Let’s face it, you don’t want to lose your money. So when trading binary options, you need to look closely at all the factors affecting your trades.
This starts before you even register with a broker.
AVOID registering at a no-name binary options broker. The current situation of the binary options industry today is becoming as popular as mainstream Forex trading. Many different brokers have now popped up, competing for your business and money. Some have only just been established while others have been in operation for several years.
Many of the newly established platforms offer exciting bonuses to lure you into registering and depositing your trading funds with them. Remember though, no matter how exciting it seems, always do your due diligence.
Your broker needs to earn your trust first.
To check if it’s a bogus or a bad broker, check out popular binary options websites and forums to see reviews and comments for your evaluation.
AVOID signing up without reading the platform’s terms and conditions. It could be a lot of reading, but it is one of the most important things to do before you register and deposit money with them. You are dealing with real money and it’s not like signing up to Facebook where maybe you can just check out the T&C without reading it thoroughly. The terms and conditions include all the information you need to know about deposits and withdrawals as well as bonus clearing requirements (this is VERY important to understand). You don’t want to end up angry and disappointed because your profits are restricted for various T&C concerns by broker.
AVOID accepting a bonus without understanding how bonuses work. If you are a beginner, then do not accept a bonus. Why? Bonuses are great to increase your starting budget but when you accept a bonus, you lock all your money in without the chance of getting a withdrawal until you meet certain trading requirements. This is to prevent traders withdrawing all the money after receiving the bonus. It may be advantageous if you are veteran trader. But if you are starting out and don’t yet have a real trading plan and successes under your belt, then don’t accept a bonus that ties up all your funds with no chance of withdrawal.
AVOID allowing your account manager to trade in your place. To protect your trading account, never, at any stage, let your account manager (or anyone else the broker suggests) trade for you. If you think they will let you win, you’re wrong. Keep in mind that brokers make money from traders losing money – it is in their best financial interests to have you lose.
Unfortunately , more often than not, the account manager will intentionally invest the deposit into a losing trade, then your money is lost to you.
AVOID use of any “strategy” that means you’re just investing randomly. As discussed in previous posts, Binary Option trading is not a gamble. So if you are gambling instead of trading, then expect your win/loss ratio to be as if you were gambling too – a single win over a long line of losses. It is far better to invest supported by a proven strategy. You can check out from previous posts on the different strategies you can use for Binary Options trading.
Before you actually start trading you should conduct an intensive research in order to understand all the terms and concepts and to learn various strategies that you can use.
It’s absolutely possible to make money in binary options but you really do need to conduct proper research in order to learn about all the concepts and strategies used in this business. Without these you will be like everyone else and lose.
AVOID investing large amounts on your trades. Winning in binary options is a long-term game. You should never invest very large amounts of money per trade, especially if you have made a minimum deposit only. If you make a minimum deposit of $200 and then invested $50 per trade then you could lose your entire account in just four trades. Find a broker that offers a low minimum trade, and keep your trade size to a maximum of five percent of your account. You don’t target a bull’s eye on your first hit. Earn experience, that way you can gain skills for a more likely positive trading on a large amount of investment.
If you take note of all these things to avoid before starting your trading career, you have a good chance of success. A good beginning is what matters for every investment. It might be the most delicate part, but if started right, everything flows smoothly as you trade your way to success!