The binary trade market is not an easy one and you ought to learn tricks of the trade before you step in and hope to make a profit. In this article, I am putting together some fundamental steps and tips for newbie binary traders to get them started. Once you get oriented with the system, binary options trading seems like a simplistic process that becomes easier to grasp and manage (as compared to other investment gateways). Without further ado, here are the tips to get you going like a pro…
1. You Need a Broker
In this line of trading, you ought to have a broker selected to move forward with further trade steps. The binary options trade happens via an online broker; and there are several online brokers that claim to be the best. It is important to invest appropriate time and make a careful decision in broker selection if you want to have a profitable outlook. So, while selecting an online broker, ensure that they are following the necessary protocols; such as being regulated by the concerned financial authorities.
Some of the most popular brokers we’ve reviewed are as follows:
You would also want to look into some reviews about that broker because the scammers would never care to post “reviews”! Another reason for not sharing ‘customer reviews’ by a broker could be low satisfaction rate. In either case, you should steer clear of such broker and search one that is considerably reliable and has established credibility.
You may also want to check for any extra features or services offered by a potential broker. When you are just starting out as a binary options trader, it would help to have introductory guides or informational material to assist you throughout the process; and your broker may have such facilities. All you need to do is ‘ask’!
2. Stay Updated about the Latest Developments
Since you are going to be investing your hard-earned money in the binary options trade market, it is important that you stay updated about all that is happening in the market. This is going to be of tremendous help to you when making predictions about potential market influencers. The big question is…’how can you do this?’. It’s not that difficult; you can consult financial magazines, broadsheet newspapers etc. You can set up a time in the day (mornings would be a good time to start) and review the market trends carefully. Although, it is important to keep in mind that market trends in binary options trade are fluctuating every moment. The only way to deal with this is staying vigilant.
3. Stay on a Schedule Rigorously
When you step into the trading world, you realize the true significance of following a routine daily. In case you are selecting binary options trade stream as a side gig (in addition to your regular day job), you must organize the daily very carefully in order to allocate ample time to trade activities. Usually, setting out some time early in the morning works smoothly. However, if you are setting up the alarm clock just 15 minutes earlier than the previous time (usual one) then you wouldn’t have enough time to plan your trade tactics appropriately and this would be an investment disaster. So, if you are keen on continuing this then you must get started earliest and actively research the potential trade options before investing your money. The habit of researching and carefully analyzing the trade options, would enable you to earn handsome profit. Another important aspect that you must be well aware of are the ‘assets’ that you are trading. As a rule of thumb, never jump in to trade on some anonymous tip because they mostly turn out to be incorrect. The only sane and proven way to make profit is to research and plan carefully.
4. Stay Within Your Budget
It does not matter how fascinated you are with binary trade; you must keep a very simple fact in mind…i.e. profit with binary trading is possible but not guaranteed. So, there is always a certain degree of risk when you are making some investments. It would be smart to play safe and never let your savings drip out. Make sure that you are not investing money that you have saved for rent or other personal needs etc. The money that you plan on investing in this trade market should always be the surplus money you have. Whatever the budget you have decided, you must stay within it while going about the trade activities.
5. Strategies that Work!
If you have been trying research about the proven strategies in binary trade market, you would have realized that almost every person claims that their strategies are the ultimate solution, which isn’t always the case. It is integral to crosscheck and see if the strategy has some factual significance at all.
The two strategies / signal providers I rely on are the following:
For these two programs, you need little to no knowledge. Yet, there are manual trading strategies that work too.
Here are a few for which I have found logical evidence:
- One of the commonly used and popular strategy for newbie traders is known as ‘support and resistance’. According to this strategy you need to identify the appropriate spot and then navigate through the support or resistance area of trade routes. But, how can we identify these areas? Well, one way is to pay attention to price behavior in older areas and then making a prediction about potential price movement back to these areas. In other words, you would be conducting a technical analysis, and this would equip you with the ability to predict price behavior.
- Another smart strategy is known as “the Fibonacci Bounces” (even the name has a cool ring to it!). Paying attention to simple Fibonacci levels can land you good trading opportunities. The most significant level has been 161.8, 127, 61.8 and 78.6 so far. Although the price bouncing is quite common among the levels, but several harmonic patterns develop over time.
- Following and trading according to the trends is another great strategy for new traders. With this tactic you do not have to identify or analyze a trend, rather you simply wait for an emerging trend and then start at the right time (for this purpose EMAs are often used)
So, with the above enlisted strategies you can jump-start the binary options trade adventure and enjoy the perks.
Do you have other strategies that you would suggest for the beginners in binary options trade? If you do, we would be happy to hear about it in the comments below. Happy trading!