Thanks to binary options popularity in recent years, an increasing number of people around the world began investing in binary options.
South African market is one of the most presented areas considering interest in binaries.
Ever since 2008, binary trading is widespread online investment option for many South Africans, especially those are new to trading on financial markets.
It provides them with an opportunity to have a potential profitable trading journey, regardless if we are talking about beginners or professional traders.
Our guide on 7 mistakes to avoid in binary options will reveal more information on how to avoid scam in binaries and increase chance to have a successful binary trading journey.
What we want to achieve is to provide valuable info and educate traders in South Africans to be able to recognize top 7 mistakes in binary options trading.
Trading Binaries with Scam Binary Brokers
From our point of view, binary options trading with scam brokers comes as a the biggest danger in binary industry overall. Due to its popularity, unfortunately, an increasing number of brokers appeared on the market and some of them can be listed as scam brokers.
There are several signs how South Africans can recognize if they are dealing with scam or not.
One of the first elements are Terms & Conditions of a particular binary broker. If a broker doesn’t offer clear and transparent information on its platform, it is definitely one of the major indicators how traders are dealing with a scam broker.
For this reason, we recommend traders to gather valuable information first, such as doing a research and reading broker reviews to get an objective info about a specific trading platform.
Don’t Miss an Opportunity to Use a Demo Account
Thanks to demo option, registered traders are able to see how will the trading platform look like and try out different strategies to see which one will work the best.
As a major benefit of demo account is the fact traders don’t actually invest their own money but instead they are offered with virtual funds. This way, there is absolutely no possibility of money loss. IQ Option is a popular broker for South African traders who provides them demo account, which is funded with $10000.
Time frame for practicing on demo depends on a binary broker. With some brokers, it is unlimited while others offer demo for a period of one of two weeks. Demo account is used both by inexperienced traders as well as professionals since it enables them to test the platform in risk free environment.
Never Neglect Importance of Binary Options Education
Traders who invest in binary options should be aware of the fact how relying solely on luck factor isn’t a desirable element in this online trading industry. From our experience, a wide range of binary brokers offer platforms with excellent Education so that traders can learn more and become experienced binary options traders.
Education with a variety of trading materials and tools is very valuable and useful for all levels of traders. Mostly, they include: ebook, a selection of webinars, FAQ, trading tutorials, guide articles, economic calendar and many more others.
By having education materials on disposal, both beginners and professionals can benefit from it. Traders novice can learn trading basics and from where to begin, while experts can try out advanced strategies and expand their existing knowledge.
Trading Binary Options without a Trading Plan
When trading binaries, binary options trading plan needs to be incorporated due to its many advantages.
Lack of having a trading plan is definitely one of the major 7 mistakes in binary options. This is why beginners should have that in mind before they engage themselves in binary trading world.
Luck factor can sometimes help, but it isn’t something that South African traders should have confidence in. Since binary trading is not a gambling and several factors need to be included so that traders could have a profitable trading journey, we find having strategy trading plan is more than desirable option to have.
The whole idea of a trading plan is to reduce a risk exposure and trade with those underlying assets that traders are most familiar with. This is why successful traders spent time into making a good trading plan by which they will invest their money in binary options..
Unrealistic Trading Goals – Binary Options in South Africa
When traders have unrealistic goals for this online investment, we can say it is actually often seen situation in binary industry and falls into category of the most often mistakes when trading binary options.
Sometimes traders beginners begin their trading journey by investing a large amounts of money in different assets, without thinking it twice. This is closely related to non-existence of trading plan where traders believe they will gain thousands of dollars instantly.
It is recommended to think positive and have big plans, however, unrealistic trading goals and its expiry time are a mistake that should be avoided. With many brokers offering high payouts, traders in South Africa do have option to profit from binaries, but with “cool head” and clear vision of which underlying assets to invest in (stocks, commodities, currencies and indices).
Investing More Money than Affordable
Another often seen mistake in binary trading is when traders decide to invest a huge amounts of money, more than they can afford it. Doing that without a trading plan is definitely not a good starting point and might lead to money loss.
Usually, traders start trading with approx. 50% before they see how binary trading looks like and which underlying assets are most suitable for them to use. It all depends on traders’ preferences and current market situation on specific underlying assets.
Binary Options Overtrading as a Trader in South Africa
When thinking about trading binaries, a lot of traders make a wrong move and then overtrading becomes a problem they need to fix. We have mentioned it several time on our site under Guide tab and traders should realize how it desirable to trade binary options but smartly.
Often traders experience overtrading if they trade simultaneously with stocks, currencies, commodities and indices. This comes as one of the main differences between professional traders and beginners, who are in most cases impatient and want to earn a lot of money right away.
That is why we suggest traders in South Africa to check broker’s platform first and read broker reviews to get more info about a specific broker and what does he offer to registered traders.