How to start trading binary options from full ground in examples
Options have become hugely popular in recent years. Some of them were able to earn a decent money, others to lose as much. Often the problem lies in the fact that beginners open trades relying only on intuition. We have prepared for you a detailed instruction on how to start trading binary options and make money consistently.
Training binary options from scratch (Let’s go!)
Before you trade options, any trader needs to get to know the market. You can learn the process of trading in 3-4 minutes, and you can learn to understand the market for the rest of your life.
In order to start trading binary options you need to choose to start one market, your asset. It can be oil, currency pair, shares of some industry…
Throughout the time it is recommended to read special literature for traders, where they will tell about the features of technical and fundamental analyses.
Minimum list of what you need for beginners:
- Select one asset for analysis;
- Read and learn the basics of fundamental and technical analysis;
- Apply this knowledge to the chosen asset;
- Choose a trading strategy and determine risk management (the sums of trades);
- Start working on a strategy combining it with technical and fundamental analysis of the situation.
It is important to understand at once that there is not a single trader who would trade only in plus and did not make unprofitable trades.
Part of the deals will go in plus, some necessarily in the negative – you have to be ready for it and treat the losses rationally, effectively – analyze errors and eliminate them. It is important to ensure that there are fewer and fewer errors in the long run.
As a result of working out the strategy or certain principles of your trading, you can figure out a whole range of useful things:
- How profitable the strategy is “It often happens that you have to give up what worked in theory, but in practice it has failed;
- Ready to trade psychologically It’s about compliance with risk management, time spent at work, change of interests;
- Stability — thanks to experience comes stability in the conduct of trades and their results.
Choosing your own trading strategy
A trading strategy is the exact sequence of your actions, which determine the entry points into the market, exit and timing of trades. Even on our website published interesting and selective strategies, but you need to choose the one that is closer to you and brings a minimum of psychological discomfort. Examples:
- If it is difficult to hold a position for more than 1 hour, and the person is constantly watching the terminal, it is better to consider short-term strategies;
- When order with patience and easier to open positions for a week or a month, you can pay attention to long-term trading and protracted trends;
- You can’t rely on technical analysis – you need to study news trading, etc.
The list can be quite impressive, because in technical analysis alone there are hundreds of directions from figures and patterns, ending with the theory of Fibonacci or Gunn.
Every trader is an individual who has his own preferences and characteristics in behavior, which is why there is no single and correct strategy. Two different types of people can use the same information and strategy, but one of them will always have a better result because of personality traits.
Determining start-up capital
Once the trader has decided on the strategy, it is time to choose the size of the available start-up capital. Usually this issue is solved simply by an affordable amount of money, but it is not always correct. If you have little money – then trading is not for you.
Trading is a high-risk activity. Professionals don’t risk more 1% from deposit to one transaction. This means that if you want to open a deal on $10then you should have a minimum of $1,000.
Regulated binary options brokers have minimum amounts of initial deposits in $150-200. With such deposits you need to be very careful about trading and do not try to open trades often. Trade must be conscious.
Choosing a broker
When considering different brokerage offices it is worth paying attention to the following factors:
- Reliability is the most important criterion, you can’t put money wherex may just not bring out. To do this, first of all, we look at the regulators at the broker (CySEC, CRFR, CROWFR, etc.).
- Reputation – it is not superfluous to study the information about reviews, what people write and think online. However, in this area often there is a competition, many opinions are customized, so you need to check them for truthfulness and be critical.
- Minimum deposit – Naturally, the trader should be enough for a minimum contribution, otherwise the broker will not fit.
- Assets Whether the broker provides the asset you need.
Given all the above parameters, it is quite realistic to pick a good broker and not be disappointed in it.
Timely withdrawal of part of the profit
Each trader in one way or another sets a certain profit goals. Reinvestment is a noble business, but it is important to know the measure and periodically withdraw funds from the account.
This is what the legendary trader advised many years ago Jesse Livermore – take half of each lucrative deal. Unfortunately, even following all the rules, there is always a chance to lose money. There may be unprofitable series of trades. Such a habit will help the trader to stay afloat.
Keeping a trade diary and self-improvement
The property of human nature is that people often make mistakes, options traders are no exception. To start and successfully continue trading binary options, you need to look after yourself.
The most effective way is to keep a business diary and keep a track of statistics. It should include:
- The reason and conditions of the opening of the deal
- The term of the deal;
- Opening and closing rate of the option;
- The amount of the transaction and the financial result;
Working with the diary will allow you to track your weaknesses and mistakes, take measures to prevent them. Any professional takes such things seriously, so it would be foolish to neglect them.
Now you know how to start trading binary options. Once you start trading, you need to take all measures to protect your deposit. Namely: to observe risk management, to withdraw part of the profits, to keep a diary of transactions. Such a comprehensive approach will give an opportunity not only to “start” trading, but also with a great probability to achieve at least minimal success in this.