses.
Most of these traders cannot find the reason for their failure, losing a lot of money. And if at first it is your own money, then then there is money borrowed from friends or relatives, and then trade is carried out with money taken on credit.
Having lost their last opportunity to earn something, such people completely lose faith in themselves and, as a rule, become very embittered towards life. They begin to blame everyone around them: the broker, teachers, price, strategy, people around them. For them trading on Binary options becomes a scam , on which it is impossible to make money. They return to where they came from - to their world, where they feel like damaged losers.
It is on psychology, and not on the search for trading systems that are enough for the eyes. The search for the Grail has not yet made a single trader rich, so don’t think that you will be lucky!
Balanced people who are able to change their psychology so that it becomes a trump card in the trader’s hands, and not an obstacle to success, make money in trading. These people are able to admit their mistake and find a solution - they will not run to write “BO is a scam” after their first failure, for which they themselves are to blame.
For the majority, strange as it may seem, there is no place in trading - for the most part, these are people who drool, dreaming of a beautiful life, meanwhile trying not to go crazy from thoughts of hopelessness and poverty. These are the main clients of any Binary Options broker - they will try to solve all their problems at once by depositing more money into their account. Of course, nothing will work out for them, just as it doesn’t work out for millions of other people living in their gray world.
“Saving a drowning person is the work of the drowning person himself” - so I cannot help you overcome yourself on this difficult path. Either you do everything yourself, or no one will do it for you! And damn it, it's very difficult!
By the way, there is a separate group of people who have deposited large sums of money into their balance sheets and are trying to change the direction of the asset price on Binary Options by investing money in transactions. The problem is that brokers do not bring money to the real market, so it is not possible to influence price movements, even if you invest the entire capital of all major countries in the world. But who am I to explain to these people how the world works? They know everything themselves without me.
Trading on Binary Options always consists of a trader struggling with himself. You overpowered yourself, managed to change your thinking, accepted yourself for who you are - you made money in trading. You consider yourself the smartest, the market owes you (?), everyone around you is fools - take your money to the broker, he loves people like you.
But, even if you are a fool who believes that everyone around you owes something to you, and that the market can be tamed, you still have a chance to fix everything. Somehow I managed to do it. It's all about you - whether you want it or not. If you want, then you will find dozens of ways to achieve what you want; if you don’t want, then you will find hundreds of reasons and excuses.
All these “I can’t...”, “I can’t do it...”, “It’s not my fault...” are so funny! What can't you do? Can't make money in trading? Then why can I? How am I better than you?! What won't you do? Have you tried it at all? Have you tried to find a solution to your problems? Have you tried to do anything to achieve what you want? Money won’t just jump into your hands – you need to get off your ass and work hard! Isn't it your fault? Who then? Losers are always trying to find an excuse for their insignificance! Are you worthless? Say it to yourself directly - yes or no? If so, why do you need to trade at all? Sit further in your debts and unfulfilled dreams!
I'm talking about exceeding the psychological deposit limit - this is the moment when the trading account has grown so much that the trader cannot cope with it on a subconscious level. What can we say about trading strategies and techniques - in such a situation they are useless. The purpose of this article is to tell you about the psychological deposit limit, teach you to recognize it, and also indicate ways to deal with this problem.
Contents
- Trap of a trading deposit in Binary options
- Exceeding the psychological deposit limit on Binary Options
- Where does the psychological deposit limit in trading come from
- How to determine the psychological deposit limit in trading
- Smooth growth of the deposit in Binary Options trading
- What does a Binary Options trader dream of
- I saw my enemy and this enemy is inside me
Trap of a trading deposit in Binary options
Some of you only dream of becoming an experienced trader, some are already trading for zero and are just one step away from profitable trading, and some have learned to make consistent money. The difference between a new trader and an experienced trader is huge. If a novice trader, aware of all the risks of trading, always thinks about how much he can lose, then an experienced trader already subconsciously monitors his risks and one small but terribly interesting thought appears in the head of such a trader - why not earn more?!This idea causes the most harm the first time – when the trader has just started making money and showing stable results. It is logical - having knowledge of profitable trading and having proven it in practice (over several months), the trader wants to use it as profitably as possible. It was not in vain that he spent so much time and effort on training, which lasted for many months. It's time to collect the fruits of your trade.
The first thing an experienced trader is faced with is the understanding that the deposit is growing, but not as quickly as they say on every corner. There is no talk of any doubling in a day or even tripling of the trade balance in a week. 10-30% per month, and only if you're lucky. But what is 10-30% on a $300 trading balance? Even if the balance is $3,000, then the monthly income is $300-900. Did a person come into trade for such a salary?!
