Learn how to master your binary options trading style and become a successful trader. Recently I had a conversation with a close friend who has been into binary options for some time. However, he’s still not very experienced, so he is prone to mistakes and often ends up losing large chunks of his bank balance. In our conversation, he asked me about my actions when it comes to binary options and how do I strive to achieve success. Naturally, I told him that at the moment my trading hasn’t been going as well as expected and I registered some losses while trading Comex Gold and XOM.
The main reason for this is the unstable economic climate in the Eurozone and the well-known sovereign debt crisis which has a huge impact on the stock options market. This is why I told him that when I noticed I’m losing money, I decided to switch to Soybean and Cbot Corn. Of course, I thoroughly researched before making the move, and got familiar with the latest financial news and candlestick patterns.
But what I didn’t tell him is that the current situation in the global markets, will certainly many new opportunities to make money on the stock market. Of course, this will only be possible if you have the know-how to make it happen.
Naturally, I decided to help my mate and asked him about the purchases he made, and what his plans were. After he told me everything, and after I checked some statistics, news and charts, I found out that his mistake could easily be reversed, and in the end he may even make some money. Here’s the short plan I prepared for him:
1. Revising his strategy and switching to agricultural commodities, because he was trading oil. Also, he had to focus on daily and weekly contracts.
2. Forget about the 60 second options trading pool. Basically, these high frequency trading options require no skill, just luck. Of course, they are still useful if you have a complicated strategy and set of automated trading algorithms, but getting those isn’t easy.
3. Review your broker’s terms, conditions and special offers. In some cases, it is a good idea to take a look at the offers of other brokers and see if they offer terms that better suit your needs.
4. After preparing your plan, you need to test a part of it by using a demo account. Demo accounts are perfect for trying out different strategies, and they are also a convenient way to get familiar with the trading platform which your broker uses. I strongly recommend using a demo account in order to get familiar with the trading tools, follow the charting data and compare it with the financial news to find out how it influences the price of different assets.
5. Bonuses can have a huge impact on your profits, so make sure that your broker offers hefty promotions and bonuses that will help you increase your winnings.
6. Never stop learning! Many traders make a mistake by thinking that they know everything about binary options. You never know enough, so don’t stop reading and trying out different things by using your demo account.
7. See if your broker is regulated and which regulatory body is responsible for your broker’s license. For example, US traders are often prohibited from binary options brokers.
8. Last, but not least, see what payment methods are accepted by the broker. Most companies allow you to invest/withdraw money via MasterCard, Visa and Amex. Many brokers also support Moneybookers and Neteller. In many cases, you’ll be able to deposit money via wire transfer.
There is much more to be said about this topic, but for now these 8 steps should be enough to prepare a working trading strategy that will help you increase your bank balance. The main thing you need is experience, and you can get this with the demo account offered by most binary options brokers. Finding the assets you want to trade with, the bonuses you want to take advantage of, and the trading strategy that you wish to follow, is essential to you success, so stop wasting your time and start reading on these topics.