Binary options might work for some people, but they do not work for everyone. I have a list of five mistakes that people make with binary options leading them to lose more than just their shirt in the end.
1) There are a lot of people who do not do the proper research on binary options. These people open an account, put down some money, and then start trading. They then begin to tell others they are binary traders. You might have become an investor, but you have also become a bad one. You are the example of “what not to do.”
It takes many years for someone to start to get a grasp on trading and investment options, and even then they do not have all the answers. No one does.
2) Some people start trading when they do not have much money to back it up. You should have at least a basic understanding of your capital and how it works before you start trading binary. I cannot tell you how many people have lost their shirts because of their lack of understanding.
3) Do you know how to manage your money properly? You should learn before you start trading. I cannot tell you how many investors started on the wrong foot because of bad money management. it took a hard fall for them to understand what they were doing. Those who have bad money management skills should stay clear of binary, or at least until you understand the basics.
4) Some people have discipline and some do not. Those who do not have any discipline are not going to do well here. The hardest part of understanding discipline is that it is not store bought. You can not download discipline from the online sites. You cannot buy it in your grocer’s freezer. Discipline is something you have to master for yourself. I suggest staying away until you have mastered at least the basics of it.
5) Ignoring common ground rules and sense is another thing that gets people into trouble. Some people begin to assume they know everything once they have been doing it for a few days. They feel that once they have mastered the basics that they are good. That way of thinking is going to get you into trouble.
You cannot ignore the listings. You cannot ignore the market and what it is telling you. The market is telling you something when it stalls for any length of time. The more you ignore what others are telling you, the more money you are going to lose.