New York, NY (PRWEB) October 17, 2013
Whether it's establishing new fitness and health habits or trading in binary options, people benefit from identifying barriers to success which can waste their time, money and effort. While traders should be wary about getting into a binary options scam, often, the most lethal threats are those that come from within.
In a new infographic posted on its blog, The Binary Options Experts lists down obstacles traders commonly face in trading binary options.
One of the first obstacles binary options traders face is their inability to utilize their chosen binary options trading system to their advantage.
"A simple system that gives you 51 winners versus 49 losers from every hundred will make you money if you know how to manage it correctly, but there is an element of trust needed," Duane Cunningham, Vice President for Global Operations of The Binary Options Experts, explains.
He adds that it is crucial for traders to ask questions like how big the gains are versus losses and how big the draw down is. Once these questions are satisfactorily answered, a level of trust is established between the trader and his chosen system.
Another common mistake traders often make is their inability to stick to their plan. The infographic points out that sticking to a plan enables traders to reach their goals despite the presence of temptations that entice them to take a different route.
Another typical mistake made by traders is trading heavily on a single position. When a trader loses a large percentage of his trading account, he does not merely lose money. More importantly, he creates psychological barriers to success. Cunningham advises traders to take their losses in stride and wait for better trades in the following days.
Many binary options traders also put too much focus on profit. It is not uncommon to see traders focus on the money that they earned or lost instead of thinking in terms of percentages. In turn, this can make traders more emotional in their approach, which defeats the use of strategies.
"Thinking 'I lost 20 points on that trade' rather than 'I lost $200 on that trade' will also help you stay out of the market's emotional games," Cunningham suggests.
Finally, many traders simply do not learn from their mistakes in trading binary options. Review of some traders’ habits show them repeatedly falling for these pitfalls. Cunningham points out that the rationale behind this is that traders simply overtrade which will ultimately lead to losses and mental burnout. According to him, this is why it is crucial to trade and, at the same time, engage in other activities.
"Never forget what you are doing this for. You are doing this to give yourself a better life and more money. Enjoy it. Take some time to live your life and don't get caught up in the trap of being addicted to the markets," Cunningham advises traders.