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How to trade binary options successfully – Basics
Notice to EU traders:
The European regulator ESMA made a prohibition of binary and digital options to retail traders from The European Economic Area starting from the 02.07.2020. In case you still want to trade binary options, you need to acquire the status of a professional trader on which this regulation does not apply. I recommend you have a look at the article – How to get the PRO status to continue trading Binary options
Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.
Where to next? (If you do not meet the requirements)
- FX Options – Attractive alternative to binary options?
- Read our in-depth guide for cryptocurrency beginners
- Read how to trade forex and other CFD instruments
Traders outside The European Economic Area are not anyhow affected by this new European rule and can trade binary options (if the binary broker operates in a given jurisdiction).
What are binary options?
Binary options are a type of online trading, where you as a trader predict thru web or mobile platform, whether the price of a certain underlying asset will go up or down. Under the term – underlying assets we have in mind stocks of major companies like Google, Microsoft, FB…, currency pairs, indices and commodities (silver, oil, gold…).
If your prediction is correct you earn a fixed amount that you know before placing the investment. In most cases, returns from binary trades range from 170% to 192% per trade. So if you invest $50 you get an additional $35 – $46 to your initial investment. To create one trade you can invest as small as $1.
Beware, though at first glance it may look simple, binary options trading is not as easy as some portals may and do say. It is possible to make a lot of money, but it’s also possible to lose a lot. An investor who does not have any previous experience with the market and does not plan to acquire it can expect a great loss. To succeed in binary trading it is essential not to be naive and not to fall for scams that promise “bulletproof systems that will make money in your sleep” which are hiding behind every corner.
Read and study with TradingBeasts.com:
- The Ultimate binary options guide– and other articles in our Academy
- What reliable binary brokerswe have tested and we use for our trades.
- How to create a demo accountfor trading with virtual money.
How to successfully trade binary options
In our first step, we choose an asset we want to trade. In our example, we chose the currency pair EUR/USD with an 89% return from a successful trade. The choice of an asset is up to you. There are hundreds of underlying assets which we can trade, each asset has different profitability.
In the second step, we decide, when our trade should end and evaluate. So, if we want our trade to end in 30 minutes, we select an expiration time of 30 minutes.
Subsequently, we choose how much we want to invest in this particular trade. When we trade binary options we can invest as little as $1.
Now, we have moved to the most important part of trading at which we have to decide, whether the price of our option will go Up, or Down. When you trade classic binary options, only one of these three situations can occur. Either your trade will be successful and you receive a predetermined profit, which in our case would be $50 + $44.5 = $94.5. Or the trade will end up unprofitable and you lose the invested amount (the biggest amount you can lose equals to the investment you made). The third situation occurs very rarely and we can meet with it when the price doesn’t change at all (the price of the option when we entered the trade is the same as in the moment when the option expired). In this type of situation, most brokers give the investment back to the trader.
As you’ve probably noticed we get from correct prediction only 89% extra money from the invested amount. So, you might ask “How could possibly binary options be such a good extra income?”, when you don’t even earn 100% from what you have invested. The main reason behind this is because you can use binary strategies, which can significantly help you to create a majority of successful trades. Please bear mind that even with strategies no one can accurately predict the market and make all trades winners. Without binary strategies trading would be just a hazardous game that has nothing in common with meaningful and responsible investing.
What my profit will be like?
It depends entirely on you. With the right binary strategy, you can boost your capital by a few dozens of percent in a week. Equally, with a bad strategy or without a strategy you can just as quickly lose it. The basis is to be as patient as possible and to hold to your selected strategy, which you know that works (for example from a demo account). Binary options trading is about a long-term profit and not about making one (or even a row of) successful or unsuccessful trades.
Is binary trading risky?
Any kind of trading or investing is risky and you have to count with that. If you enter the world of trading you should invest only such amounts that you can afford to lose. Some fraudulent servers (or even scams) may encourage you to borrow money from your friends or family members, if necessary because it is a guaranteed thing that your investment will return.
