How to Avoid Over-Trading in Binary Options ¦Profitable Binary Trading

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How to Avoid Over-Trading in Binary Options?

Many traders venture into binary options trading without being fully aware of all the pitfalls that might happen along the way.

Over-trading is one such issue which happens quite often and traders are not even aware they are doing anything wrong.

Because of that, we have decided to present South African traders who are looking to start trading binary options with a simple account of how and why over-trading happens and what they can do to avoid it.

One of the first steps to take, not just as a response to question how to avoid over-trading in binary options but have to have a successful and fun trading experience is to set a money management plan.

Money management which is a broad concept, has several key elements and those are:

  • Planning in general
  • Set budget
  • Strategies
  • Analysis

This might seem slightly alarming to a novice trader but the simple basic principle behind it points to one and one thing only – balanced trading.

While it does take some time and skill to achieve that, one of the obstacles that might be standing in the way is the need to place more trades than is reasonable or smart.

That is why South Africans who want to explore the earning potential of binary trading have to learn how to avoid over-trading in binary options which is one of the most harmful behavioral patterns.

Common Reasons Why Over-Trading Happens

Short and simple answer would be – because we are humans with all the weakness that brings along.

Nobody is immune to making mistakes and failing to control emotions.

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However, those who wish to do to binary options trading need to tackle this issue since control and balance are a prerequisite for reason-driven decisions.

We shall present South African traders several reasons and situation when over-trading usually happens and we’ll provide advice on how to avoid this harmful behavior.

Feelings of Frustration and Disappointment

All who go into binary options trading are motivated by the possibility of turning it into a profitable venture, and that is perfectly fine.

However, what happens often with inexperienced traders is that the need to be successful clouds judgement.

Bad trading decisions end in lost funds and that brings both frustration and disappointment which leads to more bad decisions. And then traders get stuck in a vicious circle.

Nobody likes to experience loss but that is a fact of life, no matter how experienced a trader is. Even traders who have been trading for years don’t win all the time.

By being aware that losses happen is a first step to avoid over-trading in binary options because then trades will not fall into frustration and despair.

Because the most basic human instinct is to somehow counter the loss which they suffered.

In binary options that means that traders place more trades hoping to cover the loss. Traders which are placed in a hurry and without being carefully considered usually fall flat.

This is the fertile ground for even more over-trading.

Feelings of Greed

There is no way around stating this rather unpleasant fact about human beings – greed. And greed in trading leads to over-trading and eventually, to financial loss.

South African traders need to keep that in mind and avoid this rather common scenario which usually goes something like this:

Traders start trading binary options and they keep making great trades which bring in fine profit. That triggers a pattern of behavior which sees traders placing more and more trades in hopes to continue this lucky streak.

However, what they forget is that they started by sticking to a well-formed plan which eventually lead to success. Very few are successful by pure luck. That is the basis of gambling, not trading binary options.

Bottom line is, traders have to know when to stop and control the feeling of greed which are pushing them to carry out more unscheduled trades.

Bombastic Opportunities

Another easy to understand mistake traders often make is to fall for seemingly fantastic opportunities which promise a profitable trade. Sometimes that just might be so, but it is still far more prudent to follow the plan made at the beginning.

South African traders who are serious about binary trading and look to do it in a long-run have came up with a plan which meant they took time to plan, learn, analyze so simply abandoning that pan and making traders which were not part of that plan is probably not such a good idea.

All traders sometimes follow their gut-feeling and carry out traders that seemed like fantastic opportunities and were precisely that – great opportunities. Yet, the operating word here is – sometimes.

Therefore, experiencing such instances is perfectly fine but keeping to the plan is the balanced and controlled trading behavior which will bring more profit in the long run.

How To Avoid Over-Trading in Binary Options

Good news is that there are ways to avoid the harmful over-trading behavior.

With a little bit of training and time, South African traders can learn how to control the impulse to over-trade and turn binary options into a profitable venture.

Make a Plan and Follow Through

Putting together a trading plan is the essence of successful trading and by investing time to do it is more likely to produce the desired result – profit.

Yes, South African traders interested in binary options will have to put in time to analyze and monitor trading circumstances on the market. However, that approach is more likely to be successful. Once traders have a solid plan it is logical to follow it and not sip into over-trading pattern.

Decide on a trading budget, select assets, trading options and expiry times and then just follow through with the plan made.

