Trading binaries can be a challenge, even when you understand how much potential they represent. One reason people often struggle with these trades is because of how many binary options myths are out there. Here’s a look at four of the most common ones you’ll want to be aware of.
Bonuses Go Hand-in-Hand with Trading
Just about every broker out there offers some type of bonus for signing up with them. To some degree, this is to be expected. It’s a cutthroat market at the moment, so every broker out there is doing their best to outsell their competitors. Maybe someday this will slow down a bit, but it’s not going to be any time soon.
Accepting a bonus isn’t a big deal, but it cannot be allowed to cloud your vision. Never pick a broker solely because of the bonuses they offer. In fact, you should ignore the bonuses altogether. Look for brokers with experience, solid reputations, good software and who are the right fit for where you are right now in your binary options trading journey.
Above all, never keep your money tied up with a broker because they’re giving you bonuses to do so. There is a long list of traders who have lost their shirts because they didn’t withdraw any money—to ensure they received attractive bonuses—and eventually it was too late.
Experience in the Stock Market Carries Over
Of all the binary options myths, this one may be one of the hardest for people to accept. Being a successful trader on the stock market can definitely help you succeed when you try your hand at binaries.
Every good investor knows that before you take on a new investment, you need to weigh your options carefully. It isn’t enough to just do good research on the market. You really need to make an active decision about whether the foreign exchange market for currency is right for you. To help you make that decision, consider these important points.