Top Mistakes in Trading Binary Options

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Top Mistakes in Trading Binary Options

Binary options are simple trading instruments which generally pay either a high, fixed return or nothing at all. No wonder the word “binary”. Binary Options are the new way of making money the easy way from trading. It provides an online platform that allows you to make an investment right from the comfort of your home. All you have to do is relax and watch your investment grow exponentially. The great thing about binary options trading is that there are no restrictions as to who can trade except for the age and, most of the time, US citizenship. This article will tell you more about when NOT to trade binary options and what are the top mistakes in trading binary options.

Just like traditional options, binary options are available on a variety of underlying assets. With indices, stocks, commodities and currencies being the most popular assets on which to base trades. However unlike traditional options, binaries payout a fixed, known return which is not dependent at all on how far “in-the-money” the option is. In the event that the asset you placed a call option order on exceeds the strike price by so much as one pip/tick then you are paid out the same high returns as if it finished in the money by 100 points.

Trading options that are binary is very easy. However this is if you know the secrets to use to decrease your risks and maximize your profits. Regardless of whether you are a beginner or an expert trader, you still need to learn ways on how not to trade binary options so as to maximize your profit.

How & When NOT to Trade Binary Options?

Below we will list the main items for a trader to avoid when engaging in trading binary options online.

Do not be an emotional trader

One of the biggest problems traders face is emotional trading. If you discover that you are losing control and making more trades than normal, it is advisable to step away. In case you also observe that you are losing trades you would normally win, yet you feel the urge to keep trading, then the time is right to step away. Remember emotional trading will destroy your account!

Do not over invest

It is not smart to invest an amount that you cannot afford. In case of a loss, this will be harmful as it will discourage you from further investment. Start investing in amounts that are within your budget.

Do not day trade (too much)

Day-trading and scalping are usually called high frequency trading, which we never recommend doing. It is only the seasoned professionals that are very successful with this type of trading. Keep in mind that being successful generally means making a handful of the ideal trades every week. Of course, there is nothing bad in making day trades from time to time, but do not overplay it making 100+ trades in one day.

Do not over think

Often times, we see that traders utilize too many indicators as part of their strategy. However, the most successful traders make use of the KISS (Keep It Simple Stupid) principle. You just have to develop a reliable and simple technique that works for you. Speak with your account manager, or register for a VIP account to get sessions with a professional account manager.

In conclusion, after you have spotted most common mistakes in trading binaries and now you know how to avoid binary options losses, binary options hub has just one thing to tell you! The most important thing about binary options trading is to know when to trade and when not to trade in order to avoid binary options losses. Also, choosing one of the reliable brokers is a crucial thing in binary options market. Remember, only you decide how to trade and nobody can force you to do something you do not want to.

Top mistakes in trading binary options

All types of trading, including binary options trading, have a lot of common ground. Whether it’s ordinary trading or forex trading. Everyone, who has been involved in any of the types of trading, knows about the risks that each market participant will bear. But without mistakes, a trader can not get valuable experience and develop his winning strategy. In spite of that, there are still a lot of accompanying factors that will influence your trading. To reduce the damage from trading binary options, check out our top of the most common mistakes that traders make. After reading this information, review your trading methods.

Avoid mistakes in trading is almost impossible, because they are an invaluable experience. The more experience you have, the easier it will be for you to trade in binary options world.

But there are many, so-called, typical mistakes that traders make in the process of trading. They need to be minimized. And trading binary options will be much better.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

Our hit parade consists of the most common mistakes:

Making big deals or waiting for a miracle

Almost all novice binary option traders make this mistake. Some of them try to break a big jackpot after a series of winning trades. Others, on the contrary, want to return the lost money. All these operations, as a rule, go beyond the scope of their trading account. In trading binary options, you always need to follow the plan of your actions. Long-term planning of your trading operations, skillful management of your risks and capital will give you a much better result. Avoid transactions that carry greater risks and amounts of money that go beyond your trading strategy and account. The probability of success in such transactions is extremely small. To prevent loss of capital, study management methods. Risk management, hedging, also, no one has been canceled.

Carrying out trading operations through unverified brokers

To start successful trading binary options, each trader faces a choice of a broker. But not everyone pays enough attention to this. How to check the broker. First, you need to see if this broker has a license to carry out its activities in your country. But the broker may lose the license, so this factor should be taken into account together with others. One of the most important is the age of the broker. The longer the broker in the market, the safer it is to deal with it. You have to read a lot of reviews about the broker you are interested in. You have to trade on a demo account, check the level of support. Do not immediately rush to invest your money. Test everything before you get started.

