Binary options trading has only been an officially recognized method of trading for less than a decade, yet it has become a very widespread and popular trading method. Many of those who have previously traded forex, stocks or commodities are also trying their luck and knowledge with binary options, and in addition, there are many of those who have decided to trade binary options as they first attempt of trading. This all means that binary options, as a method of trade, has a huge number of various traders, interested in different assets and with different trading background.
When trading binary options and choosing a market, it is important to know that binary trading relies more on good timing than price movements (which is not the case when performing different types of trading). It is important to determine your style of trading and preferences before determining on which market to focus most. For example, if you prefer trading binary options which have a longer expiration period, you should consider choosing forex and commodities as your preferred markets, since their fluctuations in price are not so unpredictable or large. On the other hand, if you prefer trading short-term binary options, other types of markets, such as stocks.
Another aspect to take into consideration is the time of trade – that is, determining when it is suitable for you to trade. Binary options trading platforms are available 24 hours a day, but not all the assets are available for trading at all times. For example, if you only have time to trade in the evening, choose to trade on the market which is most active and most easily accessible at this time of day. This is especially important for those who have a day job and have no time during the day to trade binary options.
You do not need to choose only one preferred market to trade binary options, but you can trade several or even all of them. Depending on the type of binary options you prefer and the trading hours you choose, you may be able and willing to trade different types of assets with different types of options.
Binary Options Trading Strategy
In addition to choosing a market, it is important to know that you can also choose the type or types of options that suit you best. Most of the reliable binary brokers, such as Porter Finance, Cherry Trade and others, offer a wide range of binary options and expiry periods that vary from 30 seconds to as long as months. When you combine the expiry period of your preference with the assets you find the most suitable to trade, you can gain high success in trading binary options.
Make sure to avoid scam brokers by choosing the reliable and regulated one; do not fall for the promises of easy money and secret systems. Stick to your knowledge and logic, and try to develop a trading strategy that will work best for you.
Binary options trading has become one of the most popular methods of online trading, and many potential traders are drawn to it for its simplicity and relatively stable conditions of winning and losing. Even though some consider binary trading to be suitable only for those who want to gamble rather than trade, the fact is that there are many steps to be taken to become a successful and serious trader.
Before signing up with a broker, it is important to know how to avoid scam. Make sure to read the reviews and chose the binary options brokers which are recommended by most users and relevant websites. Also, before signing up, it is important to learn the basics of binary trading first. Learn the basic terms, how the market works, which assets you can trade and which options are there to trade. It is also advisable to use a demo account if your broker provides one, in order to see how the platform works and to practice trading using binary options demo accounts such as and develop a strategy. There are many strategies and advice on how to trade, and here are some of the basic ones that will help you improve your trade as a beginner.
When bullish market occurs, it means that the prices are on the increase and that it is likely to remain so for a certain period of time. When you trade in a bullish market, it is advisable to use “call” option, which means that you predict the price of the asset to rise further. On the other hand, when you trade in a bearish market, it means that the prices are on the fall and they are likely to remain that way, and this is an opportunity to use “put” option and predict the further fall of the prices.
As a beginner, it is advisable to focus on a single asset. Since it is important for all the traders to follow the historic and current market trends of that particular asset, it is much easier to do it with one asset at first, until you master the skills of market analysis. You should try predicting the future fluctuations of the asset’s price based on the analysis you perform. When you get more advanced as a trader, you can trade more assets from the same group, or maybe even assets from different groups.
It is also advisable to use a so-called “straddle strategy” of trade, which includes using both call and put option on the same asset. The strategy is based on choosing a price at which you want to call an option and a price on which you want to put it. One of the trades will certainly end up out of money, but the “in-the-money” status of the second one should cover almost all the loss.
After learning the basics of binary trading and applying some beginner’s strategies, you can choose to apply some more complicated strategies or even develop your own. Make sure to always stay informed and devoted, rely on your knowledge rather than intuition, and the success is sure to come.
Trading binary options belongs to one of the most popular trading methods of today. Not only that it is simple and easy to understand, but it has the advantage of knowing your potential profit or loss before executing the trade, since there are only two options to choose from, with very clear terms of trading. Consequently with the rising popularity of this trading method, hundreds of brokers have appeared, offering trading platforms of different kinds, some of which are created via third party, while the others are custom made for the specific broker.
Some of the platforms offered on the market are very user-friendly and easy to manage, while some may be more complicated. Also, some platforms are fast-responsive and thus easy to monitor and use, while the platforms with some new or unreliable brokers may be slower and thus unreliable.
Depending on your skills, preferences and the types of binary options you wish to trade, you can choose a platform that works best for you. First, before choosing the broker to trade with, you should read at least one review about the broker you will potentially use. Every review will tell you about the basic features of the broker and its trading platform, often providing screenshots or even an example trading via a video-clip. Another thing to consider is which types of options you want to trade. Most of the platforms offer all the options available instantly – groups of assets to trade (stocks, indices, commodities and currencies) together with the range of options available (Call/Put or High/Low, Short Term, One Touch and others) and the expiry time of the option, which is predetermined on some platforms, while on the others there is also a feature of setting the expiration time yourself. Look at the platforms of several brokers and see whether they contain the options for the trading you want to perform, because it will help you make a decision which platform to use.
