The Five Golden Rules of Trading Binary Options Online
The Five Golden Rules of Trading Binary Options Online
November 6, 2012I’m sure every binary options trader out there has made a bad call and mis-interpreted signals or market sentiment. Sometimes when you look at the resistance line your sixth sense tells you something is wrong, but in fact there is nothing wrong and all your trading colleagues are making a killing and profiting while you are biting your nails.
We’ve all been there, we suffered a loss and lost our self confidence. This is probably the worst thing that can happen to a trader, but it’s also the best because if you remain calm and maintain your focus and composure you will be able to overcome these obstacles and evolve to be a much more skillful and experienced trader. Still, everyone wants to have a short list of do’s and don’ts that will guide him into being a successful trader; this is my list:
1. Never risk more money than you can afford to lose. This is the number one golden rule for anyone out there trying to make money in binary options, or any form of trading for that matter.
2. Always conduct in-depth research and analysis of every stock, currency, index, or commodity you want to invest in. But don’t over-do it, other wise you will end up with no time left and no money to show for it at the end of the day.
3. Keep your eyes and ears open and start trading the news. The saying one man’s misfortune is another man’s gain has never been more true. Natural disasters, famine, droughts, mortgage defaults, are all news events that shape the markets. To illustrate, if a hurricane just dessimated half of the corn crops in Kansas, the prices are bound to go up due to supply shortages.
4. Formulate a solid trading strategy, but more importantly stick to it. Remember to diversify your investments and have as many tools and techniques at your disposal. If you are a novice trader I would stay away from 60 second options since this is financial betting in it’s purest form. You really need to know what you are doing there to make money.
5. Don’t be afraid to risk your money. When you identify the correct entry signal buy the contract without hesitation. However, always look for the exit signal and have an exit strategy ready.
Needless to say identifying and signing up for the best possible binary options broker is crucial. Just rememer that bigger isn’t necessarily better, and you stand to receive more attention with a small or medium sized broker. For a good point of reference check out our reviews section located on the right panel.
Additional Trading Tips:
- Dont be shy! Always ask for a bigger bonus and leverage your bankroll to increase your chances of winning.
- Always have at least one backup broker to fall back on if your are not happy with the level of service or professionalism.
- Try to use an ewallet such as moneybookers or neteller. Using your credit card to deposit is great but you get a lot more budget control and anonymity when purchasing using ewallets.
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