The statistics of binary trading are the same as in forex. 95% of traders lose their money in the first days. Some of them leave financial trading immediately, some a little later. However, there are only a few who earn and become financial sharks.All novice traders are interested in the question, why do many lose their money on binary trading? The statistics of effective forex traders are the same as in the binary options market. This says a lot for those who want to make financial trading an important part of their lives.
To understand why some traders earn and others lose everything, we conducted a survey of our subscribers.
Below are the results of the survey, using which we made conclusions.
Our findings will help you, the trader, improve your results and maybe start earning.
Where did you learn about binary options trading?
- From a friend 582
- From advertising on the Internet 4821
How did you learn binary trading?
- Offline courses 753
- Independently 1342
- Training with a 3765 broker representative
How much have you practiced trading on a demo account
- up to 1 month 3428
- 1-2 months 524
- more than 3 165
How much did you start trading with?
- up to 500$ 3981
- more than 500$ 814
How many brokers have you traded with
- 1 1563
- 2 to 5,954
- more than 5 2743
Are You Using a Binary Options Strategy
- Yes 4583
- No 392
Do you take into account risk management?
- Yes 1832
- No 2674
Do you make a plan for future bidding?
- Yes 374
- No 3862
Do you make money from binary trading?
- Yes 394
- No 3647
Now let’s take a look at the data that we have received and conclude: Why do traders lose their money in binary trading?
Where did you learn about binary options trading?
As we can see, the bulk of traders came to binary options trading after seeing advertisements on the Internet. Shoveling a lot of pages, almost all advertising says that making money with binary options is easy and knowledge is not required to make money.
Starting trading, traders immediately get the impression that they will be able to earn without much effort and without knowledge.
Such deceptive advertisements are everywhere on the Internet. People without knowledge want to make money on the Internet in the financial markets. However, many such promises are simply scams
How did you learn binary trading?
Pay attention to the fact that the bulk of traders are engaged with representatives of brokers. The main goal of these managers at brokers is to get a person to trade, make a deposit and trade. Therefore, they give minimal information, and most of the time they claim that this is enough to start earning.
Brokers send very primitive trading books to get traders to start trading. It’s not a scam, unfortunately.
Brokers offer their training. However, the broker’s managers always ask to increase the deposit and if you lose money, they do not provide the necessary service and support.
How much have you practiced trading on a demo account
These results did not surprise us at all. Since if you are trained by a broker, then the pressure to switch to trading on a real account is very high. Therefore, the number of people who train on a demo account is very low. Getting a demo account is possible not for many brokers. Some ask you to make a deposit before you open a demo account. As statistics show, only not many people train before starting trading with real money.
If a trader is just starting to trade binary options, he cannot immediately test the strategy, draw conclusions and adapt it for himself.
How much did you start trading with?
Traders start trading with minimal amounts. They are very small, and it is almost impossible to comply with risk management. This is often because broker managers ask traders to make at least some kind of deposit, just to start trading. And in order to impose a bonus on them. Which binds an inexperienced trader to a broker. After losing money, the trader is asked to make a deposit again.For some reason, people willingly believe that you can learn and start earning with $ 10 (there are brokers offering to start trading with such an amount). Of course, there are those who are trying to start earning capital with $ 250.
You have to be very naïve to believe that you can start earning with 250 rubles ($ 3 -$ 5).
How many brokers have you traded with
After studying these data, we can come to the conclusion that traders, after losing money, instead of working on mistakes or changing their strategy, change the broker. And, of course, blaming everyone for their failures and losses.
Reading reviews about brokers on our website, we saw that they mainly complain about managers who fraudulently promise to teach how to trade. After losing the deposit, these broker managers are asked to increase the deposit or will not deal with you.
It is necessary to choose the right and honest brokers. Traders are not looking for training, but for an easy way to make money. This is not possible. It is necessary to learn, study and develop all the time. There is no need to look for the guilty, but it is necessary to work on the mistakes.
Are You Using a Binary Options Strategy
Here we are a little confused. After all, traders who trade according to the strategy should earn. But how can you choose and choose a strategy for trading binary options in less than a month of training and testing on a demo account. However, it must be remembered that in binary trading, a strategy is a complete plan for conducting transactions. Studying and testing the strategy on a demo account should show what result to expect. If a trader loses money while trading a strategy on a real account, it means that he is not using the strategy correctly.
Do you take into account risk management?
The minimum amounts with which most open accounts do not allow traders to use risk management rules.
At the first steps, the trader should be inspired that in order to earn money, he does not need to strain. No effort, as the Alpari advertisement says.
Do you make a plan for future bidding?
These numbers show that traders, or those who consider themselves binary options traders, simply sit down at the computer and trade when they have time. They don’t take trading seriously. They follow the dream from advertising about quick and easy money.
Do you make money from binary trading?
Our opinion is that here the numbers should be different, and that they earn no more than a couple of dozen.
However, there is nothing surprising in this. We see that the bulk of people who start trading binary options lose their money.
Let’s conclude:
Inexperienced people on the Internet see ads about easy money. To do this, you only need to make a minimum deposit of about $ 250-$ 300, and you will be taught everything. They get basic, explanations about the market and trading from the manager (broker) and eventually lose their money.
After that, they blame the broker, and move on to another binary options broker, where history repeats itself: minimum deposit, promises and disappointment.
We certainly don’t rule out binary options scams that lure people into making a deposit and then send them fake signals until they lose their money.
Inference:
Based on the data obtained. It can be seen that binary options traders who are losing their money have fallen into a mousetrap. The promise of easy money and the ease of getting easy money leads them to losses. You can blame everyone around you. However, the main culprit is the trader himself.
Why? The answer is very simple: “How can you believe that you can make money in the financial market without training and knowledge,” this naivety of a couple is really deadly.
Therefore, not taking people seriously about trading binary options leads them to lose all their money.
To start earning, you need to learn, train and develop. Plan every step and make trading a job. A serious attitude and understanding of the financial market is the only way to success.
