If you are looking to get into binary options trading, the abundance of information on the subject might overwhelm you at first. Therefore we have made an entire section dedicated to guides that will make your entry into binary options as smooth as possible.
Some of the must-read articles in this section are:
You can see all the guides in the section to the right.
First 3 steps in the Guide to binary Options
To help you get started, this article will provide you with an action plan on how to learn the essentials first and then get to the more advanced information. You will learn how to:
- Open an account with a good broker,
- Which form of binary options there are, and
- How to find a trading strategy that suits you and execute it successfully.
Now, let’s get you started into the exciting world of binary options. Through it all, we will be here to help you become a successful binary options trader.
Opening an account
The first step to becoming a successful binary options trader is to open an account with the right broker. To help you find the right broker, we have thoroughly tested all relevant brokers and can now provide you with a list of good brokers. You can safely choose any broker of this list.
To know which broker to choose, check the different assets each broker offers you. If there is a type of asset, or a special market you want to invest in, make sure your broker offers this asset.
European traders looking to trade binary options during the morning and afternoon, for example, should make sure their provider does not only offer American and Asian stocks, whose markets are closed during this trader’s trading time.
Choosing the right binary option
After you have opened an account with a broker, you will need to learn about the different kinds of assets you can trade with binary options and which types of binary options you can trade them with. There are:
– Touch / No Touch options: Advanced options predicting whether the market will reach a certain price level in a predefined time or not.
– Boundary options: Advanced options predicting whether the market will stay within a certain price channel or leave it.
Each of these types has its own very unique features. To learn more of them, click the links to respective articles.
Choosing a trading strategy
As a binary options trader you should not invest randomly in assets that look good to you at the moment. Emotionally driven investment is the number one reason why traders lose money. Any trading decision should be the result of a clearly defined, objective trading strategy that excludes all human factors, such as emotions, feeling, hopes, and fears, from your trading.
The most important advantage of a trading strategy is that it makes your trading repeatable. Faced with the same situation, you know you will always make the same decision. After a certain number of trades, you can evaluate if this decision helps you make money or not. If it does, you can simply keep doing everything the way you did. If it doesn’t, however, you know exactly what to change. Step by step you can eliminate all negative factors from your trading and become a successful trader.
Traders without a clearly defined strategy, on the other hand, will never understand why they are making money or not. Therefore, they can never improve their trading.
At this point, it is important to note that a trading strategy by itself does not guarantee you will make money with binary options. You also need a trading diary, a written account of every trading decision you make, to evaluate your trading; and you need a solid money management system, to avoid letting a losing streak ruin you.