Actually binary options trading provides great opportunities to increase the wealth of the trader. But never forget that binary options trading has its own negative aspects, like any other business related with money. In addition, difficulties may arise in the course of trade of both novice and skilled traders.

THE MAIN BINARY OPTIONS TRADING RISKS

Binary options trading is not the same as a game in online casino. Success must be accompanied by experience, analysis and cold calculation. The advantageable here is the fact that trading on such platforms is really much easier, because the used system allows to calculate some probable risks and probable benefits. There is only but – you shouldn’t rely completely on your own intuition, because your self-confidence or simple luck can play a cruel joke with you and not work in the most unexpectable moment. You should always assess the risks and deftly predict the outcome of events.

Do not trust advertisements! The purpose of advertising is to attract as many potential customers to the trading platform of a specific broker as posssible. Often there the desired “prey” are beginners without much experience, which certainly at the beginning will lose their deposits. The advertisement says: binary options trading is easy and simple case, you just click on the buttons Call/Put and enjoy your profit. However, it’s not really trading, it is more like simple gambling. It is more than guaranteed lose of a deposit amount. You should always approach this wisely.

The euphoria after a mixed bag of successes. It is important to have a certain mood in this field. The main problem of most beginners is a good beginning, which pales their eyes. After all, before they are accepted to play very risky and as a result, lose their money. Is always and in any case, a sober assessment of their capabilities, to consider the risks and manage them, thus improving their skills of trade.

No deposit bonuses – a popular trap for beginners. It really looks like a tempting offer – to start making money on the trade without any personal investment, therefore not risking own real money. But the problem lies in the fact that taking such bonuses, often trader completely forgets or he is too lazy to fully read the terms and conditions of such offer. Remember: every no deposit bonus needs to be payed out!

“Emotional” increase the amount of transaction. In fact, this is a direct hit to a target with a name “lose everything” – your investments and self confidence. Risks should be taken, but with a clearly calculation of every step.

In order to avoid the influence of haughty arrogance and transcendent emotion due to a series of winnings, it is enough to take in execution the following simple rules:

• choose a realistic goal (don’t focus on super profits – it is always wiser to concentrate on minimum amount of winnings, than to experience significant losses);

• you always should evaluate current market conditions;

• reasonable increase the value of the bet, but only with a stable profit;

• keep a trader’s diary – it will allow you to always have on hand all necessary information about the transactions, which will serve as an ideal material for analyzing mistakes and increase winnings.

The factors that play against the trader:

The time factor – the whole point is that time itself works against the trader. If the price failed to achieve the desired level for a specific time period, then trader loses the opportunity to obtain his desired profit. Even if it is perfectly conducting of a fundamental and technical analysis, which allows to determine the movement of price, in trading binary options it is possible to expect everything, even loses.

Deviation of the profit factor in the direction of losses – it is worth to consider the fact that the price you “pay” for deal by trading on most trading platforms is fixed, when the size of profit from successful deals will almost always be less.

Your loss is the “profit” of a trading platform. You have to understand that everyone endeavors to make money on something, but that does not mean that brokers are bad and you can not trust them because they are interested in your investments. No no and no. In fact, the point here is that logically when you lose it is this advantage of the platform itself. In other words, incorrect predictions are simply beneficial for broker, that’s all.

So search for a really reliable broker in order to start trading on fair terms with excellent support. Now the Internet is full of websites of various companies offering to trade binary options with minimum investments. But do not forget that the lion’s share of them is a liars and scammers. Thats why we recommend you to start your trader path with, proven by time and by traders, binary and forex broker IQ Option, which gives you the opportunity to start with only $10.

If there is real desire, then try for the beginning use a demo account from IQ Option, where you can also successfully start your trader’s diary and try your hand!

OPEN DEMO ACCOUNT

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

What are the main obstacles on the way of binary options trader?
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