This article is designed to educate traders on the steps to take when trading binary options. But we will not stop at just enumerating the steps to take, but will go a bit further to place in your hands some timely information that will enable you to make the entire process error-free so it all works to your benefit.
So how can you trade binary options? It is all outlined in these few simple steps:
If you are new to Binary options we have taken away any confusion how to get started and show you an effective way to become financially independent working from home. Just follow the 3 steps below;
Choose a broker from the table below and open an account by choosing from one of the top 8 reputable brokers we have selected out of the whole industry.
Deposit funds to get going normally around $200 to get you started. This also allows you to open a demo account.
If you are new to Binary Options you can make a great deal of money and also lose everything you invest if you you don’t seek the guidance of an industry expert right from the start. If you work alone and look at a chart without understanding the market and following a strategy, the likelihood is you will lose. This professional trader, whom I have had the pleasure of working with on a daily basis over three months, has over 15 years experience and has seen it all many times over. Someone who you can literally look over his shoulder live for two hours a day as he places his trades and further more you copy him trade for trade using his protected unique system. His success rate is over 80% so if you simply duplicate his trades and do nothing else you will win.
Choosing the trade contract
Select the desire asset to trade
Selecting the investment amount
1. Broker Selection
There are many brokers in the binary options marketplace over 200, unlike the situation just four years ago when you could count on the palm of one hand, the number of brokers in the marketplace. Brokers either use proprietary platforms developed by their software design teams and configured with unique features and trade types peculiar to their brokers, or they may decide to use the less expensive route of using a turnkey solution which enables the providers to configure features of the platform to the broker’s specifications.
Thus selection of a broker is indirectly an exercise in the selection of a trading platform. The choice of platform will influence what trade types are available for trading, and this will determine how the trader pursues the binary options trading career. A trader for instance may be skilled in the boundary trades, but may not be so successful with the 60 seconds option. Therefore, the trader will be best served looking for a platform that fulfills the need to trade boundary options over and above the 60 seconds option. Apart from the obvious issue of selecting a broker that will not disappear with the trader’s money, this is the role broker selection will play in the trading process.
2. Choosing the Trade Contract
There are several trade contracts. However, it is not compulsory that the trader must be a jack of all trades, because invariably such a trader will end up being a master of none, literally. It is better to choose one or a maximum of two trades, and to perfect them. On the trade platform, choosing a trade contract will present the assets that can be traded with the chosen trade type at that particular time.
3. Selecting an Asset
When the asset list comes up with the selection of the trade type, the trader can then choose an asset from the list. Four asset classes are traded: stocks, commodities, currencies and stock indices. These asset classes have their individual characteristics and traders should choose assets based on which asset class they are conversant with. For instance, a forex trader may decide to trade only currency assets since they would be familiar to trade. Others may decide to trade purely stocks and indices. It all depends on the trader’s preference.
4. Investing in the Trade
Investment amounts should not be entered carelessly and arbitrarily. It is important to keep the risk to the trade within acceptable limits. A trader must not trade more than 5% of his account as the investment amount. Such limits will keep the account viable in case of a trade loss. The investment amount should therefore be 5% of the account capital maximum. If the trader has $2,000 as account capital, the total exposure from all open positions should not be more than $100, which is 5% of $2,000. Once you are more experienced 10% per trade of your portfolio could be considered as a trade.
5. Trade Execution
Before executing the trade, always check to see that all the trade parameters have been entered just the way you want. It is not unusual at this stage to discover a few errors; wrong trade type chosen, incorrect investment amount entered, etc. This is where you make the corrections before you execute.
You should also preview the payout for the trade before you enter. This will tell you if the trade is worth entering into or not, especially when you use platforms such as those of , where there are trade types with a variable payout structure.