What is the key to success with Binary Options? – On this page, I will show you the best and simplest Tips & Tricks for trading Binary Options. That is a piece of advice for beginners or advanced traders. With more than 10 years of experience in trading, I know what I am talking about. It is always the same mistake why traders lose their money in the markets.
It is important to go through all the steps and techniques on this website because only one mistake can cost you a lot of money. See my full video first:
What you will read in this Post
1. Know the risk of trading (Risk management)
If you start trading, you have to risk money on the stock exchange in order to make a profit. Most of the time this fact is misunderstood and traders care less about the risk. Binary Options are very risky to trade because you can lose the invested amount of money. That means you have to have a higher hit rate than 50% to make a profit over a long time horizon.
Sometimes there are loss stikes for beginners or advanced traders. It can always happen to you because the market is different and flexible in its price movements. Sometimes you lose more than 10 trades in a row. That’s why you need sensible money management.
It is important to use your funds wisely. That means that you should protect your account against loss strikes. Most traders risk too much money of their account balance and then they wonder why they start trading irrationally and with emotions. It is harder to lose 100% of the account balance than 10%. Sensible money management means that you only risk 1% of the account balance per trade.
Example: You got an account with a balance of 10.000$. The risk of 1% is 100$ investment in each trade. That allows you to lose more than 10 trades in a row and so it is easier to accept the loss.
Also, you should always use the same amount for your investment (percent of account balance). Professional traders know this fact and are growing their accounts continuously, not in huge steps.
Read my full article about Risk Management.
2. Start investing with a small amount of money
Nowadays, you can start trading with a small amount of money, like 10$. In my opinion, you should start with a small deposit like 50$ or less. After you feel comfortable and make a profit with the small account balance, you can invest more money. It is important to stack up risk if you trade well and are profitable. You never should do it the way around. That can be very bad for your hard-earned money.
- How much money do you want to fund into your account?
That is another question for traders. As mentioned before, I always start with a very small amount in a new trading account. After I gained some profit, I feel comfortable and able to invest more funds into my account.
Read my full guide to trading Binary Options.
3. Choose a regulated Binary Options Broker
Another tip to improve your results is to choose a regulated Binary Options Broker. It is much safer for your funds. This is the shocking truth! Unregulated brokers sometimes scam their clients. That is what should be avoided by this tip. I cannot trust an unregulated company. That´s why I created the comparison below. In the table, you will find regulated brokers for trading Binary Options. The funds are safe with them and you will get your payout directly.
Read my full article about regulated brokers.
4. Develop a strategy and trading rules
Trading without a plan is not a good idea. Every professional trader got his own strategy. From my experience, it is not a good idea to copy a strategy for 100% too. First of all, you should practice trading in the demo account to get new experience in the markets. In addition, you can learn strategies and get higher knowledge through the broker’s education center or the internet.
On my site, “Binary Options Strategies,” you can learn about my best method to trade the markets. It is important to get a trading routine with strict rules. It should be lite, a system that is working correctly. In conclusion, there are a lot of good working strategies on the internet but most traders do not follow the rules exactly. It is very hard to trade the exact rules for a human.
Create a checklist for your trading routine; I will give you an example:
- Check out the market news
- Which time is it?
- Which markets are open?
- Where was the opening of the markets?
- Are there any support and resistance prices in the market today?
I got strict rules for entering the market. My “false breakout strategy” allows me to trade only on certain levels in the market. I am searching for highs and lows and waiting for the break. That’s all that I am doing. Very simple and clean. But it is hard to follow the rules every time because the market always moves and may give you other trade opportunities. I try to ignore the other opportunities for better results of my strategy.
Read my full article about the best Binary Options strategies.
5. Do not do overtrade
This is the last tip for trading successful Binary Options. Overtrading is one of the most common mistakes of binary beginners. Especially for a short-term day trader, it is difficult to do not to overtrade. That means trading a high volume in a lot of different trades. In my opinion, you should make a rule that you do not trade more than a certain amount in one hour. The problem is the concentration of human consciousness.
In addition, it is important to take breaks from trading to get a recap and relax for some time. Short-term trading is one of the hardest methods of trading markets. The price always moves very fast from one end of the chart to the other end. I recommend trading a maximum of 1 hour and then taking a break for 10 minutes. Do not become addicted to the markets. Often it will blow up your account if you do not trade rationally.
- Just spend one hour trading the markets
- Do a break after it
- Start again for one hour
- There should be a daily time limit and trade limit
Read my full article about how often should you trade.
How to win Binary Options every time? – Is that possible?
Did you ever ask this question to yourself? From my experience, it is impossible to win every trade. The best traders got a hit rate of more than 70%. They also got lost trades or strikes. It is all about the probability to win in the markets. The probability cannot be 100% because other humans react to the markets. You can not make a forecast for 100% about a human reaction.
Another possibility to get knowledge about your strategy’s hit rate is to research and analyze bar by bar the last price movements. Do it by yourself and you will find out that there is not the same price movement occurring every time. In addition, you should never trust somebody who says he always wins Binary Options.
