Category Archives: Investing

Why Do We Lose a Trade After Winning One?

Sometimes when you make a good trade, it would change the perspective of yourself. You might start thinking that your trading performance is changing. “My level of trading is increasing” this thought can roam around in your head. And with excitement, you might keep on trading with opening another one after the one you have won. This time you might be looking for another good hit as you have followed the same strategy as the last (winning) one. Surprisingly, this trade could come out being a loss project. You can even lose the whole profit won from the last trade of yours. This happens to traders most of the time. Today we are going to show you some reason behind this kind of phenomenon of the traders.

Feeling too excited for winning

Like we said in the intro, you must get excited when you win a trade. Why wouldn’t you, it is a human nature to get happy with wins. When you do so, there is a chemical in your brain that will be injected. That is called ‘dopamine’ and it helps to cool down the adrenalin created by happiness in your brain. Another thing it does is, slows down your brain’s functioning power. In that situation when you are happy, the brain does not work properly. Most importantly, thinking power stays irrelevant at that time. And when you open a trade being happy or excited, there must be poor planning for it and you must position it at a bad time. As a result, your trade will become a loss.

Ignoring your weakness

Do you really know your weakness as Forex trader? Majority of the UK traders start trading without having enough knowledge about this market. They simply use the market leverage to earn huge money within a short period of time. But this not the proper way to master the art of currency trading. You have to start with the demo trading account as it will offer you the perfect environment to develop your skills. Some of you might get bored with demo trading environment but this is just a part of your training. You must have a high level of patience or else it will be very hard to overcome your emotions after losing real money in the Forex market. It’s highly recommended, you demo trade for at least six months as it will help you to identify your key weakness. Once you know your weakness, you can easily develop yourself as a currency trader.

Getting frustrated with a loss

Besides being happy or excited about winning, there is another thing that bothers the traders. That is called losing and you might have heard about this word. If you are a novice in this business, that word would be your closest friend. And when you lose, multiple things appear in your head. They have really strong names like frustration, regrets, anger etc. and they have stronger forces on your brain too. They bother your head from being efficient. And most traders fall for the trap too. They think about what they have lost in the last time they have traded and forget about getting good for the next one. And when you trade without planning about new trades, the next one will be a disaster too.

Frequent trading problem

Frequent trading mostly comes from the emotional dilemmas we talked about in the last segment. When you are thinking about the loss you have made from a trade, your brain will only think how to recover from this loss. It will not try to make an effective plan for your trades. And when you are trading too frequently, there will be no proper time for thinking about your trades either. As a result, the trade you are going to execute will not be a proper one to win either. And you might lose it for the lack in planning too.

Watch These Rising Solar Energy Company Stocks

We’re all worried about global warming and ozone depletion. It’s melting the ice caps, which risks sinking island nations – maybe even some Aussie beach towns. It exposes us to higher levels of skin cancer and generally messes with life on earth as we know it. One of the major ways to slow the tide is by ditching fossil fuels in favour of renewable energy. Alternative energy sources include wind, water, biogas, and steam.

Ironically, solar power is a popular choice, so we’re benefiting from the increased sunlight in a roundabout way. In the past, solar energy was expensive and impractical, but solar panels are getting cheaper and cheaper, and companies all over the world are investing in the sun. India just opened the world’s largest solar park in Karnataka, spanning 13,000 acres. From an investment perspective, this makes solar power companies a sure bet, so let’s look into some of the top contenders around the globe.

Atlantica Yield PLC

This UK-based company is a powerhouse in solar energy, but they also have investments in water energy, natural gas, and wind farms. Their operating income has been steadily expanding, and their stock price has continued its solid gains four years in a row. Its energy assets are spread across the USA, South Africa, Algeria, Spain, Uruguay, Peru, Mexico, and Chile, giving it on-ground representation in four continents.

