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Time management in trading and Binary options: the best time to trade on BO

Time management in trading and Binary options: the best time to trade on BO

Many Binary Options brokers allow their clients to trade around the clock - currency markets operate 24 hours, 5 days a week. But besides the foreign exchange markets, there is also cryptocurrency, which is traded 7 days a week without interruption.

It is not surprising that a novice trader cannot decide on the timing of trading - the choice is so large that his eyes run in different directions. But a lot depends on the timing of trading:
  • What strategies will work?
  • What is the volatility in the market?
  • Some features of technical and fundamental analysis
  • Profitability on assets from Binary Options brokers
  • Availability of certain assets for trading
Most novice traders trade only after work or during their lunch break - they simply cannot physically trade around the clock. It is very difficult to combine work and trading on Binary Options, since both require time. Those who are lucky enough to have a job can trade directly at their workplace from their office.

Professional traders, on the contrary, spend a minimum of time trading. Their trading session rarely exceeds a couple of hours - during this time traders manage to open all the necessary transactions. The trading time itself may depend on the specific global trading session and the release of important economic news.

There are also traders who work for hire in banks, financial organizations, and investment funds. For them, trading lasts a whole working day. And they trade not with their own money, but with the money of their bosses or investors, so we won’t talk about them today - we are interested in ordinary traders who trade for themselves.

Full and part-time trading days for Binary Options traders

In short, there are only two types of traders:
  • Amateurs who trade from time to time and do not trade constantly
  • Experienced traders and professionals for whom trading is the only (or main) type of income
All novice traders can be considered amateurs, because they almost always combine trading in Binary Options with their main job. If you have free time, you can trade, if you don’t have free time, it doesn’t matter, you can trade later.

time management in binary options

Professional traders make a living from trading. While they don't necessarily need to trade 24/7 or every day, they are still very dependent on trading.

I'll quit my job and trade Binary Options all day long

Is it worth quitting your job in favor of trading Binary Options? This is a very interesting question that many novice traders ask me. Indeed, you can earn much more on Binary Options than many can earn at their job.

No matter how strong your desire is, you should NOT leave your main job! The reason is very simple - if you do not have professional trading skills, then, for you personally, there is a risk of losing money on Binary Options. What will you do when you lose your last source of income?!

I'm leaving to work on binary options

To completely switch to making money from trading, you should always have a financial cushion that will keep you afloat for six months or a year, in the same living conditions to which you are accustomed. When you have a job and a stable income from it, all financial difficulties are temporary. You are, to some extent, protected from a complete loss of income. But in trading you will not have such a guarantee - you can only rely on yourself.

There is no point in quitting your day job to trade Binary Options. Well, at least for the first time. You must be absolutely sure that trading brings you a stable profit and only after that switch to making money from trading. To understand this, you need to consistently trade with profit for 8-12 months, and you need to trade at least three times a week. Lost your deposit - start all over again!

But even in this case, you should only leave your job when:
  • There is a financial cushion that will help you get by without additional income for the first time
  • There is financial assistance from outside (friends, relatives who can help out for a while if necessary)
  • There is an opportunity to earn extra money on the side
  • There is a job to which you can return or where you have been waiting for a long time
When all this is in place, there is also a plan of action in case of failure. Many people don’t think about it, quit their job a week after they learned about Binary Options, lose everything and then spend half their lives paying off debts and loans. Is this what you need???

There is a huge difference between a hobby and a profession that should never be forgotten. Many traders trade only in the morning - before work, and in the evening, at night - after it. It just so happens that not everyone is lucky enough to have a job that they love - most often, it is a routine, monotonous activity.

Time management for binary options trader

For professional traders, everything is different - they have the whole day at their disposal. They have the right to choose their own trading time and duration. But you shouldn’t think that traders sit in front of charts from early morning until late at night - this is fundamentally wrong. Typically, trading lasts only a couple of hours - this is quite enough to make money on Binary Options.

But, unlike a trader with a main job, who can trade only after it, a professional trader chooses these few hours himself. This is the difference in time: some have a huge choice, while others are very limited in it.

World trading sessions in Binary Options trading

All traders live in different time zones, in addition, many large market participants (banks, exchanges, investment companies) have their own work schedule - they work only when their employees work, and not 24 hours a day. In this regard, there are several trading sessions in which different countries and regions operate.

trading sessions

Traders living in Moscow have time to catch the end of the Asian trading session, as well as have time to trade during the European trading session and wait for the opening of the American trading session.

Almost all trend price movements occur at the intersection of the European and American trading sessions. Also during this period of time you can notice increased volatility in many currency pairs. What does knowledge about trading sessions give us?

