Sunday, January 12th, 2014 by Michael Freeman
Before you start reading this article, I suggest that you make yourself some coffee or pop a Ritalin pill.. because you don’t want to miss a single sentence. Focus your eyes, open your ears and make sure you understand the type of binary options mistakes that have cost millions of dollars to traders around the world, mistakes that could have been easily prevented. Just like with anything in life, you got to know what you’re getting into. We are all in the same boat, trying to make as much money as we can with the things we do, in the shortest time, in a constant race towards the finish line. The only problem with this theory is that if you ask any successful person who made it on their own, they will all tell you that it wasn’t an easy ride and it took a lot of time and work. The upside is that you are not required to get a college degree to become a successful day trader, but you do need to know how to manage yourself correctly, how to think “business” and how to avoid the obstacles on each turn you take, like with anything else in life. The downside is that it won’t happen overnight and the sooner you realize it the closer you will get to succeeding with this binary options venture.
High Rollers Watch out!
It might come as a surprise to some of you but there are many traders out there investing thousands of dollars when they start with binary options. I personally received numerous emails from traders who initially deposited $20,000 and more. It might seem a lot and in might seem a little bit to you, but I am sure we can all agree that it’s pointless to invest so much and especially if this is your first “Rodeo”. I don’t care if you are a millionaire because if you have no prior experience with online trading and with binary options and have an established, positive relationship with a broker, you are setting yourself up for trouble by investing so much. In most cases, brokers will offer High Rollers with lucrative VIP and Diamond accounts, professional training and bonuses. Other than the Bonuses, everything else sounds good and it’s nice of them to offer these incentives. The bonus on the other hand, will lock your money, yes, it will lock your $20,000 with the broker until you qualify for a withdrawal with a wagering requirement equivalent to 20xdeposit or 30x the deposit amount. In other words, you will need to generate a trade volume of at least $400,000 before you qualify for a withdrawal! I can understand if you have prior experience with a broker, that you might want to take advantage of this offer, however in most cases I am hearing from traders who had no clue about the bonus restriction and are now stuck with a broker and sometime not a good one, as they later find out about all the negative reviews! This is a guaranteed way to lose your investment in 1 day, because you’re basically locking your money away, and if you ever feel like you are on the losing side and want to pull out some of your funds, you can forget about it.
Auto Trading Sham
Next we got traders who turn their destiny in the hands of automated services that are synced to your account and trade for you, ‘Auto Traders’ , and many times these auto traders are set on 30 or 60 seconds. First of all, these auto traders are fully automated, meaning there is no one behind the service, making trading decisions and instead they just let a “trading script” do the job. The problem with auto trading is that artificial intelligence cannot detect Market Break Outs and other scenarios that may change the rules of the game and go against the trading script’s analysis. Imagine leaving the auto trader working for you while you go to bed, next morning you find that your account is not wiped out! depleted! “and it’s…..Gone!” (SouthPark ‘Margaritaville’ episode). Just the other day I received an email from a trade who lost $5,000 over night with an auto trader, so don’t rely on artificial intelligence, auto trading scripts or any service without a professional trader behind it, making trading decisions and sending you the binary options signals via email or SMS, beacuse Auto Trading is one of the riskier ways to trade binary options!
“Karma is a Bitch” don’t let it get you!
Last not not least, we get the binary options scams, they’re out there and they’re waiting for you to deposit money with them. The great thing about Google is that it doesn’t censor anything, unless you are in Iran or China, anyway, in the free world there is a lot of free information and people tend to speak out when they feel like they’ve been scammed. Do not make the mistake that many traders I correspond with on a daily basis, subject themselves to and avoid investing your money with scam broker. It doesn’t matter if you invest $100 or $50,000, the minute you invest with a scam broker you can consider the money gone, on that same day, hence it’s another way to lose your investment in less than one day! Fraud sites are operating illegally, without a proper license and if you go on their Q&A page you will notice lot’s of typos and grammar mistakes, maybe if they stayed in school longer, they would’ve found a better career as oppose to scamming unsuspecting traders. Do your research and I will repeat this over and over until everyone who visits my blog will understand! I have friends who won’t go to a restaurant without checking for reviews, so you want to tell me that you are about to invest $1000+ with an online trading site without at least Google searching them? This is a detrimental mistake and it’s unfortunate to know that so many traders fail to take 5 minutes of their time and properly assess the quality and reliability of the broker they’re planning to do business with.
Binary Options can be an exciting journey and a very rewarding one! The facilitation of day trading via web-based platforms is at the front-line of technological advancement. Treat it as a serious business and you will get the same treatment in return. Don’t let the excitement that comes with day-trading interrupt your sound judgment. It’s your money and it can grow fast with binary options, so do your self a big favor and don’t lose it on your first day! Thank you for reading this article, you are a true sport if you read through everything and you are a few steps ahead of traders who failed to understand the message of this article.
Checkout my most recent Binary Options Strategy video on YouTube .
Interested in more Tips? Checkout my 15 Tips for Binary Options Traders!