If you’re a long-time investor, you might know the company by its former name, Abengoa Yield. Atlantica was strengthened earlier this year when Algonquin – the Canadian power and utility company – acquired a 25% stake, injecting capital and stretching ABY’s influence in North America. Algonquin is now ABY’s largest shareholder.

First Solar Inc. (FSLR)

In a strange – or perhaps intended twist, this American solar company could benefit from Trump’s time in office. The US President’s tariffs on solar panel imports from China have largely been seen as a bad move. It hurts China and could raise production costs for companies that use Chinese components. However, FSLR uses thinner cadmium-telluride panelling, so they could be positioned as an alternative to the now pricy Chinese panels.

This allows them easy access to the market with hardly any competition. The company’s stocks didn’t do too well in 2016, but throughout 2017 their fortunes improved with a 20% rise in October and another 13% in December. By last month, shares were trading at close to $70, making it serious eye-candy for any overseas stock broker.

Sunpower Corporation (SPWR)

2016 was a harsh year for SPWR. They lost nearly 70% of their share value. For any other solar company, this would have raised a bankruptcy scare. Fortunately, SPWR is shored by traditional fuel, thanks to its 66% ownership by Total S.A, a company with firm footing in the petroleum industry. In solidarity, Total bought solar panels for the 5,000 petrol stations that it owns, marking a boost in Sunpower sales.

The company’s strategic decisions are looking good for share price too. In response to Trump’s tariffs, SPWR invested in Congenra Solar’s technology wing, to develop vast improvements in solar panelling, especially related to scale and efficiency. It also agreed to fully acquire SolarWorld technologies, a home-grown US manufacturer of solar panels. This April 2018 agreement completely by-passes the China tariff problem.

Vivint Solar Inc. (VSLR)

The company had a wild ride in 2017. January saw a 200% rise in revenue from 2016, and in June, prices doubled, but the gains were eventually lost. Still, the third quarter saw a profitable turn, based partly on a change in strategy. VSLR switched up its business model, allowing consumers to buy in cash or make purchases on a loan basis.

Two years ago, the company ceased operations in Nevada. However, the state passed new laws to make the most of renewable energy by allowing solar power companies to sell their excess to electricity companies. This had the dual effect of offering a new revenue stream and gathering consumer interest in solar power, allowing VSLR to resume Nevada operations.

Jinko Solar (JKS)

We’ve been looking at the effect of the solar panel tariffs in the US. Now let’s see what they’re doing to China. JKS CEO – Kangping Chen – downplays the impact. He says his selling prices in the US are stabilising. In 2016, one watt of solar power sold at 30 to 31 cents at the start of the year, and had risen to 25 cents by year’s end. In 2017, prices hovered between 37 and 39 cents. A 10% to 15% drop was expected.

Mr. Kangping did note that PERC cells were gaining popularity because they were more efficient, but they cost more. At home in China, a June reduction in solar subsidies was expected to reduce demand slightly, but in the first half of 2017, sales went from 6.656 gigawatts to 9 gigawatts. Similarly, Canadian solar company CSIQ says China accounts for over40% of its sales, so the solar market is definitely active.

Secrets of Offshoring: Trade Success Stories

Offshore investing may be deemed as deposits or investments held in jurisdictions other than that of one’s residence. Such investments may be considerably more complicated than local investments due to a number of factors as highlighted below:

Forex risk

This is the risk attributable to the variation in exchange rates in currencies. One’s foreign-denominated assets may enjoy capital gains but may result in losses when those prices are converted back to the domestic currency.

Information asymmetry on the part of the investor

This simply means that you, as a resident in your domestic country, may not know what exactly is going on in another country (in which you have acquired assets) and as such cannot make appropriate investment decisions with regards to these foreign countries.

While these two factors make it significantly riskier to engage in offshore trading activities, offshore investing has some inherent benefits that may make it very well worth investing. Furthermore, analysts predict the Australian to appreciate against the UK dollar making offshore investments even more attractive.

But the question remains, are there any documented successes of offshore share trading? Yes! Many investors have benefited from offshore investing specifically from investing in offshore investment funds.