Everyone wants to earn serious money - money that is enough for a life that they never even dreamed of. Every trader, starting to study trading, thought not only about the opportunity to work for himself, with all the ensuing advantages (a lot of free time, flexible work schedule, no bosses and deadlines, etc.), but also that this occupation would completely cover all his appetites.
Whatever one may say, every trader depends on money. Money, for a trader, is not only a way to afford everything your heart desires, but also a tool for work. In trading, the meaning of the phrase “Money makes money!” is very well understood. A trader without money cannot trade, which means he cannot earn money. But, as I already said, the real growth of the deposit is not as large as on the advertising banners of Binary Options brokers, so almost all traders sooner or later have a desire to earn more. How to achieve better results, materially? That's right!
The trader decides to increase the deposit amount several times! From the outside, this may seem very logical: using all the same knowledge and trading strategies, increasing the trading deposit several times will allow you to earn several times more with the same risks (as a percentage of the deposit). But that was not the case...
Every experienced trader is a formed personality with his own psychological cockroaches. Some people need an open window and fresh air to trade profitably, others need an aquarium with fish and green wallpaper in the room, while others are unable to trade profitably without music. For an ignorant person, all this looks as if he entered a psychiatric hospital, where every trader is a patient with an incurable disease - put such a trader in other conditions and that’s it, there is no longer a profitable trader.
Moreover, this is far from a joke - experienced traders are always in “protected” conditions. This is their comfort zone or trading zone. I myself once used a wristband and a keychain, which I subconsciously associated with profitable trading: there is a keychain - I trade confidently and with good results, there is no keychain nearby - that’s it, there’s no point in thinking about profitable trading. On the other hand, what the hell is a keychain? How does it help in trading? Helps! Psychologically…
As soon as a trader has a desire to sharply increase the amount in the trading account (and, no matter, through replenishment or increasing risks), he takes the first step towards the abyss, stopping just above the cliff. But thoughts and desires are just thoughts and desires. Nobody forbids us to think and dream - the only important thing is that this will develop into action. And if a trader decides to sharply increase his trading balance, then there is simply no support under his feet - he is already flying down this very abyss.
Exceeding the psychological deposit limit on Binary Options
In 95% of cases, people who trade in Binary Options and the Forex market do not have huge cash reserves. According to statistics for 2023, the average trader’s deposit is $400-500. It is worth understanding that statistics were collected from all countries where brokers operate. For example, for EU countries, the average deposit is $1000-4000, and for CIS countries it is only $50-100. The remaining 5% of traders are experienced traders who replenish their accounts with large sums, and earn quite good money.
Why did you get into trading? Personally, I saw in Binary Options trading a very good opportunity to work only for myself and decide for myself how much I will earn this month. When I started studying trade, I had nothing - sometimes there was not enough money even for three meals a day. Yes, there was a job that I really liked, but it did not meet my financial needs. Who am I telling? You, dear reader, know what it’s like to go into a store and always buy products only on sale - what a pleasure it is! Everyone wants to get out of this, but the salary is fixed and it is only enough to survive, not to live.
Trading Binary Options allows you to solve this problem. Advertising for Binary Options brokers constantly talks about the simplicity of such earnings, and fantastic stories about lucky people who broke the bank and earned tens of thousands with $200 only fuel interest.
And here it doesn’t matter at all whether you are a beginner trader or have already eaten a dog in trading - as soon as you start to think that you have become a professional trader and sharply increase your trading deposit, the market gives you another kick in the ass so that you do not forget your place. In practice, trading strategies that have worked for months stop working, risk management rules begin to work against you, everything falls out of your hands, and you don’t know what to do about it.
The story of a thousand dollars
While I was still a green trader (I didn’t even know about it at the time), I slowly learned how to gain profit. The solution was simple - it was necessary to refuse Martingale in trading, which is what I did. My trading deposits were quite small - up to $100. Did you think that I immediately started with millions?!From these micro-deposits I earned 3-10 dollars a day (the minimum bet was 1 dollar) - this was enough to feel like a profitable trader. I had several trading strategies at my disposal, which I tested personally. For every day I had a trading plan , which I carefully compiled before trading, and recorded all trading in trading diary. In addition, I also kept a a psychological (emotional) trader's diary, where I recorded all the changes in my emotions.
