What to avoid doing in binary options trading

Best Binary Options Brokers 2020:
  • Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo

    Good Choice For Experienced Traders!!!

7 Mistakes to Avoid in Binary Options

Thanks to binary options popularity in recent years, an increasing number of people around the world began investing in binary options.

South African market is one of the most presented areas considering interest in binaries.

Ever since 2008, binary trading is widespread online investment option for many South Africans, especially those are new to trading on financial markets.

It provides them with an opportunity to have a potential profitable trading journey, regardless if we are talking about beginners or professional traders.

Our guide on 7 mistakes to avoid in binary options will reveal more information on how to avoid scam in binaries and increase chance to have a successful binary trading journey.

What we want to achieve is to provide valuable info and educate traders in South Africans to be able to recognize top 7 mistakes in binary options trading.

Trading Binaries with Scam Binary Brokers

From our point of view, binary options trading with scam brokers comes as a the biggest danger in binary industry overall. Due to its popularity, unfortunately, an increasing number of brokers appeared on the market and some of them can be listed as scam brokers.

There are several signs how South Africans can recognize if they are dealing with scam or not.

One of the first elements are Terms & Conditions of a particular binary broker. If a broker doesn’t offer clear and transparent information on its platform, it is definitely one of the major indicators how traders are dealing with a scam broker.

For this reason, we recommend traders to gather valuable information first, such as doing a research and reading broker reviews to get an objective info about a specific trading platform.

Don’t Miss an Opportunity to Use a Demo Account

A lot of brokers listed on BinaryOptions.org.za site offer demo account as an important segment of the platform, especially for inexperienced South African traders.

Thanks to demo option, registered traders are able to see how will the trading platform look like and try out different strategies to see which one will work the best.

Best Binary Options Brokers 2020:
  • Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo

    Good Choice For Experienced Traders!!!

As a major benefit of demo account is the fact traders don’t actually invest their own money but instead they are offered with virtual funds. This way, there is absolutely no possibility of money loss. IQ Option is a popular broker for South African traders who provides them demo account, which is funded with $10000.

Time frame for practicing on demo depends on a binary broker. With some brokers, it is unlimited while others offer demo for a period of one of two weeks. Demo account is used both by inexperienced traders as well as professionals since it enables them to test the platform in risk free environment.

Never Neglect Importance of Binary Options Education

Traders who invest in binary options should be aware of the fact how relying solely on luck factor isn’t a desirable element in this online trading industry. From our experience, a wide range of binary brokers offer platforms with excellent Education so that traders can learn more and become experienced binary options traders.

Education with a variety of trading materials and tools is very valuable and useful for all levels of traders. Mostly, they include: ebook, a selection of webinars, FAQ, trading tutorials, guide articles, economic calendar and many more others.

By having education materials on disposal, both beginners and professionals can benefit from it. Traders novice can learn trading basics and from where to begin, while experts can try out advanced strategies and expand their existing knowledge.

Trading Binary Options without a Trading Plan

When trading binaries, binary options trading plan needs to be incorporated due to its many advantages.

Lack of having a trading plan is definitely one of the major 7 mistakes in binary options. This is why beginners should have that in mind before they engage themselves in binary trading world.
Luck factor can sometimes help, but it isn’t something that South African traders should have confidence in. Since binary trading is not a gambling and several factors need to be included so that traders could have a profitable trading journey, we find having strategy trading plan is more than desirable option to have.

The whole idea of a trading plan is to reduce a risk exposure and trade with those underlying assets that traders are most familiar with. This is why successful traders spent time into making a good trading plan by which they will invest their money in binary options..

Those traders in South Africa who don’t want to spend a lot of time in binaries, they can choose automatically option, such as with binary robots or automated software.

For example, one of the best auto trading robots are Binary Options Robot and Qbits MegaProfit System.

Unrealistic Trading Goals – Binary Options in South Africa

When traders have unrealistic goals for this online investment, we can say it is actually often seen situation in binary industry and falls into category of the most often mistakes when trading binary options.

Sometimes traders beginners begin their trading journey by investing a large amounts of money in different assets, without thinking it twice. This is closely related to non-existence of trading plan where traders believe they will gain thousands of dollars instantly.

It is recommended to think positive and have big plans, however, unrealistic trading goals and its expiry time are a mistake that should be avoided. With many brokers offering high payouts, traders in South Africa do have option to profit from binaries, but with “cool head” and clear vision of which underlying assets to invest in (stocks, commodities, currencies and indices).

Investing More Money than Affordable

Another often seen mistake in binary trading is when traders decide to invest a huge amounts of money, more than they can afford it. Doing that without a trading plan is definitely not a good starting point and might lead to money loss.

Usually, traders start trading with approx. 50% before they see how binary trading looks like and which underlying assets are most suitable for them to use. It all depends on traders’ preferences and current market situation on specific underlying assets.

Binary Options Overtrading as a Trader in South Africa

When thinking about trading binaries, a lot of traders make a wrong move and then overtrading becomes a problem they need to fix. We have mentioned it several time on our site under Guide tab and traders should realize how it desirable to trade binary options but smartly.

Often traders experience overtrading if they trade simultaneously with stocks, currencies, commodities and indices. This comes as one of the main differences between professional traders and beginners, who are in most cases impatient and want to earn a lot of money right away.

