The most successful digital options traders are those who continually re-evaluate their progress. The goal is not only to monitor profits and losses, but also to determine where improvements can be made. For those who use strategies, adjustments may be needed in regard to these as well. In this article we’ll cover several different scenarios for evaluation.
First we’ll consider a month where profit was earned. Whenever you’re earning money, you know that you’re trading well. Whenever you’re generating profits then you are likely completing accurate analysis, making sound investment decisions, and selecting solid trade setups. One adjustment that could be made when you’re trading well would be to trade more. An increase trade volume could provide you with even more profit.
Now let’s talk about breaking even, or being close to breaking even. This outcome means that some improvements need to be made in order to put yourself into the profit zone. Considerations to make here include whether or not you are selecting optimal trade setups, what types of digital options strategies you’re using, whether or not your money management plan is solid, and more. Obviously, you don’t want to be breaking even, but the good news is that you must be doing something right – otherwise you’d be losing money.
If at the end of the month (or evaluation period) you’re losing money, then changes must be made. Not every trade is going to be profitable and all traders should know this. However, problems such as too little analysis, poor trade selection, unwise investment amounts, and more could be causing serious problems. It might not be extremely easy to pinpoint the problem, especially if more than one exists. Feel free to speak with your Broker Options account manager should you be in need of some direction.
Many traders decide to analyze their results at the end of each month, but you can track your progress however you wish. What it all comes down to is that if you are not earning at least some money, then changes need to be made. Some of the best digital options traders are those who are willing to take the time to reflect upon their past successes and failures and make adjustments along the way. Those who do this tend to earn much more month than those who experience problems and do not seek help.