Good advice!

Hey guys! I wanted to share some thoughts on risk management that, in my opinion, can help you preserve your capital when trading binary options.

Percentage of deposit – A common mistake many traders make is putting too much of their deposit on a single trade. Ideally, you should risk no more than 1-3% per position. This approach allows you to stay in the game even if you experience a series of losses and gives you a chance to recover.

Daily loss limit – Set a daily loss limit for yourself. For example, if you lose 5-10% of your deposit in a day, it’s better to stop trading rather than try to “make it back.” This helps maintain a cool head and avoid emotional decisions.

Max trades per day – Don’t overload yourself with too many trades. It’s better to make 2-3 well-considered trades than to open 10+ without confidence. Quality always beats quantity, especially in binary options.

Trade review – After each trading session, review your trades. Evaluate what went wrong and what went well. This helps identify mistakes and adjust your strategy to avoid them in the future.

Trading plan – Don’t enter a trade based on emotions or just because you “think there might be a signal.” Stick closely to your trading plan. Risk management is not only about limiting losses; it’s also about discipline.

Emotion control – When you feel emotions like fear or excitement taking over, it’s better to take a break. Risk management is closely tied to psychology, and knowing when to stop is a key part of success.

Following these rules helps minimize losses and manage your capital effectively. Risk management is the foundation of long-term trading, especially in binary options, where every decision has significant impact.