In conclusion, the key to success is practicing trading and gaining more market knowledge. The best way to practice is a free demo account with virtual money. It simulates real money trading and you trade without any risk. After you learn a proven strategy, you are open to earning a lot of money.
Steps to be taken while trading on Binary Option
When it comes to trading, we cannot guarantee success, and you may either win or lose, but taking the necessary steps will minimize the possibility of losing your trade. Let’s discuss some of them which can help you trade better:
1. Strategy development
Binary strategies will help you win halfway through your work. It is better to plan before execution because a better plan leads to great success. You should develop a step-to-step strategy for how you will approach the market.
Various tools available in the market can help you make a sustainable plan for trading in the Binary option; you would only need to review the best of them you like and then refine them to put your thoughts into it. This will help in better and long-standing in the market.
Start small and expect early losses
Whenever you start in trade, you should expect losses starting, so it is better to start small. The bearable losses won’t make your financial health suffer. Binary Trade is a high-risk market, so it is better to invest what you can lose at the start of your trade career.
It is an old saying, “Practice makes a man perfect, ” which is true. So don’t hesitate to give your time and money in your early trading stage; this practice will help you learn various things about trading and changes in the market.
Various Binary trade platforms offer a Demo account to practice and even not lose money; use those accounts to practice and learn the basics of the market trade.
3. Control your expectations
Haste and greed can make you suffer big losses in Binary Option Trade. The profits are high, but the risk for loss is even higher. While trading, control your expectations and don’t go for big profits in a shorter period. Focus on getting small continuous wins at the start and then extend from there.
Leave on losing streak
You should follow a rule with several losing streaks if you are losing several times while you trade, walk away from the trading desk, and plan out a better strategy to trade in the market.
4. Keep your sentiments alongside
There is a bit of a difference between trading and gambling when you start in the binary options field. Many brokers and websites with investment terminology will try to distract you, but don’t be a fool. A disciplined approach is the only to achieve success. Unfortunately, the chances are so far collected against you.
The mass of chances in the binary options space is very easy to divert. Besides the resources offered, merchants may likewise give you One-Touch, Boundary, Ladder, and other choice sorts to exchange, aside from the customary “Put/Call” alternative. So again, it is better to stick with better-known assets you know about.
With certainty, no expert can predict what an investment instrument can do over some time. Therefore, technical and fundamental analysis on your side is a much-needed aspect when you come to trading.
These analyses will help you know about your instrument and recent trends the instrument has been in. This will help you to trade in a systematic and disciplined way.
7. Choose your trading broker wisely
In the last few years, the appeal of the Binary Options trade has increased among both veterans and newcomers in the market. There are multiple brokers and trading platforms present in the market, but choosing the correct broker or platform will decide your career in trading.
Unfortunately, there are many frauds, and less experienced brokers present in the market who can promise you various things, but you will give nothing when it comes to reality. So, it is better to choose your broker wisely in this market who can help you with sustainable and consistent growth.
What are the best trades for beginners?
Binary Options is a flexible financial product. You can customize the trade like you want before you click the call or put button. But what are the best options for beginners?
From my experience, I recommend that beginners do not do short-term trading like 30 or 60-second trades. It is way too fast for beginners. All in all, it is easier to use a higher timeframe because you got more time to react to the markets. Beginners are too slow to watch 30 or 60-second charts. Furthermore, beginners should trade the most traded assets by their broker because they give them the highest profit of 80-95%.
- Avoid 30 – 60-second trades.
- Trade the most traded assets by your broker
Review of the Binary Options tips and tricks
On this website, I showed you different techniques to improve your trading results with Binary Options. You will get more profitable trades if you follow my tips and tricks. In conclusion, there are a lot of different mistakes traders make. Often they do not know what they are doing and then they wonder why they lose a huge amount of money.
As mentioned before, knowledge is the key to success. That’s why I created this page for you.
Also, read the detailed articles about:
The tips complete each other. Every bad trader starts with the wrong risk management. Stop increasing the risk if you are losing. Professional traders increase the risk if they are winning. It makes no sense to risk more money in a losing strike. It will make the losing strike even bigger. On the other side, you should increase the risk of a winning strike. Start with a small amount of money for your first trades. If you do it well and feel comfortable with the platform, you can increase the risk. You will gain more and more self-confidence after you win some trades in a row. That allows you to trade better and more accurately.
Most beginners ask: Which is the Best Broker for Binary Options? – I recommend using a regulated broker like IQ Option, Olymp Trade, or Expert Option. Check out the upper table and create a free demo account or read the big reviews of the brokers on my website. It is important for me to use a regulated broker because I cannot trust an unregulated one. I want to be safe by investing money and not getting scammed.
The last 2 tips support each other. By using a professional strategy, you will not overtrade in the markets. Strict rules and knowledge is the key to success with Binary Options. I hope you enjoyed this page and you will make fewer losing trades.
Happy trading ;)