But we are a serious portal and we most certainly do not advocate such claims. Although binary options have a great advantage that the risk is eliminated only to your investment into the trade, we, binary traders still operate on a financial market. And there are no guarantees. The market is merciful only to those who are prepared and know the risks. For instance, traders who do not apply any trading strategy can most likely expect to lose their capital.
Advantages of binary options
A great advantage of binary options is that if the price changes only by a single pip in your direction, you receive a full profit from the trade. Let’s look at an example. You entered a trade at a moment when the oil price was set up to a value of 1.5797 and you have selected the expiration time of 30 minutes and upwards direction. A 30-minute trade ended at the price 1.5798, thus it changed only by a single pip you will still secure for your correct prediction full profit from the trade. It is because in binary trading doesn’t matter, how much the price changes, but if it changes in the direction you chose.
Is it possible to try out binary trading? (Risk-free) Demo account
For traders who do not have a lot of experience with trading (or none), the demo account is a perfect opportunity to try everything out without giving at stake your own money. The demo version works on entirely the same principle as a real account, the only thing which is different is that you are trading with imaginary chips. That means that you can not make any profit from trading on a demo account, but you also can’t lose anything (apart from imaginary funds).
Most brokers offer practice account right after you load your real account with at least the minimum deposit. However, if your trading on a demo account doesn’t reach your expectations you can at any time withdraw the money you have deposited into your real account (if you trade with a licensed and a trusted broker). But we also know about brokers who do not require even initial deposit you can use the demo version freely with no obstacles. For more information read our separate article: free demo account for binary options
Where do we trade binary options?
The term „broker“ was already mentioned in the article. But do you know, who this broker really is? A binary broker is a company that arranges the transaction between a buyer and a seller. It is basically a place where demand meets supply. Here, you can trade. Every broker has its own web platform, so no downloading is required.
There are dozens of brokers or even hundreds of them. If you are looking for a reliable and trustworthy broker who cares about their traders you need to look for certain aspects. One of them is a broker’s credibility, which can be gained by a reputation among traders and by licenses. A license is obtained by a broker in exchange for a large fee to the regulatory authorities. These authorities are responsible for constant supervision over the broker and over all their actions.
Apart from credibility, we should focus on payouts, a minimum deposit, and a minimum investment. We should also find out whether our broker provides a demo account if we plan on using it. Traders who do not speak English can also appreciate a trading platform and customer support in their native language. On our website, you may find many broker reviews. Currently, as the best option is from our point of view IQ Option, a well established binary broker with superior payouts and a free demo account.
3 Popular Binary Brokers
|Broker||Regulated by Regulatory agencies ensure that brokers/exchanges operate in a transparent and honest way. They protect the best interestest of clients and also feature an investor compensation scheme which protects trader’s deposits up to a certain limit. Some of the major regulators in the industry include the CySEC in Cyprus, the FCA in the UK and the ASIC in Australia.||Min. deposit||Max. Payouts Funds which are credited to your account in case of a correct prediction||Special features A list of features that provide a given broker/exchange with a competitive edge.||Ad Disclosure This Comparison / Page contains links to 3rd party websites of our top partners from whom we may receive compensation at no additional cost to you.|
||VisitRead a review|
General warning: When trading with real money, your capital is at risk.
Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.
To see whether you can be classified as a Pro trader read this page
All recommended brokers went thru our testing process. In a 3 month time period, we act as a regular trader and we actively create trades as any other trader would. If we find out any problem with the broker, we mark him as „not recommended“ or even as a „scam“. The fact that a broker makes it to the selection of recommended brokers does not necessarily mean that it will stay there forever. In case that the broker is not capable of maintaining high-quality services as on the beginning, we reduce the rating of the broker on the website or we even completely remove it from the list of our recommended brokers.
How to determine, whether the price will go Up or Down? – Binary strategies
Some newbies try to do this by guessing and they usually determine the future price direction just according to the chart which is provided to them by the broker. I would not be afraid to state that such trades are completely random and made without using any strategy. But that is not the way we trade at TradingBeasts.com, we know that in order to become a successful trader who makes a long-term profit you most certainly need binary strategies.
