Any form of trading exposes you to potential losses. Binary Option losses are no different. In this article, we will discuss how to cope with trading losses. Accepting losses on investments can be a hard pill to swallow. Notwithstanding the fact that losses are part of the trading game, we need to learn more about this hard lesson we have to learn in the trading game.
Binary Option Losses – Who is to Blame?
It is very easy for any of us to either justify losses or to shift the blame on someone.
- Binary Option Losses – Justification Justification can be a mental way of easing our conscience. This is mostly due to lack of knowledge. How often have you justified yourself with hindsight over a lost trade, thinking, I acted too fast, or too slow? The real bottom line here is always revolving around our knowledge of trading or lack of it.
- Binary Option Losses – Shifting the Blame
Kicking ourselves in the heel and saying how unlucky we have been in a particular trade is not a smart way of trading. There is no such thing as luck with trading. There is only such thing as strategy. Trading is not a guessing game. Trading is an art form. Another easy way of justifying our binary options losses is by blaming the broker of any signal software system that we are using.
In this article, we are going to focus on
- How to avoid Binary Options Losses
- How to get back on track with the best trading strategies.
Binary Option Losses – The Core Problem
The core problem with binary option losses is that there are many things that can go wrong during a trading session. Whether you are a seasoned trader or a novice trader, you will encounter different scenarios that could potentially expose you to losses on a daily basis.
However, a new trader is certainly more exposed to losses that are due to inexperience. The probability ratio of binary option losses if you are a new trader vs experienced trader is more than 5:1
The core problem with binary option losses is usually related to trading strategy. Primarily we need to agree and make sure that we are working with a verified broker that is Regulated and Legit.
Once we have cleared that out of the way, and are secure in the knowledge that our investment is safe on the trading platform that we are working on, then we can move on to our core problem.
How to Adopt the Best Trading Strategy
We need to start on the premise that “no one trading day is identical to another” Therefore, although we can fix most problems with a great trading strategy, we may not necessary be able to avoid binary option losses at some point in time.
The classic Bulls and Bears fighting over price will always be showing up in the trading arena. However, in today’s very volatile world, we are also dealing with many political and financial issues that invariably have an effect on the next pip movement.
Price fluctuations can be a real bitch. One minute you have a lovely trend and the next, you are looking at a price spike in an opposite direction.
At the cost of repeating myself incessantly, before any sort of trading, you must always consult with the Economic Calendar. Unless you are a very keen trader and are prepared to trade the charts during extreme volatility, then I recommend that you avoid trading before, during and after news announcements.
There is No One Best Trading Strategy but there are Various Best Trading Strategies
Depending on one particular trading strategy will not be enough to hedge for binary option losses. You need to have a cluster of tools in your trading toolbox.
For example, recently, we have been trying a few new trading strategies including “Scalping”. Naturally, this is always in conjunction with
[check more strategies on Sheriff University]
Scalping has proved to be a good trading strategy, IF, and only if you have a lot of time to dedicate for trading. Otherwise, we find that using the classic trading strategies would be quintessential.
Here are some of the classic trading strategies that any trader must be very familiar with in order to have successful trading
- Technical Analysis
- Fundamental Analysis
- Sentiment Analysis
Avoid Binary Option Losses By Using Legitimate Sources
For many new traders, encompassing all the knowledge that is out there and assimilating it can be a challenge. However, here are two very important tips that can avoid a lot of financial heartaches.
- Register and Open an Account with an Approved and legitimate broker. Ideally, open a demo account BEFORE committing your capital. Cash is hard to earn, and practice trading gives you a great insight to trading without any risk.
- Sign up only with signal software systems and trading robots that have been tried and tested. Do head over to our BlackList scams Make sure that you do proper due diligence before committing your capital with unknown quantities. There are plenty of pitfalls that can jeopardize our trading and they need to be avoided. If you are looking at avoiding binary option losses make sure to engage only in legitimate software systems.
Sign-up for a Free Demo Account with IQ Option
Have a Complaint? File it with Arbitration!
If you have been cheated by a broker or by a signal service, it does not mean that you cannot recover your capital! Yes you heard right. If you have incurred binary option losses that are not due to your negligence, there are ways of recovering your capital.
Your course of action must be to first write to us on Support(At)Binaryoptionsheriff.com. We usually intervene directly with the brokers or the signal service providers and will be able to get you an immediate refund.
If for any reason, we will have difficulties, we will definitely assist you with opening a court case in the Trader’s court with the Forex Peace Army.
Nowadays most Brokers are not messing around with Regulation. If you are in the United States – the only Broker that is regulated by the CFTC is Nadex. However, in Australia and in Europe, there are more brokers available that are choosing to conform to regulation. You need to make sure that you are trading only with the legitimate brokers.
Here are a few important tips that you must follow to ensure that you do not have unnecessary binary option losses.
- Choose a Legitimate Broker
- Verify your Account with the properly legal documentation that is required
Failure to collaborate with a verified broker will expose you to many potential problems such as:
- Being unable to withdraw your money from the broker
- Be part of an illegal trading system and possibly money laundering schemes
- Exposing yourself to personal and financial phishing. This is a horrible reality and you may be risking a lot more than your capital with the broker if you have security risks.
Half Warned is Half Armed to Avoid Binary Option Losses
Be Prepared. This used to be the Scouts Motto. It still holds true till this very day. This is especially so when doing day trading. If you are prepared you will have a much better opportunity at earning instead of losing with binary options trading.
Yes, it is true that trading exposes you to risk. Loss of capital can be incidental to trading. However, it is also true that traders who are the focus and dedicated make a very handsome living with trading both binary options as well as forex. Binary Trading is a very liquid market, and for that reason is very attractive to new traders.
If you learn how to trade profitably, you can not only make money from the comfort of your home, but you can choose the lifestyle and that will make you financially independent.
Do You Want to Avoid Binary Option Losses? Get An Education!
Teaching yourself the best trading strategy to avoid losses is definitely a winner. Nothing will arm you better to cope with throbbing market and the nuances of trading than getting an education.
We highly recommend that you get “The Secret Trader”. This online trading course will prove to be your best investment in yourself and your education. The E-Book has been written purposely to take new traders by the hand and walk them through the best trading strategies for success. It is made easy by trading videos that depict exact and critical trading moments.
Moreover, if you are new to trading, make sure to get your FREE DEMO ACCOUNT and practice you newly acquired skills in a safe and secure manner.
Finally, if you are looking for a signal software that can help you with your day trading, please feel free to contact us.
We shall be more than happy to discuss your trading aspirations. Moreover, subscribe to this blog and stay in tune with all the newsworthy announcements. We will discuss trading strategies and scams to be avoided.
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Leave a Comment Below!
If you have enjoyed this article and want to pursue a career of trading binary options and Forex please do not hesitate to leave a comment. We also recommend that you read our comprehensive articles and updates for the Epix Trader Update and OptionRobot Update. Both articles are based on subscriber feedback.
Learn how to change your binary option losses into binary options profits.