How to trade in options market without fail

3 Reasons Why Most Fail At Trading Options. LifeЂ™s not always fairЂ¦ You can work your butt off, but that wonЂ™t always guarantee success. For instance, many people attend college, go thousands of dollars in debt … when they graduate, thereЂ™s no guarantee theyЂ™ll land their dream job Ђ¦ let alone a job. You still have to pay your dues and work your way up. Trying to make money in the stock market is not very different. The reason why I created OptionSIZZLE is to help change peopleЂ™s lives by empowering them with the knowledge to take control of their financial future. IЂ™ve been in contact with thousands of people over the last 8 years. IЂ™d love to say that everyone that has come in contact with us has made moneyЂ¦ However, that wouldnЂ™t be the truth. I hate losing money, but you know what I hate even more? Hearing about one of our members losing a lot of money because they didn’t follow what we taught them. I found myself thinking about why most people struggle making money or success… while only a few can make it work. You probably heard that 80% lose money, which is an unproven statistic.

But… what are the common reasons why most fail at trading options? After sitting back and reflecting, IЂ™ve realized some of the main reasons why most people struggle when trading options… when you read them, youЂ™ll be surprised to see how it resembles to most things in life. Here are the three main reasons why, I think, investors lose in the stock market… Depending on who you talk to, their opinions on risk vary. Some think itЂ™s some kind of evil force, while others abuse it. Most of the time, risk is just viewed as fear. What I mean is the absolute worse case scenario. Risk by definition only means the exposure to danger, harm or loss. Everyday youЂ™re alive, risk always around you Ђ¦ itЂ™s always changing depending where you are and what youЂ™re doing. However, you wouldnЂ™t lock yourself in the closet all day would you? No you wouldnЂ™t, but people do that when it comes to their money. Unfortunately, most people have a bad encounter with risk and donЂ™t fully understand the probability of the worst case scenario occurring. When you view risk you need to understand the probability.

There is nothing in the world that provides low riskhigh reward ratio. Sometimes in life, we donЂ™t receive the instant reward we seek… some years you might not make as much as other years Ђ¦ thatЂ™s just life. When it comes to trying to make money in the financial markets, most people get involved without the right education because they think itЂ™s intuitive. Most of the time beginning investors and traders start learning the basics with real money and end up losing a lot of money and shy away from the markets. Some get by… until they start using the leverage of options… then things quickly go bad. The reason this occurs is due to the fact that most start out with investing and trading stocks … stocks cost more money for a reason, they provide a 5050 coin flip on being right. Access Your Free Checklist. 10 Step Option Trade Checklist. Most are long stocks while in a bull market, they see their account value increase and so does their confidence. They become very confident in their ability to invest and trade in the market. They venture off into the options market because theyЂ™ve heard how options provide leverage, which allows investors to make more with less. Without the right education and knowledge of market mechanics, they donЂ™t understand the riskreward.

The market has the ability to deflate and inflate an ego of a person, when they are looking at their account value. When most get started with options, they buy options … thinking they will work the same way as stock, which they donЂ™t. They either see them lose value because of time or implied volatility. Because they didnЂ™t understand the leverage, their accounts will take big hits. They sometimes continue down that road Ђ¦ until they draw down to a point where they just give up. When you buy options, the probabilities of success could be around 30%. It provides the opportunity for unlimited profit. However, I have talked about this many times … there is no such thing as unlimited profits. When you sell options, the probabilities change and can be 70% or higher. However, you do put up more principal than your reward. You can do a lot for yourself just by sizing positions accordingly. By properly managing your position size, youЂ™ve already managed a portion of your risk before entering the trade. I approach the market by looking at probabilities and understanding my overall risk.

HereЂ™s a great example on focusing on the obvious. LetЂ™s say I had a chance to play Michael Jordan in a game of one on one basketball. LetЂ™s say you had a chance to bet on who would win the game. If you took a $100 bet on me and I win, youЂ™ll get $1,000 in return. Now, if you place a $100 bet on MJ to win, youЂ™ll only get $10 in return. One bet would provide 1000% return, while the other provided 10%. Even though betting on MJ is a smaller payout, the likelihood of MJ beating me is more likely to happen. Too many times, investors will focus too much on the risk vs. reward Ђ¦ without taking into account the probability of success. HereЂ™s the twist thoughЂ¦ …I donЂ™t think you can always go with the sure bet. However, I also donЂ™t think you should go with the wild card shot either. I think it comes down to people focusing on the probabilities, but also taking a few long shot opportunities without taking on so much risk, which would take them down, if they are wrong. For example, IЂ™ve recently found that under certain situations, selling straddles is a lot less riskier than selling strangles, on some time frames. This may sound counter-intuitive, but youЂ™ll be surprised at how many preconceived notions we have about risk. If you donЂ™t know what to focus on or if you donЂ™t have a process you believe in … you can easily get shaken out of a trade due to noise Ђ¦ and thereЂ™s a lot of noise in the markets. Over the years, IЂ™ve spoken to investors and reviewed their trades.