In addition, it is advisable to predetermine whether you want to use a software-based or web-based platform, or even a mobile platform, in case you want to trade on the go rather than in front of the home computer. The reviews may also help you make this decision, since from them you can find out about reliability and speed of mobile platform, because with some brokers it is not equally fast or accurate on mobile as it is on PC. One of the brokers with very comprehensive web-based platform is 24Option, and they also have an equally good mobile platform, which make them a suggested broker to create an account with.
The last thing to pay attention to when choosing a platform is its design. Once you find several platforms that offer the options of your preferences, and which are fast and reliable enough, you should see whether the design is suitable for you. Check whether everything is easy to find, are the colors too bright or too dark (since it can affect your eyesight) and does it enable you to perform all the actions promptly – since speed is one of the very important features of a successful binary trader.
Trading binary options has become a widespread method of trade ever since it was officially recognized as such, in 2008. Despite the simplicity of the concept, many traders consider it to be a valid method of trading and they act accordingly. They educate themselves and follow all the trends and fluctuations that appear in the market, while analyzing all the information they receive and drawing conclusions out of them.
On the other hand, there are those who consider binary trading to be a sort of gambling, and unfortunately, there are also the traders who treat binary trading that way. This type of traders is more likely to fall under the influence of emotions and instant decisions when executing their trades, which is a common feature of those who play casino games such as, for instance, roulette, on any other games of chance.
In order to reduce the influence of emotions on your trading performance, it is important that, before everything else, view binary trading as real trading, rather than gambling. Observe yourself as a participant in the market rather than as a player of games of fortune. Take yourself and your trading seriously.
Next, make sure to find a reliable broker, in order not to fall under a scam and have all your money lost. It is essential to read as many other users’ comments and reviews of the brokers before making the final decision which broker or brokers to choose as yours. Try sticking with the most wide-known and popular ones, as well as the ones that offer demo account and as many favorable features as possible, and of course – choose the brokers which are licensed by appropriate authority. Some of the brokers to trade with are Banc de Binary, 24Option, Porter Finance etc.
Once you have chosen a broker, it is important to develop a trading plan of your own and stick to it no matter what. Set up the trading limits and respect them, without allowing yourself “just one more” trade, since it leads to typical gambling behavior and even a sort of addiction. Determine your strategy and set up a number of trades you will execute daily, without crossing it no matter what. You can also choose the number of trades to win or lose or the amount of money to earn or lose. Once you reach that number or the sum of money, you should stop trading for the day. It is crucial to have self-discipline and self-respect.
Binary options robots can also have a positive effect on keeping the emotions out of your trading. Choosing a good and reliable binary robot, with as high accuracy as you can find, will largely help you in trading without emotional involvement. Avoid the robots that offer accuracy higher than 85-90%, since there is no robot that accurate and it is most likely to be a scam. Once you set the parameters of your trade (make sure to include the maximum amount of money you are willing to lose), you will be able to relax and forget about the trading for a while, which is certainly useful and recommended.
Binary options robot can be a very useful tool for all kinds of binary options traders, both the beginners and professionals, who want to spend less time in front of the computer, yet still do the trading. All binary option bots work by receiving the signals about the market conditions, and based on these signals they make a “decision” whether to call or put an option. Not all binary robots are equally accurate, but 70-80% accuracy is a norm for all the reliable binary bots.
Unfortunately, whenever something becomes popular and widely used, there are attempts from the scammers to benefit from the situation in an illegal and fraudulent way. The case is the same with binary options robots. No matter how many reliable bots you can find online, there will always be a large number of scams which you need to be aware of and make sure not to subscribe with them. These are a few tips on how to avoid the scam robots:
1. They offer accuracy over 90% – many of the scam robots offer signal accuracy that allegedly exceeds 90%, sometimes they even claim the bot to be 100% accurate. Keep in mind that, no matter how sophisticated the algorithms and how accurate the signals are, there is a very slim chance that binary bot can reach accuracy over 90%, and not to mention 100%.
They offer unrealistic earnings – binary robot scams also often offer insane amount of money, sometimes through “secret systems” advertized either on the binary robot’s website or on a separate one. To be fair, if you cannot earn millions of dollars yourself, via your trading, no binary robot will make it possible. Binary options robots are there for you to set the trading parameters you would also use if you performed the trading yourself, and they are there to spare you the time spent in front of the computer and the emotions that might get involved when you execute the trading personally.
They offer impossible time frames for earning money – similarly to the previous, not only that scam robots offer insane amounts of money to earn, but they also promise that you will earn them in an incredibly short time. If you have traded binary options before, you know how much time it takes to earn a certain kind of money. No binary robot can change that amount of time and turn it into a few days for earning thousands of dollars. If you have not traded binary options before, do not fall for these false promises, but try to keep it real. There is no easy money.
Choosing a binary option robot should be much easier if you keep an eye on the three categories mentioned above. Choose some of the reliable robots providers, like Binary Option Robot, which provides not only a free account, but also a range of features and it enables you to set the maximum amount of money to lose, so you will never lose more than you intended.