We often notice traders ranting on social media or forums about their trading experience which didn’t go right at all. As much as it is the responsibility of a broker to ensure that its traders are happy, it is also the one for trader to ensure they are not going in a pitfall. But to begin, we have an obvious truth for you – Failure happens and as a trader you need to pick yourself up and work your way through to be successful.
So, what are these particular reasons causing the fall of traders irrespective of whether they are young or mature to trading binary options. Let’s find out together.
Wrong Choice for a Broker
According to us, this is the number one reason why traders fail to be successful in their trading endeavors. In fact, far from being just a mere moment in a trader’s journey, it is the most important step into guaranteeing that you will enjoy your experience while trading binary options.
What can happen if you are choosing an unreliable broker? Well, the industry is growing at a fast pace and it is becoming very difficult to differentiate between a reliable broker and a scam. The differences are often not so obvious and traders stand the chance of losing all their money. Here are other bad situations which may arise with a wrong choice of broker.
- Not being able to withdraw your money.
- Broker refusing to acknowledge your bonus withdrawal request as they want you to invest even more than required.
- Traders losing patience with their trades and failing to generate profits.
- Brokers manipulating the trading platform in such a way that they do not pay the profits of the traders.
- Stealing your personal documents with the aim of causing harm or other malicious act on your behalf.
Furthermore, traders should take into consideration the different prerequisite the brokers are requiring. For instance, while some brokers request 2500 for a basic account others may request for only 250 and both providing the same features.
Failing to plan is planning to fail. This also applies to binary options trading. The planning phase goes in all sphere of your trading experience. From planning your investment to your learning timetable, planning is a crucial step in making sure that you allocate proper time and efforts in developing yourself in a professional broker.
What should you consider while planning your binary options trading? Here are the main dimensions we like to stress on:
- Plan your investment taking into consideration your private and professional goals and objectives both on a short and long term. This will help you be disciplined in managing your money online and hence reduce the risks associated to trading binary options.
- Plan your Learning regardless of your level of expertise in trading binary, it is also important to have a learning plan or timetable where you dedicate time and resources to learn about binary options and different strategies.
- Plan your Strategies depending on the actual market behaviour. This is important for you to know which strategy to use according to market sentiment and to generate high profit.
- Sealed gain once strike levels reached. Our platform gives the opportunity for traders to seal gains whenever the strike levels are reached.
Planning may often take time but it definitely worth it. One last advice we can give is to provide room for unexpected events. For instance, you may have as well allocate some time following the release of a financial report which usually provides much opportunities for trading.
Knowledge is power. When you apply this idea to binary options you are almost sure to decrease the risks associated to trading binary options. Let’s be honest, you won’t last long in trading if you don’t possess the required aptitude, skills and knowledge to trade successfully.
Trading binary options is no gambling and requires good understanding of the different concepts associated to your trading endeavors. Poor knowledge is often linked to failure to place correct trades as well as constant loss of money and frustrations from the trader.
From knowing how to use the different trading tools to understanding how to generate profits from your trades using the adequate strategies, binary options learning is often segmented in different levels.
Our prime advice to you is not to skip any steps as effective trading is the result of layers and layers of learning stack upon each other. But, where to begin? Here are some available learning resources available on our website.
These sections of our website contains videos, ebooks and articles destined to give you a competitive edge over your trading.
They don’t protect themselves enough
Among the top reasons why traders usually fail while trading is the inconsistency in ensuring optimal protection of their investment. In fact, with so many financial transactions happening everyday, it is primordial for traders to make sure they stay safe from malicious online thieves or even viruses.
There are several ways to make sure you stay safe while trading binary options. Here are some of the points.
- Do not divulge any sensitive information pertaining to your private bank account.
- Always make sure that the documents you submit to your broker are trustworthy and up to date.
- Change your password frequently so that your trading account is not easily hacked by malicious individuals.
Getting swayed by emotions
Among all the above, getting swayed by emotions is the most frequent reason why traders fail in their trades. Human beings have feelings and similar to the market, these fluctuate according to certain circumstances.
A bad trade, markets not behaving the way you expected, you didn’t get your money in your bank account, all these are enough reasons for your emotions to change within seconds. These often have a domino effect on traders’ different trading endeavors.
Traders lose sight of what is rational and would rather invest high amount of money expecting to gain more. However, very often they omit crucial prerequisites such as investing time to understand the market or learn how to use a particular tool.
Our advice is to stay away from binary options trading for some time and calm your emotions down. Take time to do something you like – Read a book, go out with friends or have the best meal ever – Your choice.
What you need to do
Every year traders lose huge amount of money. As much as the brokers are responsible for the experience they are providing as much is the trader. Know what is causing your downfall and find solutions to these. In this article, we gave you 5 of the top most reasons traders fail. If you identify yourself to these, BinaryOnline various aids will definitely help you master your trading experience.