Binary options and Forex are two ways one can trade in the financial markets. The money-making scope is real, but the road to success is one that requires a lot of patience and perseverance.
Binary Options Education
Whether you trade forex or binary options, education is key. The depth of your knowledge will determine your success as a trader. One might say that learning a few basic indicators is enough, and the rest is just luck. We argue that thoroughly learning price action and fundamentals is essential. Invest your time in studying the markets before you go live on the trading platform. This is our advice.
Just like any new pattern, a trading strategy requires time to understand and get used to. You cannot expect to make a profit right off the bat just because the strategy made money for some other trader. The truth is traders need to spend time analysing their trading strategy before they can expect to make a profit from it.
Most traders fall prey to the advertising tactics from binary options brokers, such a making 85% returns and so on. All of this is possible only when a trader truly understands the various concepts of trading, such as the fundamentals, the technicals, money management and trading strategy.
The human mind is a powerful thing, and when you combine emotions and money, you can expect one of two things. You can either end up being extremely profitable in your financial trading, or you can end up making very expensive mistakes.
Most professional traders focus on risk management more than anything else. This is because risk is perhaps the weakest link in any trading style. Therefore, it makes a lot of sense to focus on improving this weak point in trading.
Money management is an important aspect of trading that should not be taken lightly and is an essential part of your success as a binary options trader. Managing your capital to lower your risk is a key concept of trading that will determine your risk profile.
A demo account might be a good start, but you should be aware of some psychological differences that comes with trading on a practice trading account. Just like babies learn to crawl before they can walk, and learn to walk before they can run, trading binary options successfully requires you to start with a risk-free demo trading account.
When you are choosing a binary options broker, always make sure to take your time and do your due diligence. There are enough documented cases about fraud, and despite the fact that financial regulators have become tougher on the brokers and the type of advertising they can do, there are still many dodgy firms you need to steer clear of.
Binary scams are the sickness of the industry. Binary options, as a trading instrument, have a bad reputation mainly because of the scam schemes. Too many traders have been ripped off during the years, and they spread negative comments all over the internet.
Knowing how the binary options brokers make profit can help traders understand the complete process, as well as help them pick the right broker.
Whether binary options are trading or gambling depends on the trader in question and how he or she trades. Someone with absolutely no knowledge of the markets can gamble with binary options, while a seasoned trader will be able to make a profit in the long run.
While the industry has peaked, growth is expected to continue as binary options and the derivatives markets are unlikely to go out of business any time soon. For the average retail trader, this only means a safer playground with many of the binary brokers now regulated.
Most of our mistakes start with skipping education and lead to low confidence, which in turn, leads to looking for someone else’s opinion. This is wrong!
Learn why it is important to study the interpretation and evaluation of key economic development indicators and factors.
A trader’s strategy is based on 2-3 indicators, which must be incorporated into the basic strategy - Learn what is important in Technical Analysis for binary options trading.
Technical indicators will help you follow the overbought and oversold areas providing you signals for Call and Put options.
Learn some basic tips on how to minimize risk in your daily binary option trades - as a beginner it is important for you to stay longer in trading instead of losing all your cash in 60 seconds.
As a novice trader you might wonder what expiry time to choose in order not to lose all your capital in a day. With our expiry lessons beginners can get some tips for reasonable trading.
Read more about the Pivot indicator and why you need it as a beginner trader - rebound from the top level or bounces off the lower level could be a signal for Put or Call option.
Learn how to use the simplest trading tools in binary options - Take Profit and Roll Forward.