Why is patience critical when trading forex binary options? Because it is a time-based trade and you need to wait for your setup. However, we are all human and make mistakes. We are susceptible to impatience, especially when we know where price is going, especially when you are using leading indicators like the TradersHelpDesk indicators.
Why Patience is Critical in Trading Forex Binary Options
In this case, the EURJPY is, more likely than not, going down. The Multicharts Scanner has identified volume divergence on the highs (lack of buyers as new highs are being made) and the Stochastics is overbought (as well as the ADX). A downturn is imminent.
When trading forex binary options, instead of patiently waiting for the setup, Gail opts to enter two trades (spread and binary) to the short side. Trading three contracts each (because she knew she was early), the total risk on the spread was $24 and the total risk on the binary was $59.25. No surprise she lost on both because she was simply too early and did not wait for the setup.
Instead of being frustrated and not taking the actual trade setup, Gail ignores the loss and enters when price actually tests the ATR and forms the reversal bar on the 15-minute timeframe. She enters with ten contracts on the binary for a total risk of $180 and enters the spread with five contracts and a total risk of $40.
This time the trades work in her favor. Her target at $15 is hit on the binary producing a total profit of $670. Then she exits the spread with a total profit of $135.
The wins and losses for Trading Forex Binary Options this morning were:
- Loss on spread: $24
- Loss on Binary: $59.25
- Win on Binary: $670
- Win on Spread: $135
- Overall Profit: $721.75
- Risk to Reward Ratio: $1 to $2.38
TradersHelpDesk currently offers two packages — the Create Your Own Package and Silver Package and both include the indicators, documentation, and online video training. Plus, if you are new, I even connect and install the indicators for you! For those that just wish to use the Trend ATR indicator it is also on special for only $295.