Binary Options is one of the best trading methods to make large profits in a short time. The high level of profit offered by broker-broker binary options and minimum expiry time limits of less than 1 minute allows traders to improve their daily trading skills. However, that does not mean you only need to create an account and have minimal learning to be successful in binary options. The advantages of abundant trading are not necessarily achieved by an instant understanding process. In fact, binary options traders also need good mental conditions and appropriate trading methods to be able to trade consistently in binary options.
You can just follow the trading strategy of trading in the instrument market you choose. For example, when you choose forex as an instrument traded in binary options, you can apply the trading strategy of the forex spot to place the "put" or "call" option. However, there are also certain ways that are specifically applied to trading in binary options. If you can follow the following tips, the opportunity to increase the consistency of profit gains will be achieved easily.
Learn to The Uniqueness of Binary.com Trading, Facilitating or Confusing?
Psychological aspects
You can just follow the trading strategy of trading in the instrument market you choose. For example, when you choose forex as an instrument traded in binary options, you can apply the trading strategy of the forex spot to place the "put" or "call" option. However, there are also certain ways that are specifically applied to trading in binary options. If you can follow the following tips, the opportunity to increase the consistency of profit gains will be achieved easily.
Learn to The Uniqueness of Binary.com Trading, Facilitating or Confusing?
Psychological aspects
- Concentrate on getting in-the-money results rather than just focusing on the amount of profit to be gained. Here, price volatility is not the main factor determining the amount of your profit, because the previous profit level has been determined through the payout ratio. Keep in mind that in binary options, what determines the success of trading is whether prices move according to estimates so that the trading results will end in-the-money or out-of-the-money. As much as any price surge that occurs on the market, if it turns out that the price is not able to reach the level that you estimated in time (in-the-money), then you will lose all the capital you invest in the trade. Conversely, even if the price volatility is not too high, but the price is right in the position you expect when the expiry time is up, then you will get a profit in accordance with the set percentage before placing the option.
- Focus on the choice of instruments on assets that you can trade well. As we know, binary options provide a wide selection of instruments ranging from forex, stocks, commodities, to stock indices. Choose one of the instruments that you have known before. Don't try too much trading with other instruments before you really understand the market movements for these instruments.
- Don't be easily attracted to trading more famous instruments from other instruments. The most traded instrument is not necessarily the one that best suits you. It could be that the instrument is not in accordance with your trading style. For example, you don't need to choose EUR / USD pair to trade forex binary options if you don't like high volatility in trading. The choice of instruments according to ability and trading style is very important to maintain your consistency in trading binary options.
- Don't be tempted to spend your deposit while experiencing a winning trend. Trading binary options is indeed very interesting to continue if previous trading ends in-the-money. Just imagine, if before placing an option the level of profit you choose is 80%, then you can get $ 180 for trading with a capital amount of $ 100.
- With a short expiry time limit and such a large profit, it's no wonder that many traders are encouraged to open options more often per day, even without adequate analysis. Remember that every successful trading has a reason or strategy that supports its success. If you are unable to capture the reason for the success of the previous trading, it is not impossible that you will lose all of your deposit funds in a short time. Don't just open options by relying on instinct and luck.
- Follow market trends, don't be challenged to go against the flow. As with forex spot trading, binary options are also suitable trading places for market 'followers'. Forex traders may decide to move against the flow with the reason for opening a position at the beginning of the trend, but binary options traders are not advised to do so. The duration of binary options trading is shorter, requiring traders to follow market trends if they want to achieve in-the-money results. In this case, the possibility of a trader to trigger a trend formation is very small when compared to the forex spot. The expiry time limit of less than 1 minute does not allow traders to push the market to form new trends.
Non-Psychological aspects
- Choose a well-regulated binary options broker. At present, new binary options are officially regulated in several countries. But that does not mean binary options trading is illegal, because binary options are now authorized in several countries, especially from the European region. Some regulatory brokerage countries that have issued licenses for broker-broker binary options are CySEC from Cyprus, AMF from France, CONSOB Italy, Bafin Germany, FSA / FCA UK, and many more.