We outline 5 of the best performing funds in regard to their 5–year returns:

Old Mutual UK Smaller Companies Focus Fund – 183.3 % return

This fund is a portfolio of UK smaller companies within the exchange. Primarily supervised by fund manager Nick Williamson, the fund aims at providing capital growth for its investors. Smaller companies are deemed to be any firms with a market capitalisation no greater than that of the largest company in the Numis Smaller Companies index at the time of initial investment. This return, over a period of 3 years, is quite impressive considering the efficiency of the UK markets. Furthermore, the fund has a return of 108.9% over the first 3 – year period. The recent conducive environment in 2017 in Britain saw companies enjoy better business leading to higher share prices.

Atlantis Japan Opportunities USD – 159.25% return

The Atlantis Japan Opportunities Fund consists of equities and equity – related instruments issued by listed companies in Japan. The fund is managed by Taeko Setaishi aims at providing long – term growth to their investors. This fund doesn’t have any restrictions on market capitalisation of the equities and has shown a consistent average return of 40% for the last 5 years. Considering the fact that the fund is invested fully in equities (an asset class that is characterized by higher volatility than other investment classes and thus riskier), a consistent return indicates immense discipline on the part of the manager.

Dragon Vietnam Equity Fund – 146% return

The Vietnam Equity Fund invests in a portfolio comprised primarily of equities of companies listed in Vietnam or with significant exposure to Vietnam. The portfolio also consists of debt securities to reduce the risk exposure resulting from the equities and provide regular income to investors. The fund is managed by Quynh Le Yen and doesn’t have any restrictions on market capitalisation.

Lindsell Train Japanese Equity B Sterling Fund

This fund is invested in a portfolio comprised of equities listed in Japanese stock markets. The fund is benchmarked against the TOPIX and has the goal of long – term growth of shareholder’s capital.

Polar Capital UK Absolute Equity Fund – 99.98% return

The Polar Capital UK Equity Fund invests in a portfolio comprised primarily of equities listed within the UK and to a lesser degree in European as well as global equities. The fund is managed by Guy Rushton and does not have any restrictions on capitalisation.

Bottom Line

Offshore investing presents more risks than investing in domestically available assets. However, as shown above offshore funds present massive opportunities for investors. Any investor looking to grow their portfolio should consider investing in an offshore fund.

Four Amazing Tips to Reduce the Number of Losing Trades

Losing trades are inevitable in Forex trading. There is nothing you can do to avoid the losing trades. But the pro traders in the United Kingdom uses some amazing techniques to avoid losing trades. It’s not like that they never face any losing trades but it’s all about the percentage of their losing trades. Most of the successful UK traders have more than 70% winning rate in the Forex market. So how do you achieve such a dramatic number in your trading performance? Some retail traders might say they will buy the expert traders trading system but this won’t help them. You have to follow some unique steps to limit your losing trades. But things are not so easy. You have devotedly followed these steps to master the art of trading. Today we will give you four amazing tips which will help you to avoid losing trades in the Forex market.

Follow the footstep of the pro trader

You need a lot to learn from the pro-UK traders. Most of the novice traders trade this market with false confidence and loses a significant portion of their investment. If you truly want to reduce the number of losing trades you need to assess the performance of the successful trader. If you do so, you will be surprised to see none of them are over trading the market. To be precise they hardly place a trade. There is saying in the Forex market, the pro traders do nothing 99% of the time. So if you can do nothing 99% of the time, chances are very high you will execute the quality trades only. Being an active trader you should never take the excessive risk even though you are convened with a certain trade setup.

Use low leverage

Leverage is like a double edge sword. Most of the novice traders consider it as a blessing but they don’t work had to learn its perfect use. But the pro traders always assess the risk factors by seeing the setup in their trading platform. They never take a huge risk in any trade even though every condition for that trade setup is going in favor them. The outcome of each trade is totally random in nature and there is nothing you can do. We all know the novice traders are very emotional. They place big lot size to recover their trading loss. This is where low leverage comes into action. If you trade this market with low leverage you will not be able to trade with a big lot. So limiting your lot size will force to take a low risk which is very crucial for your trading success.

