1. Choosing Short Expiry Times
Many beginners are lured into the super short expiry times of 60 seconds or less. Don’t do it! You may get a faster outcome, but that outcome is also much more likely to be a losing outcome. If you are trying to make strategy and analysis based predictions (rather than gambling bets) then expiry times of at least 15 minutes are advised.
2. What You Don’t Know About Bonuses
Many brokers will offer bonuses when you deposit cash with them. Some of these bonuses can be as high as 100%. However, many people fail to read the terms and conditions.
That leads to stories where people deposit some money, make some trades and make profits, but cannot access their money! That’s because the rules regarding bonuses are designed to protect brokers, not traders.
For instance, some brokers will require that “bonus” funds are traded 20 – 30 times the value of the first bonus before you can withdraw it. Some even stricter brokers will require that all of these trades must be made within a specified time frame, such as 3 months. As you can see, it is very difficult to meet these rules, so be very careful about being attracted to a broker just because of attractive bonuses!
3. Brokers Profits
Don’t fall into the trap of blaming brokers for your trading losses. For every losing trade there is a winning one. While there are some dishonest options brokers, many are honest and legitimate businesses.
The key is finding a good one who is accredited, has a good history and strong reviews from its clients. A good place to start is one of our TOP options brokers.
A key risk of choosing an expiry time that is too short is:
Bonus funds offered by some online brokers can be a trap because:
A key thing to look for when searching for a reputable broker is:
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