8 Good Tips for Trading Binary Options

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9 Tips for New Traders to Trade Binary Options

From earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:

9 Tips for New Traders to Trade Binary Options

  1. The first and foremost advice to be given to any beginner trader is to select a good binary options broker for your help in this field. A good broker, who knows his work, makes all the difference. There are various comparison websites available to make this choice easier for new traders, so one can quite easily consult these websites and choose a good binary options broker of their choice.
  2. Secondly, it is advisable to increase your knowledge in the field of binary options trading and to know that there is always more to learn. There are training courses available for imparting binary options trading knowledge to new traders. Reading new books on the subject matter and discussing with other traders about the matter also adds to the benefit. This type of trading is a constantly-evolving experience, hence knowledge on the matter is ever expanding.
  3. Thirdly, trading long term serves better returns, and binary options trading is a long term activity. Developing a long term plan for your binary trading and playing the right cards will ensure that you ultimately come out on top. Resist the temptation to get drawn into fads that do not fit into your overall strategies and strictly stick to your drawn plans.
  4. Fourth is to reduce your risks by resisting the urge to over-invest. Beginners tend to get carried away to make that one big score but they must employ some self control as that may be a game changer. New traders lose more money by getting carried away and over investing. Binary options brokers advise to invest not just with courage but also with rational thinking.
  5. Fifth, it is essential to keep a clear head while making any decisions about binary options trading. Beginners should avoid trading when they are emotionally disturbed, as emotions can create havoc with your trading. It is very easy to make the wrong decisions in an emotional state, so it is advisable to stay away from any form of trading until you’ve calmed down and cleared your mind.
  6. Prepping yourself before trading in binary options is the sixth advice. Studying the market and viewing graphs over time can help new traders predict behavior of any binary options asset, thereby helping them to make well-informed decisions.
  7. Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
  8. Hedging trades against each other just ends up decreasing the statistical probability of earning more profits as opposed to increasing them.
  9. Last, but not least, it is very important to have fun while trading binary options. Beginning binary options traders must ensure that it does not become a bore or a drag; if a trader has fun while trading, then he or she will be naturally inclined towards it and will pay more attention and make better decisions, thereby increasing profits.
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More by this author

Marie Nelson

More by this author

Marie Nelson
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Last Updated on March 25, 2020

How to Set Financial Goals and Actually Meet Them

Serial entrepreneur and working towards Early Retirement Read full profile

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Finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. And that’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways on how to set financial goals and then actually meet them with ease.

Table of Contents

5 Steps to Set Financial Goals

Though setting financial goals might seem to be a daunting task but if one has the will and clarity of thought, it is rather easy. Try using these steps:

1. Be Clear About the Objectives

Any goal (let alone financial) without a clear objective is nothing more than a pipe dream. And this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore if you are saving today, then you should be crystal clear about what it is for. It could be anything like kid’s education, retirement, marriage, that dream vacation, fancy car etc.

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Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives, however small they may be, that you foresee in the future and put a value to it.

2. Keep Them Realistic

It’s good to be an optimistic person but being a pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.

It’s important that you keep your goals realistic in nature for it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said – “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”. And this quote sums up the best what inflation could do your financial goals.

Therefore account for inflation whenever you are putting a monetary value to a financial objective that is far away in the future.

For example, if one of your financial goal is your son’s college education, which is 15 years hence, then inflation would increase the monetary burden by more than 50% if inflation is mere 3%. So always account for inflation.

4. Short Term vs Long Term

Just like every calorie is not the same, the approach towards achieving every financial goal will not be the same. It is important to bifurcate goals in short term and long term.

As a rule of thumb, any financial goal, which is due in next 3 years should be termed as short term goal. Any longer duration goals are to be classified as long term goals. This bifurcation of goals into short term vs long term will help in choosing the right investment instrument to achieve them.

More on this later when we talk about how to achieve financial goals.

5. To Each to His Own

The journey of setting financial goals is an individualistic affair i.e. your goals are your own goals and are determined by your want to achieve them. A lot of times we get on the bandwagon of goal setting only to realize later on that it was not meant for us.

It is important that your goals are actually your goals and not inspired by someone else. Take a hard look at this step at all the goals you’ve set for after this step, you will be on the way to achieve them.

By now, you would be ready with your financial goals, now it’s time to go all out and achieve them.

11 Ways to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a 2 step process –

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough; and invest those savings wisely so that they grow over a period of time to help you achieve goals. So let’s get down to ensuring healthy savings.

Ensuring Healthy Savings

Self realization is the best form of realisation and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your monthly expenses. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you would be surprised to see how small expenses add up to a sizeable amount.