Binary Options Trading Strategies and Techniques that actually work
Without any trading strategy, every binary trader has got half a chance to create a successful trade, because when trading classic binary options we have to only predict whether the price of an option will go up or down. That is, however, with 75-85% returns from a successful trade simply not enough and trading without using any binary strategy can never be profitable (or at least not in the long run). A binary strategy can significantly help us to increase our win. ratio and put the odds in our favour.
Following a strategy also allows you to constantly improve your results because all the trades you create have a meaning and they were built on the basis of a specific pattern. Which means you can repeat them, results which can be achieved again usually mean success. We have 2 types of strategies which we sometimes also call analysis. The first one is called technical analysis, the second one fundamental analysis. Some strategies might combine both of these analysis types.
Technical analysis or the analysis of graphs engages in forecasting prices according to a repetitive pattern (formula). In order to find these patterns, we use different kinds of indicators and oscillators (such as the stochastic indicator, MACD, RSI and many more).
Some brokers offer on their trading platforms a system that can be used for complete technical analysis (One of such companies is e.g. IQ Option that has in-house built charting system). In case you seek a free service which focuses just on technical analysis, we would like to recommend you investors’ most popular analysis platform – MetaTrader 4. Here is an example of the MT4 with a 5-minute chart.
The second type of analysis is fundamental analysis. This method focuses exclusively on economic statistics and economic changes which will most likely affect the value of assets. When we look at some large scale examples, then we most certainly have to mention the global crisis in 2008, in which investors had a great chance to invest on the drop of public securities of major companies, banks and investment funds etc.
On a smaller scale, hundreds of economic news are daily published (eg. unemployment and interest rates, inflation etc.). All of these and many more announcements are recorded in the economic calendar. These calendars include information about the impact of the news, time of their release, and the forecasted direction in which the price will most likely move. There are hundreds of economic calendars which are available on the Internet. One is even offered by IQ Option in their academy, the calendar is located in the top menu under the “for traders” section.
With what capital should I trade binary options?
The first two strategy types mentioned above are designed to predict the price, the following strategy is, however, a question of correct money management. When you fully adherence your money management strategy you will be able to get the absolute maximum from your capital, so don’t take this type of strategy lightly. Generally speaking, it is not recommended to invest in one trade more than 4% of your total capital.
Money management is very often overlooked, however, its importance is exactly the same as using any other strategy that will help you predict the price, sometimes even bigger. Take an example, your broker requires the minimum investment of $ 10 so you could open a trade. At the same time, the minimum deposit at such broker is $100. That means if you deposit only the minimum required amount, you risk in the very first trade 10% of your entire account funds; that is an enormous part of your whole trading wealth.
So theoretically speaking, you have money to open only 10 trades. Of course, all of those trades would have to end up out-of-the-money and that is highly unlikely. Nevertheless, if even just a few of them turn out to be unsuccessful (especially the first ones), you would get yourself into a big psychological pressure. Subsequently, you begin to doubt every trade and you will most likely slip from your trading strategy, which might result in further losses.
Testing binary strategies
Trading with real funds without a tested binary strategy entails high risk. For this very reason, it is of crucial importance that every trader is properly prepared before entering the real market. The most popular and effective way how one can prepare for real trading is using a free demo account for binary options. This practice account works exactly the same as the real one, with one huge difference, that you are trading with imaginary funds. Once you open a demo account try to strictly follow your strategy as you would with real funds.
The second option, how you can test binary strategies is to open, for example, MetaTrader 4 and at the time when you would normally open a trade, you make a note either to Excel or on a paper. Then you wait if the price of the asset moves in the direction you forecasted and you write down the result of each and every one of your trades. This way you will try to “create” as many trades as possible and then you calculate the overall success of your strategy.
Торговля бинарными опционами. Заработок на бинарных опционах
Среди вопросов, которые мне задают – в личных сообщениях, в письмах, в мессенджерах, при живом общении – очень часто встречается и такой: «Сколько денег приносит торговля бинарными опционами? Сколько я смогу зарабатывать, когда стану трейдером?»