One of the common frustrations IЂ™ve heard them say, ЂњI put this trade on and it went against me right away. Ђќ. The market is changing every second, that is going to happen. When you understand your risk and believe in your process Ђ¦ youЂ™ll learn to be patient and let your trade ride. Unfortunately, many traders lack a process and become impatient with their trades. Letting things play out, after you put on risk and properly manage your risk will provide you with confidence. When most investors start to struggle and donЂ™t see the pay off, they start bouncing around and drift from their process. They start chasing the next big indicator, trading system, method or that ЂњcanЂ™t miss tradeЂќ or Ђњopportunity. Ђќ. I get it Ђ¦ IЂ™ve been there myself. When I wrote my article on my two largest trading losses of over $150,000, I tried searching for that holy grail as well. It doesnЂ™t exist at all! The reality is … there are no certainties in investing or trading. At the end of the day, youЂ™re risking money in hopes that your idea has a strong likelihood of being profitable. Of course, even high probability trades can end up losing.

I like to focus on an approach that has been statistically proven to make money Ђ¦ IЂ™ll follow my process to a T and let the numbers play themselves out. 3) Blueprint For Success. Imagine a pilot waking up, heading out of the house to go to work Ђ¦ getting to the airport Ђ¦ hopping on the plane and preparing to fly Ђ¦ Ђ¦ sounds scary right? Access Your Free Checklist. 10 Step Option Trade Checklist. Pilots have a checklist that they run over to see if everything is ready with the plane and if itЂ™s in good working condition. They need to make sure that every piece of their criteria is secured before deciding to take off. They are managing their risk and the lives of others. Similarly, before any professional sports game Ђ¦ players prepare for the game by stretching, going through the motions, doing drills, shooting etc hours before the game even starts. However, this doesnЂ™t guarantee that they will win the game … or even avoid an accident or injury Ђ¦ but their process helps with easing their worries and allows them to focus on the task on hand.

There is no guaranteed approach in investing Ђ¦ understanding that uncertainty is where the opportunities exists is key … I know from my 10 years of experience in the financial industry, firms or individuals, with long-term success, stick to their process Ђ¦ win or lose. Unfortunately, many investors donЂ™t have a process or checklist that they run through before entering a trade … their trades lack a game plan and are random.. If you fail to sticking to your plan … then it was your process that failed. If you fail because you waffle on your plan … then it was you that failed. Not having a plan Ђ¦ doesnЂ™t work in business and it doesnЂ™t work in options trading. You should identify ideas that have positive expectancies, develop criteria for them and create a checklist. For my personal trading, there are a list of questions that I ask myself about the potential trade. These questions are answered before I place a trade … this systematic approach allows me to trade with focus and confidence. If you want to see my 10 step option trading checklist, you can download it here for free . I spent a lot of time thinking of these three reasons why investor lose money in the financial markets, but do you think I missed one? IЂ™d love to hear your thoughts below or do any of these resonate with struggles youЂ™ve had before? Also, who would you put your money on to win? MJ is 52 now… This Is Why Tesla Inc (TSLA) Stock Will Fail.

Once the rally sputters, reroute to the options market to profit. By Tyler Craig, Tales of a Technician. The much anticipated, not to mention easily predictable, bounce in Tesla Inc (NASDAQ: TSLA ) shares has arrived. Which begs the always intriguing and potentially profitable question, what to do with Tesla stock? Is the momentum darling done going down? Was that the end of TSLA stock&rsquos correction? Or are there more tremors to be felt before sellers relinquish Tesla from their grip? The answers to such intelligent queries will be laid out below, as well as how I suggest you play TSLA moving forward. How to Trade Tesla Stock. All told, Tesla fell 22% before finally bouncing back this week. That&rsquos an official bear market right there (at least if you care at all about the oft-quoted 20% threshold). The trouble with trusting this rally is the heap of overhead resistance. A pair of support levels were breached during the bear raid, and they aren&rsquot likely to be reclaimed without a strong defense by sellers who now find themselves in control. As shown below, the $355 and $335 price zones (which loosely correspond to the 20-day and 50-day moving averages) have the potential to morph into resistance zones.

The heavy volume accompanying the downturn is also concerning. Distribution days carry a stench that tends to linger for awhile, weighing on the stock for days to come. Another way to view this bounce is through the lens of the Fibonacci retracement tool. The typical rally in a downtrend retraces about one - to two-thirds of the previous descent before topping out. These levels correspond roughly with the 38.2% and 61.8% fib zones. Anywhere between either line is the sweet spot for a new pivot to form. As you can see, TSLA stock has retraced close to 38.2% of its previous downswing, so I fully expect sellers to begin coming out of the woodwork here. Bet With the TSLA Stock Bears. The volatility surge in Tesla stock has unsurprisingly been accompanied by a pop in its implied volatility rank. At 72%, the IV rank is signaling options are ripe for the selling. It sounds like a perfect bear call spread opportunity to me. Sell the Aug $360$365 bear call spread for $1.15. Consider this position a wager that Tesla stock will remain below $360 for the next month.

