You’re an experienced trader, but not familiar with Binary Options? Here’s a quick guide for you.
Read all of the information below to get a brief information on Binary Options & Forex trading.
Simple Infographic of Binary Options Trading:
Major advantages of Binary Options trading versus Forex trading:
Measurable Risk – In the options market, the trading risk is a reality to consider. As a result of this fact, traders should be ready to take the risks while trading Binaries.
Spreads and Commissions – In binary options, the transaction cost of the traders are lows and sometimes even zero. Most of the brokers will not charge you transaction fees regarding spread, commission and/or under any another title.
Risk Management – In binary options, due to not having leverage risk, portfolio management is important.
In Forex Trading, by the aid of market observation and few simple techniques, betters predictions can be made.
To accomplish this:
1-) If you are a trader with no or inadequate experience, practice with the Forex Brokers’ demo accounts and have free online/offline forex training from them. Because, the probability of becoming successful on even the easiest thing that you do not have any knowledge of, can at least be as high as being successful while gambling.
2-) Open accounts from the companies that offer welcome bonuses or promotions. Extra capital means extra earning potential.
3-) Do not trade for the first hour period just after the opening of the market. Due to instability and unbalanced trends, your profit positions may quickly turn to lose positions.
4-) Never invest on only one position with more than 30% of your total capital. This will prevent and/or delay losing you all capital on the occasions of loss trades.
5-) Before buying or selling foreign currency pairs;
- Follow the global agenda.
- Follow the trends.
- Gain precision by analysing the price/time statistics and indicators of the currency pairs that you invest.
- Develop your investment strategy. Never imitate the other traders’ strategies. A winning strategy of a trader may not be suitable for you. Alternatively, you can directly copy the trades of the successful traders by analysing the past performances of them.
- Never trade according to the tips or rumours of anybody. Never open positions for the reason that most of the traders open the same position that you can not foresee or have doubt on earning.
6-) Do not wait until your profiting position reaches the highest price level. Do not push your luck! Please keep in mind that, low profit is much better than a high loss.
7-) Take profit and use the following stop-loss orders to save your profit and limit your loss.
😎 Do not wait for your losing positions to return back to profiting. Avoid adding new trades. Being ambitious only leads to losing more and nothing else.
9-) Learn the trading psychology. You should control your feelings by staying calm at stressful conditions and hence taking the right actions.