Every beginning is hard, and the same thing is applied to trading. Your first day in the world of binary options is the most important milestone in your trading career. It will either become the first step to success or a day to forget. Which one of those two it will depend on you, and only you. Some simple tricks will make your first day a good start to a long life of trading.
Gather experience before you enter a trading market
We all have a false representation of a word beginner. A person that enters a trading market without any knowledge is not a beginner but a fool. You can’t earn anything without some basic knowledge. A beginner is a person who enters the market for the first time. They have experience and knowledge about trading; they are simply unfamiliar with a new environment. Some essential pieces of knowledge that will help a beginner are:
Signaling software can help you to find assets with high volatility. Centument is a good example of the signaling device that has the auto-trading option. Forget about automation and don’t rely solely on the software, but use it as a helping tool. Whenever it highlights a possible trade, you should do some research on whether it is smart to go with it or not.
Binary options market shouldn’t be your first trading experience. You should have some experience on stock exchange before you enter the world of binary options. The stock market isn’t as volatile as binary options. That will help you understand some smaller intricacies of trading without high risk.
Technical analysis is the foundation of good short-term trading. This involves numerous charts and the observation of the price movement. Understanding the charts means you can invest money in assets that have a good chance of return.
Keep track of your trading. This will help you see which securities bring in profit and what assets aren’t cost efficient. This might take some time, but after a month of trading, you will come down to two or three assets that will bring in constant profit.
Check what type of trading is the best for you. Some find long expiry rates as their thing; others are more successful with short-term trading.
Trading isn’t a part-time job
Many beginners enter binary options market with a desire to create a way to earn some money on top of their existing job. Those people fail. The reason for that is simple; trading can’t be a part-time job. It requires a lot of dedication and a lot of research. A trader has to spend a lot of time on research into the assets, and they have to wait for a perfect opportunity for a trade.
Trading binary options is a serious business that requires full commitment. Spending few hours on the market is nothing compared to people that spend 12 hours in search of a perfect trade. If you don’t want to commit your time to binary options, then don’t invest your money in this line of business.
The lack of knowledge and general inexperience are the primary reasons for significant losses in this market. It isn’t as simple as this, but it comes down to that. Many underlying reasons exist, but they come from one of those two faults. A trader can lose money, but they can also find some easy ways to avoid some of these failures.
Primary factors that cause binary losses
Random trading is an issue that brings doom to many beginners. Whenever a newbie sees a favorable trade, they automatically invest their money in it. No research or data collection is there to support their decision. The trader may win a trade or two, but this kind of trading never ends well.
Every asset has its volatility, and that determines the movement of the price. Different events and factors influence different assets, and a trader should be aware of those things. New traders fail to recognize assets that are suitable for trading and they end up with trades that involve securities that aren’t favorable.
The one-minute trades attract every new trader. The idea that they can earn money in under a minute is enchanting, and they invest their capital in them. That is a grave mistake. Those short trades are highly unpredictable, and no sane trader utilizes sixty—second expiry dates.
The binary options market is full of shady brokers. New players are unaware of this fact. They invest their money through those brokers, and that means the loss of their investment. Failure to recognize a shady dealer from a legal one is due to lack of research and hasty decisions.
Investing money into signal software that turns out to be a scam is another way in which the new traders lose money. Only a few signal providers have the legitimate software. New players should do extensive research before they invest in the signal software.
How to avoid initial binary losses
A newbie can do a lot of things to avoid losses that usually happen at the beginning of the trading career. Finding a system or a strategy that will ensure possible minimal losses is a good way to start. This might reduce the amount of profit, but it will also minimize the risk of larger losses.
Limiting trades to one-day expiry trades is a good way to avoid those short-term deals that usually result in a loss. Using even longer expiry dates is also an option that can increase the chance of earning money. Limiting the investments on active securities is also a way to reduce the possibility of unnecessary losses.
Bad brokers advertise wrong signal providers. That is the general rule, and it is correct in the majority of the situations. New players should invest their money in24Option because it is a respectable broker. They exist for a long time and thousands of traders use their platform. They might not have huge bonuses, but the size of the gift isn’t something a new player should worry about. The most important thing is that they are the fair broker that doesn’t try to scam its traders.
Binary options are a type of trading, and like any other form of exchange, it has its scammers. Due to rather short time it exists, the binary market is still largely unregulated, and scammers thrive in an environment like that.
The binary options are a good way to earn from home if you know where to trade and what to avoid. To help you with that we have created this article that will contain common scams you might find.
Direct aka platform-based scams you will find
These scams are connected to shady brokers. If you want to avoid these things altogether, then you should find a respectable dealer. Click here to find outone of the traders that are 100% legal, and if you choose it, you won’t have to worry about these things.
Some of those shady brokers hide Terms and Conditions from the traders. They place some conditions that either allows them to confiscate the money from the traders or take a portion of it upon the withdrawal. Some of them even stop withdrawals because they find suspicious trades. They limit the amount of money the trader can invest per trade. This means that they force players to buy short-term trades that have high risk. An operator doesn’t know this because they aren’t informed about that upon the investment.
Individual brokers use bonuses as a way to scam the traders. They don’t provide full info about the bonus, and players lose their money, even though they trade with that bonus. For instance, a player receives 200 dollars as a gift, and they buy with that money. But every loss they experience doesn’t subtract the money from the bonus, but the money from their initial investment.