Вопрос логичный и естественный: ведь, в конце концов, мы все занимаемся онлайн-трейдингом, чтобы получать прибыль. И всё же я … не могу на него ответить! И не потому, что мне ответить нечего, а потому, что однозначного ответа просто не существует. Заработок на опционах из месяца в месяц может сильно разниться даже у опытных трейдеров, которые практически не полагаются на удачу. Дело в том, что прибыль формируется очень многими факторами. Два трейдера, работающие на бирже с одинаковыми активами и по одинаковым стратегиям, заработают совсем не одну и ту же сумму. Поэтому приводить общую статистику я не буду – её (достоверной) просто нет и не будет. Отвечу только за себя, причем наглядно. Вот сведения о моей прибыли в течение одной рабочей недели.
Как видите, зарабатывать получается прилично. При этом, что немаловажно, нет проблем с выводом средств, с преобразованием электронных денег в наличные. Вывод я провожу один раз в месяц. Можно и чаще, но тогда нужно будет платить больше комиссии. Вот раскладка моих доходов по месяцам.
Хороший заработок? Да, я тоже так думаю. Как видите, торговля бинарными опционами – это не специфическое хобби. Это серьёзная и прибыльная работа. Сразу скажу: такого уровня я добилась не сразу – и ни в коем случае не благодаря удаче и другим подобным факторам. Я упорно работала – и достигла успеха. Если вы хотите последовать моему примеру, в первую очередь изучите, от чего будет зависеть уровень вашего заработка, благодаря чему вы сможете стать успешным трейдером.
Секреты торговли бинарными опционами
Фактор первый . Брокер, с которым вы работаете. Брокеров сейчас очень много – а значит, что и риск ошибиться достаточно велик. Если выбрать ненадёжную платформу, можно потерять все свои деньги, даже не начав торги. Каким образом? По-всякому. Например, менеджеры и техподдержка могут полностью игнорировать ваши обращения. Котировки могут не соответствовать действительности. Заявки на вывод средств могут очень долго обрабатываться – или даже не обрабатываться вовсе! Да-да, вы можете лишиться не только прибыли, но и начального депозита.
Брокеры-однодневки появляются регулярно: обирают неопытных трейдеров, исчезают и воссоздаются под другим названием. Конечно, без лицензий, а значит, без каких-либо обязательств перед клиентами. И поймать их практически нереально: регулирующие органы далеко не всегда способны отследить их деятельность. Чтобы избежать контактов с такими «партнерами», отслеживайте репутацию брокеров с помощью списков и рейтингов, которые находятся в открытом доступе.
Фактор второй . Знания и умения. Не устану повторять: система торговли бинарными опционами – это не лотерея! Начать зарабатывать с первых дней торговли, без теоретической подготовки и практического опыта просто невозможно. А вот начать зарабатывать достаточно быстро и при этом параллельно усваивать нужную информацию – вполне возможно! Поэтому не стесняйтесь учиться и практиковаться, используйте любую возможность больше узнать о секретах торговли на бинарных опционах.
Откуда вы можете взять полезную информацию? Очень многое из того, что понадобится вам в работе, размещено на этом сайте:
- Пройдите индивидуальное обучение: из соответствующего курса вы почерпнёте «базу», владеть которой совершенно необходимо. Подробнее
- Изучайте содержимое раздела «Статьи». Я подготовила много материала, который затрагивает практически все стороны бинарных опционов. Причём это не голословная теория: все советы я даю, исходя из собственной практики. В моей трейдерской карьере (особенно в начале) находилось место и грубым ошибкам: узнав о полезных секретах, вы сможете избежать неудач!
- Тренируйтесь с помощью демо-счёта. Открыв такой счёт с помощью брокера (лучше всего выбирать Binomo или IQ Option), вы сможете совершать сделки не с «живыми» деньгами, а просто тренироваться, не открывая депозит и ничем не рискуя.
Фактор третий . Правильная стратегия. Хотите узнать, как заработать? Изучайте как можно больше инструментов трейдинга, не бойтесь искать тактику и стратегию, которая больше всего подходит лично вам!
