Main Mistakes Of Binary Traders
Despite of the huge army of investors engaged in binary trading, just very few go far. The reason of this are common mistakes following the performance of nonprofessional investors in the binary market. In our article we will analyze the main list of technical mistakes of binary traders and offer tips to correct them and reach financial wealth and professional level in binary trading.
Well, the first main mistake resulting in capital loss is trading on effectless, unsafe for investment funds trading platform. Chasing for minimal conditions for start investments traders totally lose sight of other efficiency parameters of trading platforms. With no necessary technical tools and optimal trading conditions it results in capital losses and a loser status. For effective trading in the binary market and investment protection you shall use the facilities of professional providers of broker services, which have the following technical capacities and trading conditions:
- license of a regulating authority, ideally the national one;
- trading conditions with minimal parameters but the balance of capital volume and stake price;
- professional terminal with various technical services and functional tools enabling different modes of trading;
- access to the more wide range of trading assets;
- effective training for binaries available;
- effective analytics for trading in binary market;
- rapid mode of monetization of trading funds.
This list of technical and trading conditions for a broker marks the professional level of the provider and let you choose an efficient trading platform. For instance, a professional provider offer the following set of trading conditions and services:
- FMRRC license;
Trading conditions: initial capital of 10, dollars, stake sum starting from 1 dollar – the balance of trading conditions and their minima parameters conduce the successful trading in the binary market:
- Terminal with a set of indicators and graphic tools for the market analysis. Besides there a great choice of technical settings for the trading chart, convenient range of the expiration of stakes, contracts with margin up to 90%.
- Over 80 assets of different profiles of the financial market;
- Systematic approach to the training service composition;
- Proper analytics;
- Profit monetization with 24 hours waiting period.
The next mistake of the beginning investor is trading with no professional knowledge and skills. Most players evaluating the binary operating principles just by a simple guidance, think it’s very easy to get profit and jump into trading at once. Consequently, with no idea of principles of the market analysis and quotation forecast, neither of the rules of risk management and strategy formats they lose their money. For the professional performance in the market you need at least the basic repertoire of knowledge. For this, you can use the training resources of brokers of the binary market. Here based on innovation services you can quickly and easy get both the binary trading theory and practical skills of trading options. For example, the training system of a market provider is based on the following tools providing the information:
- guide for newcomers;
- knowledge base;
- video lessons;
After the study of the theory is completed with some time spent on a training simulator, the market insider may execute transactions with options more professionally and get stable trading results.
The third mistake is trading with no strategy
Non-dedicated investors trading options mostly hope for their fortune instead of careful planning and forecasting services. Please keep in mind, the fortunetelling doesn’t bring the stable income. You will lose your capital anyway and quit the market. Any trading strategy, even the little effective (what is it?) lets you get money, not lose. The trading strategy (300 strategies) contains the set of special analyzing tools or a forecasting approach based on a certain consistent pattern, there are the rules set for trading option contracts: the choice of an optimal asset, trading time, contract drawing technique, risk management rules – al this together results in getting advantages for the market. With the whip hand of efficient contracts of 65% the investor gets a perfect chance for profit growth, and any strategy shows higher indexes of efficiency. For instance, the mono indicator strategy based on Bill Williams’ Alligator lets you get up to 87% profitable contacts:
Thus for the effective binary trading the strategy is the main tool and operation condition.
The forth mistake is the lack of discipline and thrill of the competition
The binary trading is a really exciting and hot tempered process – getting profit the investor loses his mind and issues more and more challenges and forgets about the risk of capital loss. Yes, the binary trading may not take effect with no proper risk management.
But the simple rules of money management and risk estimation by binary trading let you get stable income and keep your capital safe. Here we bring the classic rules as a sample of the effective management:
- For minimal capital trading use the initial price volumes of the contracts.
- Trading big account volume use the stakes of no more than 5% of the account sum.
Sure this list of the main mistakes of traders is not limiting, but their correction in any investor performance results in success and high efficiency in the binary market.