With any trading method that you use it is entirely possible to pick up bad habits. These can come about due to things you have learnt in the past and don’t break free from or more usually, as the result of becoming lazy. Recognising these bad habits is the key to overcoming them and removing them from your trading process.
Here are some common traps that traders fall into and some tips on how to avoid doing the same.
Over Investing – Many traders are tempted to place too much money on the outcome of one ‘good’ trade. This is OK when it comes off but it can expose your account to much risk and be devastating for your profits when things go wrong. Only use a small proportion of your capital on any trading outcome or you risk seeing your capital quickly depleted.
Putting Up With A Bad Broker – Simply don’t do it! If you broker is mucking you about and is not offering you a good service then simply switch. You have to trust your broke and they should be able to facilitate your trading, not obstruct it! There are plenty of good brokers on the market and many are now regulated. Take the time to find a good one. You won’t regret it.
Only Trading A Single Asset – The whole point of Binary Options is that you can easily trade on a wide range of different markets. This will allow you to take opportunities as they come up and extend your profits. Don’t stick to just one asset class and miss on the potential to make high profits from a range of sources on your account.