As helpful as binary options strategies may be, there are a number of mistakes which can be made while using them. There is indeed and right way and a wrong way to use strategies. Some mistakes are related to the technical side of trading, while others are related to investment decisions. In both cases, the goal should be to avoid as many problems as possible.
Lack of testing is one of the most common problems. Even when a strategy comes from what seems to be a reliable source, testing is still necessary. Paper test each method before using it in an investment situation. There is no way to test too much, so use the strategy in mock trades many times in order to learn just how effective it actually is. If the method does not produce a win rate of at least 60-70%, check to see if you are using it correctly. If so, it may not be worth using if the win rate is less than 60%.
Not everyone is willing to take the time to test. If this is you, consider only using small investment amounts when using untested strategies within your chosen platform. Some brokers are now accepting per-trade minimums of as low as $1 to $5. Do not hesitate to opt for these lower amounts when uncertain about strategy performance. It is always easier to recover from smaller losses than larger losses. Avoid committing larger amounts to trades until the method being used has been proven to be highly effective.
By far, the most common mistake made by novice traders is trying to use advanced strategies too soon. All binary options strategies can be placed into one of three categories – beginner, intermediate, and advanced. New traders are highly encouraged to follow this order, starting first with the most basic methods and then progressing from there. With time and experience, intermediate and advanced methods will be much easier to use.
Should there be a cost associated with strategy information? In some cases, expert traders do instructions for the specific strategies that they have developed. However, most of this information can be found online at no cost. Before paying money to access specific methods, search online for similar information, as well as for any reviews related to the seller. It just could be that the seller is offering information that is already accessible to those who take the time to look for it.
For the new trader, strategies can be somewhat challenging. The best approach is to start with fundamental methods, then later use technical methods. The basics of the analysis process should be mastered first, as this is what all strategies are based upon. Charts and other tools will prove helpful, as these will also be included in some methods. A slow and steady approach works best, so do not feel pressured to rush the process. Those who generate the highest amount of profits from binary options trading are those who took the time to learn how to trade well from the start.
We make it our mission to not recommend anything but the best – which, according to industry experts, is IQ Option, the top regulated broker for your country with a minimum deposit of ONLY $10!
Between 74-89 % of retail investor accounts lose money when trading CFDs