Why 90% of traders on Expert Option are losing money?


Losing is an inevitable aspect of trading. One cannot expect to win always and never lose. That is because winning and losing are the two sides of the same coin. But, that does not mean you cannot counteract your losses with the wins. A smart trader would find ways to compensate for the losses with more wins so that she remains in a net profit even after losing certain trades. 

losing money

However, with many brokers, the problem of losing is a common issue. Many brokers claim that their traders lose up to 90% of all trades, and only 10% of all the traders actually make money. So, as a top broker, Expert Option does not hide this fact either. It also says that 90% of all the traders lose money.

There can be various reasons for this, so we will analyze them one by one and see how to tackle this issue.

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Losing money on Expert Option

Expert Option is a broker that offers numerous benefits to all its clients. They can use its platform and win trades. So, people may think that those who join it must always win.

But, winning trades comes at a cost. Not everyone can get the assurance of always winning, even with a top broker like Expert Option. 

Expert Option withdrawal proof

However, this binary options broker transparently states that only 10% of its total accounts make money in reality. The rest of the 90% of traders lose their money. The reasons for that can vary drastically. But, a lack of consistency and poor trading methods mostly cause it. 

expert option trade journal

Such a statement from a top broker may have a negative impact on those who are wondering about joining. However, the truth is that losing here does not mean endless losing. The accounts that lose money can also win at certain times. 

Up and down High and Low

But, it signifies that the wins to losses ratio is lower in most cases. The wins do not supersede the overall losses for 90% of the traders. This can be a serious issue as it results in reduced profitability for many traders.

From our analysis, we can say that the primary cause of it is inconsistency from the trader’s side. However, there can be varying reasons that may add to it. Some common reasons include poor money management methods, not using a stop-loss mechanism, overtrading, etc.

Risky overtrading

All of that comes with the inherent tendency of many traders to employ multiple strategies for a single trade. They incorporate without assessing which is best for which asset. Some also trade in as many markets as possible parallelly. All of these ignorant steps increase the probability of coming under those 90% traders.

Risk reward ratio

Such approaches also make them switch trading plans often without even waiting for it to work properly.

Moreover, losing the money takes a higher form when traders couple it with other factors such as lack of strategy, too much of investments, etc.

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Employing more than one strategy at a time without proper research is the top reason for traders to lose. It applies to all brokers and includes the Expert Option traders as well. When traders do this, they cannot choose a market-specific strategy that could have worked fruitfully.

strategies for trading binary options

Also, this results in a lack of patience, which further leads to frustration. As a result, you continuously make the same mistakes cyclically. We can say that at this point, you are emotional trading, which itself is a disastrous move in any trading method.

Why do only 10% of traders make money?

Those traders who make money with Expert Option differ from the rest of the 90% in one broad quality. They are consistent in what they do. The top 10% of traders do not abide by any of the characteristics we stated for those who lose the trades. 

Being consistent does not necessarily mean trading continuously. It also means consistent improvement of their methods. The top 10% of traders consistently evolve their trading methods and rectify their mistakes as soon as possible.

Expert-Option-education-and-support

Moreover, these traders do not commit the same mistakes as others. For example, they often do not switch strategies because it fails a few times. If they are confident about their research, they will stick with the same strategy and wait till it results in a positive trade. In addition to that, they also incorporate a few more techniques that help them stay ahead.

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Good money management

The top 10% of traders with Expert Option or any other broker are careful with their money management. They incorporate smart ways to ensure money management. It involves deciding the right amount to trade and employing capital protection methods such as a stop-loss function. 

Through that, they can limit their further loss of funds. A good money management method will always let you trade with a small amount so that your account is not empty of funds even if you lose the trade.

expert option trade result

Choosing the assets

Sometimes, choosing the right asset is all that gives you the upper hand. The traders who make money with Expert Option choose a particular asset at a time and do not trade on multiple assets simultaneously. The only way to know which asset is best for you is through researching the marketplace and conducting fundamental and technical analysis while using Expert Option indicators. Both of which a trader can fulfill through the Expert Option platform.

expert option tutorials

Avoiding overtrading

Overtrading is another reason why only a few traders are able to join this club of money makers. Often traders get excited about their winning streak and get enthusiastic beyond what they can control. As a result, they try to win more trades by investing more without any proper research or strategy. That results in losses. 

Don't fool yourself with excitement while trading

However, the top 10% are those who do not overtrade as they are aware of the consequences and know the limits that they should not cross. Such traders also try to refrain from emotional trading as psychological interference can become detrimental when it comes to trading.

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How can you come along the 10% making money with Expert Option?

Focus on technical analysis

Any trader who wants to sustain in the business should focus on technical analysis without fail. You must learn its basics, especially if you aim to come among the 10% money makers. It is nothing but a process that involves forecasting the price direction and market trends. You may require the past market data, introductory price, etc., to foretell the direction through technical analysis.

Analytics Expert Option

Conducting your own technical analysis is essential to market research. Complete research on the trends and indicators will prevent the trader from blindly following any recommendation or hearsay. It will help you analyze the suitability of your strategy with the market you are trading. As a result, you can focus in the right direction once you find out which one holds best for that particular trade.

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Sticking to one proven strategy

No single strategy can indeed result in a sure-shot win always. However, as we mentioned before, employing multiple strategies simultaneously would only result in a disaster. Therefore, to avoid that, a trader must always stick to one strategy at a time

Implementing a strategy

However, which strategy to choose depends on your research and also the type of asset you decide. Moreover, if you face any difficulty choosing a proven strategy, you can try out the copy trading facility of Expert Option. There you can access the proven strategies of successful traders across the world.

Some other proven strategies that you can use are:

  • Straddle strategy
  • Pinnochio strategy
  • Hedging strategy

Always test strategy on demo account

Most traders often neglect using an Expert Option demo account prior to their live trading. They take demo account lightly as it offers only virtual cash. However, if you want to come along the top 10% of traders who earn actually, you must get better at your skills. That is possible only if you practice more and always test your strategy

Expert Option demo account

A demo account allows you to do just that without risking any funds. So, you must always use this feature and become a master at trading. Expert Option is a broker that understands the need for demo trading. 

expert option demo account

Hence it offers the same through its platform. You can choose a strategy and then test it through the demo account to know whether it will work as per your expectation. After that, you can use it as per your wish.

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Copy trading

It is a feature that traders who do not know how to choose a proper strategy can utilize. Expert Option offers the copy trading feature to all its clients. They can access it through any app available for all devices. 

Expert Option mobile app

You can use this feature to mimic the strategies and moves of successful traders. It can be helpful, particularly for beginners. So, if you use copy trading, you can increase the chances of coming among the top 10% effortlessly.

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Conclusion

90% of all the traders lose money with most brokers, including Expert Option. That means you need to stop committing their mistakes to reach the 10% of those who actually make money.

Gain profits while trading

In this article, we have come across various ways through which you can do that. Moreover, it also talks about the reasons behind the traders’ losing money. Therefore, you can follow these ways to prevent losses and start winning more.

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About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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