You Will Lose Money Trading Binary Options IF…
In this article we will expose the truth behind binary options trading that not a lot of people are aware of. If you are just venturing into the world of binary options this knowledge will potentially save you hundreds if not thousand of dollars and spare you from a lot of stress and possibly a depression.
Here are the simple facts
FACT 1. If you’re not a professional and experienced trader and you start trading binary options YOU WILL LOSE money. Even if you have been winning for the whole week you will eventually spend all of your money and blow your account. It is simply a matter of time. The unfortunate truth is that a novice trader has no place trading binary options (especially very short expiry times such as 1, 2, or 5 minutes) without the help of a professional.
FACT 2. Becoming rich quickly, or even making a living trading binary options is extremely difficult and requires a lot of self discipline, money management skills, and of course last but not least, a reliable trading system which wins over 75% of the time. Novices to trading can be easily swayed by creative advertising which sells the enticing idea of financial independence. However, the fact of the matter is that becoming rich trading binary options is a lot more difficult that meets the eye and it is usually reserved to those who know how to trade very well.
FACT 3. Most new and inexperienced traders who open a trading account and trade without the knowledge and discipline of a professional trader, could be viewed as gamblers.
Although the above mentioned facts can be quite scary for someone who has just discovered binary options and thinks it is a great opportunity to make easy money, it is much better to understand and accept them than to ignore them and live in a bubble that is bound to burst.
Solutions that will help you SUCCEED
However, to every problem there is a solution and just because trading binary options is difficult it doesn’t automatically mean that it’s impossible for novices to succeed. Fortunately we live in an age where millions of people can easily connect and share their experience and know-how online.
SOLUTION 1. To all novice traders who intend to venture into the world of binary options we strongly advice learning as much as possible and using a signal service. There are many good signal providers out there. Signals providers use professional traders or software to generate signals that have a high winning probability. See our signals comparison table for more information.
SOLUTION 2. Another strong recommendation is to only trade using a fast, reliable, and regulated broker. The differences in order execution may be slight but it’s always the best practice to minimize your losses and optimize your winning chances as much as possible. There are a few brokers out there that are too slow and trading with such brokers will be a painful and frustrating experience. First hint for novices is to avoid brokers whose website resolves to a shared server. Benchmark tests and our own experience reveal that 24option (does not accept US clients) and CToption (accepts US clients) are both very good brokers whose platforms are fast and reliable and with excellent support system. View our broker comparison table for more information.
SOLUTIONS 3. Learn Money Management. One of the most important aspects of trading is good money management. Every successful trader must learn to manage their money and place trades that don’t exceed 1-2% of their trading capital.
Published in Education