How to Avoid Losing Money in Binary Options Trading
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How to Avoid Losing Money in Binary Options Trading PowerPoint PPT Presentation


Binary options trading is a long-term game and you need to play this game carefully. Nobody can guarantee that all your positions will win. Anyone might have unsuccessful predictions. If you achieve a winning ratio of 80%, 20 positions will be lost out of 100.

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How to Avoid Losing Money in Binary Options Trading

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How to avoid losing money in binary options trading

How to Avoid Losing Money in Binary Options Trading

Binary options trading is a long-term game and you need to play this game carefully. Nobody can

guarantee that all your positions will win. Anyone might have unsuccessful predictions. If you achieve a

winning ratio of 80%, 20 positions will be lost out of 100.

The goal is to keep your winning ratio as favourable as possible and not to lose large amounts on the

losing positions. It is possible to make money in binary options, but you really need to keep some rules.

In this article, we have collected practices that help you to avoid losing money in trading. Let’s see, what

are the most important rules that you need to keep in mind in this business. Those rules can mean the

difference between winning and losing in options trading.

Do not invest big amounts if you are a beginner trader

As there are different risk tolerance levels, the amount that can be placed on a trade truly depends on

the personal preferences of the trader. Do not forget that the risk bearing capacity of a beginner trader

is usually lower.

If you are a beginner, avoid investing a large amount on one single trade. You should invest only a

certain proportion of your deposit. This should never exceed 5% -10% of your total account balance.

Novice traders should invest sums such as $5 to $10 per trade, and stick to these amounts until they

become more experienced.

Learn about binary options trading strategies

Before you start your trading career, you need to understand the concepts and learn the strategies that

you can apply. You should gain a solid foundation in the theory of binary options trading. A successful

trader has to understand how to read the different charts and how to conduct fundamental analysis.

Trade long-term options first

Until you fully understand options trading, you should avoid short-term options. Short-term options

have very low expiration times, for example 30 or 60 seconds. It is quite difficult to predict price changes

over such a short period of time. In order to be able to do that, you need to be proficient in trading.

If you are a beginner, you should trade long-term options for a while. The expiration time of a long-term

option is several days or weeks. The trends are more predictable for a period of few weeks, this helps a

novice trader to make money.

Focus on mainstream assets

Beginners should focus on high profile assets such as EUR/USD, oil, gold or stocks of well-known

companies such as IBM, Microsoft, Facebook, Apple, or Google, etc. Experts are constantly analyzing


How to avoid losing money in binary options trading

these assets, so you can find many publications on the possible price development of them. You will be

able to make much more accurate predictions on the basis of these publications.

Register at a reputable and regulated broker

Before depositing money at a broker, you should check if the broker has a license. Binary options trading

is regulated in many countries, so there are brokers with valid licenses. You should choose only these

brokers and avoid unregulated brokerages.

Furthermore, if you are a beginner, you should use a broker that allows low minimum deposits as well as

low investments per trade.

For More Details Visit at https://www.derayoptions.com/


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