As I later found out, more than 90% of traders do not do this. In general, everything was fine for me: stable trading, good results. But I didn’t have any monetary earnings, as such – $50 a week was terribly little. By that time, I had already accumulated free money that was lying idle. Of course, I decided to deposit them with one of the Binary Options brokers.
At the very beginning of my trading career, I noticed one very interesting thing - traders who show their trading have impressive deposits and earn large sums. I don’t know why I decided that a large deposit guarantees a stable, large income, but this thought was firmly stuck in my head. The time has come to act, and besides, the knowledge was already there.
Having replenished my trading balance by $1400, I started trading. On the first day I lost $200, on the second another $150. At the end of the week, $750 remained in the trading balance. Three weeks after replenishing my trading account, my trading balance was $100 and I began to slowly gain profit.
For three weeks, I did not understand why trading strategies that had worked for months began to show losses. All at once! I also couldn’t understand why my trading plan completely broke down - trying to adapt to my trading, I rewrote the trading plan several times, but the result was always the same.
Something happened that I could never have foreseen! By increasing my trading balance by 28 times, I significantly exceeded the psychological deposit limit. As it turned out later, my ceiling was no more than $250 on the trading account. Of course, I was not ready to trade the amount of $1400, which is what happened in the end.
I learned a very good lesson that showed me my very serious mistake in trading - you can’t just go ahead and increase your trading balance. This lesson cost me $1300, which took 4 months to recover, and then another 3 months for me to raise my psychological deposit limit.
Where does the psychological deposit limit in trading come from
Each trader has his own psychological deposit limit - some easily trade with a balance of tens of thousands of dollars, but for others, trading with $20 is a big problem.The psychological limit itself is formed in us from childhood - it is formed by the society in which we live, the financial situation of the family, the achievement of any goals (or, conversely, their failure to achieve them), etc.
Not everyone has what they want in childhood. Even then, $15 for a week's expenses as a teenager is an untold wealth that is only available to a select few. And then the job where you get your $400-5000. If you're lucky, your family's total income will be as much as $1,000 per month. If you're unlucky, your total income will be equal to half - just under $500.
And this is for a WHOLE fucking MONTH of work 5-6 days a week. And it would be fine if the work brought pleasure, but, as a rule, it is a very routine, monotonous activity that you don’t want to do. The boss is not happy with his employees all the time - what does he expect from them by setting such a salary?! It’s not surprising that every day, sitting at such a job, you realize that something has gone wrong - life is sliding into the abyss!
Hence everything that follows in our society: the iPhone has become a symbol of wealth, not because it is a phone with extraordinary functions - no, it is the same as all the others. It just costs an order of magnitude more - the latest models cost $1200!!! Of course, with our salaries, if you own apple products, then you are “elite”. The rest of you don't need to know that for the next 4-5 months you'll be eating only instant soup while trying to pay off your loans.
You always want to live better, and not the way you live now. And if someone has the money to at least try to change something in their life, then most can only dream. Dream about a good car instead of traveling on public transport. Dream about a good apartment, and not about a rented room in a dorm, with a bunch of noisy neighbors who don’t allow you to have a good rest.
I want to dress well in expensive stores, and not run around the market and choose what I have enough money for. I want to go into a store and buy what I want, without thinking that “it’s too expensive - I can’t afford it.”
And you want to relax in comfort - in a five-star hotel overlooking the sea, and not on a nearby lake with a bunch of mosquitoes, sitting in the trash. Personal life is also not working out, because there are eternal quarrels about the fact that there is always not enough money, and all romantic dates take place not in expensive restaurants, but on a bench in the park, with a cheap burger from McDuck.
All this accumulates in you! I know what I'm talking about. As an inexperienced trader who was constantly losing his deposits, I have seen those who succeeded in trading or in any other business. These people had the opportunity to dress in very expensive stores; they had more money in their wallets than I earned in my entire life. Yes, I understood that we were moving in different circles: they dined in restaurants, and I spread mayonnaise on a piece of bread, sitting in the hostel... There was nothing in common between us and I didn’t give a damn about them - I have my own life, they have theirs. But the residue remains - they live their lives in pleasure, and I, being a loser, am obliged to collect the crumbs from their table.
We all want to live better, we want our lives to have what we have been missing for many years: our own home, a good car, delicious food, travel. All this accumulates inside us, creating a certain barrier that does not allow us to go further - we simply do not have all this, we do not know how to behave in a situation when all this suddenly appears. This causes fear - what if it doesn’t work out? What if I can’t grab onto this saving thread and will forever remain in my flawed world?
