Using the Right Broker
Picture in your mind the perfect trade. How much money did you make? Was it 10 percent of what you invested? More?
Now, erase that image. There is no such thing as a perfect trade–at least on a consistent basis. Even the most ideal sounding trade carries risk with it. The trick is to figure out the best way to overcome that risk and still make as much money as possible. Putting aside all of the fancy trading methods that people are trying to sell you, you can still overcome risk on your own and increase your money making ability with a few easy steps. Using binary options as a part of this strategy can help you.
Finding a Broker
If you are new to binary options, you need to find a broker to trade through first. Not all brokers are available in all parts of the world, so make sure you begin your search by seeing if they service your country. Next, you need to find the best broker for your purposes and your background. This is an extensive search, but basically it boils down to whether they have high rates of return on the types of trades you will be doing. If you are trading stocks, you want the best broker for that. Likewise with Forex options, or index options, or Forex options. Find your strength, and then find a broker that caters to it. Also, remember that some brokers have different types of binaries, such as one touch or boundary trades. If you plan on using these, you need to find the broker that has the best consistent rates for these, as well. Finally, look at the timeframes you will be focusing on. In general, 60 second options payout less than 30 minute trades, but you still want to get the most out of whichever timeframe you are looking at.
Beginning your trading is not as simple as it could be. Yes, you theoretically could make a deposit and start trading with high stakes right away. But this isn’t the best idea. You should instead look at learning the software and the behavior of the underlying assets and timeframes of your interest. The best way to do this is through a demo trading account. This is basically a play money account that is used in real time with the same software that actual trades are executed on. In the world of binaries, they are done after your deposit, but with zero risk. You will probably need to contact a customer service representative in order to get set up with this. Once you do, you will have around three days to trade with the demo account. It’s not really enough time to master a trading strategy–that can take months or more–but you will be able to learn the basics of the software platform you’ll be using. This might seem pointless, but it will help a lot when it comes to avoiding silly errors and speeding up your utilization of the site. Quicker actions mean less time wasted and getting as close to the perfect entry point for a trade as possible. The three days that most brokers give you for this should be enough to work out the kinks and give yourself a slight advantage in this regard.
Perfecting Your Craft
You will never be a perfect trader, but that doesn’t mean you need to lose a lot of money. That’s part of the beauty of using binaries; they allow you to minimize your risk and still make a worthwhile profit. You can risk a little–usually as low as $10–or much more, if you wish. Even a $10 trade, if successful, will have a meaningful return since there are no fees cut out of your profits. For the new or smaller trader, this is a perfect opportunity to get better at trading and work your way up until you have more confidence and expertise to start making a lot more.
It’s very rare that you will make an 80 percent profit in the markets, but this is an everyday occurrence in the world of binary options. An average trade will return between 75 and 81 percent if you are focusing on 15 minute timeframes or longer. It can often take several years in the stock or Forex markets to hit these types of numbers–even for professionals in the field. You can do this in a single trade if you do it right. The trick is to learn to do it far more often than having an incorrect guess. There is a deficit between how much you earn and how much you lose, so you need to be right more often than not. A good trader can do this with ease, and the sooner you master this skill, the sooner you can start adding cash to your account, too.