When Is It Time To Quit Trading?
It is not a fun question to ask, but almost all traders will ask it at one point or another, even the best—even the ones that eventually make it. When is the time to quit? Everybody goes through frustrating times trading, and when you are losing money, you may start to question whether you are even in the right field to begin with, and whether binary options trading is really for you. You are right to question, because that questioning ultimately can lead you to an answer. But that does not necessarily mean it is time to quit. And in the end, only you can judge for yourself whether you belong in the world of binary options trading or not.
Quitting vs. Taking a Break
One thing which is easy to get confused about is the concept of quitting trading forever vs. taking a break from trading. Many traders, especially new traders, make the mistake of thinking they are somehow succumbing to weakness if they decide to back off from the market for a while. They may believe that doing this shows they are unresolved and not dedicated to their trading careers, and may believe that taking a break is equivalent to giving up.
Nothing could be further from the truth. Taking a break is often a healthy decision, especially if you are losing money and you have no idea why. If you continue to trade without knowing what is going wrong, you can be assured that you will only continue to lose. Doing something like that is far more likely to result in you washing out of trading altogether than simply taking a little time off. That time off can pay off in huge ways, financially and emotionally, and regular little breaks are often a necessary ingredient in profitable trading.
When to Consider a Break
When you should you think about taking that time off? Here are some circumstances where a break would make total sense:
- You have been losing trades for a while, and this has already exceeded the largest losing streak you could reasonably expect given your testing. If your method is not performing to your statistical expectations, then something has changed, and you need to take some time off to figure out what it is.
- You are losing trades, and you do not know why. You cannot come up with something which you have been doing wrong and which you could fix to avoid incurring these losses. This is related to the situation above, but you might want to consider taking a break even before your losing streak grows that much if you think that you are not understanding something important. Some losses really are unavoidable, and many times these situations self-resolve, but not every time. Use your personal discretion.
- You are trading emotionally. If you get caught up in the excitement of trading, you can sometimes end up losing trades because of your emotional reactions to events. These include both negative events (a losing streak leading to despair, leading to mistakes) or positive events (a winning streak leading to overconfidence, resulting in irresponsible trading behaviors). In these situations, take a break to become more levelheaded again. These tips on Handling Your Emotions During 60 Second Trades can be applied to all trades.
- You are physically or psychologically stressed out. This may be because you are not getting enough sleep, not spending enough time doing leisure activities, or maybe not balancing your trading with your work or family obligations. Take some time off to center yourself again, and you will come back stronger the next time you trade.
While on your break – review our checklist to see if you’ve been missing something
That is not a full list of all possible circumstances of course, and any time you feel like taking a break is really important, you should probably do it. When should you consider actually quitting binary options trading forever? That is a question nobody can answer for you. Some people quit because they just do not enjoy trading. Others may quit because they feel they have no intuitive grasp of trading, or that it is not worth the effort. Other people will “quit” numerous times and always come back, realizing they simply needed a break, and they are determined enough to continue (this is very, very common). And finally, there are traders who make the decision to become a profitable trader once, and only once. These traders never quit, and they only take breaks, because that is how important trading is to them. Where do you fit on this scale? That is something that only you can figure out, based on your own experiences.
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