Once you have your broker, your asset, and your trading strategy, a thought may occur to you. This is typically, “what is the ideal number of binary options trades a day”. Regardless of whether you are a part-time or fulltime trader, this question can be equally compelling. After all, the entire purpose of trading is to make as much money as you can.
Therefore, it is logical to think that this means that you need to place as many trades as you possibly can each day. Well, the answer is a little more complex than that. Keep reading to get a better idea of how to arrive at your magic number:
Consider Your Total Account
Now, one of the first things that you will have to consider is just how much money you have in your trading account.
This will directly impact just how many trades that you are able to place. The less capital that you have, the fewer trades that you can make. It is more than that, however. If you don’t have a lot of money to work with, you have to be more careful about your trades. It means that you have to focus on quality over quantity.
Why Volume Isn’t Everything
Speaking of quality over quantity, it is important to understand that trading volume isn’t really indicative of winning. Now some people, decide that each day, they are going to place a specific amount of trades. This is because they believe that trading volume is directly proportional to profit. The problem here, is the market.
This is because the market does not always yield the greatest conditions either for your asset or trading strategy. This means that there are certain times during the day where your position is weak and other times when it is strong. If you are just trying to hit the right number of trade numbers, you will be missing out on this opportunity and falling prey to the pitfalls. This means that you will end up losing an unnecessary amount of money.
A Small Number of Good Trades May Be What You Need
Instead of focusing on volume, consider the amount of profit that you can stand to make from a trade that ends in the money. Even more importantly focus on trades that have lower risk or that there is a higher chance of you winning. Depending on the payout that you can make from such trades, you may not actually have to win all that many.
As a result, you can place a fewer number of trades but still make a considerable amount of money in the process. You should also remember that it can take just a few bad trades to drain your account as well. So, you should always make a point of balancing out your trades.
Considering Your Trading Strategy
Another thing that you will have to take into consideration is your trading strategy. This is because the type of strategy may limit the number of trades that you are able to make each day. Some strategies require a considerable amount of research and evaluation.
They do, however, also tend to have higher rates of wins. As they take up more time, you will be able to place less trades. It is vital that you don’t skimp on the process that it takes for your strategy to succeed. As mentioned, the number of trades that you are capable of making isn’t always the most important thing.
There isn’t a clear-cut answer to the question of what the ideal number of binary options trades a day is. You will need to figure out the response by looking at your capital, trading strategy, and your win and loss ratio.