Olymp Trade attracts many kinds of traders. There is one type that comes here in hope of easy money. Easy and fast. They think trading options is easy. They think it is a guessing game. Will the price of an underlying asset rise or fall? And then just to press a button accordingly.
You have to know the truth. There is no easy money in trading. The platform users are trading against each other and there is a broker in between waiting for his cut from the winning cake.
It can even look like the whole platform is designed so you come and leave your money there. But I am telling you there is something you can do and today I will share my knowledge on this topic with you.
- 1 Understanding of digital options
- 2 2 reasons behind losing money at Olymp Trade
- 3 What is the best path at Olymp Trade?
Understanding of digital options
When you are trading options you do not own an asset. You just speculate on the price of the underlying asset during a given period. Your task is to decide whether it will rise or fall.
The profit you can earn is dependent on a few factors like the time and the asset you decide to trade. You will receive the percentage of the amount you have invested in. The rates are visible on the site when you are choosing the asset. It is typically 70% and more.
You may say that all of this is not that much complicated. Well, this is not all. To become successful you need to invest your time, you need to learn not only what digital options are but also how to read the charts and what strategies to use.
Such knowledge will help you to decide when it is a good time to open a position and when it is time to sit out. Knowing how to use indicators will be also very useful. Then you will be able to design a valuable trading plan.
Furthermore, you have to know well the asset you are trading. Like for instance, you should stay away from cryptocurrencies if you do not feel comfortable on the markets with high volatility. You must also be aware of the time when it is best to trade a particular asset. You should follow the news releases as they have a big influence on the markets’ volatility.
Once you get hold of the above, you can begin trading. But it will not guarantee success. You may discover you are still losing money. Why is that?
2 reasons behind losing money at Olymp Trade
Not knowing when to pause
Trading brings excitement. In the throes of passion, it is possible to forget about some important principles like taking a break. This is one of the reasons why you should always start trading with a good plan in hand. Without it, you can miss the moment you should stop and incur a loss.
Trading long hours can be tiring physically and psychologically. Your mind becomes exhausted and your focus dispersed. The following questions will help you to identify a good moment to stop trading.
- What profit do I want to make in a day?
- How many consecutive losing transactions can I take?
Include the pause in your trading plan and stick to it.
Excessive usage of strategies
Beginning traders always ask about the strategies that work best. They think there is one cure for all the problems. In fact, there are no good and bad strategies. There are only bad times or wrong markets to apply them.
You should try a few strategies and find one that works best for you. You have to know where and when to apply it so use the Olymp Trade demo account first. Later, use the strategy on a real one to bring you some profit.
Too many strategies will only distract your attention and take you further away from your goals.
What is the best path at Olymp Trade?
The best path is the one full of knowledge. Knowledge is a key factor in trading. You should be armed with a strong strategy and you should have great reserves of patience.
Developing a strong strategy
There is no need to complicate things when simple ones work perfectly. Choose a simple strategy and use it on a single instrument. For example price action, three candles rule or following the trend. Afterwards, select a type of the price chart and indicators for your favourable strategy.
You can verify the effectiveness of your strategy like this. Let’s say you choose following the trend. This means you will open a position only when you recognise a trend first. You will have to concentrate on the price movements on the chart.
As I said before, the Olymp Trade demo account is an excellent place to practise the strategies of your choice. There is no real money involved so there is no risk. And try the strategy not only once. Train until you feel ready to move to the real account.
You ought to think about the amount of money you wish to invest in a single trade. The decision is yours, but I suggest to start small, so you will not incur a hurtful loss. Invest no more than 5% of the account balance per trade.
Patience is one of the most important skills every trader should develop. You cannot start trading based on your feelings. You have to wait for the desired conditions. Sometimes it will take minutes, sometimes a few days.
Do not forget you risk your money and you do not want to lose them. So if the situation on the market is not favourable, sit it out. With a strong strategy and the great reserves of patience, you are on the right path.
Your priority – wait for the desired circumstances
Trading one asset at a time and practice on the demo account will help you in the transition to the live account. Remember, it is not guaranteed that the required conditions on the market will occur right away. It can be a few minutes, but also hours or even days. So have patience.
Practising on the Olymp Trade demo account will also give you some clues about the periods in which the markets are more beneficial for trading. Moreover, you will learn how to keep your emotions in check and not to give in to the pressure. This way you will significantly improve the probability of successful transactions.
Your second goal – determine the amount you wish to earn every day
You should always begin trading with the amount of money you want to make in mind. This will help you to calculate a single investment and to stop trading at the right time. Let’s assume you wish to make $50 per day. With 5 successful transactions, it gives an investment amount of $10 per trade. In other words, you need 5 times when the market is beneficial for your trading.
I hope you will be persistent in following the steps I have described for you. It will bring you closer to find yourself in 10% of people who make money at Olymp Trade.
Wish you success!
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