Promotions and bonuses

Market counts a lot of brokers who provide bonuses or additional insurance for your investment. Most often this type of insurance is applied from a certain amount of the transaction. All these tasty things should encourage you to start trading. Often this is the main case to hurry up and immediately start trading. First of all You need to focus on the process of trading. To begin with, you will need to learn the basic things in this branch. For such purposes, it is best to use a demo account. So you can save the broker’s bonuses and extract from them the maximum benefit with real trading.

By focusing on getting bonuses you will have the risk of losing your initial deposit. That’s how to appear another disgruntled man trading binary options, which will run to write an angry response, feedback or comment.

Lack of concentration

Many traders in pursuit of money try to master all the strategies in one day. And then they run to apply them in practice. As you probably already understand, it is unlikely that they will succeed. Haste in this matter is not needed. The key aspect of trading binary options is the definition of specialization. To do this, you need to stay on your favorite asset, learn about it all the necessary information and become an expert on this asset. Only in this case can continue to study other assets, strategies and other training materials.

Remember always, in trading with binary options you do not need to hurry. You will have plenty of time to try all the strategies and types of assets.

Trading on emotions

Self-control is one of the most important qualities of a trader. But sometimes everyone is inclined to make emotional decisions. And, as you understand, this will be badly damaged by the result of your binary options trading. If you notice that you have got into excitement or have opened a position in the hope of seeing a miracle, then you will not see a miracle. Moreover, often so traders spend all their invested money. Remember, trading binary options is not a casino. Here luck accompanies those who are able to make decisions with a cold head. The market does not understand the language of emotions. To succeed in trading, always keep them away. This will give a chance to trade much better. Also you can avoid unnecessary losses in the process of trading.

Trading to the last cent

The feeling of excitement of many traders contributes to their rapid failure. Since many of them consider it a matter of principle to bring the trading process to the end. A large percentage of traders do this on emotions. Many of them do this under the influence of Martingale’s strategy. But this strategy is not appropriate using it for gambling on the part of the trader. Apply this strategy, like all others, with the mind. Many binary options traders also begin to trade until the last after a series of successful deals. Because they think that they will be lucky this time too. This kind of trading sooner or later will lead to the ruin of the trader’s trading account.

The lack of a logical structure of the trade process

Set up the logical structure of trading at first glance is not difficult. But the trader will face many difficulties, namely the emotional side of each person. Reactions to positive and negative results affect the course of trading, as they affect the emotional makeup of each person. To adjust your plan to the trader, you will need to perceive the trading process as a job that he must learn to perform perfectly. And as we know – all our mistakes are nothing else but an experience. Building a logical structure will make our trading even more profitable.

Insufficient market analysis

To obtain a stable profit at a high level, you need to constantly analyze the market. The best way to analyze it will be daily market reviews. This will help you always be aware of what is happening with your assets. Actively follow the latest news on the analysis of the markets you need. This daily “communication” will give you the opportunity to acquire a lot of ideas, and discipline and patience will help you to succeed in trading with binary options.

Chaotic actions

Money loves silence. Everyone knows this proverb. In trading, the same rule applies. To bring bright thoughts and images into your head, you need to surround yourself with an atmosphere of tranquility. This will give you the opportunity to take action according to the plan by which you are bidding. In this case, you will not have to wait long for the profit.

The use of questionable strategies

Strategies for trading binary options are quite a lot now. It is difficult for a novice trader to choose the right one for himself. Many traders actively use independently developed strategies. Some of the traders willingly share and exchange them. It is necessary to understand the moment that those strategies that work for some traders may not work for others. Since each trader has his own strategy. Ideally, you will need to learn and test strategies in order to build on their basis a successful and profitable strategy.

Be ready to work hard. Do not be in a hurry to get upset after the first failure. Remember that all strategies behave differently with a certain type of assets and in a particular market.

Conclusion

There is no limit to perfection. Trader binary options need to work well before finding a good strategy. It takes a lot of time for traders to find and improve trading strategies for binary options. All beginners need to remember that there are no ideal strategies. We need to constantly work on them, so that strategists are always relevant. Do not be afraid to make mistakes, this is an experience that in the future will bring you money. Revise your binary options trading process after reading our top of the most common mistakes. Preventing them will help you succeed in trading binary options much faster.

7 Mistakes to Avoid in Binary Options

Thanks to binary options popularity in recent years, an increasing number of people around the world began investing in binary options.

South African market is one of the most presented areas considering interest in binaries.

Ever since 2008, binary trading is widespread online investment option for many South Africans, especially those are new to trading on financial markets.

It provides them with an opportunity to have a potential profitable trading journey, regardless if we are talking about beginners or professional traders.

Our guide on 7 mistakes to avoid in binary options will reveal more information on how to avoid scam in binaries and increase chance to have a successful binary trading journey.

