Start trading binary options

Start trading binary options
If you want to learn how to start trading binary options, then this short article is for you – read on and start paving your way onto binary option riches!

Binary Options Trading: What are Binary Options?

Binary options are an investment option that traders have at their disposal. Rather than buying equity and selling it later for a profit, the investors that partake in this online trading model invest in a certain type of equity for a certain timeframe and bet for the equity to either rise or fall within that timeframe. So, if you invest in a sixty second binary option, you bet that equity will either rise or fall – and once the sixty seconds are over, you will win if you guessed the outcome or you will lose if you failed to predict it.

What are the expected profit margins in Binary Options Trading?

The profit margin is quite generous, although it can vary substantially from broker to broker. We are looking at roughly 75% profit on winning trades, but keep on mind you’ll lose it all on losing trades most of the time – so better weight this with the generous profit margin of 75%-85%.

Binary options trading is an online trading discipline that is easy to pick up, although it is hard to master. Amateur traders usually commit a lot of mistakes that get them to lose their investment capital, so if you plan on starting to learn, you better have some money that you can afford to lose.

Step 1: Design a strict trading plan and stick to it, no matter how tempted you are to disrespect you!

One of the core mistakes amateur binary traders make is that they don’t make a trading plan, and when they do – they end up disrespecting such plan.

A trading plan is what makes you aware of what you are spending, what you are losing and what are your winnings. A trading plan decides how much you bet each time, on what to bet, what strategies you use and what percentage of your electronic wallet can be at stakes at any given time.

Sometimes you will feel tempted to disrespect these numbers and bet more on a single trade, get more capital involved or some other mistake – this is a dire mistake you’re making. Remember, if you don’t have a solid plan and you don’t invest consistent amounts you can lose it all in one go – and if you are doing this then you are not a trader, you’re a gambler. Binary option traders don’t gamble!

Step 2: Get a winning binary options’ trading strategy!

So, if you want to be a trader and you developed a sound trading plan you will need to put it in practice – but what kind of strategy are you going to employ? For starters, you will need to know that there are two main strategy disciplines when the topic is trading, and these disciplines were verified to be useful in any kind of trading, being it the futures’ market, stock market, forex trading, edge funds, oil, gold, and virtually any equity you may think off. These strategies are technical analysis and fundamental analysis. Let’ go over these strategies separately.

Step 3: Understanding Fundamental Analysis and Technical Analysis.

Let’s start by going through technical analysis. Technical analysis is all about analyzing charts and detecting patterns that already happened in the past in order to try and predict what can happen in the future.

Dow invented this technique as he said what once was may be again. Indeed, the markets repeat themselves and that’s why traders like this strategy so much – it is because it works! You’ll have to spend years studying graphs and economical and financial milestones, but if you do it right – this will turn you into a highly profitable trader. Fundamental analysis is all about analyzing the news. The media and press are always giving the markets something to think about, and if people go on the news to talk about how gas prices have been rising like they never had – well that’s something to act on.

The news and the media disclose news that can and will affect the market, and the avid fundamental analyst will learn on how to decode this information and how to use it to maximize their earnings.

Step 4: Learn what you can, use both strategies.

Smart and profitable traders learn throughout their lives, and they never stop learning. Smart traders also learn both fundamental and technical analysis, so they end up knowing a lot more about the market than average traders – and that’s why most traders never profit, because most people aren’t willing to spend time and money learning. Binary options’ trading is all about discipline, ambition, desire and eagerness to learn. It involves a lot of complexity and you must be determined to learn throughout your life if you plan on keeping up with the markets.


COMMENTS
binary-pro

Smart and profitable traders learn throughout their lives, and they never stop learning. Smart traders also learn both fundamental and technical analysis, so they end up knowing a lot more about the market than average traders – and that’s why most traders never profit, because most people aren’t willing to spend time and money learning. Binary options’ trading is all about discipline, ambition, desire and eagerness to learn. It involves a lot of complexity and you must be determined to learn throughout your life if you plan on keeping up with the markets.

Jul 24, 2014 
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