Trade with the market trend

Do you really want to reduce the number of losing trades? If so, make sure you always placing trades in favor of the long-term market trend. Most of the novice traders always try to pick the top and bottom of the currency pairs. But such trading strategy is extremely risky and most of the time it ends up with a huge loss. Even if you follow the simple trend line trading system with proper risk management, you can easily make a huge amount of profit in every month. Just follow the market trend and ignore the reversal trading signals.

Take break from your trading career

We are a human being and we can’t work all day long. The intermediate traders often forget to take a break from their career. You might be making a huge amount of money yet you should take a break on regular basis. Spend some quality times with your family member. You need to stay stress-free or else it will be really hard for you to live a life based on currency trading. The moment you understand losing trades are inevitable is the very moment you stop taking excessive risk. And if you don’t take a break on regular basis you forget this simple fact of probability.

The Important Points on Derivatives in Financial Markets

As you are already aware of the definition of derivatives you need not focus on the definition once again rather let us check out the more details. There are many types of derivatives traded by the traders in the United Kingdom and they are pro at it. If you also want to become a pro trader like them you should make sure to focus on the complete picture of the derivative.  We will particularly detail out about a derivative which must be taken into consideration.  There are many traders in the financial market who prefer to trade this particular derivative because the benefits obtained are invaluable. The advantages obtained from the ETFs are such as tax efficiency, diversification, low expenses and much more. If you are new to the market you would have a hard time in understanding what the market is and you will struggle to profit from the market. If you are not making profits at the beginning you should not give up instead keep trying. The one who tries gets the best so you should try to make profits from the market. Thus, let us improve the knowledge by reading the article.

Being a new trader in the financial world you have a lot to learn about the structure of the market. If you don’t give yourself enough time in educating yourself then you are not going to become a successful trader. Trading is just like running a business against the most competitive competitors. You must have a valid trading system to make a profit on a regular basis. It’s true that at times you will face losing trades but this is absolutely fine. Learn the technical and fundamental analysis very precisely and try to develop your own trading system. Never trade the market based on other people opinion. No one knows about the future price movement so belief in rational logic. If you want to shortcut way to make money in Forex then you are not the right fit for this industry.

The feature of standardization

The best feature of the ETF derivatives can be considered as standardization. It is very difficult to come to an agreement because the needs of the buyer and the needs of the seller contradict. But when you consider the exchange traded funds they are not like other derivatives because they are standardized. Each contact has an expiry trade so the difficulties become less. However, most of the investors and traders are attracted to this particular derivative because of many reasons. The liquidity management involved in this particular fund makes it worth considering. The growth of this particular fund has increased immensely because the traders who are interested in the ETFs are increasing day by day. You will be able to manage your portfolio as well. Actually, this has changed the market to a better condition.

The numerous opportunities

You can even purchase the derivatives of the trading market at any time because traders are offered with numerous opportunities. There are two ways to offset this particular derivative and they are such as selling the present position and the other way is buying the offsetting position. You can focus on these actions easily because it does not consume your time. The derivatives are user-friendly. One of the major reason why traders get attracted to ETF is it is easy to understand.

The Market Depth

Finally, you should have the understanding of the market depth. You should bear in mind that the market is liquid. When a market is highly liquid you need to be cautious. In a liquid market, you are likely to face many risks but make sure to handle it wisely because risks are the barriers to your success. However, you must get acquainted with the market knowledge if you want to become a successful trader.  As we have detailed out the ETF information you should take the time to learn it.