Understanding when and what strategies are best to trade at certain times of the day. If the time for trading is very limited, then you need to squeeze the maximum out of it - choose a trading technique that will allow you to get maximum profit in a very short period of time. This is another challenge for the trader. This is especially true for those who can only trade after work - in the evening or at night. Professional traders themselves have the right to choose which trading session to trade and which methods to use.

Time management rules for Binary Options

Nowadays the markets operate 24 hours/7 days a week, so a very important task for a trader will be the distribution of his free time. For this, there are time management rules that will help you significantly simplify this process and not forget anything.

Time to trade Binary Options

Every trader needs to solve two problems:
  • When to trade Binary Options
  • Selection of trading sessions for trading Binary options
This is what we will do now.

When to trade Binary Options

First of all, you should decide when to trade Binary Options. Many traders work, so they can only trade at certain times - before work or after work.

It is very important that this is free time, because trading Binary Options requires full concentration. If you are constantly distracted by something extraneous, you may immediately forget about good results.

Treat trading like serious work! You definitely need to set aside a time when you can trade most often. For example, “I can trade from 7 to 10 pm” - great! Even if you have such an opportunity not every day, but, say, only in the first three days of the week, then it’s okay - trade only on these days, spending the same time on it “from 7 to 10”.

when to trade binary options

Consistency is the key to success! You should not trade when you have free time - there the markets behave differently and the price movements are different. Imagine that you “go” to work at your home - your working (trading) day begins and ends strictly at the allocated time. By constantly trading at the same time, you will develop profitable techniques for yourself and become very familiar with all the price behavior during your trading session.

Selection of trading sessions for trading Binary Options

Although the markets operate around the clock, we cannot physically trade 24 hours (and there is no point in this). Fortunately, if you live in the European part of Russia or in Europe, then you can catch the most important trading sessions: European and American, as well as a part of the Asian trading session.

You need to decide which trading session is best to trade during. This problem arises for those people who are free to choose their own time for trading (not limited by the time spent on their main job). The approach here is very individual - it all depends on your preferences, your most productive time, etc..

For example, I very often trade during the European trading session, but before the opening of the American trading session - this is the most productive time of day for me, and not only in trading. In the same way, but less often, I trade after the release of economic news - in the middle of the American trading session. Sometimes, I also trade at the beginning of the Pacific trading session (night trading).

You also need to choose your personal trading time when you will most often trade. The trading time can also be selected using trading tests - where the best trading results will be, that’s the time to trade. This way you will understand when it is easier for you to make correct predictions.

Completely free up your time for trading Binary Options

Let's say you, like me, have chosen the time for your trading from 13:00 to 14:30 - an hour and a half. It is very important that during this time you do only one thing - trading Binary Options!

Try to make sure that nothing and no one distracts you during this trading time - all your attention should be paid only to trading: analyzing charts, forecasting price direction, opening trades. At this time you must be cheerful! If this is not the case, then you have chosen the wrong time to trade - fatigue or drowsiness will have a very negative impact on the results and will cost you dearly.

Turn off everything that may disturb you, including your phone, so that phone calls cannot distract you either. Leave only what you need in trading:
  • Your broker's trading platform
  • Third-party price charts, if needed
  • Third-party sites with an economic calendar, also, if needed
  • Trading diary or a notepad in which you write your deals
Anything unnecessary will only distract you and prevent you from making correct predictions - then don’t complain that you can’t become a professional trader.

Preparing for Binary Options Trading

Your daily routine and trading time should not be such that you wake up, turn on your laptop right on your bed and start trading while falling asleep! This is a direct road to a stable loss of money!

You definitely need to prepare for trading. You must be cheerful. Take a shower - it really helps to relax and invigorate yourself before trading. Physical exercise also helps a lot, which, by the way, also produces the hormone of happiness - it is always more pleasant to start trading in a good mood.

preparation for trading binary options

Don't starve yourself! Even if you are late at work and your trading time has already begun, still spend 15-20 minutes eating and resting a little, and only then start trading or skip this trading day altogether.

You should not have unfinished or urgent matters, so that during trading you can only think about how “I wish everything would be over faster - there is still so much to do!” You can do it faster - you lost your money and it’s all over. But do you really need this?!

Specialize in one thing in Binary Options Trading

For your trading session, select the option type that you will use. Also decide on the assets to trade – you shouldn’t choose too many of them either.

First of all, rewind the price chart into history and see how the price of the selected assets behaved during your trading period. Surely there are a lot of repetitive movements that can be used profitably in your trading.

