As a trader in binary options industry, it is on everybody’s mind to ensure as much possible profitable trading journey and learn what are the most common and main reasons why traders in binary options fail.
When one reflects on binary industry in the last 8 years, it is visible what popular industry of online trading this is.
One of the main reasons what attracts so many people to binary trading is ability for professionals and traders novice to join this industry and invest in binaries, regardless of their level of trading knowledge.
Shortly after appearance of binary options, traders around the world, as well as those residing in South Africa were introduced to binary automated trading.
It means that South Africans can get access to auto trading software and let these binary robots to place a trade according to traders’ wishes.
This opened a whole new window of trading binary options in South Africa since inexperienced traders who want to participate on binary market and if possible, have a simple and yet profitable binary automated trading journey.
One of the top reviewed robots on South African market are:
Read further our binary guide on what are the main reasons why traders in binary options fail.
Trading Binary Options without Having a Strategy Plan
Generally, binary trading can be quite simple and it is actually, trading with just two options. To be continuously successful, traders in South Africa need to invest into their trading knowledge and not only on luck.
For example, if they expand their level of knowledge, discover more trading tools and strategies, they will have a better option to maximize profit and earn money from binary options brokers.
This is definitely one of the main reasons why traders in binary options fail. Strategy plan is really important into ensuring traders to have a general plan of in what to invest, how to trade and how much money is the best sum to invest (for beginners and experts also).
There is a path from being a beginner trader and expert trader, especially in terms of knowledge level and understanding of how binary trading works. The best starting point would be to make a plan, set a list of underlying assets and preferred amount of money and make investments according to this trading plan.
The relevance of such behaviour is to know what to do when investing in binaries and find the best option to reduce the risk exposure and avoid having unsuccessful trades.
Lack of Education
Although now, there is an increasing number of brokers who prepared a good Education, there are still some brokers who offer insufficient education materials to traders in South Africa as well as around the world.
Some of the top reviewed brokers by our opinion, offer extraordinary education to interested South Africans.
For example, ebook, economic calendar, a variety of strategy and guide articles, webinars and trading tutorials are on traders’ disposal.
Also, it is important to mention how good Education often offers materials, combined in different segments, such as education for beginners, intermediate and advanced level of trading knowledge.
Ignoring Binary Options Demo Account
In binary trading, demo account is a wanted trading feature that has many benefits and can greatly assist South African traders. On demo accounts, traders can get opportunity to see how will the trading platform look like and try trading on it.
What comes as the major benefit when trading on binary demo account is the fact it is risk free trading. It means how traders on demo don’t invest their real money but instead a broker who offers demo, provides them with a specific amount of virtual funds. Therefore, there is no option for South Africans to lose any money on demo.
Demo version of the trading platform can be valid for some short period of time or can be unlimited. This however, depends on a specific binary broker. One of the best platforms which offer demo account option is IQ Option broker – a popular binary broker on South African market.
Demo is especially significant to traders novice who plan to invest in binary options.
On demo, they can practice how to trade, select several trade options and see how will the market react. Also, different types of strategies can be used and tested on demo account in risk free trading environment, which we find to be excellent and very useful to all registered traders.
By neglecting practice on demo, traders can make a trading mistake which can later on reflect on potential unsuccessful trades, which could be avoided easily by trading on demo. For that reason, this also comes as one of the main reasons why traders in binary options fail.
Having Unreasonable Trading Goals in Binary Trading
Unrealistic trading goals are by far something we think traders should avoid when joining binary options industry. All traders want to earn huge amounts of money but they should be reasonable and understand this industry contains risk and one should be wise before depositing.
If South African traders experience right away unsuccessful trades, they will most likely go on downhill path and it is our goal to inform the traders to trade smartly.
This binary mistake often happens to traders beginners who don’t know from where to start and then begin to deposit a lot of money in different underlying assets right away which isn’t recommended unless traders have a trading plan.
Combined with having a trading plan, traders should keep in mind how discipline is also important factor when trading binary options. South African traders should be disciplined in terms of trading binaries according to the plan and current market situation. That is why we can say how staying focused in one of the toughest elements to learn and apply.
Since bad trading decisions lead to money losses, we think that key is in having a “cool head” with a trading plan and having enough confidence in traders themselves to be educated and disciplined.