The Main Mistakes of Binary Options Traders

Published:18 March 2017 Updated:4 January 2024

Despite the huge army of investors specializing in binary tradingBut only a few achieve success. The reason is trivial mistakes that accompany the work of unprofessional investors in the binary market. In our material we will analyze the main list of technical mistakes of binary traders and give a list of recommendations on how to correct them, which will help investors to reach the heights of financial well-being and professional level in binary trading.

So, the first major mistake that causes an investor to lose capital is working on an inefficient, unsafe for investment funds trading platform. Traders in the pursuit of minimum initial investment conditions completely lose sight of other performance indicators of trading platforms. As a result due to the absence of necessary technical instruments and trading conditions optimal for trading in general, they lose their capitals quickly and pass into the category of unsuccessful traders. In order to trade on the binary market successfully and have protection for your investments it is necessary to use services of professional traders. brokerage services operatorswhich have such technical capabilities and a list of trading conditions:

  • The presence of a license from the regulator, ideally a national
  • Trading conditions with minimal parameters, but at the same time an optimal ratio of capital volume and value of bets
  • Professional terminal with a set of heterogeneous technical analysis tools and functional settings to support different trading modes
  • Access to the widest list of trading assets
  • Availability of effective binary options training
  • Effective analytics for trading on the options market
  • Fast monetization mode of trading funds

The given list of technical and trading conditions of the broker characterizes the professional level of the operator and allows to make a choice in favor of an effective trading platform. As an example – the professional market operator offers such choice of conditions and tools for trading:

  • License
    Terms of trading – start-up capital of $10, the amount of bets from $1 – The optimal ratio of trading conditions and their minimum parameters contribute to successful trading on the binary market
  • Terminal with indicator set and a set of graphical tools for market analysis. In addition, the broker’s platform assumes a wide range of technical settings of the trading chart, a convenient range of expiry rates, contracts with yields up to 90%
  • More 80 assets of different areas of the financial market
  • A systematic approach to building a training service
  • Quality analytics
  • Profit monetization with a waiting period of 24 hours

The next mistake of a novice investor is to trade in the market without professional knowledge and skills. Having assessed the mechanism of binary options upon a simple instruction, most of the players think that it is very easy to make profit and immediately start trading. As a result they do not know the principles of market analysis and quotes prediction as well as they have no idea about the rules of trading. risk management and strategy formats lose money. To work professionally in the market you need at least a basic set of knowledge. For this purpose it is possible to use learning resources brokers of the binary market. Here it is possible to get both theoretical knowledge in binary trading and practical skills of working with options quickly and without any problems on the basis of innovative services. For example, the market operator training system is built on such tools of providing information:

  • Beginner’s Guide
  • Knowledge Base
  • Video lessons
  • Webinars
  • Demo account

The Main Mistakes of Binary Options Traders

Having studied theoretical materials and spent some time on the training simulator, a market participant can conduct operations with options on a more professional level and get stable trading results.

 

Mistake three – trading without a strategy

Unprofessional investors, in most cases, rely on their luck when working with options, rather than on a clear calculation and forecasting tools. Remember, you can’t make stable money on fortune-telling. In any case, you will end up losing your capital and leaving the market. Any even minimally effective trading system (what is it?) allows you to earn, not lose. The trading strategy (300 strategies) includes a set of special analysis tools or a forecasting approach based on a certain pattern, established rules for dealing with option contacts: selection of the optimal asset, trading time, contract execution technique, risk management rules – all of this leads to an advantage over the market. Having obtained the advantage of efficient contracts at the 65% level, the investor gets an excellent opportunity to increase the profit volume, and any strategy has a higher performance. For example, a mono-indicator strategy based on Bill Williams Alligator allows you to get up to 87% profitable contracts:

Mistake three - trading without a strategy

Thus, for successful trading options trading strategy is the main tool and condition of investor’s work.

 

Mistake four – Undisciplined and gambling investor

Binary trading is a really exciting and gambling process – while making profit an investor loses his head and sets higher and higher goals, completely forgetting about the risks of capital loss. Yes, options trading can yield negative results if you don’t have a proper risk management regime in place.

But the simple rules of money management and risk calculation when executing binary trading processes give the possibility to earn stably and safely for the capital. Here we will give the classical rules as an example of effective money management:

  • To work on minimum capital, use the initial contact value volumes
  • When trading on a large volume of trading account, apply rates up to 5% of the trading account amount

Of course, this list of the main mistakes of traders on the binary market is not exhaustive, but their correction in the work of any investor will lead to success and a high level of performance on the binary market.

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