How Not to Drain the Trading Deposit on Binary Options?

The problem of losing a trading deposit accompanies almost all traders at the initial stage of trading. It is not surprising, considering that market participants ignore a lot of questions in the pursuit of quick profits.

The question of how not to lose a deposit on binary optionsThe players of any financial markets are now interested in it. Having funds on your personal account is a guarantee that you can trade your capital and increase its size several times. However, we all know from numerous comments on the web how many times a trader transferred capital to his account and immediately lost it. You have to understand that there will always be a lot of such situations because not every player is aware of the seriousness of such work (and this is serious work after all), not every speculator is ready to study the materials, to think out specially a profitable strategy trading, use the basics of money management. The problem of deposit safety is more relevant than ever. In fact, knowing a number of trading rules, you can prevent capital losses, you can trade and dispose of funds in such a way that you always have the opportunity to win back and improve your results.

Users are looking for an answer to another, no less important question – how to make a deposit on binary options. Having invested the minimum possible capital in trading, most of the speculators try to make a decent income from this amount. To achieve this goal, the knowledgeable and experienced market players advise to carefully study the possibilities of cooperation with a particular broker, get acquainted with the trading conditions, the available functionality terminal. Here you should also pay attention to trading strategies, use the successful experience of other traders, introduce automatic robots, advisors and free signals.

Of course, in this case, the choice of a reliable trading platform is one of the decisive factors of successful trading for you. Proven, well-established brokers (take a look at the rating of binary options brokers here) will not interfere with the withdrawal of earnings from the platform and, on the contrary, do everything to ensure that transactions take place as quickly as possible. In addition, a serious brokerage organization is ready to provide its user with a simple and convenient terminal, analytical and training materials, favorable conditions (minimum deposit for trading in the market, the size of one bet, etc.).

Here are a few more effective rules for how to quickly increase the deposit:

• Work in a high-tech terminal, which should be simple and clear just for you, will allow you to make trading functional and comfortable.
• Carefully calculate trading risks, participate initially in transactions of minimum size (the optimal size of a single bet is considered 1$, depending on your broker).
• Work with instruments that offer large payouts, use volatile assets (such as EUR/USD).
• Avoid trading during the release of important news, because during these periods the price dynamics change so quickly that it is difficult to predict the movement of quotations. In this case trading experience and the use of special strategies are important.
• Use scalping strategies for high-speed trading, which today is one of the most effective ways to run up the deposit.

In addition, we want to give you some useful tips that will give an answer to any novice player in the financial market – how not to lose the trading deposit in binary options, and how to receive a stable income on this trading instrument?

So, if to summarize in a simple form all the prerequisites that lead to the loss of a trading deposit by a beginner trader, their list will look as follows:

• Binary options training
• Trading strategy
• Money Management

These are the moments of binary options trading where traders make the most serious mistakes, which lead to negative results. Let’s dwell on each indicator separately.

 

Training binary options

Switching to trading on a real account without going through binary options training is probably the main reason why a novice trader loses money. Overconfidence and recklessness are not allowed in binary options trading. Only having the knowledge in the sphere of binary trading, studying the approaches to trading and getting theoretical and practical experience will help to avoid losses. Moreover, training does not take much time and does not require additional financial expenses. For example, from the market leader Binomo Binary options training is provided on a free of charge basis and is carried out using the most progressive approaches:

• An interactive guide
• Knowledge Bases
• Video tutorials
• Webinars

The maximum amount of time a novice trader can spend on training takes about 10 days. But after that, a market participant’s eyes will be opened to many subtleties of the binary options trading process, and he will be able to work confidently on the market. Apart from that, the issue of gaining initial experience on a training terminal cannot be ignored as well. demo platform. Here, theory is converted into practice and will give, as a result, excellent performance. Binomo broker has an excellent simulator available, which fully allows you to consolidate the theory and provides a free opportunity to gain precious experience in trading. Training and gaining experience is the main thing that a trader should do at the initial stage in order to preserve his trading capital later on, without this it is not worth going near the trading terminal at all.

 

Trading Strategy

The problem here is rather the number of systems available on the Internet and their aggressive advertising, as well as the use of trading systems without testing them beforehand. Everything is very simple: a trader, having found a trading strategy on the Internet, read its description and learned the principles of trading on it, immediately begins to use it on a real account. Of course all the authors say that their system is simply amazing and will bring you a fabulous profit and so on, probably a familiar situation? How to fix it? Very simple – stop taking your word for it, and evaluate the trading strategy yourself. To do this, you need to test it with the quotes history, by the way, such a function is available on the terminal of the broker Binomo, or on the demo platform of the broker.

Thus, you will clearly understand what the strategy is capable of trading, whether it suits you personally or not, on what assets it works or not, and in general – the strategy is workable or is simply designed to drain the trading account. In addition, do not take strategies from unverified sites, of which there are as many as mushrooms today. Here, it is possible to recommend using the trading systems presented in the specialized sections of the brokerage companies’ websites. The broker Binomo has an excellent selection of the most efficient strategies for binary trading:

By testing trading strategies before practical application, you completely exclude the possibility of losing working capital due to their ineffectiveness and inoperability.

 

Money Management

Ineffective risk and trading capital management is also one of the root causes of deposit losses. Of course, greed and desire to make quick money among traders is quite a commendable phenomenon, but you have to know the measure. To save capital, it is necessary to clearly understand the parameters of profitable and unprofitable contracts, and calculate the ratio in such a way as to minimize possible losses. Also important here are the trading conditions of the broker on whose site you trade. If the company overstates the initial value of the contracts, or requires you to make a large initial investment, then you are more likely to sell your deposit in the short term than to earn money. Effective money management requires minimal parameters of trading conditions. Let’s return to our example of the efficient broker Binomo, here, according to the trading conditions, the initial capital is only 10 dollars, and the cost of transactions starts from $1.

At such rates, you can manage your risks and finances in the most effective way. Manimanagement rules for successful trading are simple – use no more than 3-5% of your total working capital per trade, or use the minimum amount of options’ value in trading. Thus, the level of losses will have minimum values, and you will be able to steadily receive income.

How not to lose your deposit on binary options is very simple – follow these simple recommendations and the result is guaranteed. Start trading after getting a system education, having at least minimal experience in binary trading and correctly managing your risks. Nothing is difficult and impossible!