A sharp increase in the trade balance is the very barrier that we cannot overcome. We just don’t know what to do, how to do it - we were never prepared for this. There has always been something that limits us, be it high prices for things we want but can’t afford or dreams of a vacation that we still can’t save up for.
And here there is complete freedom, without frames and restraining shackles - a freedom for which we are not psychologically prepared. Having released an animal that was born and raised in a cage, he will be afraid at first - it is not what he is used to. Yes, it was terribly bad (living in a cage), but, psychologically, the animal was accustomed to this way of life, and here there was a whole world, without bars and three meals a day.
It’s exactly the same with a trader - he knows how to trade, but he is not ready for such trading conditions, so he makes a lot of mistakes in a world unknown to him. Mistakes in trading lead to loss of money, but this loss does not make the trader any less experienced. He has reached his comfort zone (back in the cage, which is now always open), in which he feels at ease. But the dreams of financial freedom have not gone away.
It is on these dreams of financial freedom that trading on Binary Options, the Forex market and any other financial instruments is built - all this provides the opportunity to instantly leave your flawed world and move into the world of financial freedom. This is exactly what is missing for many people who are tired of feeling like failures and are not ready to put up with it.
Solving your problems in one go is precisely the reason for the sharp increase in a trader’s trading deposit. You always want to earn not $50 a week, but $1000-1500. So that there is enough money for everything. To make life a pleasure. To forget about financial problems once and for all.
But everything that we have experienced in our lives accumulates into an insurmountable barrier that cannot be detected immediately - you may not even be aware of it, but it is there. This barrier cannot be bypassed, jumped over or broken - it can only be pushed aside. Moreover, this is not done immediately, but after long and hard work on oneself. Having “outwitted” himself and jumped over the barrier, he will immediately make himself known - you are not ready for such a life, it’s time to put you back in your place, upstart!
How to determine the psychological deposit limit in trading
You have already understood how the psychological deposit limit is formed in each of us. But what good is this knowledge if you don’t know how to determine this limit in practice? That's right - empty information. Therefore, I will now tell you how to determine the psychological deposit limit in your trading.Of course, the psychological deposit limit is determined in practice. First of all, you need to understand what amounts you can trade without problems in your psychology. You should start trading with optimal deposits, which will be enough for 50-100 transactions, even with minimum investment amount.
For example, you trade with a Binary Options broker whose minimum investment amount per trade is $1. In this case, your trading deposit should be equal to $50-100 - this is risk management rules, you shouldn’t break them!
To trade you will need:
- Trading Diary
- Trading plan
- Trading strategy, at your discretion
- Number of transactions – number of transactions per trading day
- Balance before trading
- Maximum amount per day – the maximum amount that is displayed on your balance (if there was no profit at all, then you need to enter an amount equal to the balance at the beginning of trading)
- Minimum amount per day - to what level there were drawdowns (if there were none at all, then you need to enter an amount equal to the balance at the beginning of trading)
- Balance after trading - the amount on the balance at the end of the trading day
It takes time to overcome the psychological deposit limit - you need to get used to managing your money, or more precisely, this amount. The presence of a resistance level on your balance chart indicates that you will not move further yet, but, as in trading, the levels are broken, and after the levels are broken, a trend follows - i.e. Don’t expect that having overcome the psychological limit of $400, you will meet the next limit at $450. No, most likely the limit will increase to $600-1000, and will form another resistance level on your chart.
On the other hand, it all depends on your psychology - perhaps you will encounter psychological limit levels very often, forcing you to get used to the changed conditions for a long time.
Smooth growth of the deposit in Binary Options trading
If we summarize what was written earlier, we can notice one pattern - the trading deposit needs to be increased gradually, and not in kilometer-long steps!Normal deposit growth is 10-30% per month. This growth occurs very smoothly and the trader has time to get used to such changes. And greed in trading only increases problems!
I have already talked about how to make a million on Binary Options and how much time and money it takes. Your task is to take small steps, gradually increasing your trade balance.
Also, do not forget to withdraw part of the profit - this is necessary so that you feel like a profitable trader. Even if this profit is small, but you earned it yourself - you are no longer among the losers, because you are doing something!
At the same time, do not withdraw all your profits - leave some on your trading balance to gradually increase it. For example, having reached the amount of $350, withdraw 50 and leave 300 on your balance. Next time, leave $400 and withdraw the rest to your real wallets. This is a proven method – it is used by many professional traders.
