Any type of financial or investment service carries a high risk. Losses are possible. So, it never depends on the platform. It’s okay if it happens. The fear of embarrassment prevents people from sharing their personal stories publicly.
I received an email from a trader who told me how he wiped out his Binary.com account.
Below is the story.
A Story Of How A Trader Wiped Out His Binary.Com Account
The trader sent me two screenshots in his email. He appeared to have lost $4,000 in less than 12 hours. Unfortunately, in five subsequent 1-minute trades, he only won one.
That much money was lost in such a short period of time naturally makes you feel bad or sad. When I told some traders the story, they were surprised at how it could have happened.
Analyzing the history of the transactions will enable a professional trader to determine the reason. Fortunately, I would like to warn you about a few disastrous mistakes.
Why We Choose Binary.com Platform?
Binary.com is clearly a genuine trading broker that allows traders to enjoy a good trading environment. Your money will be in safe hands. So, you don’t need to worry about that.
In the binary.com review, you will get everything that you need to know before opening an account. The regulated broker has various features. Read and understand what is inside that review.
Critical Mistakes That May Quickly Destroy Your Account
Below are the reasons why traders could lose half of their money without being notified.
- Putting A Large Amount Of Money On A Single Trade
Investing a large sum of money in one trade
Most of the time, you can predict what is going to happen next. Some call it luck; others call it the sixth sense. Even if the name didn’t matter, you trusted your feelings and invested a considerable amount of your account balance in the next trade.
Such behavior is extremely dangerous. Your failure is substantial if the trade fails. Making a single trade that consumes a large part of your account. In fact, the email trader did exactly that. He lost more than a quarter of his initial investment in the first trade.
Your account balance will almost certainly be drained if you repeat this mistake. We nearly experienced it ourselves. He invested one-third of the remaining funds in the second trade. Fortunately, it ended in a neutral outcome.
Investments made in a single trade are caused by greed. Everyone wants easy money, and nobody wants to wait. Getting richer and faster is the goal. Don’t succumb to impulses. Develop an effective capital management strategy. It usually involves a risk of no more than 2% of one’s capital.
- Trading in the opposite direction to the trend
Trading against the trend is another fatal mistake to avoid. The movement determines price direction. But, what is the point of trading against it?
Your account may be wiped out. How can it be interpreted?
The trend is upward. A trader could attempt a countertrend transaction in hopes of seeing the market reverse. The market is clearly going down even without a trend line being drawn. Corrections are unavoidable, of course. These moves could indicate trend reversals. However, real reversals can take time. As a result, you may lose a series of trades and drain your trading account if you fight the current trend.
The same price range for two identical transactions. Anger drives this kind of error. Suppose you placed a trade at a certain price. The market moved in the opposite direction, and you lost money. Whatever the case may be, you have the feeling that the market is wrong, not you, so you need to prove yourself. You place the same order, and again you lose.
The market doesn’t care about how you feel. Anyone can make money on it. You decide whether you want to take advantage or not.
Be careful not to overexpose yourself.
- Counting Each Words As A Tips
To become a professional trader, one should follow some steps without any second thought. But there is no risk to design your own tricks. The problem begins when someone thinks the tips are the Holy Grail. Most of them are good, but they are given at the wrong time to profit. Consequently, traders wipe out their accounts.
Keep in mind! Many successful traders will tell you that trading is a holy grail. But the truth is you cannot become rich by magic. In order to be successful in trading, you need to protect your money and increase the number of profitable trades.
To achieve success, it’s necessary to follow a successful money management strategy, control your emotions, and know when and where to invest. Everyone experiences losses. No one can predict the market direction with 100% accuracy. However, if you follow a good strategy and protect your account balance in the first place, the losses are not massive.
Success is hindered by fear. Being afraid leads to insecurity and uncertainty about your actions. However, although they have the information to enter a profitable trade, they are still hoping for some sort of magic tip from a trading guru.
The market reversed while they were waiting for a tip, so they entered too late. Although the so-called guru did not lose anything, the person who trusted him did. That’s why you may want to take responsibility for yourself. Design and implement a trading plan for yourself.
- Limiting the timeframe too much
While trading financial derivatives, Binary.com offers an attractive feature. It is possible to choose a very short timeframe. This means that you can earn good money in no time at all. You must, however, remain calm. When you trade within a short timeframe, you have a chance to profit quickly.
Alternatively, you may not have enough time to think rationally before you begin a trading position.
I am not saying that trading 1-minute positions is bad. You might even do better than in a longer time frame. You may lose if you don’t have time to think your moves over.
That’s all I wanted to tell you about this subject. Don’t be embarrassed by your mistakes. You can learn from them. Perhaps someone else can too.
Try Binary.com’s free demo account before investing real money.
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