Really, all we&rsquore looking for is another downswing in the stock to allow us to take profits. I suggest exiting if you can buy back the spread around 60 cents over the coming weeks. If Tesla does somehow claw its way back to $360, then exit to minimize the loss. As of this writing, Tyler Craig held neutral option positions in TSLA. Want to learn how to master the art of option selling for high-probability cash flow? Check out the replay of Tyler&rsquos recent webinar on how to systematically sell Iron Condors for monthly income. Article printed from InvestorPlace Media, investorplace. com201707this-is-why-tesla-inc-tsla-stock-will-fail. ©2017 InvestorPlace Media, LLC. More from InvestorPlace. More On InvestorPlace: Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.

Copyright © 2017 InvestorPlace Media, LLC. All rights reserved. 9201 Corporate Blvd, Rockville, MD 20850. The Number One Reason Why Most Traders Fail. Perhaps you have heard the statistics before. Nine out of every ten people who enter the stock markets as an active trader fails, but why is that? In my opinion, based on years of experience of teaching traders, the number one reason why traders fail: they lack the tools they need to succeed . And no, I’m not talking about having the right trading computer, broker, or even trading capital. Sure, these things are important however, you could have the best trading computer available, the best broker and a million dollars of trading capital, but that does not mean squat! The good news is this: the tools you need to succeed are accessible to everyone . Let me put this in context.

Pretend that I was a contractor and I showed up at your door to build you a new house. I have no builders license, no tools, no blueprints, heck I even have a blind fold on. Now, are you going to hire me build you a new house? Of course not! I don’t have any of the right tools to do the job. I would be guaranteed to fail and you would be a fool to hire me. Yet, I see it all the time in the world of trading. People conduct themselves like the contractor I used in the above example and expect to get “good results” (aka, have people “hire” them to build the house, which we have already determined is completely foolish). So what are these tools that you need as a trader to be successful? Well they are simple. I like to call it the trader’s tool belt. In that belt you find things like: education, experience, charts, vision, and risk management systems. Let’s look at each one of these tools.

One of the most important aspects of any career is knowledge. Learning how to build a house is not something that is accomplished overnight. The same principle is true for trading. You cannot just jump into the market and expect to know it all. You need training and education in order to gain that knowledge, the knowledge to be a successful and consistent trader. Once you have that knowledge and training you are now book smart. Book smart is a great step in the right direction, but do you know how to apply that knowledge to the real world of trading? Doctors attend many years of school to gain the knowledge they need, but even once they enter the real world they don’t immediately start performing brain surgery. No, they must go through a residency period and learn how to apply what they have learned to the real world. In trading our “residency” is accomplished through what is known as paper trading. I want to keep things honest and not sugar coat anything, so I’ll tell you right now, paper trading is by no means fun or glamorous. Because of this truth, many people skip over it because they are so anxious to get into the real world of trading.

However, practicing your knowledge in the market without any risk of losing money is crucial to your long term success. Have you ever watched a documentary or movie regarding the financial markets? If so, pay attention to the computer monitors in the background. You are going to see technical charts. When the big money on Wall Street uses charts, that tells me all I need to know about their importance. Why is the big money on Wall Street using them? They allow you a way to form trade plans around what you believe a stock is going to do. In order to successfully trade a stock, option, currency, commodity, etc., you need to be able to form a trade plan. Charts help in forming trade plans by helping us as traders to identify patterns and any types of trends the price may be experiencing. You need to become comfortable with charts before risking any capital. Just like you would never let someone build you a house or perform brain surgery on you while being blind folded, you should NEVER trade blind folded. What do I mean by this?

Well you need to be able to see what is going on in the market, this is where the use of Level 2’s comes in. With Level 2’s you will be able to see the orders being placed in the market before they happen. This gives you that extra edge and vision into the market. I am amazed how many people out there are trading without this crucial tool that should be in all traders’ toolbelt. Risk Management System. Despite what some “gurus” or late night infomercial people may claim, no one is going to win in the market 100% of the time. Because of this we need to be able to manage risk. This is by far the most important tool that any trader could have. People blindly make money all the time however, the true test comes in holding onto those gains. You need to have a plan and system in place in order to control your trades and manage your risk. The last thing you want (and it unfortunately happens all the time) is to allow a losing trade to turn into a catastrophe and destroy your trading account. Like I said in the intro, these tools are accessible to everyone. Some of them are even free, you just have to be willing to put in the time and effort to use and master them. Start with your education, learn the market, and then learn how to apply that education through the use of paper trading with charts and level 2’s before ever entering the market with capital on the line.

Finally, I will end with this since it is the most important. If you are not focused on risk management and implementing those systems, you will fail as a trader… this is a fact. Are You Ready To Trade Futures? So, you want to trade futures in the hopes of speculating correctly and becoming wealthy in the process. The question you have to answer is: are you prepared and ready to learn how this dynamic market works? Futures do not trade in shares like stocks. They trade in contracts. Each futures contract has a standard size that is set by the futures exchange it trades on. For example, the contract size for gold futures is 100 ounces. That means when you are buying one contract of gold, you are really controlling 100 ounces of gold.

