Biggest Binary Options Mistakes – Read and Avoid!
I have been asked what my the biggest mistakes I have made in binary options. That is a hard question to answer as some of my biggest trading mistakes were made before I knew about binary options. I know that these are not technically binary options mistakes they are still mistakes that are relevant to binary options traders. Not to say I haven’t made any mistakes trading binary options themselves. Just because they are a “simplified way to trade” does not make them simple to trade. One of my earliest mistakes, taking too many signals. This is a problem with more than one cause and one more than one solution. Other mistakes I have made include choosing the wrong broker, trading the wrong kinds of options and failing to adjust my system.
My Top Binary Options Trading Mistake – I Know it All
My top trading mistake comes down to sheer inexperience. Trading too much, taking too many signals, failing to take underlying trend into account and on and on and on. The real mistake, not trading in a demo account long enough. I thought I knew what I was doing long before I did and I lost my ass on it time and time again. I would trade on any new candle, in any time frame. If the trade went bad I would look at a different indicator until I could convince myself that tomorrow was when the big move would occur. I did not keep up with the news or the economy. I had no understanding of the fundamentals, market sentiment or how to use the underlying trend in your favor. I thought I knew but as it turns out knowing the definition of a term is not the same as understanding what it means in a way that can be used to profit. The solution to the problem? Experience. It’s not something you can get out of a book. A coach or mentor can help but it takes time to gain experience. Demo accounts like CommuniTraders are great ways to get into the market, practice trading and get yourself on solid trading ground.
My Worst Binary Options Mistake – Scams
The worst binary options mistake I have made, and one made by too many of us binary traders, was choosing the wrong broker. When I first was introduced to binary I was elated. I had no idea how complex the industry was. I thought that every broker was just like the first one I found. I thought they all had the same expiry times, the same assets, the same option varieties and the same regulation. Needless to say I was wrong. There are too many possible differences between brokers to list in one normal length article. On top of that are bonuses and the myriad ways that scammy brokers and websites have to rip you off. The first money I lost trading binary options was on a trade, but that was only one trade. I easily overcame that one trade and posted a profit. The first real money I lost trading binary options was when I tried to withdraw from a scammy broker. The good news is that it was so long ago I don’t even remember the name, and now there are dozens of reputable brokers on the market. ThatSucks.com (former BinaryOptionsThatSuck.com) is a great place to learn about the different brokers and what they have to offer. More than that though is the forums where you can chat with real traders and find out about their experiences with different brokers.
My Dumbest Binary Options Mistake – Picking the Right Time
My dumbest binary options mistake was thinking that they were simple. Sure, they are a simplified form of trading but they are not simple. There is no delta, theta, gamma, spot price or margin account to worry about but you still have to get it right in order to profit. It is much easier to pick a simple up or down position, the hard part is getting the expiry right. I have had too many trades that were in the money, and then out of the money, and then in the money and then out of the money only to move back into the money one last time before moving out of the money right before expiry. Picking the right expiry for a binary options is as important as choosing an entry for a forex or other spot position. If you don’t get it right your profitable trade won’t be worth squat. In order to overcome that problem I went to my charts and my data. I used my data to determine the average number of candlesticks or bars it took for my signals to become profitable. I use this data to pick my expiry and that has helped a lot. For example, if a bullish MACD crossover takes 5.5 bars to move into the money then that means I must set my expiry to 5.5 bars, or as close as possible. If I am using the daily charts that would mean 5 or 6 days until expiry, or one week. If on the hourly charts it would mean 5 or 6 hours, or one day or end of day depending on when and what you are trading.
- My Biggest Binary Options Trading Mistakes by Bogdan
My Biggest Binary Options Mistakes – Okane Style!