When you take your first steps into the world of binary options trading, there are many things to keep in mind. You need to choose a binary broker, you need to figure out what sorts of options you prefer, which assets you want to trade in and so on. You also need to establish a strategy for your trading, determine a budget, and make a long list of further decisions.
You also need to learn how to make winning trades. You have to understand how the markets operate, and how binary options work. You also ought to educate yourself on the jargon used in this business.
All in all it can seem like a lot, but by following some fairly simple procedures you can make a successful start. Never forget: binary options trading is the easiest and most accessible way to make money on the financial markets.
In this article on trading for beginners, you will find a lot of helpful information that can be of great use for trading novices, looking to get off to a flying start with binary options.
Trading for beginners made easy:
First things first: choosing a broker
In order to invest in binary options, you have to open an account with a binary broker. A binary broker is a financial institution that offers binary options to its customers. When you have an account with a broker like this, you can choose binary options and invest in them via the broker’s website.
There are a great number of binary brokers to choose from. They vary in many different ways. Here is a list of some of the things you should keep in mind when choosing a binary broker:
- Returns – when you win a binary trade the broker will pay you a set percentage of your investment as a return. Choosing a broker that offers high returns is always a good idea.
- Assets – binary options involve predicting the future price movement of a certain asset. An asset can be a stock, a commodity, an index or a currency pair. Choose a broker that offers assets you want to trade in.
- Types of options – there are many different types of binary options. Some offer higher returns, whereas others are easier to win. Which do you prefer? Choose a broker that has the options you want to invest in on the menu.
- Bonuses – most binary brokers pay out a bonus to new customers. This bonus usually consists of 100 % of the first deposit you make. Assuring that you receive a large bonus can give your trading a flying start.
Once you have an account with a broker, you are good to go. It is easy to register as a member. The whole process only takes a few minutes and entails nothing more than filling in some quick online forms.
Your first trades: some important considerations
Now you have your account with a broker, and you have transferred some money into your account. You are ready to go! But before you do, you should take a breath and consider the following:
- Free trial – some brokers let you trade without investing real money as a sort of practice run. This can be very helpful and lets you gain some firsthand experience before you start to trade with your own funds. If your broker offers this option, we urge you to take advantage of it.
- Learning center – most brokers offer some sort of educational facility on their websites where you can read article about trading, or even download e-books or watch video tutorials. Make the most of such opportunities to learn.
- Money management – it is crucially important that you establish a strict budget. If not, you will not last long in this business. We recommend that you invest about 2-5 % of your total budget per trade. This will ensure that you do not run dry when the inevitable losing streaks set in.
- Risk – some binary options offer higher profits in return for higher risks. You are less likely to win such trades, but you will get a lot of money if you do. Is this how you would like to trade? Or would you prefer to win frequent, small returns? It’s a choice between high-risk or low-risk that you need to make before you get going.
Remember also that you should have some extra money in your account thanks to the binary broker bonus. This will enable you to trade with extra freedom in the early stages.
Signals, robots, or neither?
Now, you will no doubt have heard about signals and robots. Both are tools that traders can use to improve their performance. Should you utilize them? This is something only you can answer.
Basically, binary signals are expert recommendations that are generated by trading software. Such computer programs are able to analyze and read the market in ways no human can. Based on the program’s predictions you can make winning trades.
A robot is a computer system that, in addition to finding good trading opportunities in the markets, also completes the trades on your behalf. A binary robot is a fully automated trading system.
There are many pros to signals and robots, and only really one con. That is cost. If you can afford to subscribe to a good signal provider or a good robot, this might be money well spent.