Know about TA and Candlesticks:
No one, not even the experts, can say for sure what will happen to an investment in a minute, an hour, or even a month or more from now. For this game, you need Technical Analysis in a big way if you want to win. If your broker doesn’t give you enough of these tools, you sometimes need your MT4 forex platform to help you.
This way, seeing patterns is also very important, especially regarding candlestick formations. Financial analysis can also be important, but with short time frames, it’s best to be aware of upcoming events that could greatly affect the asset you’re interested in. Knowledge is power because it gives you choices if you don’t just want to gamble.
Decide on a trading strategy:
You’re planning to fail if you don’t need a design for how you’ll trade. Your feelings can mess up your mind and wipe out your savings. The veterans among us say that the only way to do it is to make a step-by-step plan for how you will address this market. You don’t have to come up with your plan on your own.
Search engines can lead you to many tips that people say work. You only need to look at a few of these to discover one or two you like, which you can then change to make it your own. If you stick to your plan and leave your ego at the door, you might be one of the few successful people in this genre.
Money Management Matters:
Money and risk management rules aren’t as strict in binary options, but they’re still important if you want to keep trading. You can lose all of the money you put in, get a small rebate, or win a big percentage return. At the time of order execution, your possible alternatives are set.
If you guess wrong, you could lose the amount of your option, less any applicable rebates. Let’s say you put down $100. If careful, this quantity would only be 2% of the $5,000 you have in your account. Some traders may be able to handle 5% or 10%, which means you would need a balance of $2,000 or $1,000, depending on how aggressive you are.
These rules are meant to keep you from going on a long losing streak, which can happen to even the most experienced players. If a strong trend is on your side, you may also want to boost your percentage, but never Double-Up on a losing trade or Sell Early on a victor with momentum. Adding more money to your investment to compensate for past losses is another way to lose quickly.
Find a Reliable Signal Provider:
If you want to trade as a job and not just as a hobby, you might want to pay for a service that sends alerts or signals when possible opportunities exist in the binary options space. Be careful, though, as many application robot providers say they are legit but are just scams or junk. The good ones use software algorithms that have been tested and show when a certain asset might be in a trending bias.
When markets move around a lot, options don’t work well. Before you make a decision, check the winning percentages and do a full due-diligence review. Also, be cautious of a broker who says they will trade for you. They are attempting to get you to put in more money and then make a trade you will lose. Brokers of binary options only make money when you lose money.
Be careful when combining assets:
How many jobs should you have open at any given time? In traditional trading, you shouldn’t place more than three orders at a time. However, since your downside risk is repaired with each order, you could find that you can raise this number a little.
When you trade hour options, ensure they don’t go past when a market closes. The point is that trading is already hard enough without adding more stress. If you have more than one job open simultaneously, you want to make sure you are spread out and that there aren’t any connections that could hurt your interests.
The Euro and Gold, for example, tend to move in the opposite direction of the U.S. Dollar. If you put your positions in the wrong way, one order could cancel out the other, but you’d still lose overall because the payoff ratio is lower.
Plan to lose early and start small:
You’ve used the tips above and spent hours developing and practicing your trading plan. Whoa, Buddy! Putting real money on the line can make your brain cells, and peripheral nerves do strange things. This is one reason why there are so many deaths in this industry.
Early losses can be big, so most brokers have to run aggressive campaigns to get new clients and give them big deposit bonuses. Be aware of the trading requirements that come with these bonus programs. Sometimes you have to trade 30 times the bonus’s value before withdrawing it.
Brokers expect that 7 out of 10 traders will fail and that they will get both the bonus and the initial deposit. No need to hurry. Be patient. Don’t put additional pressure on yourself to do more. Start with small quantities, and as you make steady profits, increase them to something more sensible, per the rules for managing money.
