Is the system rigged? Are they using the wrong strategies? What can they do to eventually make money? These are just a few questions that they keep asking themselves.
The truth is, there are many different reasons why you aren't making money trading on IQ Option.
But the main reason revolves around the type of trader you are.
In this guide, I'll look at 4 types of traders that you'll find on the IQ Option platform.
4 types of traders that you'll find on IQ Option
Traders who know nothing about trading
Many traders join IQ Option hoping to make quick money. They probably heard that online trading is the best avenue to make quick cash. The allure of depositing just $10 and turning it into hundreds of dollars over a short period is too good to pass up.
Such traders will likely try out the IQ Option demo account first. After making a few successful trades, they believe that they're fully qualified to become professional traders.
The problem is, trading isn't as simple as depositing money and clicking on the higher or lower button on the IQ Option trading interface.
Understanding how the platform works constitutes a small part of trading. You'll need to learn how to read IQ option price charts, use indicators and the different trading strategies. In addition, you'll need to adopt a good money management strategy. And above all, you'll also need to keep your emotions under control as a trader.
All this knowledge should be acquired before you make your first trade with real money.
Traders that know too much
The opposite of the trader that doesn't know anything about trading is the one that knows too much. This type of trader is always searching for new strategies and techniques to adopt.
His time is spent online on trading forums and groups. He will even invest money on other traders in exchange for trading signals. Such a trader doesn't trust that a single trading strategy can make him money. His trading chart is usually cluttered with a handful of indicators which only make his trading process more complicated.
The problem with such traders is that they focus too much on the techniques rather than trading. They might get a few winning trades on the IQ option platform, but majority of their trades end up losing.
The emotional trader
Emotional traders are usually out to make quick money. This type of trader will most probably learn about options trading from a successful trader. They know that there's money to be made.
They will do some research, learn how to trade and even open a trading account. Initially, this type of trader will follow a trading plan and make money. But their ultimate goal is to make big money fast.
So they'll throw their trading plan out of the window. Instead, this trader decides to make huge risks. Some of the trades are winners. However, majority will end up losing money eventually depleting the trader's account.
Another form or emotional trader is the one that's too afraid of losing money. This trader will most likely suffer several consecutive losing trades. As a result, he will be too afraid to trade anymore.
However, in most cases, it's not the strategy they're using that's faulty. It's usually, when the strategy that's used that is wrong. For example, using a strategy that works best in trending markets in ranging markets.
Emotional traders will generally have a well thought out trading plan before they hit the markets. But as soon as a trade goes against them, they let emotions take over.
The results are disastrous in many cases because the trader simply doesn't approach trading with a rational mind. If you find that emotions are taking over your trading, it's best to stop trading immediately. Only resume trading when you're sure that you have a clear mind.
Traders that are making money
This type of trader will usually have started off knowing nothing at all, learned how to trade and even traded based on emotions. He could even have lost a good amount of money on the IQ Option platform. But he persevered knowing that eventually, he will e able to make money as a trader.
Traders that make money on IQ Option have a personalized trading plan. This was developed after months of trading, keeping what works and eliminating what doesn't. They've learned how to control their emotions and practice good money management techniques to protect their account balances.
These traders know that to eventually build wealth on IQ Options, they need to earn small profits which cumulatively add up to a large amount. Consistency plays a huge role in their success. They will choose a certain time and a specific asset to trade. Most of their time is spent studying the markets looking for the right opportunity to present itself.
What type of trader are you?
No trader can claim to have become instantly successful. Majority of successful traders have lost money in the markets due to lack of knowledge, trading with emotions or applying too much knowledge.
Becoming a successful trader requires practice and patience. If you know nothing about trading, take your time to study. If you already know something about trading, use this knowledge to identify what works and what doesn't. Finally, learn how to control your emotions. Eventually, you'll find that trading isn't as hard as most people believe.
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