Insufficient money to trade with
Binary trading involves needs capital to start with, and you should have sufficient amount of money for this venture. The amount being used in the business should not be mixed with the money for your living expenses. If you want to gain more, you need to have sufficient funds for this venture. In the event that the value of a currency goes down, you should have funds in your coffers to help you beat the crisis.
Non-familiarity with market trends
You should keep yourself updated about the trends and the volatility of the different currencies. One valuable guide is to check on the economy of the country whose currency you have bought or are planning to buy. A bad economy will bring down the value of your investment. Thus, you would not want to invest on a currency that has the tendency to plummet easily because of volatile economic conditions.
You may be winning in your past ventures and this can make you forget about keeping track of prevailing market conditions. It is commonly observed that people who make more in this business also tend to take rash decisions because of overconfidence. It is advisable that you make your decision based on facts rather than fantasies.
No broker to guide you
Investors need financial advisers. This is especially important for first time traders. One big danger is the absence of a person to guide you in the right direction. There are many brokers who are experts in this field. You have to find a reliable broker that will work for your success in the venture.
Remember, the dangers in foreign currency investment can be controlled by you. If you are vigilant in this business, then you will not face problems. On the other hand, if you act carelessly, then you can lose a lot of money in this type of trading.