Binary options trading, despite being simple, require a trader to follow certain strategies and principles in order to trade successfully.
However, often traders end up committing mistakes while making decisions pertaining to trading. Here, discover more about the five popular mistakes of a trader.
- Opening too many accounts: One of the biggest mistakes committed by binary options traders is that they end up opening several accounts. Many traders are in the habit of opening their accounts on each and every binary option trading services providing portal. This not only causes a great deal of confusion but also results in the trader losing his/her focus. Remember, every platform will try to lure you but the best way of identifying an efficient platform is to check whether they have a prompt customer service department or not.
- Depositing too much Money: Yet another mistake committed by traders, especially the ones who are new to binary options trading is that they end up depositing excessive money into their accounts.
While having a large balance has benefits, it can also put the trader’s money at risk. Thus, if you deposit $5000 in your account at a time when the minimum requirement is $250, then you could be risking all your money.
In fact, this also leaves you with very little window for committing a mistake. A couple of bad trades and you’ll find it difficult to recover your money.
Also remember, the platform that you choose for trading binary options should be trustworthy.
- Using scam binary options robots: A common mistake that many traders make is they are lured by promises of a get-rich-quick schemes, and invest in automated trading robots without any due diligence.
If you’d like to invest in a binary options bot, you should make sure it is not a scam, by check with authority testing services such as this one.
- Getting swayed away by the idea of Bonus: When you open a binary options account, you’ll usually be offered a wide variety of bonuses, gifts, cash and money back offers.
While this may sound good to your ears, in reality it is a trap. Traders should always check the terms and conditions of the bonus offer before accepting it.
Most of the platforms add the bonus amount to the trader’s existing balance, thereby mixing the two together.
This does increase your balance, but the money gets tied to the trading platform. Also, in order to unlock this bonus you need to first achieve the desired trading volume. Thus, when a trader earns profits while trading, he/she is not allowed to touch it as this profit amount is earned through bonus.
- Initiating Trades Instantly: Another common mistake made by traders is that they tend to initiate trading right after opening and depositing money into their accounts.
It’s always better that traders first acquire some knowledge and experience in binary options trading and initiate trading only if they’ve gained enough knowledge and expertise regarding trading.