Also categorize those expenses into different bucket so that you know which bucket is eating the most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pump up your savings rate.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classical mistake which almost everyone of us do. We pay ourselves last!

Ideally, this should be planned upside down. We should be paying ourselves first and then to the world i.e. we should be taking out the planned saving amount first and then manage all the expenses from the rest.

The best way to actually implement is to put the savings on automatic mode i.e. money flowing automatically into different financial instruments (for example – mutual funds, retirement corpus etc) every month.

Taking the automatic route will make us lose control of our money and hence will compel us to manage in what’s left with us thereby increasing the savings rate.

3. Make a Plan and Vow to Stick with It

Budgeting is the best to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be made.

Nowadays, several money management apps and wallets can help you do this automatically. It’s easy and who knows, you may just end up doing what people fail to do.

At first, you may not be able to stick to your plans completely but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Rise Again Even If You Fall

Let’s be realistic. It’s not like the world will come to an end if you made one mistake. This isn’t called leniency but discipline.

If you fail to meet your budget for a month, don’t give up the entire effort just like that. Instead, start again.

Remember that flexible plans are the most realistic plans. So go forward and try to follow your financial goals as planned but if for some reason, the plan gets out of hand for you, do not give up on it just yet. This has a lot to do with your psychology rather than any material commitment.

All you have to do is to stay on the road and vow to stay on it, no matter how much you fall down.

5. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make Savings a habit rather than a goal. While it might seem to be counter intuitive to many but there are some deft ways of doing it. For example:

Always eat out (if at all) during weekdays rather than weekends. Usually weekends are expensive. Make it a habit and you would in turn be saving a great deal.

If you are travelling buff, try to travel during off season. Your outlay will be much less.

If you go out for shopping, always look out for coupons and see where can you get the best deal.

So the key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice which will be harder to sustain over a period of time.

6. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission. And it would be rather easy to lose the grip over your discipline.

Therefore in order to stay the course, it is advisable that you keep yourself surrounded with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

7. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

So if you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

Use this journal to write down all essential points such as your short term, mid term and long term goals, your current sources of income, your regular expenses which you are aware of and any committed expenses which are of recurring nature.

When you have a written commitment on paper, you are going to feel more energised to follow the plan and stick to it. Moreover, it is going to be a lot more easier for you to follow you and track your progress.

At this point, you should be ready with your financial goals and would be doing brilliantly with savings; now it’s time to talk about the big daddy – Investments.

Making Smart Investments

Savings by themselves don’t take anyone too far. However savings when invested wisely can do wonders and we are at that stage where we will talk about making smart investments.

8. Consult a Financial Advisor

Investments doesn’t come naturally to most of us therefore rather than dabbling with it ourselves, it is wise to consult a financial advisor.

Talk to him/her about your financial goals and savings and then seek advice for the best investment instruments to achieve your goals.

9. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about them.

Just like “no one is born a criminal”, no investment instrument is bad or good. It is the application of that instrument that makes all the difference.

Do you remember we talked about bifurcating financial goals in short term and long term?

It is here where that classification will help.

So as a general rule, for all your short term financial goals, choose an investment instrument that has debt nature for example fixed deposits, debt mutual funds etc. The reason for going for debt instruments is that chances of capital loss is less as compared to equity instruments.

10. Compounding Is the Eighth Wonder

Einstein once remarked about compounding,

Compound Interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.

So make friends with this wonder kid. And sooner you become friends with it, quicker you will reach closer to your financial goals.

Start investing early so that time is on your side to help you bear the fruits of compounding.

11. Measure, Measure, Measure

All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments; taking stock of how our investments are doing.

If there is one single step where everything (so far) can go wrong, it is at this step – Measuring the Progress.

If we don’t measure the progress timely, then we would be shooting in the dark. We wouldn’t know if our saving rate is appropriate or not; whether financial advisor is doing a decent job; whether we are moving closer to our target or not.

Do measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

The Bottom Line

This completes the list of tips for you to set financial goals and actually achieve them with not so great difficulty.

As you can see, all it requires is discipline. But guess that’s the most difficult part!

8 Pro Tips For Profitable Binary Options Trading

Is trading binary options simple? Yes.

Is it easy to make money on your trades? Not necessarily. And in most cases, it’s not nearly as easy as a lot of binary options brokers want you to believe.

But that doesn’t mean you’re destined to lose money. On the contrary, you can generate an income trading binary options over the long run if you stick to a few time-tested guidelines.

Expect some of your trades to expire out of the money. That’s unavoidable. The trick is following a binary options trading strategy that is designed to help you come out on top over time.

