3 Stages to Trading for a Living in Binary Options


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And this is really the foundation for everything. If you look in your strategy, you’ve got to know what produces, what is actually a good quality signal, entry criteria, and what isn’t. Hey, welcome back to the channel. My name is Jason and today I’m going to talk to you about something very important as a trader. As a human being, you and I have an innate need, an innate desire to be constantly growing, to be constantly developing. You’ll see that everywhere in your life that you want to grow and improve in this area, you want to improve in that area.


It’s just an innate desire in human beings all around the world to want to develop and grow. And the same thing is true as a trader. That’s actually why you’re watching YouTube videos. So you can learn how to trade better. You can learn how to improve your finances. You can learn how to improve your trading. That’s what’s going on. That innate desire is in you and you’re fulfilling that. So I’m going to talk now about the stages of development as a trader and how you can walk through those. What are those stages?


How to know which stage you’re in so you know what to do to get into your next stage. I’m going to do all of this based on the strategy that we use in Binary Masterclass. I’m just going to share my screen here. We’re talking about the three stages of development, a clear path for a trader to develop to consistency because that’s ultimately what you want is you want to be a consistent trader. You’ve had plenty of times where you’ve had some really good trades, maybe even a couple really good trading days, maybe a couple good trading weeks, and then you discover that you can’t quite be consistent there. And so I’m going to teach you right now about how to develop into that consistency coming from an institutional trader’s perspective and what you can do to implement all of that in your life so that even if you are an amateur trader, how you can still trade like a professional.


And that’s very important. And the thing is, you can use these principles with any strategy that you currently trade. Like I said, I’m going to talk about it based on the strategy that we use here in Binary Masterclass, but these principles, and maybe not the exact words, but these principles can be used with any strategy that you’re using as long as it’s a good strategy. If you’re trading a terrible strategy, I don’t care what you’re doing, okay, you’re not going to be able to develop into a consistent trader. And we’ll talk down the road in future videos about how you can know if your strategy actually is a good quality strategy, but that’s not the purpose of this video.


So what are the three stages of development for a trader, specifically in using our strategy? Well, here are the three stages. The first stage is this. Recognize what a quality support and resistance level is as well as what would weaken an otherwise quality level. Now you know by now if you’ve been watching our videos for a while we trade based on support and resistance and not just any support resistance but very very specific criteria goes into what we determine to be a good quality support and resistance level and all that stuff we talk about in our trading room in our live trading room where we’re watching the market live and in real time as well as in our online training but let’s talk a little bit about recognizing what a quality support and resistance level is and we take we get in when the price comes down to a support we get into a call and we want to make money as that goes up when price comes up to resistance We get into a port and we make money as that goes down And like I said, the trick is being able to know what a quality support resistance level is and this is really the foundation for Everything if you look in your strategy, you got to know what produces what is actually a good quality signal entry criteria and what isn’t.


And if you do not know that it is not even possible to go on to that next stage of development. We have a whole training of how to find what all of the other traders, what the institutions, what the banks and what traders all around the world. We talk about how do you recognize because not all support and resistance is created equal so you got to be able to you got to be able to get rid of that resistance and that support and get rid you know all of that stuff move that out of the way so you’re only focusing on what those good quality levels are and then there is a second half to it the second half to it is that you might see a really really good level but because of other elements that are going on in the market, that really good level might actually be getting weaker because of other market dynamics.


And if you can’t recognize that, then you’re going to continue placing trades at levels that might be good quality levels, but because of the other things that are going on in the market, it weakens them and then you consistently get losses. So step number one is you have to be rock solid. You have to become a support and resistance ninja. You have to know, you have to really, really know support and resistance. Like for example, why is it that we in Binary Masterclass do not use diagonal support and resistance levels or in other words trend lines. Why do we not use those? I don’t disagree with trend lines but there’s a very specific reason why we don’t use trend lines in our trading. Why is that? There’s very specific reasons why we need a certain candle count to determine if it’s a high quality support resistance level. Why is that? Or there’s a very specific reason if we’re seeing what’s called slowing momentum that we won’t trade a certain support or resistance level. Why is that? You’ve got to start beginning to answer those questions. You’ve got to begin to start challenging your otherwise unchallenged mindset so that you can really focus in on only what the good quality levels are.