How to Improvise Stock Market Knowledge in Spread Betting

The retail traders like to think if they had stock market experience before investing in this market, they can make a lot of money. It is nothing but a wrong idea that most of the people in this market have got. If you think you can use your stock market knowledge in spread betting, you can make the profit but it would not help you very much in your career. Most of the time you will find that if there is nothing similar with stock market trading, there are more things which are different in stock markets trading. You cannot use the stock market knowledge full in spread betting but you can use part of its knowledge. Many traders think how to improvise their knowledge of the stock market in spread trading. It is not possible but you can use your knowledge of currency trading to get an edge over the market. This article will tell you why you need to use your knowledge of stock market not usable in spread trading. You can use it small but not as much as you would expect.

Spread betting

Spread betting is very much similar to Forex trading only with one exception. In Forex trading, you have to buy or sell the underlying asset to make a profit. But in spread betting, you just have to predict the future price movement of the financial instrument to make money. Other than this every other single trading parameters are exactly the same. For instance, you have to do all the technical analysis to make a profit in spread betting. Without having the proper knowledge about technical and fundamental analysis you won’t be able to find the sweet trading spot. It’s true that even after doing all the necessary calculations you will often have to face losing trades. But losing is nothing but a part of your trading career.

Most retail traders are using high leverage in spread trading. Leverage is just like double edge sword. If you can manage it efficiently then you can see exponential growth in your trading capital. On the contrary it can be very devastating in the hands of novice traders.

The trading basics is same

It is good news for you that the trading basic of Forex, spread betting and stock market are the same. When people are trading in Forex and stock market, they are trading with the currency pairs. They are buying and selling bonds, shares and many things. When trading in Forex is global, the stock market trading is local and you will care about what is happening in your country. Many people have a very good history of stock market trading but when they begin trading in Forex, they begin to lose their money. Some similarities do not say you are going to make a fortune in spread betting. To be precise spread betting and forex trading is almost identical.

The market is volatile and many factors influence the market

This Forex market is very volatile. You will have heard one thing very common among the traders of Forex. You will see that when most of the people are losing their money, they have said that they placed the trade in the market when it was a perfect trend and the trend was going in their favor. They placed the trades and the trend changed. They begin to lose their money and they have to close their trades to save their account. This is what Forex volatility can do to your account. You will not get this volatile experience on the stock market. The market is also influenced by many factors around the world. This is a global market and if the currency price of one country changes, you will also see the influence of the other currency pairs. The risks and the profits are many times more in Forex. You cannot do much with your stock market trading if you do not learn how to trade in Forex.

Lessons that We Should Learn from the Successful Trader

The common misconception among the traders who enter the market newly is that they believe reward of a successful trader is only money. We strongly, oppose the statement as it is wrong. When you become a successful trader you achieve more than money, in fact, money can be considered as the least valuable thing (just for the fact). If you want proofs you can witness traders who are successful in the market and have achieved many things more than money. In the Forex market, you cannot become successful that easily so think about traders who have become successful. The level of dedication should be at the top to become a successful trader. If you want to become successful you should not be a greedy person if your aim is to profit as much as you can then you cannot become successful.

You should have the intention to learn the market and trade the market to become a successful trader. There are intangible things which you could consider as the rewards for being a successful trader. What are the intangible rewards you can obtain? They are such as self-development, self-improvement, personal freedom, discipline, and patience. If you want to earn money you can do any kinds of jobs to earn it but if you want to earn the intangible rewards which we have mentioned you should trade Forex. Forex improves the level of a person both mentally and socially. The lessons you learn from a professional trader will help you to enhance a better living. Let us read to learn more.

Liberty and its importance

We all know that for each and every person ‘freedom’ is important of all. If we don’t have the freedom to speak we cannot speak our hearts out likewise, if you don’t have the freedom to trade you will not become a successful trader. When you start trading you will understand the value of the freedom. If you had done a job in which you need to go to the office at 8 in the morning and need to leave before 5 in the evening you cannot enjoy the freedom. If it is trading you will be able to trade from anywhere and you will be able to trade at any time so understand how much freedom you can gain from it.  You do not have to work constantly or you do not have to do the same thing again and again by trading you will be able to keep a full stop for the same routine in your life. Forex trading will be something which let you enjoy the freedom. ‘Money’ is the main concern of every human being but it will not improve your personality. If you trade Forex you will be able to improve your personality as well.

