Trading, like most activities or hobbies, can be done in many different ways. Each trader has his or her own style. In many cases, there is no good or bad. However, there are some bad trading habits you don’t want to have. Below are 5 types of traders you don’t want to be. Can you recognize yourself in one of these trader types? Then you need to change your style immediately.
You would be surprised how many traders out there are just gambling. You can tell by their not-so-fantastic account balance that they are just clicking red or green. If that’s what you’re doing, binary options aren’t safe for you. A casino has better odds for you, probably.
Much like the Gambler, the Clueless has no idea what he or she is doing. The big difference, however, is that the Clueless actually wants to learn how to start trading binary options. He or she just doesn’t know where to start and usually starts by heading in the wrong direction. If only there was a Binary Options How-To Guide…
Also closely related to one of the above-mentioned trader types (the Clueless, to be exact), the Misinformed is the type of trader that heads in the wrong direction. Contrary to the Clueless, the Misinformed actually thinks this direction is the right direction. The Misinformed gets advice from untrustworthy news sources or maybe an uncle at a party who says he has a great inside tip. Watch out for information. Always check the source!
The Big Spending Beginner
We have written countless articles on how to establish the right budget when you start trading, so you should know how much money you can invest per trade. Trading only beats saving money if you have the right money management strategy. So always start out small, as you can read in our tips for binary options newbies.
The Emotional Trader
Emotions can lead to bad decisions. This is a rule of thumb in life in general, but maybe even more in trading. Leave emotions at the door, because they can cloud the mind of even the best traders with the most knowledge. Emotions are the trader’s worst enemy, and therefore you should not trade when you’re emotional.