First and foremost I want to point out that trading binary options is not a mistake. This does not exclude binary options traders from making mistakes. Especially successful binary options traders. There are numerous pitfalls and challenges to overcome, any of which could turn you from the path to success. This is a look into some of the common mistakes made by successful binary options traders.
The HMAS Success steams ahead no matter what hurdles it faces.
Choosing The Wrong Broker is a very common mistake. I know, I’ve done it. There are just so many to choose from and many of the ones you find are simply full of crap. There is so much glitz and glam about how binary trading is the wave of the future, easy to do and a sure path to making thousands of dollars or euros in the blink of an eye. Once you get past that the task only gets harder because you have to wade through the mire of regulated/unregulated along with the differences between different platforms and brokers. Just because a broker says “hey, we have standard digital binary options” doesn’t mean squat until you dig deeper and find out three things; what assets are actually traded on the platform, what expiries are available and if there is an early out feature.
Thinking that trading is easy is a common misconception and one thoroughly exploited by affiliate marketers and shady brokers. Trading is not easy, it takes time and knowledge to become successful. This does not mean it is impossible, if it were impossible no one would do it. In the same vein if it really were easy then everyone would do it and everyone’s not doing it right? So, trading is fun and can be fun but if that’s all you think you are going to have a really bad time. By bad time I mean lose all your money. A successful trader will know going in that trading is a challenge, or quickly realize that it is. This knowledge, self awareness, is one of the motivating forces that spur the successful trader to apply themselves to the task at hand.
Losing patience is a lesson taught to every trader. Too bad they don’t all learn it. Patience is that act of waiting for a set of predetermined conditions to happen. Sounds familiar right? That could be found word for word in an article on strategy right? “These are the predetermined conditions, now wait for them to happen”. Losing patience means becoming angry, unnerved, anxious or hasty of decision. It means not waiting for the right conditions and allowing emotion to dictate your actions. It means making bad trades because you don’t wait for the signals to come, in effect when you lose patience you lose money and having patience means having money.
Getting discouraged is also very easy to do. Trading is hard and you will lose money. For some more than for others but the fact remains, you will lose money. Losing money leads to frustration and even more losses if left unchecked. The fact also remains that no matter how much you lose, you can come back, with perseverance. Regardless, successful traders may get discouraged but they do not quit, they may take a break to regroup or save another stake but they do not quit. Quitting means the market beat you, it won, if you quit you can never be a winner.
Quitting Is Not An Option
I’ve been trading a long time, a lot of different types of instruments, even the option to quit. It is there every day, at every juncture, you could just throw up your hands and give it up. Successful traders feel this feeling the same as unsuccessful ones, they just handle it differently, they don’t quit because it is not an option for them. There are many mistakes you could make but so long as you learn from it you win in the end. It is not a mistake to choose the wrong broker if you learn from it and then pick the right one. It is not a mistake if you start out thinking trading is going to be easy and then endeavor to master it when you learn otherwise. It is not a mistake to get discouraged if you lift up your head and march back into the fray. It is not a mistake to quit for a time, if you come back and kick the markets ass. The only mistake is to let the market beat you because if you do that you will never be a winner. Successful traders make all the mistakes that unsuccessful ones do, they just bounce back in a different way.