- Стратегии. Как известно, их существует очень много. Если какая-то конкретная стратегия вам не подходит – как бы вы по ней ни работали, всё равно уходите в минус – то не нужно всеми силами за неё цепляться! Переходите к другой стратегии, не теряйте время! Казалось бы, совет очевидный, но многие трейдеры с упорством, достойным лучшего применения, продолжают биться головой в стену и при этом ещё недоумевают, почему у них ничего не выходит.
Ничто не мешает вам менять стратегии. Никто не мешает вам пробовать их на демо-счёте, а не сразу рисковать своими деньгами. Экспериментируйте, занимайтесь поиском новых секретов – и найдёте то, что нужно.
- Сигналы. Можно пользоваться сигналами индикаторов, расшифровывая их самостоятельно. Можно доверять специальным программам, действовать с помощью торговых советников. Можно работать с опытными трейдерами – например, со мной, получая сигналы в чате и повторяя мои сделки.
- Графики и таблицы. Для вас не должны быть китайской грамотой ни живой график, ни тепловая карта, ни таблица пивот, ни другие востребованные инструменты трейдера. Не доверяйтесь лишь одному инструменту – сочетайте их и выстраивайте уникальную методику!
Фактор четвертый . Автоматический трейдинг. Да, чтобы добиться действительно значимого успеха, нужно работать самостоятельно. Но как способ небольшого и достаточно стабильного заработка на опционах автоматический трейдинг вполне себе имеет право на существование. Способов зарабатывать, практически ничего не прилагая со своей стороны, насчитывается несколько.
- Копировать сделки трейдеров-профессионалов. Изучите статистику наиболее успешных трейдеров, и на этом основании производите настройки в своем личном кабинете. Подключаясь к чужому аккаунту для автоматического копирования сделок, не забудьте лимитировать минимальную сделку и общую допустимую сумму на сутки работы.
- Пользоваться ПАММ-счётом. Суть этого способа такова: вы выбираете успешного надёжного трейдера и передаёте свой депозит в управление ему. Он работает, используя ваши средства, и отчисляет вам прибыль, забирая свой оговоренный процент.
- Торговать с помощью автоматических систем.
Зарегистрировавшись в системе и открыв счёт у брокера, вы можете совершать сделки самостоятельно (ориентируясь на сигналы) или же передоверить программе всю работу. Конечно, во втором случае нужно будет провести настройку программы, указав минимальную сумму сделки, отметив, какая нужна система трейдинга, активы, индикаторы и т.п.
Я начала этот текст актуальным вопросом – так же и завершу. Очень часто спрашивают: «Неужели бинарные опционы – это действительно не обман?» Нет, не обман. Но и не легкий способ разбогатеть. Чтобы стать успешным трейдером и не потерять свой депозит, нужно:
- Работать и самосовершенствоваться.
- Не бояться получать новые знания и просить помощи у опытных специалистов.
- Не доверять мошенникам, которых сейчас развелось очень много.
- Много тренироваться и экспериментировать.
Learn How To Trade Binary Options Successfully And Profitably
How to trade binary options, is a question frequently asked by beginners including our readers. So, we aim to give you a proper solution through this article.
Binary options are popular because of its simple trading nature, with a fixed return percentage. Despite its simplistic nature, many traders use on their binary trades far more often than you think.
It boils down to reasons such as lack of trading knowledge, experience, or choosing the wrong broker. Whatever the reason may be there must be a clear plan ahead of trading, so you don’t face ill-consequences in your trading result.
Before enlightening you with the step by step guideline on how to trade binary options profitably, we will give a short brief on what binary options are.
What Are Binary Options?
We are going to explain a basic concept on binary options here, but for detailed information, read what is binary options trading article.
Binary Option is an investment type where you have two outcomes, all or nothing. It has also a fixed expiration.
You have to accurately predict the outcome with an expiry time to make a profit. Either you will win a trade or lose all the money that you have invested for a particular trade. Moreover, you can perform binary trade in two ways.
- Manual Trading
- Automated Trading
In manual trading, you do all the hard-work and place the trades yourself using trading strategies . But in auto-trading, automated trading software does the trading for you, using a build-in trading strategy.
