How to Avoid Rookie Mistakes?

How to Avoid Rookie Mistakes?

In order to perform binary trading process in a profitable way, traders in South Africa should choose a strategy which suits them the most. Expiry times differs from strategy to strategy and traders are able to select if they want to trade binary options on short or long run.

In this strategy guide, we will provide you with more detailed information regarding how to avoid rookie mistakes, if you are an interested trader in binary options.

Choose Preferred Expiry Date

As mentioned above in our introduction paragraph, expiry times can range from short term ones, such as 60 seconds up to longer period of times, even 150 days.

So for example, if South African traders want to trade for longer period, it makes no point to place trade with expiration time of 60 seconds. Same is applied for traders who want to trade on short term trades but they look on longer period of time.

Therefore, traders should be aware how they need to adapt their time of expiry to the time frame which will be used for market analysis of financial market. Since binary options trading is based on accurate determination of when to buy or sell an option, strategy is something needed and valuable for all interested traders who want to profit from binary trading.

Have a Money Management Plan for Rookie Traders

To avoid beginners’ mistakes and start trading with a positive note, it is advised for traders to apply money management trading techniques when placing a trade. In case traders made their trading plan over weekend, they often question what should be their next step.

The first step is to divide a specific amount of money and allocate it according to different trade options, depending how many of them are planned. Diversification is always a good thing in binary options trading and is used to minimize risks when trading on numerous underlying assets. Then, South Africans are able to choose a preferred expiry time. This can be end few minutes, end of day, week or more.

The whole idea behind this strategy article on how to avoid rookie mistakes is to have a trading plan, which will assist new traders to have a better understanding of how to trade binary options. Connection between expiry times should rely on time frames when an analysis is made.

To make it more understandable, for example, trading with expiry of end of day does not mean that traders need to wait entire day for an option to expiry in the money as an option will take place in the second part of a day. South African traders are advised to use technical analysis and have a money management plan in order to avoid overtrading, as the most common rookie mistake.

Trading on Short-Term Expiration Times

Some traders prefer trading with short-term expiration times rather than longer term. These types of traders are mostly those who prefer riskier trades. Probably the biggest advantage is to balance between short-term and long-term trad options and find a right place.

Trading discipline can be challenging, especially for inexperienced South African traders who are about to start their binary trading journey. The most popular short-term expiry time is 60 seconds, which is present with most binary options brokers, such as leading broker Banc de Binary.