If you have an account of $1,000 and you are an experienced trader, you will have a maximum of $50 in the market at any one point in time. Remember, patience and compounding are how you will grow your account to bigger profits, not over-trading.
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New York, New York (PRWEB) November 06, 2012
Leading consultancy firm for global traders The Binary Options Experts recently unveiled straightforward recommendations for beginner and experienced traders who are looking to minimize their losses in binary options trading. The company asserts that while the relatively new form of trading promises high returns, there are still risks involved as with any type of trading. The consultancy firm writes in its most recent post, “It is possible to lose some or all of your money very quickly, particularly if you are emotional and succumb to greed or revenge trading. Therefore risk management is something you should take very seriously, and have in place before you begin to trade.”
To avoid losing money on trades, The Binary Options Experts proposes that only 1 percent of the trader’s account size should be placed in the market for beginner traders in comparison to the 5 percent risk that professional traders take on. This basically synchs with chapter two of the best-selling book “Binary Options Profit Pipeline: Unleash the Power of Binary Options” written by VP of Global Operations Duane Cunningham, wherein traders are reminded to not trade with money that one can’t afford to lose.
While the book delves deeper into the psychological impact of over extending a trade, the newest post on the company’s blog simplifies the importance of implementing the minimal risk rule. The Experts state, “If you have an account of $1,000 and you are an experienced trader, you will have a maximum of $50 in the market at any one point in time. Remember, patience and compounding are how you will grow your account to bigger profits, not over-trading.”
The Binary Options Experts also recommends dividing risks into two by taking on two trades that will split a payout. The New York-based consultancy firm says that doing this will essentially guard a trading account against considerable losses from a single trade. The company adds, “Imagine if you had a $5,000 account and decided to attempt a $2,000 payout. That is an investment of $1,000 into one single trade. If that trade is a loss, you have just lost 20 percent of your account — in as little as 15 minutes!”
Binary options trading has been an attractive trading opportunity for a lot of people primarily because the risks and rewards are known before venturing into the market. The goal of the Binary Options Experts is to enable traders around the globe to turn up the rewards and control the risks by producing informative content on its blog and coming up with more comprehensive and instructive training and in depth personal mentoring on binary options like “Binary Options Profit Pipeline.”
“There will always be times when you make bad trade calls. It happens to everyone,” remarks The Binary Options Experts, “even Warren Buffett lost millions in October 2008. At the end of the day though, what separates those who bounce back from their losses, is their ability to control risk.”
To know more about financial trading using digital options and acquire expert assistance, get in touch with The Binary Options Experts today.