Top 5 Binary Options Trade Blunders to Avoid in 2016

Top 5 Binary Options Trade Blunders to Avoid in 2016Can you believe we are already well into 2016? Have you changed your approach to binary trading? It’s time to consider a fresh approach as we still have the rest of the year for successful trades in 2016. This post will give you tips on how to make profitable trades for the remainder of the fiscal year.

1. Find a Trustworthy Broker

We are sure you are tired of hearing this, but we cannot stress it enough find a realiable broker.

While it’s important to find a broker that promises you high earnings on all trades, along with the other “bonuses” they may offer, it is crucial that you only sign with a broker that is 100% legitimate. There are literally hundres of brokers available online. Sadly, a lot of these are in fact scammers just out to earn a quick buck from new, eager and inexperienced traders.

Make sure, you do your research before committing to a broker. Make sure they are licensed and registered with CySec. See our broker list here.

Brokers are being held to a higher set of regulations so do not fall for scams. Stick to big name, reliable, regulated and respected brokers like Banc de Binary, IQ Option, Porter Finance (US traders) and 24option. This is only for your good. You need to ensure that you are protecting both your money and your identity.

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2. Make a Realistic Deposit

It is so easy to get caught up in the trading game and lose track of how much of your hard-earned money you are investing. It is critical that you need to put a set limit on your funds.

It is always a good plan to have a good money management strategy in place. Binary trading, just like any other form of trading or investing, involves an element of risk. It is important to be mindful of your budget and stick to a set limit.

A good rule of thumb is to never trade with more money than you can afford to lose. Trading, in essence, is a lot like casino gambling. Make sure you are not getting in over your head. Be sensible.

On the same token, if you want to make successful trades, you need to set aside a realistic amount of funds so you can trade using an equitable strategy. A lot of inexperienced traders start off with too little funds and end up in sticky situations as a result.

If you cannot afford to start off with a reasonable deposit, our advice is to hold off until you have a decent amount saved. During this time you can study the market, investigate brokers and develop a plan of attack. Remember to stick to a reasonable limit. Trading with too much or too little can be your downfall.

3. Learn how to make intelligent trades

I know this sounds demeaning in a way, like we are trying to undermine your intelligence, but it’s important to know how to make sensible trades. You can’t just go in blindly and expect to earn huge profits. It takes time, practice and a certain degree of skill to be successful in binary options.

Way too many people take binary options trading too lightly. They see it as a form of simple gambling and then back away once they see it doesn’t always pay off. If you have a good strategy, there is serious money to be made. Don’t get discouraged. Take time to make sure you are making sensible trades. Some traders expect to earn profits simply by mirroring other’s trading patterns…such as signals, robots, news and trade copiers.

The best way to become an established and successful trader is to study the market and familiarize yourself with profitable markets and strategies. This will take time and effort, but in the long run it will pay off.

4. Have a Set Game Plan Before Making a Trade

Once you have found an established broker and opened an account you are going to be tempted (and encouraged) to make a trade right away.

You might think since you have money in your account, how can you lose? Jumping the gun can quickly lead to disaster if you don’t have a sensible game plan. And this leads to a destructive pattern in future trades.

There is a 50/50 chance of winning in binary options, as a general rule. However, it is not as easy as it appears to sustain a high profit and substantial win rate. You should research binary option win rates if you believe you are unflappable.

You might think it is easy to rebound from a minor “spur of the moment” trade, but it takes time to recover financially. And quite honestly, impulsive trades can cause irreversible damage to your account. It is imperative that you avoid these types of trades from the start. Always make sure you have a well-planned strategy in place before trading. It is literally a matter of winning or losing.

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John Miller
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John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.
John Miller
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