The question Banc de Binary’s brokers get asked most often, quite predictably really, is “how do I maximise my profits when trading binary options?” Binary options industry heavyweight Banc de Binary has now condensed the trading wisdom of its top brokers into 5 easy to follow tips that if followed correctly are guaranteed to take your trading game to the next level.
Head Broker Niko Galis commented on the press release by saying: “of course a trader’s homework is never done, this is what makes trading such a challenging career, you never arrive, you’re always working towards something, and there’s always another trader out there who knows a little bit more than you do, who’s just that little bit better at connecting those dots than you. But for our beginner traders we believe these five simple tips should catapult them into a new world as far as their trading goes.
So without further ado, here is the top 5 tips for trading binary options according to the company’s top brokers.
1) Educate yourself:
Barring beginner’s luck, an educated trader is a trader whose trades expire in the money. If you start a trading session without having browsed the headlines affecting the assets you trade you’re going in blind. Do not do this. Banc de Binary advise not only making sure you keep abreast of all the relevant news, but that you also spend some time on a charting platform reviewing the historical price action of the assets you’re due to trade, loading your technical indicators, scoping support and resistance lines. All these are crucial if you want to be in the best frame of mind and most able to capitalise at the right moments and place those timely trades.
2) Trade what you know:
Before even sitting down to complete tip number one you should have done some extensive research on the assets you want to trade. Most binary traders start off with a few preferred assets and then gradually expand their repertoire as their knowledge increases. This is the way to do it, although at first learning a single asset like the back of your hand is probably the way to go. Trade what you know and know what you trade, it’s imperative. Study those knock-on relationships, find out what other assets your chosen one is highly correlated with because you never know when you might need them. Do your history, find out what has affected the price of your chosen asset historically in order to be in the best position to determine what is likely to affect it in the future.
3) Money management is key:
You should have boundaries that are clearly defined and that you stick to religiously. This, after all, is the only thing separating you from a gambler. Know well in advance how long a trading session is due to last, how much you are prepared to risk per trade, how much you will trade per session and stick to these limits, even when things seem to be going your way, you would do well to make sure you quit at the time you have set. In this way you observe mature boundaries and can keep profiting in the long run. Trading is an endurance sport, not a marathon, never forget this.
4) Pick your strategies:
It’s important that you have the right strategy to hand at the right moment. This goes back to being educated; a single go-to strategy will simply not work. You must be able to employ different strategies and know when the best moment to take advantage of them is. A key advantage of binary options is that you can profit even in bearish and volatile markets. For instance Straddles don’t work when a market is strongly trending in one direction as they rely on volatility, they are best utilised when the market doesn’t seem to know which direction it’s going in.
5) Practice, practice, practice:
The three Ps should probably go first to be honest. This is everything to a trader. There is absolutely nothing like live trading experience, not only to enable you to get to grips with the trading platform, but to also get a feel for how the markets are moving and how they react to data released and news items that affect market sentiment. Banc de Binary are one of the very few companies to offer free, unlimited demo accounts with $50,000 in them. These are not a gimmick; they are a way for you to get the hang of trading binary options in a way that would otherwise cost you a great deal of your own capital. Take advantage of your free demo account, practice, practice and practice on it and when the time comes to start trading with your own money you’ll be in a whole other world as far as your abilities go.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.