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It is not that great feeling when losing money. However, only trader can fully realise the problem of complete failure.
The feeling of complete fail can be described simply saying “I lost my deposit!” Initially, it might sound as verdict. Of course, it is not a sign to stop building your trader career. However, many newbies tend to do exactly this mistake.
The very first failures in trading usually cause desire to forget about binary options and the stock exchange. Professionals act differently. The right way after trader has lost his deposit is to analyze precisely all actions and to correct mistakes. Let’s speak about this in details.
Deposit is lost. My actions?
First Aid for a binary trader, who has lost his deposit.
Smart statistics claims that the first deposit is lost by 997 traders out of 1,000.
First of all, you should realise that you are not alone. However, hard times tend to happen even with experienced traders.
Binary option trading is marked with high risks and the situation of deposit loss might occur to anyone. It is important to make right conclusions and to learn how to overcome difficult failures.
Psychological help for a trader, who lost his deposit.
Losing money for binary options trading professionals means not only that it is impossible to continue trading but also times of hard depression. Sometimes it is much harder to deal with a personal psychological state rather than to make money for a new deposit.
The process of overcoming stress caused by the loose of money begins with making a complete change. You should go on vacation and forget about your business and problems. During this time, you are forbidden to trade, read financial news and to check analytic graphs.
You should completely forget about the existence of binary options and stock exchange in particular for a month or at least for two weeks.
The loss of deposit on binary actions: analysing mistakes.
After you have overcome your failure, you should carefully analyse performed steps, trading operations, and find problems.
Main Trading Mistakes Causing Deposit Loss
- Lack of system thinking. The decision of intuitive trading is not a perfect strategy for each trader. The system approach is more predictable, it is easier to identify trends and to control the situation. Besides that, using one strategy helps you to use the advantages of trading automation.
- Lack of correct fund distribution. One of the mistakes causing money loss is a high risk level. It is important not only to develop a personal trading strategy, but also to test different approaches to manage funds. The optimal risk level varies from 2-5%.
It is important to analyze all indicators: profit, equity chart, used methods in fund management.
- Psychological troubles. High stress level in binary option trading might cause such unfavourable situation, as lack of result even if you follow all the steps of the developed strategy and money management. In such case, it is a matter of a negative mind set.
This means, you need to change yourself. The best advice for trader is to study some books about psychology and to change old attitude regarding trading.
Always remember, that many successful traders have faced the problem of deposit loss. Today they have reached the desired level of their career, they do what they like, and receive their stable profit. However, their way has never been easy. Difficulties and challenges make us stronger.
Now you know for sure that you should not see the problem of deposit loss as the collapse of your career. It is nothing more that permanent problems, what is more, if trader can change his attitude, he can turn small loss into a big profit.