If the price of gold moves $1 higher an ounce, that will affect the position by $100 ($1 x 100 ounces). You need to check each commodity or futures contract since each of them is unique. (Learn to keep your losses to a minimum and consistently produce positive results. Read Top 4 Mistakes That Cause Futures Traders To Fail .) Many people begin trading without fully understanding the fundamentals of the contract. Futures trading is a zero-sum game. For each trade there is a winner and a loser. Many companies and professional fund managers use futures to hedge their other positions. They are using their futures contract to reduce the risk of their portfolio. This could be the jet fuel prices for an airline or gold produced by a mining company who wants to fix in a specific sale price. While future contracts protect against the downside of price fluctuations, they also limit potential upsides as well. When you trade futures for their own sake, it is like playing in a casino. The floor traders, futures exchanges and a few experienced traders with deep pockets win in the long term. Most other traders end up losing their capital and leave poorer and disappointed.

Long-term success in futures trading comes from mastering three disciplines. If you are a successful stock trader, you are probably familiar with these rules. First, you need a proven trading process that works for futures trading. Next, proper money management techniques can go a long way to helping you win the futures trading game. Finally, any time your emotions control your trading you are likely to lose. Trying to master these techniques overnight while learning the futures game is foolish. You would be better off just giving your money to the experienced traders, as it would save on your emotional wear and tear. Before venturing into futures trading, be sure you are ready to take on those with more experience and success. (The futures markets can seem daunting, but these explanations and strategies will help you trade like a pro. For more information, refer to Tips For Getting Into Futures Trading .) While trading futures is a zero-sum, trading options is not.

The main fundamental difference between options and futures lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract. Learn the fundamentals of options and how to integrate them into your derivatives method with Investopedia Academy's Options for Beginners course. The "Are You Ready" Checklist. How do you know if you are ready to trade futures? Ask yourself these questions to see if you believe you are ready. Do you have a proven trading process that applies to futures trading? Keep in mind you are making bets on the trend in a futures contract where you compete with experienced pros who use their own trading process. Ask yourself these questions to help you decide: Is your trading process focused on a long or short time frame? Futures contracts are available for many time frames creating opportunities that can be exploited.

Do you use technical or fundamental analysis or both? Most professionals employ a blend of both methods, with one confirming the other. Do you have a special knowledge of a futures market that gives you an added advantage? For example, if you work in the energy industry you might know more than most about the important factors that determine the price of energy. Do you always use a well-defined trading plan that you follow without fail? Disciplined trading helps to level the playing field. Does your trading process recognize the market trend? Trading with the trend is a core method for futures traders. Does your trading process work well in up and down markets? Futures' trading does not depend on a bull or bear market. You can trade either way, depending on the trend in the futures instrument you are using. A well thought trading process gives you an edge. Be sure to use it. Good money management is necessary for success in any trading situation. It is especially important in futures trading.

Is your risk-reward method clearly articulated and used? For example, do you know in advance how much of your available capital you are willing to lose when trading futures? The corollary to this rule is being sure your process defines how much you can lose on each trade and that you enforce this rule. Each trader views risk from his or her own perspective. Are you aggressive or conservative? Either view works as a futures trader. Just be sure to sustain that view with each trade. Do you employ risk reduction techniques without fail? Proven techniques, such as position sizing and stop losses, are essential. Successful traders are willing to admit when they are wrong and get out of the trade. Money management provides the tools to help you maximize your winning trades and minimize your losing ones. That is the secret to long-term profitable futures trading.

Lack of control over your emotions is one of the primary reasons traders fail. Fear, anxiety, and greed are common traits in everyone. Keeping them under control is an ongoing effort. When they take over your trading results will suffer. How do you develop confidence in your trades? Do you use gut feel or good research? Confidence based on solid research helps to remove the emotion for the trading decision. Reading a blog or following someone else's lead without knowing why they are making the trade is a recipe for failure. If you are unsure, do you trade anyway? Executing a bad trade is worse than not trading at all. The excitement of making a trade that does not make sense makes no sense. When you have a losing trade, what is your reaction?

If you follow your trading discipline and close the trade you have your emotions under control. On the other hand, if you change your mind and begin to hope for a better outcome, you are losing control, setting the stage for a larger loss. The best traders never let their emotions enter into their trading. When they suspect their heart is overruling their mind, they stop until the feeling passes. It serves them well and can do the same for you. (Learn more about controlling your emotional trading, read 3 Psychological Quirks That Are Killing Your Trading .) Trading futures is fraught with risk. Since the vast majority of futures traders fail to make consistent profits, anyone who is considering trading futures should take a step back and ask themselves a number of questions before proceeding. If after careful consideration, you wish to proceed, do so knowing that you are embarking on an exciting venture that will test your trading discipline to the utmost. (If you are a hedger or a speculator, this market offers a world of profit-making opportunities. To learn more, see Trading Gold And Silver Futures Contracts .) 8 Reasons Why Binary Options Traders Fail. By Markus Silvester - October 22, 2015 9:57 am. Binary options have become one of the most popular ways of trading, especially when it comes to non-professional traders. High returns, easy to understand rules, user-friendly platforms and alluring features make trading easier than ever.