That’s what I’m going to share with you below. What follows is not meant to be a step-by-step trading system. Entire books have been written on that topic. I can’t cover everything on a single page. But I can give you 8 “secrets” used by veteran traders who consistently manage to make profitable trades.

Fair enough? Let’s get to work…

#1 – Trade Assets You’re Comfortable With

If you know the gold market inside and out, don’t start with oil. Likewise, if you’re an adept stock trader, focus on stocks rather than currency pairs. In other words, start with your areas of expertise. Give yourself every possible advantage. Learn what you can trade here.

Keep in mind that “knowing a market” doesn’t guarantee you’ll make profitable trades in it. One of the benefits of trading binary options is that the trades expire in a short period of time; some expire within 60 seconds! So, don’t get cocky. Even if you “know” that gold is going to go up in the near future, the price can seesaw during the next 15 minutes.

Having said that, if you stick to the assets you’re comfortable with, you can eliminate a lot of the uncertainty that goes with trading. And keep in mind, you can always branch out into other assets down the road.

#2 – Don’t Bet The Farm

Let’s face it. Your bankroll is limited. If you bet big on a few trades that expire out of the money, you might blow through your stash. Although gutsy trades might play well in movies like “Wall Street,” they almost always turn out badly in real life. Real traders, the guys and gals who do this for a living, certainly don’t bet the farm. So, why should you?

Here’s a better option: invest with the expectation that you might lose your investment. Will you be able to survive if a trade goes south? Will you still be able to pay your mortgage and put food on the table?

That’s a good place to start. Don’t put up money you can’t afford to lose. As your bankroll grows, so too will the amount you invest in any given trade. But for now, be conservative. Check your bankroll management skills.

As they say, hope for the best and prepare for the worst.

#3 – Start By Trading In A Demo Account

If you’re just getting started with binary options, do yourself a favor. Use the broker who offers access to a demo account. That gives you a chance to place trades without risking your money. (Of course, you won’t win any money, but that’s hardly the point.)

The advantage of using a demo account is that you’ll gain experience and confidence while test driving the broker’s trading platform. You don’t have to worry about whether the trades you make expire in the money.

Several reputable binary options brokers will give you access to a free, no-risk demo account when you sign up. Among them, we enjoy using TradeRush, MarketsWorld, 24Option, and GlobalTrader365 (as well as a few others).

Those are the brokers we’ve found to consistently offer a first-rate experience. As such, we feel confident recommending them.

#4 – Be Disciplined While Trading

We’re the first to admit that trading binary options is a lot of fun. It’s a great feeling to watch your trade expire in the money, and know that you’ve just make a nice chunk of cash while sitting at home.

But that doesn’t mean you should approach trading as you would a game. It’s not a game. If you’re not careful, you can – and probably will – lose money.

Pro traders know this better than anybody. They realize that they need to stay disciplined when choosing assets, looking at candlestick charts, and placing trades. If they take their eyes off the ball, even for a minute, they’re bound to get hurt (financially).

If you want to make money with binary options, be prepared to put in some effort. Think of it as running a business. The payoff can be huge, but it rarely comes without work. This ain’t the lottery.

#5 – Don’t Try To Make Up Losses

This is a pattern you’ll commonly see with beginning traders. They lose money on a few trades, and become desperate to make their money back. The more desperate they get, the less careful they are when choosing trades.

Some folks become so hot and bothered over their losses that they throw caution to the wind. They bet on just about anything, hoping to make back their money. They’re like the guy who loses his bankroll playing poker, and on his way out of the casino, bets everything he has on black on the roulette table.

How often does THAT turn out well?

Bottom line: if you suffer a series of losses, take a breather. Lick your wounds and try to figure out what went wrong. Keep in mind, if you’re investing smaller amounts, as we recommended above (ref. #2), your losses should be manageable.

#6 – Don’t Get Comfortable

Show me a trader who thinks he knows everything about binary options, and I’ll show you a guy who’s destined to take a beating, courtesy of the market. There is always something useful to learn that can help you make profitable trades. And once you think you have everything figured out, you’re in trouble.

Think of the professional baseball player who manages to maintain a high batting average. Do you think he sits at home and watches TV when he’s not playing in a game? No! He’s practicing his swing. He’s looking for ways to improve.

That’s the right perspective to take when trading binary options. If you want to make the huge returns advertised on the brokers’ sites, you need to constantly improve your game. Learn about pivot points. Figure out how to use Fibonacci retracements. Learn to hedge your trades to minimize your losses.

In other words, don’t ever get comfortable.

