When it comes to trading binary options, you do not have to be a George Soros to make a good profit. Observe these 5 golden rules give yourself the best chance of succeeding in the fastest growing method of investing in the financial markets.
Rule No.1 Do Your Homework
Before making a trade, there has to be a reason for believing that the asset value will either go up or down. You can’t just rely on a gut feeling, successful traders base their trades on cold hard facts – be they fundamental analysis i.e. economic news and data or technical analysis i.e. the charts. There are plenty of Daily Market Reviews on offer, particularly here at binaryoptionstrategy.com so there no excuses not to be informed of events past, present and future. The same applies to getting chart information.
There is no shortage of free technical analysis and signal services available on the internet, making your job, as long as you put the time and effort into it, a whole lot easier.
Rule No. 2 Know Your Assets
It is very important that you understand the assets you trade. Top investors appreciate the connections between assets and anticipate the various knock-on movements. With so many assets being offered by a growing number of different platforms, it is far more advisable to specialize in a few assetsthan try to understand them all. The more you learn about an asset, the more you will understand why it is moving in a particular way, making predicting its movements much easier.Popular assets due to the widespread availability of news are Gold, Oil, and the EUR/USD.
Rule No.3 Manage Your Money
Money management is an important facet to successful binary options trading, but often overlooked. Make sure you decide in advance how much money you are able and willing toinvest on each trade and how much in the entire trading session. How you trade should depend on your experience, the strength of the market movement at the time, the range of different assets you are trading AND the money you are willing or able to trade. Binary Options can form an integral part of someone’s overall investment in the financial markets but make sure the trades are planned and the investment levels decided beforehand.
Rule No. 4 Be Adaptable But Stay Strong
This may sound a little contradictory but a key advantage of binary options is that you can profit in bearish, bullish and volatile markets. Be flexible and choose the best trading strategy for the current conditions and be strong enough to stick with it if it’s the right technique for the trading conditions. For example, the ‘Straddle’ technique which involves buying and selling at low and high points in a volatile market can double your profit if both trades end in-the-money. However it is no use when the market is moving strongly in one particular direction. So have flexibility in your strategies but stay strong with a potentially winning strategy. If all the indicators are pointing one way, go that way and be strong once you’ve gone that way.
Rule No. 5 Practice!
Most platforms offer some sort of demo account. Some are time restricted, others not. They exist for your benefit, so use them! A demo account is probably the best way to familiarize yourself with the platform as well as the actual customer service being offered which is also important. Use a demo account to try out new techniques and trading strategies before you implement them with real money. Remember… Practice makes perfect!
So go out there and start trading Binary Options – the quickest and easiest way to invest in the financial markets!