Risks and rewards

If you master the risks and rewards you will be able to deal the situations perfectly. When you are trading it is important to learn the risks and the ways to avoid it so you will be able to overcome the risks. A successful trader will know the techniques and tips to avoid the risks.

Discipline and patience

Discipline and patience are the important things in the life and even for an ordinary person those are important. But most of us do not have the patience and discipline but the Forex traders are the ones who have both the patience and discipline. Since they have these characteristics they will become a better person. So, the common misconception in every naïve trader should be corrected by learning about the successful traders.

Being a trader you should never think that you can lead your life without any discipline. Being your own boss you need to assess your trading performance once in a while. Try to read as much as you can since it will improve your trading performance and knowledge.

How to Pick the Best Trading Assets in the Market

Traders who are trading in the Forex market sometimes cannot decide which market to trade. There are many markets in Forex. Also, there are many major and minor currency pairs. When selecting the currency pair, most traders like to select major currency pair which is the right choice. When selecting your market, you have to know how to choose the best market for you where you can make the best profit out of your trades. The professional traders in the United Kingdom put a great deal of emphasizing on selecting the best trading assets in the market. To them, trading performance greatly depends upon the selection of the right trading assets at the right time.

Most traders think every market is equal in Forex. The market of Forex is not the same in the world. For example, if you ask any trader who is trading in the European market, he will say that this market gives the best movement in Forex. If you like market movement more than anything, you should trade on the European market. Many traders like market movements and choose European market as their favorite markets. It is the market movement where the price level moves and traders make money. As European market has the best movement in Forex, you should trade on the European market if you are fond of market movement.

But the market movement is not all the things that you should keep in mind when trading in the market. There are also some other things to choose when selecting your market to trade.

Select a stable market: Select a stable market where you will be placing your trades. If you select any market which is mad like a car and do not provide any stable movement, you will not be able to develop your strategy. A stable market will give you an idea of the market trend and you can place your trades in the market favor. It will also help you to analysis the market. Those who are trading CFDs for a long period of time always pick a stable market to avoid the false spike.

Select a market that goes with your currency pair: Not every market is best for all the currency pair. The market that goes best for your currency pair is the market of your choice. If you like any major currency pair and that pair have a market that goes in very well, trade in that market. Do not trade in a market where it is hard to find a movement for that currency pair.

The market you can understand: Select a market that you understand. If you do not understand the market you are trading, you will have no profit in your account. The professional trader at Saxo always suggests the novice traders master certain assets in the financial market. There is no need to trade all the assets since it will make your trading system to much complex. If you truly want to become a profitable trader in the financial market then you need to focus on fixed trading assets.

Use price action trading strategy

Price action trading strategy is nothing but the study of the raw price movement in the financial market. If you look at the professional traders then you will notice that most of them trade the market using the highly reliable candlestick patterns in the market. As a new trader, you should not learn all the candlestick pattern as it will make you confused. Try to learn the reliable candlestick pattern only as it will give you a more detailed overview of the trading system.

Summary: Trading is nothing but doing the most sophisticated business in the world. If you truly want to become a profitable trader then make sure that you trade the market with the extreme level of discipline. And always follow proper risk management factors in every single trade.

The Perfect Way to Trade the Price Action Signals in the Market

Price action trading strategy is one of the simplest and profitable ways to trade the market. Most of the professional traders in the forex trading world use the price action trading strategy in the market to execute high-quality trades in the market. If you look at the expert traders in the United Kingdom then you will notice that every single one of them is trading the live assets with the reputed brokers like Saxo since they offer an excellent trading platform to their traders in the market. But when you execute your orders in the market by using the candlestick patterns in the market there are certain things that you need to know in order to ensure high-quality trade execution. In this article, we will discuss how to trade the price action confirmation signal in the market perfect way.