There is also the possibility of using automated trading software when trader only has to set its preferences and make a deposit, and after that a highly advanced trading software developed by experts places trades instead of them. One of the best trading software is Binary Options Robot. You can find more about it here. Most of the brokers offer signal service to their traders as well, which makes decision-making process even easier and gives better and more pleasant trading experience. And yet, some traders fail to make a profit. In order to help existing and potential traders to succeed, we created a list of 8 most common mistakes traders make when it comes to binary options trading. We hope that this overview will make trading more straightforward, but also that it will remind traders that there is more to binary options trading then “put” or “call”. Here are the 8 most common reasons why traders fail. 1. Neglecting the Education. Binary options trading seems easy, and that is why some traders neglect the importance of financial education. Education doesn’t have to be formal, and successful traders aren’t always those with a business degree. Trial and error method might seem like a great idea to the inexperienced trader, but professionals would disagree. Instead of wasting your time and money on this poor method, it is better to spend some time reading educational articles, and e-books, researching brokers, various strategies, graphs and features and following daily financial news etc. Knowledge is power in every aspect of life, and binary options industry is no different.

Always be informed and ready to learn something new, even if it means placing fewer trades. To get the most out of your trading experience and make more profit, make sure to visit our Academy that offers plentiful of articles that will help you understand the world of binary options. 2. Ignoring the Demo Account. Even experienced traders sometimes ignore the demo account provided by the broker. They know everything there is to know, right? Well, the truth is quite opposite, as every broker is different, has a different trading platform, various features and trading options. Demo account gives the trader the opportunity to research the platform, see how the trades are set, and get some general overview over the platform. Other than that, every broker lets traders invest virtual money in order to develop their strategies and see how it feels to place trades, which means that traders don’t have to spend their real money in order to get accustomed to the interface. If the chosen broker gives its traders the opportunity of a demo account, be sure to use it for your own personal growth as a trader. Many brokers recognized the importance of demo account, so sign up with brokers that offer a demo like. IQoption is a broker especially recommended to the newbies as they offer demo account without the initial deposit. 3. Lack of Discipline. One would think that financial world is completely cold and emotionless, but just a simple glance on the average trader will reveal that it’s not always so. As human beings, traders are prone to get under the influence of their feelings, whether good or bad. Losing streak may cause frustration and anger, which usually lead to making bad decisions and forced trades.

Winning streak gives traders self-confidence and they tend to neglect some objective factors that may influence their future trades. No matter what your streak looks like, remember that every trade should be thoughtful, with all influences taken into consideration. Be patient, observant, calm and try to develop an investment plan as soon as possible in order not to spend your funds irrationally. 4. Keeping Investments On the Bare Minimum. One of the alluring characteristics of binary options is that they are available to everyone, and not just traders with significant funds. Most brokers require a minimum deposit of $200, which is quite low compared to other types of financial services available on the market. One would think that those $200 will simply multiply as they progress as traders, but they would be wrong. Even if initial deposits are low, required minimum investments can be as high as $50. Now, if we compare that to the minimum deposit, it is easy to see that it enables a trader to place only four trades. Other than that, minimum investments bring minimum profit in all types of trading, and binary options are no exception to the rule. With small investments, it takes longer to accumulate significant funds on the account, which can make traders nervous and impatient, which leads to placing irrational trades in order to achieve more in less time. Besides, traders must always count on possible loss, and knowing that the minimum deposit now seems almost inadequate for serious trading and serious profit. Traders, no matter how experienced, should research various account types offered by various brokers and choose the one that suits their needs best.

For all traders who are not sure about how to place trades, we recommend trading by using free Binary Options Robot, the best automated trading software available. Even if binary options trading sounds simple, don’t be deceived as it is still the type of trading. Many users think there is nothing more to it than registering, making a deposit and placing trades, but a good plan takes responsible trader a long way. Planning is, along with education, one of the most important segments of binary options industry. Be sure to make a plan about how much, when and where to invest the money. Include some risk management strategies, and always count on possible losses. Traders must be ready to revise their plan if they see it is not working for them and losses are simply too high. Traders with more advanced accounts are sometimes assigned a personal advisor who can help them in making a better investment plan. We must admit that there are some irresponsible brokers who use false advertising and promise unrealistic amounts in a short period of time. These brokers make traders believe that binary options trading is an easy way to make a lot of money. In reality, binary options are a profitable way of trading, but only if the trader is responsible, educated and patient. In order to avoid scam brokers, make sure to trade with a broker who is registered by some of the regulatory bodies like . Traders must be aware of their own greed and false promises, and realize that binary options are still a type of financial trading where no one becomes rich over night. Also, traders must take their invested amount into consideration, as bigger investments make a bigger profit.