Start small - two or three assets are enough to get profit and frequent signals to open trades. You can, of course, immediately start trading and searching for signals on 10-20 assets, but then you will get tired very quickly, and trading this way is much more difficult - you need good discipline to strictly follow the rules of your trading strategy.

Get rid of overtrading on Binary Options

According to the rules of money management and management risk, set limits for losses and profits! But don’t just set these limits, but make sure that you end trading when you reach one of the limits:
  • Loss limit
  • Limit of profit received
  • Time limit
Beginning traders mistakenly believe that they can do everything - they don’t need these limits even for nothing. They “finish trading only when they want to.” In fact, they end the trade only after losing money completely.

retrading binary options

Limits are needed to get the most out of your trading. There is no point in trading if:
  • Are you tired?
  • Trading signals do not work as expected
  • You have reached your daily profit (the goal has been achieved and there is no point in risking your profit)
  • You have lost money allocated for the current trading session
  • Concentration has broken and you cannot devote 100% to trading
Any further actions will only lead to loss of money, thereby worsening your trading results.

Profit limit in Binary options

If we have already talked about loss limits many times, we don’t mention the profit limit so often. Every trader must have a profit limit - it saves you from overtrading and unnecessary loss of money. The profit limit is set in relation to the amount on the trading account - for some deposits it is 5-10% per day, for others it is less than one percent. The larger the amount in the trading account, the lower the profit limit can be set - the profit received will still be enough.

For example, for deposits of 10,000 rubles, the profit limit can be set to 1-5% per day. Do you think this is not enough? You will receive from 5% to 25% profit per week, and from 25% to 125% per month - and that’s not too bad! On large deposits, this, of course, will not work - there an increase of a few percent per month is already considered good earnings.

In general, a good income for a trader is considered to be an increase in the trading deposit by 15-30%. So draw your conclusions. If you want to earn a lot, then the deposit should be appropriate, and not “minimum $10.”

You won’t be able to earn money every day - I think you already understand that! So if you had a losing day yesterday, don’t try to recoup your losses today. You have a set profit limit - work according to it! Once you’ve earned your 5%, stop, and you should continue only the next day.

Be sure to keep a trading diary - record all your trading and all transactions. At the end of the month, be sure to analyze your trading and see if you have achieved your goals:
  • If you have reached it, you can increase the loss limit by 1-2% - this will help you close days less often under this limit, because you will have a few more deals left
  • If you haven’t achieved it, then think about reducing your goals - perhaps they are set incorrectly or are too high
  • If there were many unprofitable days in which you reached the loss limit, then reduce this limit by 1-2% - this way you will end trading on unprofitable days earlier, but you will lose less, because the loss limit will be reached faster
Trade strictly according to the trading plan – never deviate from it. Remember that you made a trading plan at a time when you were not driven by emotions or greed, which may be driving you now.

Stop trading Binary Options when you need it

Beginner Binary Options traders do not care about any rules that professionals use in trading. Beginners believe that they can easily do without (they are the smartest ones from the start) without everything that is so important for experienced traders. Understanding comes over time - after a bunch of leaked deposits. And traders understand the following:
  • You can't trade when you're tired
  • You cannot trade after reaching the set limits
  • You cannot trade when you are not physically or mentally ready for it
  • You can’t trade at random – as soon as you have a few minutes of free time
Once the trading time is up and the loss or profit limits have been reached, stop. Trading is over for today! You can proceed to analyzing transactions, filling out a trading diary, viewing economic news for tomorrow, drawing up a trading plan for the next day.

Free time limit in Binary options

It happens, and very often, that a trader simply does not even have a free hour to trade - he is busy with his main job, household chores or hobbies, but he is still an experienced trader and makes money from trading. But how does he do it?

free time limit

Many traders are accustomed to the fact that Binary Options trading is very dynamic trading with very fast results. You just opened a deal, and already there is profit on the way if the forecast was correct, or losses if the forecast did not come true. It's 5-10-30 minutes. But at the same time, many people forget that trade can be different.

There are a lot of traders who trade only with a long expiration time, setting it at the end of the current day or at the end of the week. The effectiveness of such trading is simpler, and forecasts are easier to make. The only negative is that you won’t open many trades, and the signals are not always there (depending on the strategy).

Having opened a deal in the morning, with expiration at the end of the day, you can check it only a couple of times a day, or you can not check it at all - the risks are taken into account, so there is no need to talk about serious losses, even if the deal closes in the red. This is how it turns out that for some traders, 5-20 minutes a day are enough for profitable trading. As for me, the solution is a very good one, especially for people with a very busy work schedule.
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