That is why we suggest traders in South Africa to check broker’s platform first and read broker reviews to get more info about a specific broker and what does he offer to registered traders.

When Should You Avoid Trading Binary Options?

Binary options trading gives you an opportunity to participate in a number of different markets. Most binary options brokers will offer you the chance to trade commodities, currencies, stocks, and indices. These markets are all open during different hours and days, which means that you have more chances to trade than you would if you were trading in only one market. That doesn’t mean you should be trading all the time though. There are certain times where trading is likely to cost you money—though there are people who excel at profiting during these times as well. As a beginner, however, you should probably steer clear.

Skip The Weekend

Avoid trading over the weekend. When a market closes and then re-opens a couple of days later, there is a lot which takes place in real life during the days when the market is closed and no one is trading. Then when everyone comes back when the market opens, you see higher volatility because those events and the general uncertainty which resulted from the time off from trading suddenly influences the prices. There is usually some instability and then a corrective period. Trading in the middle of the week helps you to avoid this kind of unpredictability.

Avoid New Releases And Other Major Events

Don’t trade during news releases and other major events—with a couple of exceptions. The first exception is if you are deliberately trading fundamentals, and you know what you’re doing. If this is your strategy for making money, obviously it’s when you should trade. The other exception is if you’ve tested your strategy without regard to events and news releases and it’s proven profitable in spite of them. If you suddenly stop trading during those times, you’ll potentially mess up your trading method. Why should you avoid trading during news releases otherwise? They result in high volatility and choppy prices. (Check out this YouTube video below for binary strategy tips)

Choppy markets overall are never good for making money. When there are a lot of whipsaws and fakeouts, most people don’t do too well. Think of these market conditions like choppy seas that are hard to sail on without damaging your vessel. Choppy conditions can result from economic instability or any number of other things. When you see them, you might try trading another financial instrument until things smooth out a bit.

Try not to confuse choppy markets with consolidating markets. Markets that are ranging (not trending) are traditionally difficult to profit from, but hardly impossible. Indeed, most markets range more often than they trend, and the trader who can profit in ranging markets is often a trader who will do well over the long term. Binary options even provides you with a unique type of trading which is perfect for profiting in these ranging times. In most markets you can only profit off of price movement. In binary options markets you can profit when price doesn’t go anywhere if your broker offers you the opportunity to place boundary trades.

Good luck, and stay alert for changes to market conditions at all times—everything is always changing.

How to Trade Binary Options as a Beginner?

Binary trading requires basic knowledge, patience and common sense. In this article we guide South African traders through all the steps necessary to place a successful trade in binary options.

As always, we recommend trading only with regulated and trusted brokers such as IQ Option for added benefits such as a free demo account, $10 minimum deposit and only $1 minimum investment. For more brokers, see our broker page. Let’s get started.

What Are Binary Options?

Binary options are nothing else but a prediction of an asset’s price direction in a prespecified amount of time. The price doesn’t have to go too high or too low for traders to make a profit. All they need to do is predict whether the closing price will go higher or lower than the opening price as shown in the figure above.

If the price stays the same, then traders receive their investment back. If the trader predicts correctly, then the profit made can go up to 91% depending on the broker and the asset. On the other hand, if the prediction is wrong, then the trader loses the investment.

Example of a Binary Options Trade

Step 1: Register with a trusted binary broker

Registering with most binary brokers takes only few seconds. All you need to do is fill in the boxes with your email and a password. You also have the option to continue with your Facebook or Google account or simply fill in your personal details like name and surname.

Step 2: Practice with the free binary options demo account

Practice binary trading with a free demo account available to South Africans, before switching to a live account in order to get familiar with the binary trading platform. In this section there is a detailed explanation on how to place a successful trade with the legendary IQ Option platform. Once you feel ready you can switch to live binary trading which is done exactly in the same way as explained here.

Select Asset

To start with, traders need to select their asset from the drop-down menu as shown here. A large selection is available as always by IQ Option.

Set the investment amount

Then, set the investment amount as shown below by clicking on the amount box at the right-hand side of the trading platform. This can be as low as $1 so that novices can start trading with a low investment capital.

Set the expiry time for the binary option

Once the investment amount is set, traders need to select the expiration time. There are binary options available from 60 seconds to the end of the month as shown below. You can even see that the profit percentage changes according to the expiration time. Longer expiration times will offer lower returns.

Once you choose the option’s expiration time then, you can place as many binary trades as you wish.

Choose the direction you expect for the price in the future (Higher or Lower)

This can be done by choosing the price direction, either by clicking on the higher button if you believe that the price will go higher than the opening price.

On the other hand, traders can click on the lower button if they believe that the closing price will be lower than the opening one as shown here.

Wait for the binary option to expire

Finally, you wait until the expiration time comes and if you have won then, the amount will be shown in a green box as shown in the picture below.

Step 3: Make a deposit and switch to live trading

Making a deposit even in South Africa is pretty simple and requires only few minutes of your precious time. Simply click on the green deposit button at the right top corner as shown above and follow the instructions. You are now ready to start trading.

Risk Warning: As always, we inform our readers that trading involves risk. Always invest funds that you afford to lose.

Best Binary Options Brokers 2020:
  • Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo

    Good Choice For Experienced Traders!!!

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