Trading is hard. There, it’s been said and now the focus can turn to why trading success is possible. They key to trading success is boring behavior and the best word to describing a successful trader is “consistent."
By Bob Iaccino
Monday, August 15, 2016
In order to understand this, we must first discuss what constitutes trading success. Trading successfully does not mean 100% profitable trades. It does not mean 100% profitable days, 100% profitable weeks or even 100% profitable months. The simple description of a successful trading track record is over time, you win more than you lose. The only way to get to this point is to find or manufacture the method that you can apply consistently. Consistent behavior provides for confidence and more importantly, the awareness a trader needs to catch the inevitable mistakes. All humans make mistakes and in trading, those mistakes can be devastating. When you are consistent, you notice them and you can fix them before they become catastrophic.
So here is the good news; while you are discovering or learning the trading method that allows for consistent behavior within your world, Nadex binaries and spreads provide a net. You can experiment with a very small live account knowing the risk you place (shown right on your order ticket) is the only loss that can occur. There is nothing like live trading in terms of testing a trading method. All the research, back testing and demo trading in the world cannot replicate what it feels like to have a real gain or loss. Stops, which are used in futures and forex to limit risk can be moved by the trader in an emotional moment and can produce negative slippage, which is defined as the difference between the expected price of a trade and the price at which the trade is actually executed. You can learn to walk a tight rope that is 6 inches off the ground, but you won’t know you can do it until the rope is hoisted 10 feet or more into the air. Your next step should be a net. Nadex has one ready for you.
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