4 Must Know Binary Options Basics

“Learn How To Trade Binary Options In Just A Few Very Simple Steps!”

How many times have you came across this very same phrase. This is the very same statement that gets the newbies every single time! The false sense of security and hope that its as easy as 1.2.3 to go from amateur trader to professional, from cleaning out your account in a single day to doubling it weekly.

The fact is, there is no magic formula, no amazing indicator, no 36 page E-book and definitely no simple steps in becoming a successful yet profitable Binary Options trader! Now what makes a successful trader? The answer to this is simple- Start at the Binary Options Basics & progressing from this point forward.

Demo Trade & Test The Waters before using your hard earned money!  - Binary Options Basics no 1.

Yes you read correct. Demo trading is most often then not skipped by as a newbie trader seeing it as a waste of time and effort. Have you ever asked yourself how do you expect to make money on a live account if you can not even succeed doing so on a demo account? The most frequent answer I get to this questions is always the emotion factor. The fact that you don’t think the same trading fake money and real money. Definitely a fair answer! I always reply with the following statement. “Trade and manage your demo account as it was your own money. If you plan on starting with a $500 account then ask for a $500 demo account.” Making constant profits for 1-2 months will boost your confidence and trading ability to a new level preparing you for the real deal. -Open a Demo Account Now-

Money Management is Key & will make or break a trader – Binary Options Basics no 2.

Don’t do mix trading amounts! This is a big newbie as well as professional mistake. It may work out well at first but sooner then later its going to get you good. Been there, Done that, Got the $0 account balance. When starting out I recommend risking 2.5% of your balance per trade. No matter if they trade looks good or even as a guaranteed winner! At the start of every new trading money adjust your risk amount accordingly. As you progress you can move the risk % up to 5% as long as you feel comfortable with the amount you are risking. “Never Risk Money You can’t Afford To Lose.”I’m sure 90% of you never read that part. Keep strict money management and planning at all times with the thought of how you would feel if you had to lose your money. This will keep you from over risking!

Stick to 1-2 Assets & Master them – Binary Options Basics no 3.

Every successful trader knows there trading asset better then they know themselves. Once again a very important aspect that lags in newbie traders. If I had to ask you now what is the most liquid pair I am sure you will first have to go look it up. The EUR/USD is the most liquid pair that accounts for 28% of the daily global turnover. As well as learning when the best times are to trade the asset its equally important to know when to sit out and watch. The EUR/GBP is prone to make pullbacks after big moves threw support or resistance. In fact to learn each assets characteristics it comes down to screen time! The time you sit behind your screen watching the asset do its thing, learning its every move. Of course this takes time and there is no shortcut to screen time.

Choosing & Perfecting your Binary Options Strategy – Binary Options Basics no 4.

Your trading plan, trading strategy is your bread and butter in the trading world! What I see as simple and easy to spot might not be for you. Find something that works for you, perfect it and master it. Then again the markets change on a daily basis. Does that mean you have to change you strategy daily? No! It means you have to adjust it, not change it. A good strategy never has to change, only needs to be tweaked. By trading strategy I don’t mean tons of indicator use! I only use 2 moving averages! Indicators lag and shows you what has happened already not what is going to happen for sure. Reading the charts like you read a book is one of the most powerful assets in your trading arsenal.

Binary Options Trading is not easy nor is it a get rich over night scheme. Treat it like a business and it shall grow like a business. Remember education is key and you have it forever. Spend time and effort on learning the ways of the market rather then looking for a easy fix to your Binary Options Trading Success!

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