7. Overlooking the Changes. It is easy to forget how dynamic binary options industry is, and for that reasons traders must be ready to reevaluate their trading plan, chosen method and placed trades in every moment. Changes should not be seen as something hostile, but as new opportunities that enable them to make more money if they are ready to adapt to the new environment. Proper education and detailed plan may reduce the risk of unexpected changes, but they are not a guarantee that those won’t happen. Also, the trader should not be scared to use additional features offered by the broker as rollover, double up, early closure and sell in order to adapt to the new circumstances on the market. 8. Inadequate Money Strategies. It is impossible to become a successful binary options trader without implementing the strategies, but traders often forget that strategies alone are not enough to succeed. A trader who has a good method knows what is going on in every moment of the trade, is aware of all the risks and knows what are the possibilities in case the trade takes an unexpected turn. Successful traders know how to manage all possible risks, and are aware of high-risk trades. They never place all their funds into high-risk trades, but only the smaller amount. That way they protect their funds from high losses, and always have a backup with more conservative trades, because losses, no matter how small, are still affecting their balance. Binary options trading can be a great experience if one is aware of the effort that has to be put up in order to make meaningful profits. This type of trading is user-friendly, but that does not mean that it should be taken easily and without prior research and education.

Traders must be ready to adapt to the completely new trading environment and to take their time, as forcing trades is not the best method. News archive. Min. Deposit Sign Up Bonus $10 up to $300. Trusted Forex Broker. Min. Deposit Max. Leverage $250 1:400. Top Trading Platforms. Broker Min. Deposit Min.

Investment Reviews $250 $25. Please visit our sponsors. Copyright © 2012-2017 All Rights Reserved Fair Binary Options - de. Disclaimer: This website is independent of binary brokers featured on it. Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed. The website does not provide investment services or personal recommendations to clients to trade binary options. Information on FairBinaryOptions. com should not be seen as a recommendation to trade binary options or a be considered as investment advice. FairBinaryOptions. com is not licensed nor authorized to provide advice on investing and related matters. The potential client should not engage in any investment directly or indirectly in financial instruments unless (s)he knows and fully understands the risks involved for each of the financial instruments promoted in the website. Is this your final decision ? We suggest you visit one of the popular brokers instead! Help FairBinaryOptions remain fair. Hey there, we noticed you are using AdBlock. While we understand ads can be annoying we rely on the revenue from advertiser to manage our website.

10 Reasons why Binary Options Traders Fail. In the recent times, the binary options trading has become very popular amongst professional as well as naïve traders. Unlike, other trading platforms, the binary options trading platform offers ease of trading, simple rules, very high payouts, and eye candy features to attract traders from all strata of the trading fraternity. The binary options trading also has some very advanced features like automated trading through which one just has to deposit funds and set preferences, and then the software does the rest by placing orders to keeping a tab on the transactions. The brokerage firms which provides the binary options trading platform also allows traders to use signal services to help traders in their decision-making process. Even with so much on the platter, the traders fail to make big and continue to bleed on the street. In this article, I have identified 10 reasons of failure for the binary options trader to help readers to succeed. This article will help seasoned as well as aspirants of the binary options trading, to better understand that there is more than just “options” in the binary options trading. How Binary Option Robot Can Change Your Life? Check This Out! 10 Reasons why Binary Options Traders Fail • Avoid These Simple Mistakes and Make More Money Instantly! • Including Secret Strategies! • How to Make Money with Binary Option Robot. Top Binary Option Robots in Germany.

Claim your free binary option robot, get started with three easy steps: Name of Robot Min. Investment Min. Deposit Rating. 1. Your Binary Option Robot will analyse the market and decide, which asset (currencies, indices, commodities and stocks), is right to trade at that point in time. 2. The Binary Option Robot Will Predict the Price Movement. Your robot will assess a wide-range of factors, and then make a prediction on how the assets price will move, saying: Call (up) if it believes the price will rise and Put (down), if it believes the price will fall. 3. Decide on how much you want to Invest. Then you need to decide how much you want to invest in the commodity and when that investment will expire. 4. Collect your Earnings. Finally, you collect your earnings (the good part!) The following article provides detailed description about reasons for failure. Exclusive offer! Get the binary option robot for free by clicking on the button below!

1. Ignorance to “Knowledge is the King” The easiness of the binary options trading platform and simple trading format makes traders avoid the knowledge part of the trading. It is not necessary that you should go through the formal education process for learning the binary options trading as the successful traders aren’t always with some formal educational degree. Generally, Individuals think that the trial and error is the best practice to gain experience about any trading. This is the first blunder committed by the newbie. Though, the trial and error can give you a knowledge in a bitter way of losing money and time, the learnings from various educational articles, e-books, strategies, technical chart reading, usage of technical indicators and news article regarding the binary options trading can help you gain better understanding, planning and execution of the binary options trade. The knowledge is the supreme in each and every facet of life and the binary options trading is no different. As a binary options trader, you should always be open to learning new things, even if it reduces your trading in order to achieve the larger goal. You should also invest time in learning technical indicators, reading charts and their implication to take the sound trading call. In the case of the binary options trading, technical parameters make much sense due to its short expiry duration and hence one should be able to learn and apply the knowledge gained in taking call for each and every trade. In today’s Glocal (Global + Local) world, the internet presents a plenty of information regarding the binary options trading and I recommend you to use the internet to search and digest as much information as possible to learn the binary options trading. Always remember that the knowledge is supreme and it never makes you poor.