What we want to achieve is to provide valuable info and educate traders in South Africans to be able to recognize top 7 mistakes in binary options trading.

Trading Binaries with Scam Binary Brokers

From our point of view, binary options trading with scam brokers comes as a the biggest danger in binary industry overall. Due to its popularity, unfortunately, an increasing number of brokers appeared on the market and some of them can be listed as scam brokers.

There are several signs how South Africans can recognize if they are dealing with scam or not.

One of the first elements are Terms & Conditions of a particular binary broker. If a broker doesn’t offer clear and transparent information on its platform, it is definitely one of the major indicators how traders are dealing with a scam broker.

For this reason, we recommend traders to gather valuable information first, such as doing a research and reading broker reviews to get an objective info about a specific trading platform.

Don’t Miss an Opportunity to Use a Demo Account

A lot of brokers listed on BinaryOptions.org.za site offer demo account as an important segment of the platform, especially for inexperienced South African traders.

Thanks to demo option, registered traders are able to see how will the trading platform look like and try out different strategies to see which one will work the best.

As a major benefit of demo account is the fact traders don’t actually invest their own money but instead they are offered with virtual funds. This way, there is absolutely no possibility of money loss. IQ Option is a popular broker for South African traders who provides them demo account, which is funded with $10000.

Time frame for practicing on demo depends on a binary broker. With some brokers, it is unlimited while others offer demo for a period of one of two weeks. Demo account is used both by inexperienced traders as well as professionals since it enables them to test the platform in risk free environment.

Never Neglect Importance of Binary Options Education

Traders who invest in binary options should be aware of the fact how relying solely on luck factor isn’t a desirable element in this online trading industry. From our experience, a wide range of binary brokers offer platforms with excellent Education so that traders can learn more and become experienced binary options traders.

Education with a variety of trading materials and tools is very valuable and useful for all levels of traders. Mostly, they include: ebook, a selection of webinars, FAQ, trading tutorials, guide articles, economic calendar and many more others.

By having education materials on disposal, both beginners and professionals can benefit from it. Traders novice can learn trading basics and from where to begin, while experts can try out advanced strategies and expand their existing knowledge.

Trading Binary Options without a Trading Plan

When trading binaries, binary options trading plan needs to be incorporated due to its many advantages.

Lack of having a trading plan is definitely one of the major 7 mistakes in binary options. This is why beginners should have that in mind before they engage themselves in binary trading world.
Luck factor can sometimes help, but it isn’t something that South African traders should have confidence in. Since binary trading is not a gambling and several factors need to be included so that traders could have a profitable trading journey, we find having strategy trading plan is more than desirable option to have.

The whole idea of a trading plan is to reduce a risk exposure and trade with those underlying assets that traders are most familiar with. This is why successful traders spent time into making a good trading plan by which they will invest their money in binary options..

Those traders in South Africa who don’t want to spend a lot of time in binaries, they can choose automatically option, such as with binary robots or automated software.

For example, one of the best auto trading robots are Binary Options Robot and Qbits MegaProfit System.

Unrealistic Trading Goals – Binary Options in South Africa

When traders have unrealistic goals for this online investment, we can say it is actually often seen situation in binary industry and falls into category of the most often mistakes when trading binary options.

Sometimes traders beginners begin their trading journey by investing a large amounts of money in different assets, without thinking it twice. This is closely related to non-existence of trading plan where traders believe they will gain thousands of dollars instantly.

It is recommended to think positive and have big plans, however, unrealistic trading goals and its expiry time are a mistake that should be avoided. With many brokers offering high payouts, traders in South Africa do have option to profit from binaries, but with “cool head” and clear vision of which underlying assets to invest in (stocks, commodities, currencies and indices).

Investing More Money than Affordable

Another often seen mistake in binary trading is when traders decide to invest a huge amounts of money, more than they can afford it. Doing that without a trading plan is definitely not a good starting point and might lead to money loss.

Usually, traders start trading with approx. 50% before they see how binary trading looks like and which underlying assets are most suitable for them to use. It all depends on traders’ preferences and current market situation on specific underlying assets.

Binary Options Overtrading as a Trader in South Africa

When thinking about trading binaries, a lot of traders make a wrong move and then overtrading becomes a problem they need to fix. We have mentioned it several time on our site under Guide tab and traders should realize how it desirable to trade binary options but smartly.

Often traders experience overtrading if they trade simultaneously with stocks, currencies, commodities and indices. This comes as one of the main differences between professional traders and beginners, who are in most cases impatient and want to earn a lot of money right away.

That is why we suggest traders in South Africa to check broker’s platform first and read broker reviews to get more info about a specific broker and what does he offer to registered traders.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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