- Expand the trading experience on the demo account before plunging into a real account. Utilizing the facility of a demo account from broker binary options can be a very important first step before you start trading with real money. The choice of demo accounts provided by broker binary options is very diverse. You can choose to just learn through a demo video, give a deposit first, or activate a demo account for free like when starting forex trading.
- The maximum amount of capital for each trade is 10% of your deposit funds. Even though a high return offer can be a special attraction for the possibility of your profit, don't ever put capital in excess of 10% of your deposit amount. Most binary options brokers do not provide capital returns for failed trades. Therefore, you should always consider that the wrong prediction will consume all of your capital for the losing trade.
- Trade when the price volatility is low. Inversely proportional to the advice of trading on spot forex which suggests trading when the price volatility is high, binary options are trading places that take into account the success of trading from the prediction truth, not from the number of pips obtained. The absence of spreads also eases the burden of traders not to worry about slippage or requotes. Simply by moving according to estimates, the traded instrument will be able to bring profit to you.
- The right time for binary options trading depends on the active trading instrument market. Unless you are a professional and experienced trader, avoid trading binary options in the forex rush hour, which is between 20.30 WIB - 20.45 WIB. Price volatility that is too high can make prices more difficult to predict and end up missing your expectations, especially if you use short expiry time.
- Learn to understand charts of price movements and candlestick patterns. For traders who are familiar with forex trading, reading charts of price movements of the trading platform is certainly not a difficult thing to do. Even for beginners, the graph is actually very easy to understand. To further sharpen the results of the analysis, it's good if you understand the candlestick pattern. Estimating the subsequent price movements of the formed candlestick patterns can be additional ammunition to increase the chances of successful trading. Even though it involves a variety of theories and requires a lot of understanding, this ability will help you to analyze the formation of previous prices, so you can predict the direction of the next price. This method is needed especially for trading in markets with low volatility and tend to be sideways.
Technical analysis of candlestick patterns is preferred because not all trading platform binary options provide installation of other technical indicators. There are even brokers who do not display charts in the form of candlesticks, so traders are required to analyze price movements from line charts or bars only. Therefore, your skills to observe and understand the chart of price movements are very necessary if your binary options trading depends entirely on the trading platform provided by the broker.
- Develop strategies from small-scale trading first. If with a small amount of capital you are still having difficulty earning a profit, then certainly you are not ready to trade with larger capital. For starters, use a low amount of capital to test your trading strategy in real terms. Even though brokers offer attractive profits and bonuses for trading with larger capital, rest assured that losses from failed trades will be more detrimental than simply not getting those benefits. By considering this option, you have begun to practice risk management in your trading in binary options.
- If in the future you feel your strategic and psychological abilities are ready to trade with large capital, then that is the right time for you to increase the size of the trade which is of course equipped with money management and proven trading methods.
- Take advantage of every facility in binary options. Various kinds of convenience and advantages of binary options such as the absence of spreads, short expiry time, and various types of trading should be maximized. Easy and short trading methods are not only a quick way to earn profits, but also as a trading solution that makes it easy for you to execute orders in trading certain instruments. In this case, binary options provide facilities that are easier and faster than the market for the instruments themselves.
Conclusion
Trading in binary options does require a deep understanding of the patterns of price movements and trading methods of the instruments to be traded. The existence of expiry time, various types of trading, and high return from broker binary options can affect the way you trade in an unwanted direction if it cannot be anticipated properly.
Some of the methods above may be useful suggestions for you before starting binary options trading, but you must keep in mind that market movements cannot be calculated with certainty. Use the trading tips above by focusing on increasing profit opportunities and minimizing risk, and developing strategies consistently to produce an average profit that is greater than the loss.
Free Bot Auto Signal For Iq Option And All Binary Option
Free Bot Auto Signal For Iq Option And All Binary Option