Binary Options are on the face of it simple financial instruments to trade. You only have to make one decision; is the asset price going to fall or is it going to rise? Furthermore, you even know what your profit will be if you get it right and what your loss will be if you get it wrong. If is the operative word here but you can take most of the ‘if’ equation out if you follow these steps on how to trade binary options successfully. It is our best interest in Banc De Binary that our client receive proper education and make continual gains.
Dynamics to trade successfully
One of the critical dynamics for successful trades is the choice of your trading platform which is related to your choice of your binary options broker . You should make sure that you trade on a platform that you have the ultimate trust with and that your style of trading is compatible with the way you trade. You should be looking at ease of money transfers, in other words how safe is your capital/investment and how quickly and easily can you withdraw your funds from your account.
Another critical point is the number of assets categories and the number of assets in each category. Make sure that all four asset categories can be traded, namely, currencies, stocks, indices and commodities. Within each asset category there should be a diversity of assets to trade in order that if a particular asset becomes volatile and proves difficult to trade there will be other assets available to give you profits.
You should also try out various trading strategies until you have one that works and gives you profits most of the time. If over 55% of your trades are profitable you will certainly make nice money. So stick with a strategy that gives you more profitable trades than losing trades.
As your capital builds up from the successful trades you make, you should start thinking about how to manage your money. Successful traders never invest all their capital in one trade. A good rule of thumb is to never invest more than 12% of your capital on any trading session. There is no harm in building up profits steadily rather than having that huge win which is a really risky strategy to make.
The expiry periods for binary options vary from the short term, which is 1 hour, to the long term which can be several days. Short and long term trading require different strategies. Researching data on the asset you are going to trade in the short term is a far easier task and a less risky strategy than trading long term and having to speculate on what price level the asset will be in a few days’ time.
Finally, good mental preparation is highly desirable for a successful trader. Mental preparation means being disciplined in keeping to your winning strategy even when some of your trades go bad. Having the right mental attitude means accepting that you can’t win 100% of your trades and that there will be losing trades. A successful trader does not get depressed or makes thoughtless trades during a losing streak.