So you want to join the Bandwagon and Trade Binary Options to make a quick buck right? Wrong. Trading Binary Options requires work and dedication. It is a legitimate way of making money online and can produce substantial profits – but if you do not follow professional advice –Trading, will potentially wipe away your capital – and very fast.
Here is a Quick Start Tutorial into Binary Options Trading
- Choose a Recommended Broker with an option to a Demo Account. Paper Trades or Dummy Trades are the first steps you need to take BEFORE committing your capital to Trade Live.
Start off with Trading Classic Binary Options.
- Choose an asset you would like to Trade. Eg., A currency pair like EUR/USD
- Speculate on the direction in which the pair will move ie., UP or DOWN
- Decide on the Time Frame for the Trade. Time frames can be from as short as 5 minutes to 60 minutes. Once the Time is Expired – your position is automatically closed.
- Hit the CALL/PUT button. Some Brokers use the keys UP/DOWN and others may use HIGH/LOW
Wait for the duration of your selected time frame and if the pair move in the direction of your verdict take the profit pay-out. Pay-outs can vary from as little as 65% of your Trade Stake or even as High at 90% depending on the asset you choose and your Broker.
- Sounds Simple Yes? Actually placing Trades on Binary Option platforms is a No Brainer.Forecasting the correct direction is the difficult part.
- In order to Trade Profitably, a Trader needs to Have a Trading Strategy. What is a Trading Strategy?
- Money Management. A Trade should never represent more than 5% of the Trader’s entire capital.
- The Three legged Monster ! A trader needs to decide whether he is going to trade Trends, Sentiment or News – heck it start getting complicated!
- A Trader will determine whether to let a loosing Trade Go, or persist. Will he double up his staked Trade value in order to recover his losses ?
Although the Martingale Strategy works for some, this is a very risky style of trading and may fast crumble your investment SO BEWARE.
As a new Trader you may be thinking BORING!! SHOW ME THE MONEY FAST. If this is your thinking, we suggest that you either leave this site for a Poker Game, or be more safe and go back to your 9.00 – 5.00 Job. If you are still interested in making money online, you have to swallow the hard pill and get a basic knowledge of Trading
This Tutorial for Beginners will focus on Trend Trading and Demonstrate some simple Basics that are used by Experts with repeated Success.
WHAT IS A TREND ?
Trend analysis is the study of Price Movement. If you are Trading on a 15 MINUTE EXPIRY, you need to be looking at a 30 minute chart to see how the Currency Pair or Asset has been behaving. And we don’t mean whether it is being good or naughty – but whether the trend is generally high or low. The past performance of the asset will theoretically determine how it will move in the short term future. Kindof History Repeating itself!
Here we see a 30 Minute Chart. Every red or blue bar represent how the price moved every 30 minutes. Clearly the pair have been on a downtrend. –Which direction likely will you Choose if you a taking a 15 minute Trade? Up or Down? If your choice is Down, you will have chosen well and probably profited from your strategy.
- Not sounding as complicated anymore? Trend Trading is very subjective – but it is one of the Pillars of Trading Analyses. If you wish to have access to FREE CHARTING you may visit www.NetDania.com and launch Net Station.If New to Trading – Arm Yourself with a Good signal Software –take out the pain out of your procrastination and Trust Experts to do the Analysis for you.We recommend Mike’s Auto Trader as a Great Tool to help you with your Trading. Read full review and download it here.
Final Word of Advice from the Binary Option Sheriff
Binary Option Trading exposes you to risk of loosing your capital. Trade with Caution. That said, if you carve your way into Education and arm yourself with the Right tools, it can be very lucrative.
- Note of caution: Auto traders and signal software systems are tools to be used in your trading tool kit. Used properly they produce positive results if they are legitimate Bots, and linked with LEGITIMATE BROKERShowever, all trading exposes you to risk of loosing your capital.If new to trading we also recommend social trading. Copy trading is the best way to trade if you are a Newbie. Follow the signals of live traders on the Social Group on Facebook and enjoy safe trading by opening a FREE DEMO ACCOUNT. Contact us on the subscription form for more information if you are interested in learning how to trade with the best.