Keep Emotions Under Control

Emotions are integral part of human beings but in financial dealing they might prove to be the enemy rather than an ally.

South Africans who wish to trade binary options do so because they want to make money hence trading becomes a business.

Having fun while trading is great and is an added bonus, but in order to be profitable over-emotional behavior is not welcome.

Short Term and Long Term Trading

At the very start, South African traders might find trading short term option more exciting than long term options.

That trading style might even be profitable but trading long term option is more likely to be a profitable long-term solution.

Additionally, when traders favor long term trading options over-trading is less likely to happen.

By trading long term options it is easier to predict what might happen on the market than when trading 60 second options which might be more fun but it is also more difficult to make a correct prediction.

10 Steps to Becoming a Profitable Binary Options Trader

These 10 steps will help you be a profitable trader.

Binary options trading is easy, right? All you have to do is deposit, pick an option, click “High” or “Low,” invest your money, and submit your trade, right? There are many websites and advertisements which will tell you that becoming a profitably binary options trader is as easy as 1-2-3. While the steps you take to actually input your trades into the binary options broker’s website may indeed be that quick and easy, being able to click your way through a trading interface does not mean you will become a profitable trader. Profitable trader relies on having a good systematic method in place for making consistent trades. It also relies on being able to manage your money intelligently and responsibly, and having the discipline to follow through. Here are 10 steps to becoming a profitable trader—not just a trader who relies on luck and ultimately loses, but one who relies on skill and ultimately wins.

1. Learn everything you can about binary options and trading.

All great journeys in life rely on having a road map, and binary options is no exception. You absolutely must have a strong working knowledge of the markets and how to trade in order to do well in this field. If you have only a casual, passing interest in binary options, you will never become successful over the long run. Researching gets you started on the path to choosing a trading method, which is essential for success.

2. Choose a great broker.

If you have a great trading method and everything else in place for success, but you do not choose a trustworthy broker which offers you the trading features you need to reach your goals, you will not be able to become profitable. Do plenty of research here as well, and be highly selective according to your own criteria.

3. Find a trading method.

You will need to find a way to stack the deck in your favor, in a manner of speaking. There is always going to be an aspect of chance involved in trading, and therefore an aspect of risk. You can never totally eliminate that, but you can learn to control your risk and reduce your chances of losing a trade. How? By looking for patterns in the market, and coming up with a testable method for entering and exiting binary options trades which allows you to avoid losing trades. You’re not totally on your own here; there are tons of free systems out there which you can use to get started. Check out these charting methods to help you.

4. Backtest your trading method.

Once you have found some candidates for trading methods, you need to test them out on historical market data to see how they might have performed in the past. This does not take nearly as much time as demo testing, and thus can actually save you a lot of time (and money). Do this before you demo test or trade live to ensure you are on the right path.

5. Demo test your trading method.

After you find a trading method which performs well on historical data, try test driving your method using a demo account. Demo accounts are available from some of the better binary options brokers, and allow you to place free trades using virtual currency. By doing this, you can make sure your method is working in real time before you put real money on the line. You will encounter plenty of hurdles while testing your trades, both in real time and in backtesting, and those hurdles would cost you money if you simply went live with your trading without testing. Testing thus saves you money, and since time is money, it saves you time as well.

6. Never stop testing and learning.

Even after you start trading profitably with real money, never stop discovering new things about the market and working on perfecting your method. Plus, you will quickly find out that the market is not a static entity; it is an evolving ecosystem, and you and your trading method will have to be flexible enough to evolve with it. Never let yourself become complacent.

7. Live a balanced life.

This may not sound like the most important thing, but it really is critical. If you slack off, you will not make much money trading, but on the other hand, if all you do is work all day, you will eventually burn out. So it is up to you to find a balanced way to conduct your life, balancing trading with work, relationships, and other aspects of your life.

8. Stay healthy.

This is related to living a balanced life, but you would be surprised how many traders overlook its importance. If you do not eat right, exercise, and sleep well, you will have a difficult time having a clear mind. Trading without mental clarity is generally going to result in a lot of avoidable losses. Plus this is the sort of behavior that will eventually cause you to burn out. So take your health seriously. A healthy body and mind lead to a healthy balance in your trading account.