#7 – Work With Trusted Binary Options Brokers

You want to work with brokers that have a positive track record. That should go without saying, but believe it or not, a lot of folks entrust their hard-earned cash to fly-by-night brokers. The assumption seems to be that if a broker has a website, it must be legitimate.

Nothing could be further from the truth.

We’ve been reviewing brokers since this industry surfaced online. We’ve put together a list of legitimate binary options brokers on this site, so you don’t have to find them the hard way. You’ll also find a few that we suspect of shady practices that hurt traders.

If you haven’t done so, check out our reviews. We strongly suggest picking brokers from our list. They are the only ones we recommend.

#8 – Unplug

Being obsessed is never a good thing. It makes it very hard to enjoy life, which can create huge problems if you’re in a relationship or have kids. So know when it’s time to log out of your trading account and call it a day. It doesn’t matter if you’re on a winning streak and convinced that every trade you place will turn a profit.

Log out. Unplug. Walk away.

Take your significant other out to dinner. Or call a few friends, and get together for drinks. The point is that binary options trading should be fun and profitable. But it shouldn’t run your life.

To recap, trading binary options can be an exciting way to make money. But it’s not easy. Nor is it a game. Bookmark this page or print it out and tape it to your wall where you can see it. Remind yourself of the 8 tips above whenever you log into your binary options trading account. It could save you from taking a massive beating in the market.

8 Good Tips for Trading Binary Options

There are a lot of tools, tips and tricks that can turn you into a better binary options trader. One of these tools is a good pack of binary options trading signals. In spite of the usefulness of binary options trading signals, there are a lot of small tips that can help you become a better trader without the need to use fancy indicators – throughout this article we will go over 8 binary options trading tips.

Know about the Binary Options Market and Get the Right Tools

One of the things that you must bear in mind is that binary options trading is, like any other kind of trading model, something you must study and delve into to – the binary options market requires proper study.

You must understand how the economy works as a whole in order to better predict what will happen to a certain asset–in order to bet accordingly and get your profits to roll into your account.

Another thing to consider is that there are a lot of tools that can help you succeed–and knowing what they are and how to properly use them can make or break a profitable trader.

We discussed binary options signals in the first paragraph, but there are a whole lot more to discover.

Choose the Right Binary Options Broker

In order to launch yourself on a successful journey that includes trading binary options, you have to get a trustworthy partner–a legitimate, reputable, professional and honest binary options broker. Summing up–the binary options broker that’s able to fulfill your needs.

We will recommend a certain binary options broker by the end of this article, but the rule of thumb is – if it looks too good to be true, then it probably is (and you should stay away from it).

Always read the binary brokers’ terms and services.

Trading Requires Practice

One of things you must know about binary options’ trading is that it requires practice and practice, when it comes to investments, requires money.

So, bear in mind that you should have a small fund that you can lose in order to learn and get better. Be sure to avoid investing with money you can’t lose, as on your first trades you’ll likely to kiss your money goodbye.

Design a Binary Options Trading Plan and Research Assets

Traders can’t jump in and out of binary options’ orders by impulse or ruled by emotions–they should build and design a trading plan from the ground up and research every single asset they think about investing with in order to maximize profits and minimize losses.

Proper preparation is needed, and you shouldn’t be caught off guard–do your homework!

Don’t Choose “Interacting” Assets

There are assets that affect how each other perform. For instance, the USD and EUR affect each other inversely–this means that when the USD rises, then the EUR goes down and vice-versa.

So, you should avoid investing on the USD going up and place a similar bet on the EUR going up too–you’re probably going to win one bet and lose another, which will cause you to get a loss overall.

Make Use of Practice Accounts

Most brokers provide their users with practice accounts, accounts that have “play money” and allow users to invest using that money in order for them to learn trading and to get better at it.

The practice accounts are there for a reason, and you should use them to their fullest–this can save you quite a lot of expenses.

Risk and Money Management is Vital

If you’re going to get serious on binary options’ trading then you’ll have to dominate your e-wallet and become a pro at risk management.

Try to research on this subject and get informed–you’ll thank us later.

Hourly Binary Options Trading: Something to Consider

Finally, if you want to really feel the difference overnight, you should consider getting in hourly binary options trading–as profits can grow pretty quickly. Beware though, losses can add up quickly too.

Consider these tips and try to apply some of them as soon as possible–and don’t forget to practice trading often!

If you want to start walking down the path towards binary options’ trading success, consider checking Call and Put out, they are professional, trustworthy and have a stellar customer support team – the margins are also quite attractive, and you’ll see that they have a lot of tools available to help you improve.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

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