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How we can manage and save our capital in option trading to be profitable trader.
Why Money Management is important in binary option trading ?
Sometimes traders like us starts taking decision based on his fear , greed and emotions. When we started taking emotional decisions , we can experience that our account is burning very fast. To avoid such mistakes and control at our money to save the profit Money management is most important. There are some valid ways to money management which we are discussing here.
How Money Management works ?
a. Always trade with >= 1 % of your total capital.
b. If your 1% trade loss use 2% in next signal , so that you an recover previous losses and get some profit also.
c. If you got three consecutive losses , stop trading and take some rests.
d. your daily target should be from 5% to 10% and loss target should be no more than 5%.
e. Always protect your capital for next session trading.
f. When you reached target of profit discontinue trading.
g. Practice on demo. it will help you to enhance your knowledge.