2. No research to find broker. As it happens with all new things, the exponential rise of the binary options trading also attracts scammers to the field and hence one should do a serious research to find the legitimate broker for the binary options trading. Any aspirant traders should look for qualities like where it is registered, what kind of regulations it follows, deposit and withdrawal policies, customer service policies, and security policy, besides payouts and other financial policies. Search for existing customer experiences with that brokers and reviews left by consumers to better understand the broker. Some brokers offer minimum deposit amount as low as $10 while others offer varying minimum deposit amount ranging from $200 to $250. While some brokerage firms offer minimum investment as low as $1, others allow minimum investment amount ranging from $10 to $50. The payout also varies from 60 percent to 200 percent and hence one should choose broker according to hisher requirements and which fulfills all hisher needs. A wrong selection of broker can set you up for a bigger trap to lose all your hard earned money, and hence, I urge you to devote sufficient time to find the right binary options broker. Failures occur every once in a while. 3. Avoiding DemoFree Account. All of us must have heard this phrase “Practice makes a man perfect”, and it makes a lot of sense when undertaking any kind of trading, specifically the binary options trading.

To give you the feel and hands-on experience, almost every binary options brokerage firm provide a practice account (Demo Account or Free Account), wherein you are given a virtual currency to trade in the actual trading environment. The newbies generally avoid this demofree account and jump on to real money to try and learn through trial and error, in the process, losing a significant amount of money and desire to continue trading. The demo accounts allow you to deploy various learnings and strategies and find the outcome, which can be very useful when you trade with a real account. You can also help you assess your trading style and show you the outcome, to further improve your winnings. Demo account helps the trader to apply the learned strategies on the real environment and allow a trader to identify which method work well for him and which does not work well. By practicing on a free account, the trader can optimize the workable strategies and possibility to start its real money account on a positive note. As a thumb rule, one should at least spend 2. 3 weeks on a demo account or a free account to gain confidence and improve winning percentage, before starting with the real money account. 4. Get Swayed by emotions. Normally, we consider that any financial transaction is emotionless, but a simple glance on an average trader shows otherwise behavior. As normal human beings, we are prone to get influenced by our emotions.

Continuous loss-making trades makes us angry and frustrated resulting into more loss-making trades, in turn, a mounting losses. On the other side, the winning roll makes us overconfident and in turn, makes us lose our objective and ignore some basic trade influencing aspects to make a wrong future trade. So it is imperative to understand that every trade should be a well thought out decision, in whatever streak you are. Don’t get your emotions take over your trade, as it may hamper your profitable trades and may sway you to make an irrational decision which generally results into loss-making propositions. One should be calm and composed for each and every trade, and the trade should be a well thought out decision than an emotional one. If you are showing an irrational behavior then you should stay away from any kind of trading, as emotional decisions are always irrational and lead to considerable amount of loss to the account holder. 5. Putting everything in a one shot. The naïve traders generally put up the maximum possible amount in a single trade and loose everything in a one trade leading to frustration and giving up on trading. These further sways traders emotionally and compound losses. One must consider starting a real money account trade with minimum investment amount and build up once you gain confidence. Though, with the smaller amount it takes longer to make considerable profits, it helps to minimize your initial losses.

The binary options are a truly retail trade industry as it allows minimum deposit as low as $10, and minimum investment amount of $1. So, my recommendation for retail the trader is to start with small investment amount and then increase the investment amount as confidence grows. This way you will not lose your hard earned money in one go and you will be able to manage your money well. One can never avoid all failures. 6. No planning or method. Though the binary options trading is a simple form of trading, it is still a form of trading. Many newbies think that to trade in a binary option, you just need to signup, deposit funds, and trade. Though they are correct, they forget that a good plan can take their trading business to flourish. Planning ensures that each and every trade undertaken is with thoughtfulness and knowledge resulting in better-winning chances. You should always make a plan before trading for how much to invest, where to invest, and when to invest. Your plan should also incorporate sound money and risk management techniques giving due consideration to the possibility of making a loss. In addition, one must be flexible enough to make required changes in the plan, in case your plan doesn’t work as intended. Well, planned trade execution can minimize your chances of losing money, and increases the chance of winning trades. You should consider each and every trade as a business transaction and plan for each trade and never jump on to trade without planning for the trade.

In the binary options industry, as in any other industry, there are brokers who make false claims that you can make too many profits in a shorter time period. Such claims make traders believe that the binary options trading is quick-rich-get-scheme. Actually, the binary options trading is a profitable business only if one is organized, rational, knowledgeable, flexible and enduring. You have to remember that nothing comes cheap in the world, and everything has a price attached to it. The binary options trading is not a quick-rich-scheme and you should never get influenced by the false claims of the broker. The trader must control their own greed to overcome such false claim, and understand that it is also a business which can have both ups and downs. Also, traders must realize that the binary options trading is still an another type of financial trading and where no one becomes rich overnight. Hence, one should have rational and realistic goals before entering the market. 8. Everything is constant. Another biggest misconception in the minds of the trader is that the market is constant and nothing changes overnight, in reality, nothing is constant except the change. Traders who do not understand that the binary options trading industry is affected by various micro and macro factors, tend to fail. So it is important as a trader to understand what affects the changes in the market and should be flexible enough to adapt to the trading environment changes.

