There is no best answer as to how many Binary Options trades you should place in a day, as it depends upon many factors that are personal to you. Some people are very cautious in their trading and will only do so when conditions are, in their mind, perfect for their overall strategy. This is probably the safest way to trade Binary Options although the trader would undoubtedly miss out on many good trades, as well as bad trades, and would therefore miss the opportunity of compounding their winnings over time.
One of the best ways of being confident in your trading is to pick a trading system or signal provider that has proven to be successful and profitable over time – and then only place a binary option trade when your system or signals says so. Too many people lose all the money that their trading system or signal make for them, by placing their own Binary Options trades on a whim !
Trading binary options can often be exciting, filled with emotional swings, and whilst many people crave the excitement of trading, really good trading is usually quite boring. If yours is exciting, maybe it is telling you that you’re gambling rather than trading?
This is a trap many inexperienced traders fall into when they start trading binary options. While the goal may be to exhibit patience and discipline when deciding to place a binary option trade, oftentimes emotions and ego get in the way and we place binary options trades based purely on a gut feeling. It is true that some binary options traders are very profitable, following their gut instinct at first but this beginners-luck cannot last for ever.
We see theses over trading tendencies most often amongst hedgers, where they place both a call and a put on the same asset. While careful consideration is taken before placing the initial binary option trades early in the expiration cycle, all bets are off once the underlying asset has a chance to move around.
There are times hedgers find themselves locked into a two trade position that guarantees a loss, albeit a small one. Well no one likes to lose right? So what you’ll see is traders looking to turn a small loss into some sort of gain at the risk of losing even more. This is bad form. A discipline trader following a disciplined system knows there is no harm in taking small losses on positions. The goal is to live another day to place more binary options trades and this can not occur if you continue to over trade, placing risky trades to avoid small losses. Our advice, take the loss and move on to the next trade.