Which method you use for trading depends entirely on your preference. If you are a new trader, you might take help from a trading robot in exchange for a price. Or you can learn the basics of trading, and do it yourself.
Binary Trading Example
You already know through our citation that binary options give you a fixed payout and loss amount. To power-up your trading journey, you must have to follow some rules.
Before jumping to those specific points, we will try to connect your existing knowledge with a small example.
James Chen from Investopedia explains binary options trade with the help of an example.
Assume stock XYZ is currently trading at $64.75. A binary option has a strike price of $65 and expires tomorrow at noon. The trader can buy the option for $40. If the price of XYZ finishes above $65, the option expires in the money and is worth $100. The trader makes $60 ($100 – $40).
If the option expires and the price of the stock is below $65, the trader loses the $40 they put into the option. The potential profit and loss, combined, always equals $100.
5 NoteWorthy Steps To Trade Binary Options
What you are expecting from this phase?
Hang on! Let me guess. Maybe, you might think that we will share with you a spell so that you can earn a lot of money. But, the section will focus on the 5 noteworthy steps on how to trade binary options.
- Choose a regulated broker
- Analyze the market and asset
- Practice on a demo account
- Make an initial deposit
- Start Live trading
As each step is very powerful, so our recommendation is to read each step without skipping.
# Choose A Broker
Choosing a broker without evaluating some factors can bring disaster. On the other hand, the retail investment market is large and have a lot of scopes. According to a report of SEC,
approximately 7,600 investment advisers registered with the SEC that serve retail investors, with over $12 trillion in retail client assets under management, and approximately 34 million clients.
Isn’t it crazy!
The actual craziest thing is that one has to choose one or more than one broker from thousands. Here, we will mention some factors that you should keep on mind before selecting any broker.
- Demo account
- Minimum initial deposit
- Ease of use
- Variety of assets
- High Payout percentage
- Fast withdrawals
- Multiple modes of payment
In addition to that, you refer to our list of binary options broker . It’s not necessary that you have to stick to one broker. No broker is perfect, and one broker may not suit all your needs. Don’t hesitate to trade with multiple brokers.
Taking all the above factors into consideration, we have prepared our list of recommended brokers that you can trade with.
These brokers meet all the requirements such as regulation, offering a demo account, huge asset index, high payouts, fast withdrawals, easy-to-use trading platform, and much more. Here is the list of brokers Binary.com , IQ Option, and BinaryCent that we think will offer you the best binary options trading experience.
# Analyze The Market & Asset
The trading market is unpredictable and changes every sec. Three main types of analysis bring an optimal trading result.
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- Fundamental Analysis
- Technical Analysis
- Sentimental Analysis
Here, an economic calendar works as a ground from where traders use data to forecast the market movement. As there is “no” best method of analysis, so you have to pick the most viable option depending on time-frame and asset information.
# Practice On A Demo Account
Registering an account is free of charge with most brokers. All it takes is your vital information such as an email address, your first, and last name. Once you have created an account, you need to practice trading through a demo account.
Train yourself with the help of a demo account until you create an unbeaten situation. Educate yourself on the basic concepts of binary trading. Understand what strike price, expiry time, call, and put option, etc. Familiarize yourself with the different ways you can trade binary options.
Just because the funds and the outcome in demo accounts don’t hold any real meaning, it doesn’t mean you should trade recklessly.
Trade on the demo account exactly how you would live trade. This practice will develop your trading skills and build valuable experience.
There is no fixed duration on how long you have to practice on a demo account. Take as long as you need. Finally, when you feel confident enough, you can step up to real trading.
# Make An Initial Deposit
The initial deposit amount varies from broker to broker. You need to deposit on the trading account to carry out live trading. On the other hand, there is a big difference between an investment and deposit.
An investment is a price what you pay to get the future value. Meanwhile, the deposit is a certain amount of money that one needs to open an account.
It is wise to start with a small deposit amount like $10 to $20.
# Start Live Trading
You can start trading on a real account once you are familiar with the ins and out of binary trading. Select your preferred asset and choose your investment amount. Depending on your prediction, buy a call or put option.