I am sure that at some point you will get tired of all this and you will succumb to the desire to sharply increase your trade balance - psychologically, it is very important for you to do this in order to at least try. Practically, the market will kick you in the ass and drop you to your comfort level (below the psychological deposit limit).
But this is not scary, and sometimes it is even necessary to stop believing in your uniqueness and continue to do what brings money, and does not take it away. On the other hand, it is always very stressful for a trader, whether he is a beginner or a professional.
But, if professionals understand that they themselves made this mistake, and, in fact, nothing else has changed and they can continue profitable trading: the market is still the same, the strategies still work the same, the growth of the trade balance is stable. Novice traders understand everything differently - the market not only gave a kick, but also hit them in the face, not caring about the self-esteem of the novice trader.
A beginner in trading simply does not understand why this is happening - why he cannot earn more using the same methods as before. Failure to understand the reason for these results prevents us from finding a solution to this problem. It turns out to be a vicious circle that most novice traders cannot leave.
This is the reason that many traders start trading, simmer in this soup for 2-4 months, and then leave trading forever, unable to withstand such psychological pressure.
But it can also be much worse - when a novice trader continues to trade, over and over again crossing the psychological deposit limit, in the hope of returning all the losses at once. There is no point in arguing with your own psychology, so the result is always the same - the trader consistently loses.
Most of these traders cannot find the reason for their failure, losing a lot of money. And if at first it is your own money, then then there is money borrowed from friends or relatives, and then trade is carried out with money taken on credit.
Having lost their last opportunity to earn something, such people completely lose faith in themselves and, as a rule, become very embittered towards life. They begin to blame everyone around them: the broker, teachers, price, strategy, people around them. For them trading on Binary options becomes a scam , on which it is impossible to make money. They return to where they came from - to their world, where they feel like damaged losers.
What does a Binary Options trader dream of
I hope you have already understood that in trading you should not run for quick money - the market will spit you out where you feel good in the current time period. If you want more, work on your trading psychology!It is on psychology, and not on the search for trading systems that are enough for the eyes. The search for the Grail has not yet made a single trader rich, so don’t think that you will be lucky!
Balanced people who are able to change their psychology so that it becomes a trump card in the trader’s hands, and not an obstacle to success, make money in trading. These people are able to admit their mistake and find a solution - they will not run to write “BO is a scam” after their first failure, for which they themselves are to blame.
For the majority, strange as it may seem, there is no place in trading - for the most part, these are people who drool, dreaming of a beautiful life, meanwhile trying not to go crazy from thoughts of hopelessness and poverty. These are the main clients of any Binary Options broker - they will try to solve all their problems at once by depositing more money into their account. Of course, nothing will work out for them, just as it doesn’t work out for millions of other people living in their gray world.
“Saving a drowning person is the work of the drowning person himself” - so I cannot help you overcome yourself on this difficult path. Either you do everything yourself, or no one will do it for you! And damn it, it's very difficult!
By the way, there is a separate group of people who have deposited large sums of money into their balance sheets and are trying to change the direction of the asset price on Binary Options by investing money in transactions. The problem is that brokers do not bring money to the real market, so it is not possible to influence price movements, even if you invest the entire capital of all major countries in the world. But who am I to explain to these people how the world works? They know everything themselves without me.
I saw my enemy and this enemy is inside me
It just so happens that we are our own biggest problem. Not Binary Options brokers, not asset prices, not trading strategies, just us!Trading on Binary Options always consists of a trader struggling with himself. You overpowered yourself, managed to change your thinking, accepted yourself for who you are - you made money in trading. You consider yourself the smartest, the market owes you (?), everyone around you is fools - take your money to the broker, he loves people like you.
But, even if you are a fool who believes that everyone around you owes something to you, and that the market can be tamed, you still have a chance to fix everything. Somehow I managed to do it. It's all about you - whether you want it or not. If you want, then you will find dozens of ways to achieve what you want; if you don’t want, then you will find hundreds of reasons and excuses.
All these “I can’t...”, “I can’t do it...”, “It’s not my fault...” are so funny! What can't you do? Can't make money in trading? Then why can I? How am I better than you?! What won't you do? Have you tried it at all? Have you tried to find a solution to your problems? Have you tried to do anything to achieve what you want? Money won’t just jump into your hands – you need to get off your ass and work hard! Isn't it your fault? Who then? Losers are always trying to find an excuse for their insignificance! Are you worthless? Say it to yourself directly - yes or no? If so, why do you need to trade at all? Sit further in your debts and unfulfilled dreams!
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