9. Write down your trading plan and come up with realistic goals.

Binary options trading can be a very complex activity, and as such, it pays off to write down your trading plan. This includes all the details of your trading system, a checklist for entering trades (so you do not skip steps on mistake), and also other aspects of trading like your schedule and your mindset. This is a good place to record your trading goals, which should be realistic and meaningful. You also should consider keeping a detailed trading journal so that you can track your past progress and make changes which will help you profit more in the future.

10. Know thyself.

Possibly the single most important aspect of trading is your own psychology. You can be the weakest or strongest link in the trading chain of success. No matter how great your system is, how excellent your banker is, and how much work you put into trading, you will not succeed if you do not have a strong understanding of yourself, your emotions, and your motivations. To do well trading, you have to be consistent, and that means you have to develop self discipline. This can be one of the biggest challenges of trading, but it can also be one of the most rewarding—financially and in general.

Now you should have a better idea of where to get started with binary options trading. If you thought that binary options trading was easy, maybe now you realize it is actually a lot of work if you intend to do well. If on the other hand you were feeling completely overwhelmed and were not sure where to get started, hopefully now you feel like you have some direction and can begin. Good luck and profitable trading!

Is Binary Options Trading Profitable?

The binary options trading and option robot have taken a big leap in the recent times and now has more than 400 binary options brokers and binary options signals offerings. The simplicity of trading and no prior experience requirements makes the binary options trading as one of the most sought after trading avenue. Though it is good to have so many choices, it makes it really difficult for the naïve trader to select the right partner and right binary option robot. What comes to reliable brokers IQ Option is our favorite one and for automated trading software option robot is our recommendation.

The focus of this article is to provide the answer to the subject question along with providing insight into the binary trading.

Is Binary Options Trading Profitable?

The answer to the subject question is the big YES. Yes, the binary options trading is profitable. But it is not as easy as it sounds, the binary options trading requires lots of discipline, strategy, right broker, and above all, a reliable trading partner.

The article provides insights into the binary trading arena starting with the key aspect of scam prevention techniques.

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  • 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.

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    Avoiding The Scams

    The unprecedented growth of binary options trading has also attracted many con-artists, and lately, there has been an onslaught of such scammers to the binary world. They disguise the naïve as well as seasoned professionals with their glib talks and exorbitant offerings in order to take away the hard earned money of the traders. This onslaught has a double whammy on the industry: it disheartens the novice traders to invest into binary options and also, malign the reputation of the binary trading industry. In our experience, we believe that if you scan any brokerage or auto trading site and keep in mind the points discuss hereunder, then it would be a cake walk for you to pick whether the website is genuine or a fake. The following text describes the common characteristics of the con-artists and if you find any of them in any binary broker or signaling service site than just avoid that one.

    Binary Options Trading Profitable

    Characteristic #1 You will make X000 amount in next 24 hours.

    This is one of the most common characteristics of the con artists wherein they try to lure the novice by making an unrealistic guarantee. Any guarantee, indirect or explicit, should raise your eyebrows. We have seen that most of the con-artist offer an amount you can make in 24 hours to one month and sometimes the amount runs into millions of dollars. Though this sounds great, you must not fall for the trap as these are deceiving tactics and if you end up registering for such scammers then you might lose all your account money. In a nutshell. If someone is offering something too good to be true, just ignore it completely.

    Characteristic #2 Difference in the marketing practice and facts.

    This is another common strategy deployed by many of the scam artists. Their marketing talk is differing completely from the actual facts. For example, you might find a website claiming that they have achieved over 90% success ratio in the past two years then you must check when was the website created. There are several domain websites which provide information regarding the actual website creation dates. If you see that the website has been created more recently than what has been claimed in the promotional video, then start thinking that there is something fishy and start evaluating other options.

    Characteristic #3 Opaque brokerage affiliation page

    This characteristic is very common amongst the auto trading software sites. The basics say that an auto trading software cannot trade on its own and requires an affiliation with a binary broker in order to execute the trade. You will find several of auto traders who claims to have an affiliation but when you check thoroughly, you will not find a single legit brokerage name on their website. You would agree that a legit broker will only associate themselves with a genuine software as they would not want to ruin their name in the industry. And hence, whenever you find an opaque affiliation page or an affiliation with a shady name, then start running as con artists have connived to take all your money.

