We want to explain an important strategy for minimizing the risk of losing money while trading. These following steps are extremely important to make sure your trading experience is not only profitable but free of pain and suffering. The worst case scenario that every trader must take into account is the possibility that you will not only fail to make money while trading, but you might lose your entire balance, including your initial investment.
The market is rocky and as any experienced trader will tell you, there are great days, regular days, and really bad days. If you choose to continue in binary options you can and will experience all three of these types of days, some more than others. There is absolutely no system or service that can protect you from losing money in binary options. It is inevitable. It will happen. You will lose money.
That sadness out of the way, it is very possible to make a good profit off of trading as well. In this post, we’d like to lay out two very important rules we recommend to all traders to cushion your inevitable good and bad days.
1. Always, always, always, pick a service or software that is not a scam. That’s easier said then done. Unfortunately, this industry has a greater percentage of scams then it does legitimate services. This means that while you are shopping around for a service, you’ll run into scams more often then a legitimate service.
**Assume that most softwares and signal providers are either scams or will make you lose some or all of your deposit. Be very critical and careful!
With that in mind, do your research and go into each software or signal service with your eyes wide open. Before you commit to a service, talk to their customer support personally. Don’t rely on fake generated emails. If they won’t answer your calls or your emails before you sign up, they will surely abandon you after you sign up and lose your money. Check to see if these services have social media accounts or social media groups that allow comments. This is always a good sign!
2. When trading, withdraw your initial investment as soon as you can! We can’t stress how important this is!! We also can’t tell you how many times we started a trading account with $250, grew it up to $1000, and then the following day lost most of the profits, and sometimes the entire balance.
The sad truth is that many traders will have some initial successes followed by a huge ego boost, which leads them to increase the size of their trades and go for a huge profit. If this happens to you, pause and stop! Don’t let emotion carry you away! We strongly, strongly recommend that you begin withdrawing your profits until you have actually removed your initial investment. This way, even if you end up losing all your money over the next few days, you will have not lost your out of pocket money.
If you start with $250, wait until you reach an account balance of about $500 and then immediately withdraw $250. Put this $250 away and congratulate yourself. No matter what you do after this point, you have not lost any money out of pocket. If you fund your account with a larger amount, such as $1000, we recommend that you begin making small withdrawals of $100 or $250 from your profits, until you have taken out that initial $1000.
If you follow these easy and important steps, you can rest assured that you have a greater chance of success in binary options.
Be smart! Be safe! Be your own advocate! Do you research! Remove your investment money as soon as you can!
Please share any tips you have learned or experiences that might help others reading this post! Thanks for reading and take care!