We have a natural resistant to change, but as a trader, you must overcome and treat the change as an opportunity. Skilled individuals are more consistent with their adaptation of changes and comprehend changes better. Always remember, the only thing constant in the world is the change and no one can stop the change to happen. You should develop skills and your thought process in such a way that you are always ready for the changes, and be able to bend your plans accordingly. 9. Lack of risk management. To become a successful binary options trader one should learn strategies, but strategies only cannot make you a successful binary options trader. One must have adequate money management and risk management techniques in place to become an effective binary options trader. The zero risk management is sure to fail the trader as it won’t allow them to look at the bigger picture and manage their risk. No risk management makes trader take high-risk trades and lose big, and risk management technique can help traders to evaluate the market condition and put appropriate measures to minimize losses. One must understand that it is equally important to minimize losses and making profits in order to attain a long-term goal of becoming successful binary options trader.

By putting risk management practices in place, the binary options trader protects their money from evaporating via big losses and always have standby conservative plan to continue with trading. 10. You Think It’s Gambling, Instead of a Business. One of the biggest reason for the failure of the binary options trader is that they consider it as gambling and not as a trading business. Trader considers it as a gambling because of its structure of nothing or payout. The mistake of considering the binary options trading as gambling makes traders take undue risk and not considering as a sound business makes trader not to put sufficient efforts to learn it, resulting into higher chances of losing money. Business owners know that short run losses and profits don’t matter in order to achieve the larger longer run gains. As a trader, you should also consider it as a business, and evaluate every profitloss on the trade in order to perform better in the future. As a business owner, you should plan, set a rational goal, stay disciplined and organized to take your trading business on next level. The binary options trading is not a gambling but can become a potential money earning business if considered as a long term profession and not as a short-term gambling entertainer. All traders fail sometimes. The binary options trading is a lucrative business opportunity if an individual put efforts to learn the nitty gritty of the binary options, and show disciplined approach to it. The binary options trading is very attractive due to various reasons like 24 x 7 access, high payouts, and low account requirements. It can be a rewarding if you consider following highlights: Devote sufficient time to learn the theories behind the binary options trading. Put efforts to research right, legitimate and suitable broker. Make full utilization of demofree account and use to at least for 2 to 3 weeks before starting real money trading.

Emotions act as a deterrent and should be put aside before starting a business and consider each trade with rational and sound logic. Never put all your money in one go, always do staggered trading. Prepare and plan well, and then stick to plan to execute your trades. It’s not an overnight get rich scheme, it requires proper planning, organized and attentive behavior, sound knowledge and dedication to learning in order to become successful binary options trader. The market dynamics are there to chance very often than one would like them to, and hence you should be well prepared for changes. Learning strategies is not the only thing which can make you successful trader, you also need to put sound risk management and money management techniques to minimize losses. Consider it as a business venture and apply organized business approach to be successful binary options trader. Exclusive offer! Get the binary option robot for free by clicking on the button below! IQ Option ( Best binary options broker site) Copyop ( Copy the best traders for free) Binary Options Signals (Make money by using these best signal services) Best Binary Options Brokers ( Best brokers for each region) Binary Option Robot Review and Scam Investigation ( Learn to avoid trading scams) Check out these top rated articles! Los Mejores Robots de Opciones Binarias ( Español) Roboter für Binäre Optionen ( Deutsch) Meilleurs Robots sur Options Binaires ( Français) I Migliori Robot per Opzioni Binarie ( Italiano) Melhores Robôs de Opções Binárias ( Português do Brazil) References and Further Reading.

Author: Michael Allen. Michael Allen is the main author at binaryoptionrobotinfo. com. He holds a PhD in Economics and has worked in investment banking for 24 years. Recommended Free Binary Option Auto Traders. Get the best binary option robot - Option Robot - for free by clicking on the button below. Our exclusive offer: Free demo account! See how profitable the Option Robot is before investing with real money! Average Return Rate: Over 90% in our test US Customers: Accepted Compatible Broker Sites: 16 different brokers Price: Free. The best new auto trading software: Automated Binary.

Get it now for free by clicking the button below and start making money while you sleep! Average Return Rate: Around 80% in our test US Customers: Accepted Compatible Broker Sites: 11 different brokers Price: Free. The best new auto trading software: Automated Binary. Get it now for free by clicking the button below and start making money while you sleep!! Average Return Rate: Little over 80% in our test US Customers: Not Accepted Compatible Broker Sites: 12 different brokers Price: Free. Put your trades to copy the best traders of the world and earn money without doing much work. Groundbreaking software, which you can get freely by clicking on the button below. Average Return Rate: Depends on the trader you choose to copy US Customers: Not Accepted Compatible Broker Sites: Anyoption Price: Free. One of the best auto traders, which you can get completely free of charge by clicking on the button below. Average Return Rate: Well over 70% in our test US Customers: Accepted Compatible Broker Sites: Many reputable broker sites Price: Free.