Trading binary options is getting more and more exciting for many interested people in South Africa. Ever since 2008 when binary industry initially appeared, traders across the world, including South Africa learnt how binary options industry enables them to achieve high profits thanks to numerous advantages.
Binary options trading is especially attractive to new traders who don’t have any previous trading knowledge and therefore we want to provide them with accurate information on how to have a successful binary trading journey.
This guide about the 7 biggest binary options mistakes you can easily avoid will provide exactly that. Our main goal is to educate inexperienced traders in order to avoid trading mistakes and start trading binary options with a success.
Trading with Scam Brokers
According to our point of view, trading binary options with scam brokers comes as the biggest mistakes which could be easily avoided by South African traders. Nowadays, there is an increasing number of brokers who offer their trading platforms to traders in South Africa. Also, we need to mention how there are different elements by which it is possible to detect binary scam brokers.
For example, unclear terms and conditions should be among the first things traders need to check when they evaluate particular trading platform. If a broker doesn’t provide any important information or doesn’t have any policies available on the platform, this should be seen as a “red flag”.
Also, it is recommended to read broker reviews first to get better insight and check how customer support works. This is important for all traders who want to have access to support agents in case their assistance is necessary.
Missed Opportunity to Practice on Demo
Many regulated and trustworthy binary brokers offer demo account as part of the trading platform with ultimate goal to provide South African traders an opportunity to test the platform and practice how to perform trades in binary options.
Brokers, such as Opteck, 24option, Banc de Binary and many more have prepared demo accounts for registered traders. On demo, trading binary options becomes completely risk free since traders use virtual and not real money. This means brokers themselves funds demo account which may be valid for certain or unlimited period of time.
Demo account in binary options trading is particular important to new traders who just began their binary trading journey and want to gain as much knowledge as possible and this is the true value of demo account.
Once traders try out different trading features and strategies and feel more comfortable when trading, they can switch from practicing on demo and invest in binary options on real trading account.
Don’t Forget Education
Although trading binary options isn’t difficult, it does not mean how traders in South Africa can rely on luck and not to educate themselves to have better understanding of how to trade on binary options market.
Many trustworthy brokers, such as Banc de Binary or Opteck offer their registered traders an amazing education materials, which are very useful and can be used in the trading process.
These edu materials include a selection of tutorials, webinars, FAQs, ebook and many guide and strategy articles regarding how to deposit or withdraw and what is the best way to benefit from binary options trading.
Education isn’t used only by traders novice but also pro traders who want to expand their knowledge in order to have more profitable trading journey. Therefore, those traders who understand importance of binary options education are more likely to become successful and will be able to learn more tricks of binary trading process.
Having Unrealistic Goals
Unrealistic trading goals are something often seen in online investment and it also belongs in category of biggest binary options mistakes traders novice can make in the very beginning. When traders in South Africa decide to trade with different assets in binary industry, their initial goal is to earn huge amounts of money right away, without any plan or strategy.
Having big plans is a good thing in binary options trading, however unrealistic goals are something to be avoided because it can lead to a money loss. Most brokers offer traders very high returns, even more than 90%, but it doesn’t mean how traders don’t need to evaluate financial market or try out different trading instruments for better trading results.
Lack of Trading Plan
When investing in binary options, trading plan should be an important segment of successful binary trading process. Lack of trading plan is one of the mistakes most traders beginners are faced when planning to invest in binary options.
Traders in South Africa who plan to rely purely on luck factor will most likely fail in the trading process, because binary trading isn’t gambling and set of tools and strategies should be a constantly part of each trading process with goal to reduce risk. Successful binary traders spent a specific period of time if evaluating market situation in order to detect when to invest in a specific assets and how will the market react on it.
Traders who don’t feel like spending too much time on trading process itself, can choose automated option and invest in binary options with an auto trading software, such as Binary Options Robot. With this binary robot, traders can adjust settings and let Binary Options Robot to trade on their behalf.
Overtrading in Binary Options
When planning to start trading binary options, most traders make a wrong decision and end up with overtrading effect. The whole idea is to trade, but trade smart and not impulsive. This binary options mistake is mostly used by inexperienced traders who choose to invest in stocks, commodities, currencies and indices, all at once.
Pro traders don’t do that and so should act traders novice. Explanation for that is actually very simple, it becomes difficult to check market situation of many assets in the same time simultaneously. That is why we advice our readers to trade wisely and avoid overtrading in binary options.
Investing More than You Can Afford
Last but not least mentioned in our 7 biggest binary options mistakes to avoid is not to invest more than one can afford. A lot of traders waste thousands of dollars without having any strategy plan and most importantly, in most cases they can’t even afford it.
It is recommended to begin investing with 50% first until traders get better insight of how trading process works and what assets work the best for a particular trader.
Each broker offers trading accounts with different trading characteristics so that South Africans can choose what suits them the most. So if traders can’t afford minimum deposit of couple of thousands, then it is the best to choose the most suitable option and later on, they can boost it to a advanced account type.