Declining the request for withdrawal is the worst scam in the binary options world. In essence, the broker refuses to process the withdrawal, and they force the trader to lose all the money from their account.
Indirect binary scams
These scams are only indirectly connected to brokers. They may involve people associated with agents, but some buy the info from third parties that deal with scamming platforms.
Cold calling is a type of a scam in which the trader gets contacted by a person that has a great offer. They try to convince the business person to invest a lot of money into a trade or two. That investment ends up in the hands of the caller and the broker they work with.
You have seen many reviews that promise easy cash though individual binary options brokers and programs. They downplay the risk which is a scam of its own. The broker or the creator of the software is the one that pays for those reviews.
Some agents appoint account managers to their players. Those people are there to waste the money on losing trades. The majority of those managers ask for bigger investments after only several days of account management. A broker that wants you to lose money wants to appoint their worker to help you win money. That is a contradiction everyone should clearly see and avoid those so-called account managers.
People believe in everything they read. Only a small number of individuals will double-check the info about a particular thing. Most of the people will not only accept it as the truth, but they will spread it later. This causes the creation of so-called myths. Numerous myths about a broad spectrum of subjects exist, and only a small portion of those hold a grain of truth.
Binary options and the myths that surround it
The tale about binary options being just another form of gambling comes from people that approach this market without any trading experience and knowledge. They lose money because they don’t utilize numerous tools, and they vent their frustration on forums. People see their comments, and they spread it around.
Some other people spread false info about the fixed nature of the binary options. This is another misinformation that turns many people away from this market. Setting the price movement on the binary options market is impossible. That would mean setting the price change on all other markets. That simply isn’t possible.
Demo accounts are a significant part of the trading, no matter what type of exchange it is. People spread the lies that downplay the importance of this free tool. The importance of this tool is evident from the popularity of the brokers that offer it to the players. Just look at the popularity of the 10Best Binary Robots. The player can use their demo account to check whether they can earn something through this type of trading, or not.
Traders that are too lazy to find good brokers tend to find scammers. They don’t perform research into the broker, and they simply invest their money. Once they lose their investment, they rage on forums stating that no broker is fair. If they would only look for honest dealers, they would find them.
People tend to think that binary options bring easy money. Same people think of bonuses as money that can be withdrawn at any moment. The worst thing about this is that they spread that around, and people believe them. None of this is true. Binary trading requires skill and knowledge, and bonuses come with requirements.
Don’t trust everything you read online
The binary options market is like any other market (Stock, Forex). Trading requires many things, including patience, extensive research and time. You won’t be able to get rich in a week or two, no matter what someone says.
The monetary exchange may be a form of constant income, but that also requires dedication. Don’t expect high returns on small investments. Investing one hundred dollars may earn you fifty dollars. That kind of investment can’t turn into a thousand dollars return.
The binary options market is unique due to its high volatility. Experienced traders know how to use that to generate profit on a regular basis. They use a broad spectrum of tools that assist in trading. They don’t rely on myths and rumors; they act by data and evidence. If you want to be a successful trader, then you will have to act like them.
Earning money with binary options is not something reserved for elites. Every person can enter this market and trade. All you need for a good trading experience is a bit of knowledge about the underlying assets as well as different tools that are at your disposal. The other important thing you need to do is to find a reliable broker, you can find it at http://cybermentors.org.uk/, this website can help you to avoid scams and other problems.
Avoid these scams in binary options
Every exchange market has its share of the scammers. Binary options also have their dark side. The best way to avoid those scammers is to know what to look for. A short research will show you everything you need to know. We hope that this article will give you some pointers and help in that the investigation. We will explain three basic scams that are present in the world of binary trading.
If you stumble on a broker that requires extensive personal data for money transfer, you should be careful. This might end in an identity theft. You do need to provide some limited details about your credit card, as it is used for money transfer. But if a broker asks for copies of your drivers’ license, you should become suspicious. Some scammers will request those things only at the withdrawal, and those are the worst as many people comply with their requests.
A common scam that shady brokers do is the denial of the withdrawal request. When you decide to withdraw some money you find your application canceled. Some scams end at that, while other continue. In those other cases, the broker may contact you and ask for larger deposits and continuation of trading until they “resolve” the issue. They may link a part of terms and conditions that are preventing the withdrawal. None of that is true, of course. They got your money, and they are trying to get more.
The third type of scam involved the manipulation of the trades. This is a subtle fraud, and the scammer will do this to people that win a lot of trades. In this instance, the broker turns a winning trade into a loss through the manipulation of the expiry time. The deal ends as a win, but the trader doesn’t receive the notification. After a couple of minutes, they receive the notification of the loss. Once they request an explanation, the broker states that the technical error is at fault and that they can’t do anything about it.
Locating and avoiding these scammers
The best way to find whether the broker is reliable, or not, is to read reviews and forums. Check whether there are any complaints about the dealer you are researching and then double-check those complaints.
Once you have found a broker, you deem as safe, do a test deposit and withdrawal. If that ends without any problems, then begin trading. Keep an eye on the broker and prices. Compare them with prices from other sources. As soon as you notice an irregularity, and you recognize a scam, withdraw your money and never return to that broker.