Some Important Tips To Reduce/Limit “Risk” In Binary Options Trading


Binary Options Guest Post by Sally Houston

 

There is a difference between “The game involves risk and playing it risky”

 

Trading in any aspect involves risk, whether it is FOREX, Stock or Binary Options. Comparing with other traditional trading ways, binary options seem to be more lucrative, easy to use and understand. However, the simplicity is the actual cause of making many mistakes and face serious losses in trading.

 

No doubt, the bottom line is, the more the risk you take, the bigger the reward you could get. But if you try to be risky, you could end up vanished from the market. Instead committing errors, you should know the reasons for the losses and learn from the mistakes to trade profitably. Taking calculated risks, making a small profit and moving on is the simple way to stay long in the market.

 

Calm Your Nerves (Greed) and Live in Reality

 

It is true that binary options are simpler and easier than other types of trading present in the market. However, keep in mind that it is not something everyone can master overnight, if so, everyone in the world have been trying it.

 

So the first tip to reduce risk in binary options trading is “Clear your head, Calm your nerves and Come back down to the earth”.

 

It’s a nice thing to have a dream of a huge profit, beautiful bungalow, and a vacation on a beach, but it requires more than a single deposit to achieve those dreams. It’s hard to be a consistent winner, you can have some wins, but you should always be prepared for some losses too. The key is to learn the way of turning odds into a favor and make most out of it. Please don’t expect an overnight success.

 

Beware of Scammers

 

This is the most important thing to consider while picking up a broker/trading software or system. Since the market is jam-packed with thousands of options, it is very difficult to identify legitimate one among the crowd of scammers.

 

If there is one good, profitable broker/trading software or system then there must be at least 2-3 scammers to match it. Especially for the new traders, it becomes hard to spot fake ones. Scammers put a lot of efforts to show themselves as a legit. They try to clone the names of famous financial companies to lure traders in.

 

For e.g. a new “Nesdek” binary options software name sounds similar to the “NASDAQ” stock exchange.

 

As you all know that “NASDAQ” is popular for digital stock trades, and they have nothing to do with “Nesdek” binary options sotware. The creator of this software picked a suspiciously similar name to confuse people that they’re one of the legit companies, but in reality it is filthy scam.

 

If you want evidence, then head on over to a review on http://www.binaryoptionsplace.com/Nesdek-Binary-Options-System-is-a-an-utter-scam which shows its real picture.

 

This is just one real example, there are many scammers claim to make you rich overnight and I know it’s very much tempting, but keep your eyes open and think if it is real, then everybody would be rich by now.

 

(Note: Here’s a little tip, if a thing is real and legit, it would cost you some money and if it is free then there is a great chance of being a scam.)

 

Do not Invest Too Much on a Single Trade

 

Sometimes people invest a huge amount in a single trade in order to get maximum returns. There is a general rule for investing i.e. only spend 10-15% of your total account balance in single trade. Suppose you invest $250 as an initial investment and you are investing 10% per trades then you would have minimum of 10 trades to put. But if you are investing $100 or $125 in each trade then you will only have 2-3 chances to make a trade.

 

Stay Focused on Your Goals

 

There are more than 137 brokers, 96+ strategies, more than 35 BOT signals, around 58 tools and hundreds of assets to trade on. And if this much of options are available then it become very easy for an investor to get distracted. On top of it, there are many advisors, market gurus, economist etc. who are trying get your attentions. Jumping around from tool to tool or strategy to strategy is a quick way to lose money.

 

Your purpose should be to find out the false signals and work on the profitable way. It is important to learn the right way of using different strategies and know the fundamental aspects of your system. Focus on what you are doing, and don’t look for next Holy Grail.

 

(Suggesstion: My personal suggestions is, please avoid scam and if you wish to perform experiments, there is no problem doing it, but try to be smart and invest wisely.)