    Characteristic #4 Only a few spots left

    Many of the auto trading websites which are run by conmen, have a common write up or a countdown timer indicating that there are only a few spots left and if you will not sign up right now than you will miss out the opportunity. However, if you check these websites again on the next day or clear your browser’s cache memory and see the website you will find that the timers have reset again. So before committing yourself to any binary auto trading software ensure that you erase the cache memory and check the website again or check after 24 hours, and if you find the same timers with same numbers then you know what to do? Run and run fast.

    So, anytime you find any of the above-mentioned traits then you should completely avoid the website. If you still find it hard to differentiate the scam artists from the genuine ones, then do drop in an e-mail and we will provide you an in-depth analysis of the website in question, as early as possible.

    Investment Basics

    Once you know how to spot the conman in the binary industry, the next step you must understand is that the basics rule. You must remember one thing that there is nothing free in this world and no one has the Midas touch to give you the sure shot success in the binary trading. The binary trading arena doesn’t have a “holy grail” nor it has a perfect software service which can give you 100 percent success rates. Most successful traders exhibit very high discipline and give time to learn the fundamentals and technical aspects of the binary trading. Most of the successful trades are based on in-depth research and analysis.

    So learn and learn again, before you start applying your knowledge to the binary trading.

    Finding The Right Trading Opportunity

    The binary options trading, if done wisely, can generate an extra revenue stream for your even if you are not well versed with the binary trading. This can be possible if you can find the right investing opportunity in the market and take the trade. We know that this is easier said than done, and in reality, it is a mammoth task to find the right investment opportunity. To resolve the problem there is one genuine auto trading software which trades on behalf of you and generates consistent return with the right settings.

    One of the most appealing aspects of the auto trading software is that it can be used by even a novice and can generate consistent returns. You just have to apply certain settings and the rest will be taken care by the software itself. To find the right trading opportunity and the right trading partner is the most difficult task.

    Avoid Scams, Find The Right Opportunity

    Only auto trader in the market which passes our stringent parameters is the Option Robot. The Option Robot allows you to select either the classic, martingale or the Fibonacci system for the trading. You can also select the indicators to take into account while searching for the profitable opportunity. Once you have selected your preferred settings, then the option robot will find the opportunity in the market and will start trading on behalf of you if you have set it on the auto mode. We recommend the Option Robot because it has few of the strongest binary brokers as their affiliates. The long list includes the reputed brokers like 24 Option and StockPair who have been in the business of binary trading for more than 5 years. As mentioned earlier, your trading system is as reliable as your binary broker and your signaling service provider. The Option Robot website does not have any exorbitant offerings nor it has a sales pitch different from facts nor it shows the timers of few spots left.

    The Option Robot has been consistent in delivering successful opportunities to their customers for several years now. You can also check our article on “2020 guide and strategy” along with the “Binary Options Forex Trading” to get a better idea of setting the Options Robot for a most productive use.

    Prudent Trading Strategies

    This is one of the most important aspects of the binary trading which is ignored by the most traders. Even if you have best of the brokers and right signaling tools, you will not be able to have winnings if you are not using the right strategies. These strategies range from applying risk management tools to which asset to trade, from selecting the investment amount per trade to understanding the characteristics of the underlying.

    Light in The End of a Tunnel When You Believe in Yourself

    To learn the prudent trading strategies, you will have to devote time and energy to learn and educate yourself, but those of you who have already made the Option Robot as their trading partner, for them we have an article on selecting the right currency pair specific to the trading hour in the article named “Binary Options Forex Trading” and another article on selecting the right attributes to generate more profitable trades in the article named “Best Option Robot 2020, Guide & Strategies”.


    In nutshell, yes the binary options trading can generate a revenue stream for you if you are able to distinguish between the real and fake. If you know the basics and have a right trading partner, then the life will be easier. We recommend to use the Option Robot as your trading partner as it doesn’t have exorbitant guarantees, nor it uses tricks to attract the investors. Also, the Option Robot’s partner list includes the famous brokerage houses like 24 Option & StockPair.

    Once, you have selected the Option Robot as your partner, you have to apply prudent strategies to make it more profitable for you. We also have articles on selecting the trading asset to optimal customization strategies. The current article along with the above-mentioned article will definitely help you in making money from the binary options trading.

    Continue to trusted Binary Option Bot site by clicking on the button below!

    Best Binary Options Brokers 2020:
    • Binarium

      Best Binary Options Broker!
      Perfect Choice For Beginners and Middle-Level Traders!
      Free Demo Account! Free Education!

    • Binomo

      Honest broker!

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