How to Make a Profit on Losses?

Posted by OliverPearson 0

How to Make a Profit on Losses?

Even experienced traders make mistakes and lose money due to a bad deal.  You need just accept this fact, even Warren Buffet mayn’t be always more successful than a market.

However, any investor can and must reduce a number of bad deals.

A guarantee of success is comprehensive analysis of your previous experience. If you don’t consider your previous mistakes you will keep making the same mistake again and again. Therefore, the basis of successful binary option trading is careful analysis of mistakes.

Today, I want to share secrets of mistake analysis based on my own experience with you.

I will show you how after losing money several times you can become even wealthier.


If you lost, don’t deny it. Don’t blame a market or fate. Understand why it happened. Thus, you may reduce the risk of losses in future.

The man who makes no mistakes doesn’t usually make anything.

Edward Phelps

For instance, you lost money on a binary option on a currency. Analyzing carefully your mistake, you see some news in the economic calendar based on which you understand that you could hold over your investment.  However, now you know that before buying an option you need to check economic calendar. Gradually, step by step your approach to deals will become more comprehensive. Thus, over time you will work out your own strategy.

As you see, there is a cause for every mistake. If you analyze it, you can both buffer yourself against future losses and earn even right after it.

Recently, I lost on a binary option on Walt Disney stock. Trying to understand what I did wrong I found out that my investment was based on intuition and I didn’t learn thoroughly financial results of the company.  Analyzing my mistake I understood when I should invest.  Due to this single mistake and its analysis, I found a good way of earning on Walt Disney stock and could make a profit using it several times.  

I had a similar situation with McDonalds shares. My initial results were poor. Sometimes I lost, sometimes I made a profit. But after I have analyzed my mistakes I found out their causes and made a regular profit on it. You can find this case in details in the article “How to make a profit on McDonalds stock”.

Also, analyzing my investing mistakes when I put in money a binary option on a currency I saw that I didn’t consider too many important factors. Now I use different strategies and instruments and wait until at least two of them give a signal to purchase a binary option. In this way, I reduce a possibility of a loss almost to a zero.

You might have understood that several bad deals and their analysis can lead you to a decent profit.

You can make mistakes in different situations and due to different causes but you always have  to look to finding out why it happened. Just understand that if you lost, you can blame only yourself.

I guess that many of you will not agree and may insist that they did everything right and lost due to the market. However, in reality success/failure of investments depends purely on your preparation and approach to it. You have to consider both all assets on binary options and your own actions.

What is defeat? Nothing but education. Nothing but the first step to something better.

Wendell Phillips

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