How Much Should I Invest Per Trade in Binary Options? - Answered

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Day trading stocks for years I found I always traded best in the morning, then usually gave some profits away in the afternoon, only to make some back at the close to basically finish up where I was at in the morning. It took me years to realize that trading all day is not a very efficient strategy for a day trader. Now, trading forex and futures, I finally am 3 great reasons we only trade forex binary options to trade efficiently, as well as retain my mental edge.

There are highly profitable times—times where are conditions are ripe for extracting a profit—and low profitability times, and I only trade during the former. I recommend only trading during the few hour span in which your strategies are most profitable, whether you trade futures, forex, stocks or commodities. My strategies work best in volatile conditions with lots of movement and trends, therefore, my discussion below will focus on these times.

I trade forex for about one hour a day, from about 8: During this time I can usually extract about 15 to 20 pips if there is some good movement over one to four trades. After this, trades generally begin to take a bit longer and solid opportunities take longer to materialize.

True, some days I could make much more I traded all day, but other days I would end up losing what I had already made.

On average, I find it best to simply trade that hour or so and call it quits. If I was to trade for 6 hours I may end up, on average, making 30 pips for the day. That is much less efficient though; the first 20 pips comes in an hour, while the next 10 pips takes 5 hours, since my strategies generally do worse as the trends die out as the day progresses.

If you keep trading after the most volatile hours are over or your most profitable hoursmake sure you are fully alert and not feeling tired. For these reasons, I have chosen to trade forex for approximately one hour per day around the start of the US forex session. I then switch over to futures, and trade the first two hours of the US equity markets.

The first two hours are usually the most volatile of the session, providing the most trading opportunities, quickly. It took time to learn, but less is more. While the strategies you employ may be different than mine, and therefore more profitable at other times of the day, I encourage you to trade efficiently.

Keep track of your trading stats and see at what times you are most profitable. Trade only during the few hours that are most profitable. There are two reasons for this. By 3 great reasons we only trade forex binary options trading the two to three most volatile and potentially profitable hours of the day I get much better use of your time.

While I may make a bit more if I trade all day, the amount I am likely to make is on a decreasing scale. Your most important trading tool is your brain, and your ability to stay calm, disciplined and focused.

After a couple hours of staring intently at my screen, I need a break. It is not only 3 great reasons we only trade forex binary options there is usually two to three hours which have the best opportunities, but after trading those hours your brain is starting to get tired.

Focus and discipline may become lost and with it some profits. Less is More It took time to learn, but less is more.

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