All traders who have “been beaten enough” by Olymp Trade conclude one thing: Trading principles and psychology are the most important thing in trading. Who is better at managing emotions and self-control will surely make money.
If you have been a trader for long enough in Olymp Trade, you will probably realize one thing. Even when there is a good trading strategy and a reasonable capital management method, the money may still not come to your pocket. And today, in this article, I will make it clear to you. I will guide you through trading principles as well as thorough emotional management. Only this will help you really make money on the platform.
This is the 3rd article in the series of 3 articles on how to build a complete trading system in Olymp Trade. For the previous 2 articles, you can review here:
Let me reiterate: “Building a complete trading system is the best way for you to earn sustainable money in Olymp Trade”.
What are trading principles in Olymp Trade?
Trading principles are all that you must follow when trading. Following the trading set out principles correctly means that you will avoid the psychological traps that Olymp Trade has set up for you to tribute money to the platform.
Trading is a psychological war between the buyers and sellers in the market. You must have principles to avoid being emotionally crushed by this war. If you act on emotions in trading, chances are you will lose all your money. A principle of trading psychology and mastery of emotions will greatly determine success or failure in Olymp Trade.
Here are the principles you must follow no matter how you trade in Olymp Trade.
Never go all in
This is probably the most basic mistake but also the one that most likely causes you to burn out your account in Olymp Trade. All in means you put all the money in your account into 1 transaction. Please remember: “There is always a risk in every trade”. No matter how good the entry signal is or how big the win rate is, it still has a chance of losing.
Going all in, whether you win or lose, will lead to only one result: A dead account. Why is that? I will define it for you to understand. All in: if losing => dead accounts, if winning => subjectiveness. After a few wins, you will have a psychology of default winning => All in => dead accounts. Going all-in means you bet everything with Olymp Trade on that transaction. And when that happens, you will rarely win. Therefore, keep this No. 1 principle in mind carefully: “Never go all in”.
In Olymp Trade, less is better
I have had a clear article about trading speed in Olymp Trade. You can review it here:
Trading less is always better in Olymp Trade. Less trading means fewer opportunities for the platform to take your money. Why though? Because the more you trade in Olymp Trade, the closer to 50/50 the win/lose ratio will be. In Fixed Time trading, you will lose money because the payout rate is always less than 1. For Forex trading, your account will be eroded by fees and charges. Obviously, no matter what, if you trade enough, you will only lose money to the platform only. So remember: “In Olymp Trade, less is better”.
You don’t always have to trade Olymp Trade
This is an inherent disease of all failed traders. As long as you log into Olymp Trade, turn on the chart, and see some “signals”, you must open an order. This is a very common mistake that you may easily make. Trading addiction happens to anyone new to join.
You must understand that there are days and times when markets are volatile and uncontrollable, especially when the price has strong impact news. At times like that, you can just stay outside and watch the market. Choosing the right time to enter the market is essential.
For example, you can see the EUR/USD pair on November 4 which is the date for the US presidential election results. A series of Doji and Pin Bar candlesticks with very long shadows implied that the market was shaking continuously. If you trade on these days, you would only run out of money with Olymp Trade.
Never put all your faith in an Olymp Trade trading strategy
No matter how good an Olymp Trade strategy is, it always has weaknesses. The losing possibility is always there when your strategies have problems to be reviewed and changed. A lot of people keep looking for the “holy grail” to trade Olymp Trade. They use bot or trade according to the holy grail => loss => finding the new holy grail, entering signal groups => trade => burning out again.
That vicious circle goes on repeating. Only your money given to the platform is never coming back. So remember: “There is no absolute money-making formula in Olymp Trade. You can only make money in Olymp Trade by opening orders at times with such a high probability that you can exchange with your own money”.
Managing emotions in Olymp Trade
Above are the trading principles that you need to keep in mind if you do not want to lose money in Olymp Trade. However, this is not enough for you to make money on the platform. To be sure to make money, you need one last piece of the puzzle: Managing emotions when trading. This is considered the hardest part and is what only successful traders can do.
What is emotional management in Olymp Trade? It is when you do not become subjective when winning or bitter and losing temper when losing. It is easy to say but very difficult to do. The majority of traders who make money from Olymp Trade do this very well. I will show you some of the methods they usually do so that you can follow.
Plan detailedly for each transaction
Plan your transaction and execute exactly what you have outlined for each and every transaction. When will you stop trading? What is the level of loss you can afford? How many orders will you open a day? Once all of these are in place, go as planned. Only in that way, you can minimize your emotions when trading.
Never stuff and increase the investment for consecutive trading orders
Although it is not an all-in, there is another mistake that you can make when trading is opening consecutive orders and increasing the investment to recover the loss of the previous trade. The problem is that, when you do this, if the order continues to lose, you will psychologically be overwhelmed and forced to win the next order.
Just like that, the process of stuffing and increasing the investment continues repeating over and over again until you run out of money. Please remember that every transaction is risky. If you lose a trade, you still have to follow the plan.
For example, when the price follows the trend, if you keep stuffing the reversal orders, your account will eventually be on fire.
Stop at the right time
This is a part of the trading plan I have mentioned. Successful traders are cool-minded and decisive. If they earn enough profits or bear enough losses as planned that they will leave Olymp Trade no matter how “good” the market is at that time.
Most beginners will die from this mistake. It may be that they have won enough as planned, but the greed makes them keep opening orders. Or after a few days of profits, 1 losing day makes them want to recover the losses immediately. Whatever it is, the results will vanish if you don’t stop. Remember: Less is better.
Summary of trading principles and psychology in Olymp Trade
I have completed 3 articles instructing you on how to build a complete trading system in Olymp Trade. With over 4 years of trading on the platform, this is probably all I have summarized to share with you. That’s how I did it. What’s your method? Do you have anything to share? Let me know in the comment section. Goodbye and wish you a successful transaction.