Because I promise once you discover those good quality levels, then you will start being profitable. And, here’s the really cool thing. The moment you begin to master stage of development number one, you will already start becoming a profitable trader. You won’t yet be as profitable as what you could be because there’s still stage two and there’s still stage three. But if you only master stage of development number one, you will already start being a profitable trader. So it behooves you, it benefits you to really dig in deep and figure out what makes this kind of a good level.


Alright, so moving on to the second stage. Recognize if the market is playing your game. Now let me tell you a story that many, many of our members already know the story about me. I used to trade in institutions, and imagine now for a moment, you’re sitting in a huge room with lots and lots of computers, mostly guys in there, I’d say 98.5% are all guys in there all pretty young trying to like show off and make everybody see how good they are you know it really there’s not much of a camaraderie I mean there is a little bit on a surface level but for the most part everyone just trying to show off and strut their stuff and everything and and you’re and you’re sitting there and we have a we have a daily stop-loss that if you lose a certain amount of money in a single day, you’re not allowed to continue trading.


And here’s the thing, it’s not even just that you’re not allowed to continue trading, you know what happens? The entire computer shuts down. The entire computer just shuts down. You’re sitting there, you hit your daily stop loss, and it’s not even like the computer’s locked. No, the monitor turns off, the computer turns off, nothing works, it’s just vroom. And you sit there staring at a blank black screen oh crud and you look around to see is anyone else did anyone else lose already then the only thing you care about is to not be the first person whose computer shuts down that’s all you care about in that moment that’s all that’s like all day long you’re not even thinking about making money The only thing you’re thinking about is I better not be the first person who has its computer shut down Oh, it’s a horrible feeling guys. It is a horrible feeling so so and and I began to realize something over time because I had a very Very good strategy well tested out Awesome, and I would I would be profitable a lot and what I could never figure out was why there were still days that my computer would shut down.


Man, what the heckity heck, what’s going on here? Until one day it hit me. I realized this. My strategy is good. My strategy is profitable. And there are times that my strategy and the market are not in sync. It has nothing to do with me and the trader. You see, when you hit your daily stop loss, now think about this for a moment. Really just think to yourself here for a moment. When you have a losing day, where are your thoughts?


I don’t even know who you are. And I can tell you that generally your thoughts are going to be like, oh my goodness I suck, oh my goodness I can’t believe I did that again, oh my goodness I’m terrible, oh my goodness. That’s more than likely where your thoughts were. And what I realized is this, when my strategy and the market are not in sync, then I don’t even want to continue trading. There is no reason to continue trading. No reason whatsoever to continue trading because why on earth, if they’re not even think, why on earth would I take another trade?


It’s not even, it makes no sense. If you know that whenever you click that button, it’s pretty much going to be a loss. Why would you even click the button again? Like it makes no sense. You just wouldn’t do it. The only reason why you would continue trading even though you’ve been losing is because you don’t realize that the market’s not going to give you a win anyway. So you just think the only good thing to do in that moment is to keep trading. So I was like, all right, now all I have to do is I just have to figure out how quickly can I know if the market and my strategy in the market are not in sync. I got to become a master of figuring that out fast. And so that’s so so so so that’s why you got to know stage of development number one. You cannot begin to master stage of development number two unless you have started developing stage of development number one because if you don’t even know what a good quality support and resistance level is then you don’t even know if your trade lost because it was because the markets not in sync or because you just placed a stupid trade you don’t even know that all you know is you just lost and you don’t know if it’s because you you just in place a good maybe you just in place a good trade but if you don’t know what a good quality support and resistance level is, if you don’t know what a good quality entry is in your strategy, you don’t know if it’s you and you don’t know if it’s the market. You just know it lost and you can never improve and never fix it. So the sooner I can recognize that the market and my strategies aren’t, you know, the market’s not playing my game, it’s not doing what, it’s not even in the same game as me. It’s not even doing what I want to do. The sooner I can recognize that, the sooner I can stop trading and never feel bad about myself, and the sooner I can avoid losses so that when the market does start playing my game again, I only have a few losses and I can make up for and when the market’s playing that game I can immediately go back into wins and get some really really good profits. Hugely important. Now what is the third stage of development? The third stage of development is adjust your money management based on the first two. Now if you recognize that, let’s just pretend you’re trading a martingale strategy. A martingale strategy basically means if you get a loss and you get in again, but you do it with a larger trade size and hopes to make up for the losses of the first trade and then get you into some profits.