Figure: Professional trading platform offered Saxo

Trade in favor of the trend

Most of the novice traders in the forex market tends to trade the live assets against the long-term trend. But when you execute your orders in the market against the long-term trend chances are very high that you will lose money in trading. The expert traders always identify the long-term prevailing trend in their online trading platform and then plot the key support and resistance level in the market. Once the support and resistance level is drawn they wait for the price action confirmation signal to execute high-quality trades in the market. It’s true that trading the price action signals in the market will be a little bit difficult for you at the initial stage but once you master the market basics you can easily trade the most reliable candlestick pattern with extreme level precision.

Higher time frame trading

The forex market can be traded in different time frame by following different trading strategy. Most of the novice traders in the forex market trades the smaller time frame by using their online trading platform and loses money. If you trade the smaller time frame in the market then chances are very high that you won’t be able to find the reliable candlestick pattern in the market. Unlike the novice price action traders the professional traders always execute their trades in their online trading platform by using the higher time frame. Though the system is extremely reliable and profitable yet you need to follow proper risk management factors in every single trade to reduce the risk exposure in the market.

Fundamental analysis

Trading the financial instrument is one of the most complex tasks in the world. Most of the novice traders in the forex market tends to trade the live assets based on technical analysis only. But if you truly want to master the art of trading then you need to focus on the fundamental factors also. Fundamental factors are often considered to be the most powerful price driving catalyst in the forex market. So if you think that you can execute high-quality trades with doing the fundamental analysis then you are completely wrong. Try to learn the basic fundamental analysis skills and this will help you to secure the best possible trades in the market. If you are new in forex trading then make sure that you are not risking more than 2 percent of account capital in single trade. And never trade with the money that you can’t afford to lose in the market.

Summary: Price action trading strategy can be easily mastered within a few months. But if you want to make money by trading the price action confirmation signals in the market then you need to have a clear understanding of the forex market.

Don’t Get Caught by a Binary Brokers Scam

canstockphoto9933347While there are great benefits that can be achieved for investors who use binary options trading, there are also a number of scams that are currently in play within the world of binary options. Some of these come from unscrupulous brokerage firms that avoid mentioning the risks associated with binary options, fail to disclose their trading practices and fees, or make it intensely difficult to access your funds after trades are made.

Here are some of the ways that you can watch out for binary options scams as you participate in the binary options market:

  • Independently Research Your Firms: Because binary options can be purchased through a number of countries, it can sometimes be easier for scam firms to slip through the cracks of regulations. Always do your own research into a company before you decide to employ their strategies or services.
  • Watch for Firms that Downplay Risk Factors: While a number of firms promise the moon, the reality is that there will never be 100% perfect returns with any brokerage firm. It is true that there are riskier and less risky investments within the world of binary options, so look for companies that are more transparent about their strategies and techniques.
  • Always Read the Fine Print: A lot of details can be hidden in the terms that you accept when you sign up to use a firm. It is easy to just skim through these and click on an option to accept the terms, but it is vital to take the time to truly understand what you are signing. Financially, all of the details that you need about a company are often in the conditions presented at the start of services, including payouts and bonus. Watch out for companies whose withdrawals require high limits or are not delivered for long periods of time in particular.
  • Security Protections: In an age where digital information can be used in a multitude of ways, it is important to verify that any financial firm is prepared to protect your privacy and your investments. You can also do a search for any past reported breaches in security or user information sold.
  • Check References: It is fairly simple to obtain reviews from other investors as to the quality of a given brokerage firm. Look for positive reviews from a number of platforms, never relying on the results listed only on a single platform, to get the best overall picture of the kinds of service that you are likely to receive from a provider.

Unfortunately there is always the risk of an online scam. But if you do some research on the company, read any others reviews and check the BBB you can pretty much eliminate the risk. And never forget the age old advice… If it sounds too good to be true, it probably is.