Binary options trading has first appeared in 2008 and until then enough time has passed for the word to get around.
Numerous people around the world in search of profit-making opportunities have recognised the potential of this trading venture and decided to invest in binary options.
The popularity of binary options trading is, in large part, a combination of a simple trading process and huge earning potential. However, there are some elements that should not be neglected.
That is why traders are always seeking useful advice and tips which can contribute to a successful trading result.
This guide aims to present traders with top 10 tips for successful binary trading.
Select the Right Broker
This is the first and the most important step. It is also among the hardest ones, especially given the number of binary brokers currently available on the market.
Inexperienced traders can start with broker review sites such as Binary Preview which has a large number of reviews as well as lists of binary brokers which are all reviewed by us.
Additionally, it is important to also inspect the broker site too and pay attention to details such as terms and conditions section, the security they provide, trade options and the number of underlying assets.
It is also important to get familiar with brokers’ rules concerning deposits and withdrawals.
We advise traders not to rush with their selection of binary broker since this decision will have a huge impact on the rest of their binary options trading experience.
Invest More, Get More
One of the top 10 tips for successful binary trading is concerned with the appealing aspect of affordability in trading binaries.
In fact, with the majority of binary brokers, it is possible to start trading with a minimum deposit of $250, with some that amount is even lower.
Naturally, this is very appealing but, at the same time, then minimum deposit sometimes means limited access to useful trading features and tools.
In a sense, traders should reconsider the old saying:” You have to speculate to accumulate”.
In investing more, binary options traders will be able to select more advanced types of trading accounts which offer more trading instruments.
The trading tools and features have been designed with the intent to boost probability of earning better profits
Pay Attention to Withdrawal Terms
As we have hinted at the beginning of our top 10 tips for binary trading guide, withdrawals are very important.
Hence, it stands to reason that binary traders have to be well acquainted with the withdrawal process which applies to a specific broker.
Knowing details such as the minimum withdrawal amount, which payment methods are available and if there is a withdrawal fee are all important.
Also, knowing how long does the entire withdrawal process take, from the initial request until the funds are on the traders’ account can play a big role in the final decision.
It is also important to make sure what sort of security the broker uses on their site as both withdrawals and deposits require both personal and financial information on the side of the trader.
Select the Right Strategy
Finding the right strategy is a useful tip which has the potential to elevate the binary options trading to a whole new level for traders.
However, it will also take some time as traders have to commit to learning as much as possible about available trading strategies to find the one that will be most suitable for their style of trading.
It might be good to take a look at one of the most popular strategies such as Trend strategy, Pinocchio strategy or Reversal strategy.
The benefit of knowing how to use a certain strategy will provide global traders with the better overall understanding of the binary trading process and will also help them to spot various trading patterns present on the market.
Available Demo Account
Opting to do binary options trading with a broker which provides a demo account is definitely among those top 10 tips for successful binary trading for a very simple reason – risk-free environment!
Well, what traders get with the demo account is the opportunity to practice and test the trading platform but without the fear of losing funds.
The funds on the demo account are virtual and not real, but the experience of trading on the demo account does a great job in preparing traders for the actual trading process.
This is especially beneficial for traders worldwide who are looking to start binary options trading.
Variety of Trade Options and Features
This variety is also visible in the different trade options.
The selection differs from one broker to the next and it will not be possible to find one which will offer all of them, but most offer at least some of the most popular ones.
Most widely-known trade features include High/Low, 60 Seconds, Ladder Options, Range Options, Touch Options or Boundary Options.
Each of these is unique and it would be wise for traders to learn more about each one to see how they fit with their trading style.
Also, there are fantastic trading features like Double Up which provides traders with the opportunity to double the trade or a Rollover feature which enables the delay of expiry time.
Additionally, it also might be wise for traders to look for a broker which offers a mobile trading app as that will allow trading on the go which is very handy for busy traders.
Keep Emotions Under Control
Among our top 10 tips for successful binary trading, we have to mention emotions, or, to be more specific – the ability to control them.
Binary options trading can be very exciting but also stressful at times too.
For that reason, traders have to learn how to control their emotions and remain focused.
This applies to situations when the trade is not going well and traders are upset and angry. But, it also has to be applied in the case of great winnings too.
Binary options trading is not gambling, this is a business venture and it is important to keep a cool head.
If traders start making trade decisions when their emotions are running high chances are the end result will be a failure.
Create a Trading Plan
A great tip on how to keep emotions under control is to create a trading plan.
Traders should develop a trading plan based on facts – market analysis, understanding the nature of underlying assets, having the right strategy and knowing which trade options they wish to use.
But, they should also decide how many traders for day/week/month they want to carry out. It is also clever to set a precise budget they can spare for the investment in binary trading.
Also, it is advisable never to invest more than 10% of the budget on a single trade, ideally it should be between 2 to 5%.
This way, traders are unlikely to find themselves in a situation where they lost all of their funds since it is impossible to always end the trade “in the money.”
Reliable Customer Support
Yet another segment of binary trading – customer support service.
It might not be obvious straight away, but quality customer support can be a powerful ally, especially if traders run into trouble or when they need additional information which might be important for their trading outcome.
A good tip is to look for a binary broker whose customer support service can be reached through various communication channels like live chat, email, web form, phone and even Skype.
It is also advisable to select a broker which provides 24/7 customer support service.
Take Responsibility for Profits/Losses
We shall end our top 10 tips for successful binary trading by stressing it is important for traders to assume responsibility for their decisions no matter how they end.
Traders worldwide have to be aware that, ultimately, they are the ones making predictions about the price movement.
Binary options trading carries a risk and traders have to be aware of that risk before they go into the trading process.
Also, it is not possible to gain profits with each and every trade. Everybody experiences loss, no matter how experienced they are.
However, if traders approach trading binaries with a serious intent to turn this trading venture into a long-term activity and take the time to learn from all available sources, they do stand a chance of making profits.