The Binary trading industry is full of hidden opportunities. However, not all the traders are aware of all the factors which can help them climb the ladder of success. For this reason, it is extremely important to have some Binary Options tips in reserve.
Understand the industry and the trading tools
Binary Options trading is so simple that no experience or only a mere knowledge of the financial market is required to be successful – that is where traders go wrong. Traders cannot embark on this type of trading if they don’t understand the concept of this industry first.
Know the industry
Binary options started its ascension in 2008 and since then, this industry never stopped producing successful traders. This type of trading differs from Forex trading in many ways. However, the most striking difference is the fact that with online trading, the traders have greater opportunities of earning large amounts of money in no time if they trade smartly. Basically, traders only have to predict if either the price of an asset will go up or will decrease within a determined period of time.
Know the trading tools
The variety of trading tools available over several trading platforms is almost the same. There will be the timeless Classic Binary Options tool, the 60 seconds tool, the Ladder tool and the Pairs tool. Recently, some brokerage firms implemented a new tool which allows traders to duplicate their winning trades. It is to be noted that the same tools can be named differently on various platforms.
Choose the right broker
Choosing a reliable broker is of utmost importance due to the innumerable amount of brokers all over the internet. The easiest way to judge the reliability of a broker is to evaluate the following elements.
- The platform – it should be nicely set-up and user-friendly.
- The features offered should not be confusing.
- The registration process should not be complex.
In addition to these three elements, it is recommended to carry out research on the reputation of the broker by going through reviews. It is easy to recognise a good review, as it will provide balanced information about the broker.
Analyse the Market and be a strategist
A market analysis might seem difficult to traders who don’t have a notion in global economics and financial markets. Fortunately, while speaking of online trading, it is not compulsory to have a background in finance or economics.
Analyse the market
In order to have a deeper understanding of the market, it is highly recommended to make use of market reviews found on certain brokerage platforms. These reports highlight the most important events happening in the financial market and can definitely help to make more accurate predictions.
Be a strategist
Being a strategist is not complicated if traders identify the strategy that fits them the most. A popular technique used by many traders is the Trade Journal. The concept is very simple, it consists of keeping a meticulous record of all the trades placed. By doing this, traders are enabled to keep track of the performance of the market, hence, they can better forecast the price movements of the assets they trade.
Choose the Right Asset
The choice of assets is important as it is one of the basics of trading. Generally speaking, there are 4 principal categories of assets. There are Indices, Commodities, Stocks and Currencies. Each asset evolves differently on the stock market and some are more volatile than others. For example, oil recently proved to be the most volatile commodity of 2016 as its prices drastically fluctuate every day. In this optic, it is important that traders, especially the beginners, choose their assets wisely.
Risk Management
The term Risk management can impress traders at first glance. However, it is a very simple concept that can protect the capital of traders. Accordingly, one type of Risk management, also known as money management, only consists of investing 5% of the initial investment per trades. By doing this, the traders ensure that they will never be out of capital. This is a widespread technique which is becoming increasingly popular among novice traders. Even if investing small amount means reaping less profit, it still remains the most secure way to invest money in options trading.
Customer Service
A top-notched customer service is what makes a broker stand out. Customer service is important as its duty is to guide traders throughout the whole trading journey. In order to know if a customer service is responsive and helpful, it should be tested. Before opening an account on a trading platform, it is recommended to prepare a list of questions and call the customer support department to evaluate them. This small test can spare a lot of future frustrations.
Subscribe for Trading Signals
Trading signals are useful as they provide calculated predictions of future movements of assets’ market value for future trades. They basically constitute of deep analytics of the market carried out by signal providers. Hence, the traders only have to decide whether they will follow the recommendation or not. It is to be noted that this tool is not the same as trading robots since trading signals do not place trades on the behalf of traders.
Learn how to trade
Nowadays, many brokers have implemented a trading academy on their platforms in order to help traders further develop their trading skills. These educational arenas are mines of information, therefore, it is important that traders dedicate a portion of their time there. This feature aims at strengthening their knowledge of the financial market and the platform.
Avoid being emotional
Emotions are not listed in the pool of tools of trading. This is because they are considered as a brake to successful trading. A few studies highlighted that human beings react in a totally different way when they are too emotional. It is recommended to trade with a peaceful mind.
Accept Losses
Accepting losses is not digestible to everyone. However, in the binary industry there will always be two outcomes and unfortunately losing is just part of the game. If traders know how to accept the losses and adopt a good state of mind, their future trading experience will positively change and that will ensure an unhindered journey.