Dear Traders, It’s OK to Make Mistakes, But Not Too Much. OK?
All people make mistakes. Every single day, ALL people make mistakes. It might be a silly mistake and harmless like buying the wrong kind of milk, it might be something annoying like getting on the wrong bus and feeling like an idiot 2 minutes later, or it might be a life changing mistake like forgetting your new born baby in the duty free of New-Delhi and getting on a flight without him. Hope that never happened in this forum… I’m also very sorry and see your comments, but I’m not here to help you solve your personal problems (I don’t have time for it and I’m not getting paid for it) but read this carefully to avoid sad, dumb, annoying mistakes when you start trading Binary Options.
In Binary Options, I see mistakes happen every day. Some of them are light weight, some are pretty bad. Then, you have 2 types of people; People who want to learn, those are the type of people who could admit a mistake and have no problem saying “I was wrong, let’s fix it”, and the other kind (my least favorite), the ones who insist they know it all and are not capable of accepting any kind of criticism or advice. Here are my most seen mistakes in the binary options:
1. Opening a Binary Options Account – All for One (Account), and One (Account) For All
Ladies, gentleman and traders, do yourself a favor and don’t open an account on every platform you come across . I know you feel flattered when you see that for once someone is interested in your personal details and is asking for your phone number, but you need to understand that every platform is now going to try to hunt your soul with endless phone calls The more you play it hard to get, the more it excites them!
Also, from experience, being in touch with a few platforms at the same time is confusing, you end up getting lost, everybody offers you something unique and at the end you’re not sure of anything anymore. Besides, you can get all the information needed from the platform by simply logging on the chat or sending them a mail, this also lets you test their customer service speed and efficiency. After researching a few platforms, choose 1 or max 2-3 platforms to open an account with. Not more. Better if they have different returns and refunds, then you could play with the outcome. Here are some tips on how to choose a broker.
2. The Ultimate Question – How Much To Deposit??
Well dear friends, this is a good question. It’s important to put enough but not too much into your account, depending on your capacity. You need to understand that a trader’s safety net is the capital on his balance, a bigger balance is more safety, but can also be more risk. Depositing 200$ when the minimum per trade is 25$ is too risky, it leaves you no room for mistakes. 2 bad trades and it will be hard to get back onto your feet, might as well open your window and throw your money outside. Depositing 20k on a platform you don’t know if you can trust is also pretty stupid (I don’t care if you can afford it, it’s still stupid).
If you are a beginner, and the platform offers you a good education package (1 on 1 lessons, demo, webinars and a money management course) for a 1k-2k-3k deposit, in my opinion, don’t go for it. Many brokers offer you education for free, no strings attached. You don’t have to pay for your education. Nevertheless, good education will increase your chances of making good trades (in interesting terms it means money) by hundreds of percent, so if you’re a 100% sure you’re depositing over 1K-2K for a good reason then go for it. But don’t say we didn’t tell you education can be received for free. Any deposit between 300$-1500$ for a new trader is a fair amount to start with, but make sure the min trade is not 50 or higher. Regardless, always remember that how much to deposit can only be based on how much you have to lose.
3. Binary Options Account Managers – Who’s Trading Here?
CGo ahead, take my money. This is what you are basically saying when asking a platform if they can trade for you. Some platforms actually make money when you lose, so obviously they will be more than happy to trade for you and lose it all. Really. Seriously now, a good platform will offer you excellent training, a great escort thorough your trades and a space to come and make profits on but in no case will agree to trade on your behalf because it is a huge conflict of interest.
Having an account manager can be a good thing but NO PLATFORM can offer you a steady income, or any sort of guarantee on your money, so why let them trade for you? Who can take care best of YOUR money? Only YOU. Remember that. Use all the tools and the training they offer, and go get some profits on your own, don’t count on someone else doing it for you.
4. Binary Options Trading Bonus – Do You Still Believe in Santa Claus? (Don’t Let the Kids Know)
Bonus. Getting gifts, money, cash, more then you need, just money coming down the chimney, and no body’s is paying for it. Bonus. Such a nice word, means good, even sounds good to the ear, but can be lethal in binary options. ALWAYS check bonus terms and conditions. Most platforms will add the given bonus (if you accept it) to your balance, there it will get mixed with your money. On a quick look, it just seems like your balance has magically increased. Woo hoo. Not. Get that smile off your face. It ties your money to the platform.
Every bonus comes with a trading volume necessary to unlock it meaning, if you make profits when you start trading, you can’t touch them because you made them with the bonus, so in order to withdraw them you will need to make the volume (total gains and losses) necessary in trading. If you lose money, it’s your real money you are losing, not the bonus. Sucks eh?
Some new and improved platforms offer you a good bonus on a different balance (it’s the safest bonus that exists) that don’t tie up your deposits and profits. It doesn’t get mix with your real money, and more importantly, it doesn’t tie your money to the platform. It’s like a pending bonus, based on your volume. You can trade, win, lose, withdraw or whatever, and whenever you reached the volume necessary the bonus is added to your real money balance. This is liquid money you can withdraw or keep trading with. Make sure what type of bonus you are accepting, and whether or not you will be able to reach the volume requested. Higher bonus = higher volume. Remember, not all bonuses are the same, sometimes a bonus can be a big help to your trading, not mention increasing your opportunities for profits. Read this to learn if a Binary Options Bonus is right for you.
5. The First Trade – Relax Honey; It Just Came Out the Oven… You Don’t Want To Get Burned
Once you deposit, don’t be silly and start opening trades right away. It’s true that even without any experience or knowledge you’ve got a 50/50 chance of making a good trade. But imagine what a little bit of training can do to your skills. Just taking time and hearing out your account manager/analyst or junior broker (it’s all the same for me) can do wonders.
Opening a clueless trade right after your deposit funds on your trading account will result in loss and endless cursing. Take it easy, be cold, calculative, that how you make money. You can even wait a day or two before opening your first trade, so what? It’s for your own good. In the meanwhile, get used to the markets, read some economic news and follow economic calendars. Do your homework and use a demo account. Demo trading is a key element of any education or trading strategy.
6. Binary Options Brokers – Check It Out Before You Jump Into It!
Right, Jah blessed us, we are traders now, everything is good, we are making money and now we want to roll with the big dogs. All platforms offer you premium accounts for high deposits. Some of them are really good and get you higher returns on trades, custom expiry times on specific trades of your choice, cash back at the end of the month on losing trades and sometimes even the latest Ipad with the platform’s application so you can even trade from your toilet seat.
Before going on to open a premium account, if you still haven’t withdrawn any funds from your first account, make sure you do! Check if the platform is reliable, and if it doesn’t take too long for them to transfer you the money. Up to a week is really good. Up to 2 weeks is reasonable and average. Over 2 weeks they really need to have a good excuse like a group of deadly dolphins attacking their financial department otherwise it’s really dodgy. Once you have your withdrawal you can make move on to find the best bonus for your money.
Time to Conclude… So… Chicken or Fish?
Thomas White. Chat with Thomas and the Rest of the Team on our Community Forum!