And if you lose that trade and you take a third trade, it’s even larger. So you can make up for the losses of the first, make up for the losses of the second, and then you can hopefully get into profits on this. And there’s there’s pros and cons to that. Obviously, the pros to that is that you can then make up for losses and you can have more chances to get a win on a trade. Obviously the cons to that, the downside to that, is that you increase risk. And this can be a beautiful strategy if you do it right.


If you don’t do it right, you will blow your account faster than the wind can blow on your nose. I mean, it just, it just, it’s crazy. You’re gonna blow your account so fast. The reason why Martingale strategies are risky is because people don’t know how to use them. It’s not the Martingale strategy that’s risky, it’s the lack of knowledge in how to use it that’s risky. That’s where the real risk is. There are seven categories of risk that you have to pay attention to but that’s going to be a video for a different time and and and knowledge risk is one of those risks but we’re gonna get down to that’s gonna be like I said another video so so you um but the thing is if you recognize that the market and maybe it’s do it you know you know it’s a good quality support resistance and the market is only kind of playing your game, why would you increase your trade size? You know, if the market is showing that sometimes it’s working, sometimes it’s not, it’s not really quite fully in sync with your strategy, there is literally no reason to increase your trade size. You are simply increasing your risk with no real benefit to it.


Now, if you know exactly what a high quality support resistance level is and the market is playing your game beautifully and then you increase your risk for a second trade size, then you actually have a high probability chance of getting that win. And then it’s great. But if it’s not that, well then don’t increase your next trade size. It’s risk entering into the market for literally no reason. Guys, that is drunken monkey trading. Don’t do that stuff. It makes no sense whatsoever. So what you do is you assess the market after you get a loss. Maybe you have to get two losses. And you look, is the market playing my game? First of all, am I placing trades at high quality support and resistance levels?


Am I placing them in, or whatever your strategy is, as long as it’s a good one, am I placing them in good spots? And if you are, is the market playing my game? And the answer is no, and there’s no reason, I mean definitely don’t increase your risk. Maybe what you want to do, maybe you still think there’s a good chance, but then just do a smaller trade size to make up a little bit of that loss but you’re not risking that much in case the market continues to slap you across the face then it’s like okay well it was a slap but whatever I can handle that but if you just increase your trade size to make up for the previous loss and the markets not going to be on your side with your strategy anyway all you’re doing is just walking up to that big bad bull and say here punch me in the face here and he punches you even harder and all sudden you just blown your account and then you start blaming your binary options broker you start blaming the market you start blaming the wind when really what happened was you had no idea if the market was even playing your game and you just can’t simply like increased your risk accordingly now there are times when I recognize that support resistance is I mean I know what high quality support resistance is and the market is really really playing my game So I will up my trade size a little bit you guys have seen on Dave’s videos You’ve absolutely seen on Dave’s videos and I see the YouTube comments that come in like you risk so much money on that trade Yeah, there’s a reason for that because the stage of development number three he is recognized Number three, he’s recognized, I mean he knows what a high quality support and resistance level is, and he knows that the market is playing his game.


So he’s like, you know what, this is a point in time where I can dramatically increase my risk and make crazy amounts of money. But then there are other times where he’s like, ah, the market’s not really, market’s not really playing my game, so he lowers that risk. I lower my risk. That’s what we teach you guys in Binary Masterclass how to adjust your money management based on what the first two stages are doing.


But do you realize you cannot adjust your money management unless you have a mastery of stage one where you recognize what a quality support resistance level is as well as what would weaken an otherwise quality level and you have a mastery of recognizing if the market is playing your game. Only when you have mastery there, can you begin to adjust your money management accordingly. So these are the three stages of development that you have to go through as a trader. Stage number one is all about how do you get into winning trades? Stage number two is how do you optimize your profits inside of those two other stages.


And then trading life becomes powerful, it becomes fun, it becomes great, it becomes exhilarating, it becomes everything that you’re actually hoping for trading to be. So this is all the stuff that we teach in Binary Masterclass and we go deep dives in this stuff. Every single day we are getting together three times a day and deep and diving deep into all of these topics while we are taking trades and getting those wins and getting those losses as well. We talk about the losses, how we’re dealing with them, we talk about why we’re getting into trades, all of that. So join us in Binary Masterclass and I think you’re going to be pleasantly surprised about what it’s like to approach trading from a professionally based trader, from people who have traded in institutions and trained people in institutions.


It’s a whole other ballgame. So let’s see each other in the trading room together. See you in the next video and in the trading room.