Place your trade, and wait until your trade expires. In the next section, we have listed some tips and techniques on binary trading to make your trading successful and profitable.
How To Trade Binary Options Successfully And Profitably – Best Way To Trade
We already discussed a few steps above. Those steps are the principle that one trader should follow whether he is professional or not. After that, you need to turn your binary options trading into a successful profit machine.
Don’t miss out the chance by skipping points that we covered below. Follow these tips to ensure you don’t lose money while trading binary options.
- Choice of assets
- Start trading with small
- Eliminate emotions from trading
- Choose the right expiry time
- Follow the market news
- Risk management
- Knowledge is power
Choice Of Assets
As you can trade with a large number of assets, so trade those assets that you are most familiar with. Do not take unnecessary risks by trading in markets that you cannot predict.
Successful binary trading depends on how well you can predict the market. Follow the market news before executing trades. Diversification of your portfolio is one way of reducing your overall trading risk. But it doesn’t mean you should diversify to assets that may not be profitable to you.
Stat Trading With Small
You may have heard about the risk management where you have stick on either 1% or 2% rule. It is a general rule of thumb for traders.
90% of traders failed in trading because they have lack of knowledge on money management. Investing a huge amount of money will not help you to increase profits.
So, at first, start with a small amount like $10. After gaining valuable experience, you can start increasing your trade size. No matter how much you practice on a demo account, trading on a live account is a different scenario. As there is real emotion involved, which brings us to our next point.
Eliminate Emotions From Trading
Professional traders are not super-human. They also fight to control their trading emotions. Eventually, all traders must go through a cycle of market emotions.
Controlling emotions is not sky-rocket. However, you will find a difference in gratitude of a winning trader and a losing trader. No wonder, a low expectation level can save you from a massive failure.
Stop dreaming about to get rich quick and follow the 7 secrets that will help you to improve your trading emotions or psychology.
Choose The Right Expiry Time
It is may seem like a matter of preference or a trivial issue, but even expiry time is a crucial factor when it comes to binary options trading.
For example, a trend was supposed to reverse within an hour. But if you placed a trade with 2-hours expiry, the trend would have reversed by then. And, you had lost the trade.
Follow The Market News
Whatever underlying asset you may trade, you need to be informed on the latest global events, and news associated with that asset. Many traders build strategy depending on the market news. So don’t skip on that, and act accordingly.
For example, if there is negative news regarding the gold and a price drop is imminent, log in to your binary options trading platform, and open a put position on gold.
Reacting appropriately to market news can bring in more trading success than you think.
Risk Management (Hedging)
Unless you are a pure gambler looking for absolute results, you should make use of hedging. Hedging is a money management strategy used to protect your profits. In this way, if you are wrong on your prediction, you lose money from your call option, but you regain that back from the put option.
Protecting your investment by buying a binary option contract opposite to your initial contract is hedging. Hedging may reduce your overall profit potential, but it also protects your capital.
If you quite confident about your prediction but still want to hedge, invest the lesser amount in the hedge position compared to your main position.
Knowledge Is Power
Trading education is one of the big factors that play a vital role in success. You need to constantly educate yourself with trading knowledge. Even though binary options look easy and simple, there is a lot that goes into constantly turning your trades into a profitable one.
Moreover, you are less likely to commit mistakes and perform better trading analysis when you are equipped with trading knowledge.
Learn To Trade Binary Option (Manual Vs. Automated Trading)
You can either manually trade binary options or can use binary options software which will do the trading for you.
When you trade manually, you choose the asset, the expiry time, and most importantly, the decision to call or put. Everything depends on you alone. Moreover, you have to set a strategy using indicators and trend lines to make a decision.
In the case of automated binary options trading, a binary robot does all the work for you. It is a programmed software that makes decisions based on certain algorithms.
On the other hand, most binary options robots allow you to customize settings such as investment per trade, risk level, indicators, and choice of assets.
However, if you want to completely leave your fate at the hands of the trading robot, you may do so. Or you can put manual effort also by building strategy.
We would recommend a mix of both auto and manual trading for the best results. We have compiled and reviewed the best binary option trading robots for you.
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