Binary options trading can be tricky, especially for beginner traders - and most of the newbie traders end up committing some mistakes that cost them dearly and, sometimes, drain their e-wallets clean, most of them end up giving up and try Forex Trading or Futures' Trading instead.

Binary options trading can be tricky, especially for beginner traders – and most of the newbie traders end up committing some mistakes that cost them dearly and, sometimes, drain their e-wallets clean… most of them end up giving up and try Forex Trading or Futures' Trading instead.

None of those are as profitable as binary options trading, so we'll help you out by going over how to avoid mistakes while binary options' trading.

binary

 

Dominate Your Emotions: Become A Cold Hearted Trader

When you're trading binary options, futures, stocks and Forex, emotions play a strong role in your performance, and more often than not they end up harming your performance. That's one of the mistakes that you'll incur often when you're beginning your binary options' trading career – letting your emotions get in the way.

Emotions can cause you to invest more than you should, cloud your risk management skills and calculations, make you bypass risk and money management altogether and promote a lot of other harmful behaviors.

So, keep in mind that keeping your emotions in check and trading with your brain rather than with your heart is something you'll have to practice in order to pull it out successfully.

 

Use Fundamental Analysis

Fundamental analysis is the discipline of understanding the economy by analyzing events advertised by the media or the press – and even exclusive pieces of information. By analyzing these present events, you will be able to predict the future and therefore increase your trades' success rates.

Fundamental analysis is a great technique to use on short term orders like the popular 60 seconds binary option trades – so it is an increasingly popular technique for day-traders.

 

Use Technical Analysis

Technical analysis is another popular analysis technique that will save and earn you a lot of money. It consists of interpreting charts and graphs of the past while trying to mirror them in the present. This means that through constant and disciplined study of what happened in the past, you can predict what happens in the future.

This technique is best used by binary options' traders that focus on long term trades, like monthly binary options, or even weekly.

 

Avoid Trading When It's News Time

If you aren't a master fundamental analyst, then you should avoid trading when there are significant international news being shared by the media – this is the moment when all of the great fundamental analysts on Earth jump towards their computers in order to place their orders.

The market is going to float a lot, and if you don't know which way it is heading, then you are going to have a bad time. If you consider yourself a great fundamental analyst, ignore this tip as news time is your prime time.

 

Don't Trade When Markets Overlap

If you're trading binary options using currency as an asset, you should be aware that there are overlapping sessions on the Forex Market and that these sessions have a lot of volatility – thus becoming unpredictable.

Regardless of your trading style or our trading experience and proficiency, we advise you not to trade when the markets overlap – you can do so, but do it on your own risk.

 

Don't Lose Your Temper And Go Tilt

This goes hand to hand with the notion we discussed earlier about emotions affecting your judgment. It's easy to go tilt when you lose a lot of money – and this can induce the "Martingale" Syndrome, which means you'll try to Martingale your way out of this loss.

The Martingale technique is the technique that gamblers use in order to try and cover their losses. If they bet $2 and lose, they bet $4 in order to try to get the money back. If they lose the $4 they bet $8 and so on.

This doesn't work and you'll quickly realize you're spending around $1000 to get a $100 loss back – and that's not smart at all.

Binary options is even worse for Martingale users, since the profits are not 100%, but roughly 75% instead – invest carefully and don't go tilt!

 

Avoid Betting More Than You Can

Now, this is the mistake that haunts the majority of the binary options trading population and people don't seem to care about. It is that they bet more than they can.

Throughout the years we saw countless people getting in binary options trading because they desperately need money. Well, if you desperately need money, you shouldn't spend what little money you have left in a high risk investment.

If you want to succeed at binary options' trading you should have a trustworthy broker as your partner. They have a lot of perks that will maximize your chances of success in the binary options trading world.