For the past several years, binary options trading became widespread online investment among traders in South Africa as they discovered its advantages, such as high returns, numerous underlying assets to invest in etc.
As one of the main reasons why South Africans became interested in binary trading is because it allows them to participate on financial market regardless of their trading expertise.
Therefore, novice traders have opportunity to trade binaries and became successful, just as professionals can. With the help of Education Center on different broker’s platform, traders can improve their trading skills and have more success in profitable trades.
Our binary trading guide will reveal 6 main binary options mistakes which South African traders should avoid when trading binary options. Further, we’ll provide more detailed information which could help traders to be aware of any alerts in binary industry.
1st Binary Options Mistake – Trading with Scam Binary Brokers
By our experience in binary industry, scam brokers do come as number 1 in our list of 6 main binary options mistakes to avoid in order to have a successful binary trading journey.
With many of brokers operating on South African market, traders should be cautious when selecting a broker with whom they’ll be able to invest in binaries and maximize profit, without being worried will a particular broker deceive them.
There are couple of signs which point to scam activity, such as misleading information of their platform in form of 100% return on each trade, poor terms & conditions etc.
South African traders should be aware of these facts so that they could avoid it right away, before deposit is made with a such broker. If a broker doesn’t provide any type of customer support, it should be seen as alert because traders do need quality information and they might think how this broker isn’t serious in its online business.
Also, it is recommended to read objective broker review on which traders can find more detailed explanations of available trade options, account types and banking – all the basic trading info required for successful binary options process.
2nd Binary Options Mistake – Missed Practice on Demo Account
Plenty of regulated binary options brokers reviewed by TradingBinaryOptions.co.za offer demo account as an excellent alternative to practice how to trade and improve their trading skills. This comes as a great and powerful tool to test the platform and learn all required trading tips and tricks.
Binary demo account is especially appreciated among inexperienced traders who are just beginning their binary trading journey and want to start with a success and what can be more better than practicing on demo account at no risk. On demo, traders are able to use different strategies and expiry times, to see which ones work the best and how to have a profitable trade later on.
With demo account, traders in South Africa don’t invest their own funds, but instead can use demo account which is funded with virtual money. Exact amount of virtual funds depends on a broker, but IQ Option offers one of the best and well-known demo account with $10 000. Some brokers offer demo account for unlimited time while others offer this trial account for a limited time, such as one or two weeks, where traders are then asked to make a deposit and trade binaries on real account.
3rd Binary Options Mistake – Non-usage of Education
In its core, binary options trading isn’t difficult to manage and understand as traders have to determine price movement of an asset in predetermined period of time. To assist traders in South Africa to reduce risk and have more successful trades, it is recommended for them to expand the knowledge on binary options market. So how to achieve that?
Brokers, such as 24option, IQ Option or BDSwiss offer excellent choice of education materials with a wide scope of different webinars, tutorials and guide to enhance trading knowledge for traders to be ready to trade binary options with a good start. Traders who understand its importance will most likely have better chances to be successful in binary trading journey.
South African traders have on disposal a selection of videos and tutorials on various trading segments. Also, brokers do offer trading guide depending on traders’ level of binary knowledge. Therefore, traders can see how education can be divided into 3 segments – beginner / medium / advanced level.
4th Binary Options Mistake – Binary Trading without a Plan
When trading binary options, a trading plan should be a crucial element of successful binary trading journey. Lack of having a trading plan might result in poor trading decision and is definitely on of the key binary mistakes which should be avoided by South African traders.
If South African traders are planning to rely entirely on luck when trading, it will most likely fail in terms of positive trading results and won’t turn to profitable trades. Binary options trading shouldn’t be seen as a gambling and traders should be aware of this fact before they begin their trading journey and invest their money in binaries.
Binary industry offers different possibilities where traders don’t have to choose just a traditional way of trading, but also an option to trade on binary automated software or with signal provider. As an reputable trading software, Binary Options Robot comes a free trading system which required no download and offers simplicity for novice traders to experience its benefits.
In terms of signal providers, traders can learn more about BinarySignalsTrader who offers a modern platform for trading currencies and stocks, as well as Premium account for traders to experience a selection of powerful trading tools.
5th Binary Options Mistake – Having Unrealistic Trading Goals
When traders have unrealistic goals is an element which can often be seen in any online trading business, which mainly occur with beginner traders. That is why we recommend traders to practice first on demo account to test the platform and place trades with a clear head, and not just based on luck factor.
South African traders might feel overwhelming when they initiate binary options trading and make a typical beginner mistake by investing different assets and expiry times without any strategy nor trading plan. Of course, all that is accompanied with their desire to earn a lot of money right away, thinking how there is not much effort invested.
Unrealistic goals almost always lead to a money loss, since wrong expectations are something which should be avoided when trading binary options.
6th Binary Options Mistake – Invest More than Affordable
The last mentioned binary options mistake which should traders avoid is investing more money than traders could afford. First traders in South Africa should determine what would be their trading portfolio and in which assets they want to invest in. Afterwards, traders should make a strategy plan with all the elements included; this way they will have a clear vision of current and future trades.
Sometimes traders think they need to invest huge portions of the money to have successful trades, but it is more than that. A wise thing would be to invest just as much money traders have, but to do it in right way – with “cool” head and well made trading plan.
Since there are plenty of available underlying assets, traders could easily trade with each of them, but pro traders don’t do that. Instead, they educate themselves first, make a good and reasonable trading plan and start trading binary options afterwards.