How To Win At Binary Options Trading

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How to Win Binary Options Every Time

How to win binary options every time? – The last five years have been the golden years for binary options. The market has grown phenomenally and traders are joining in the trade in multiples. The binary options have expanded and the systems have become more sophisticated and accurate, especially with the advent of automated systems. Profits have risen and a good number of traders have made impressive profits over this time. Within the same period, there have been traders who did not do very well in the binary options trading. This will happen if you do not develop a plan to profit from binary options consistently. Also selecting a proper broker like IQ Option or Option Robot will help you along the way!

Binary options trades, like any other trading transactions in the assets and commodities markets can go either way; make a profit or lose your investment. The trick is to keep the winnings considerably higher than losses over an extended period of time. Here you will learn what to do and what not to do to create a framework within which you can make winning trades consistently. What you need to do is:

Control your expectations

Probably the right word to use here is ‘greed’. In binary options, it is very easy to be overwhelmed by your emotions. Such things tend to happen when you are winning, or losing money. The definite thing you need to do is to keep a clear head; keep all your emotions at bay. You must have come across trading platforms in this business claiming of extraordinary successes of making millionaires in a few months after making a small deposit. You probably want to be that person. While there is nothing wrong with that, the bad news is that you probably won’t be that person. With that out of the way, focus on making small consistent wins as a start, and then expand from there. The chances of becoming a millionaire within three months of trading with a deposit of $500 is a million to one; do not make rash decisions to invest all or most of your investment on a single trade just because you just made are on an 85% roll. Keep a clear head.

How Binary Option Robot Can Change Your Life? Check This Out!

Top 10 Tips for Winning with Binary Options

Binary Options trading is a quick and much less complicated way of trading than for example traditional forex trading. Therefor it does not come as a surprise that trading in binary options has attracted a lot of traders over the past few years. However, even though a trader can make huge winnings over short time periods, a trader can loose a lot of money over short periods as well. You need to approach this market the same as you would any other. Knowledge, experience, and emotional control are still the factors for success.

The following tips are presented as part of your preparation phase to get your mindset going in the right direction. These tips will not guarantee success, but you will be well advised to take note of the common sense of each one. As a companion article, we have also disclosed the pitfalls to be avoided when trading binary options. If these points are helpful, then please let us know, and do tell us of any other beneficial tips that you might also have to share. Lastly, binary options are popular for many reasons. Hopefully, these tips will help you to enjoy your binary options experience.

1) Choose Your Broker Wisely: With each passing month, droves of newcomers, both veteran traders and beginners alike, rush to open at binary option trading account, based primarily on an Internet advert. The appeal of this new trading vehicle has also generated an army of new brokers on a monthly basis, each sporting the latest and greatest trading platform, asset portfolio, or payoff ratios. In the early days, these brokers originated in far off tax havens where gambling casinos were legal, but in the last few years, traditional brokers have begun to join the fray, finally accepting that binary options were not some fad. As a result, the competition is great, and, unfortunately, the conditions are ripe for a fair share of fraudulent brokers to exist and for many to employ very shady business practices. Take your time finding the right broker for you. Check with your local regulator, other traders, and Internet review websites for any irregularities or a rash of negative comments. Your time spent here will be the best investment you can make for the long run.

2) Curb Your Expectations: Many newcomers harbor dreams of getting rich quickly with these options and are suddenly frustrated when the opposite occurs. Early reports noted that the first converts to binary options were former online poker players. The allure of another online gambling outlet had appeal for them, but the human psychology factor was working in a different fashion. You had to go “All in” with each order. There was no way to drive other players off the table to increase your odds. Payoff ratios looked good early on, but they heavily favored the House. Competition has improved those odds, but you have to conduct your own review. Many brokers tout 81% and up, but that may only be for selected assets at varying times. If the average payout is 70%, with or without a rebate, you may still have to win 60% of the time just to break even. If the average is 80%, then your odds are similar to traditional forex trading, where a “55/45” split covers commissions and losses. Remember that your goal is to tilt the odds in your favor to win over time.

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!

3) Know Your TA and Candlesticks: No one, not even the experts can predict with certainty what any investment instrument might do over a minute or an hour in time, or even a month or more in the future. To win at this game, you need Technical Analysis on your side in a big way. If your broker skimps on these tools, you may need your MT4 forex platform available for additional support. In this regard, pattern recognition can also play a big part, especially in the form of candlestick formations. Fundamental Analysis can also play a role, but with short timeframes, it is best to be aware of scheduled events that could highly impact your chosen asset. Knowledge is power from a guidance perspective with options, unless you only want to gamble.

4) Focus, Focus, Focus: It is easy to get distracted by the multitude of possibilities in the binary options space. Besides hundreds of asset types offered, tour broker may also present you with One-Touch, Boundary, Ladder, and a variety of other option types to choose from, apart from the traditional “Put/Call” alternative. Your best bet is to stay simple with “Put/Call” options, until you become very familiar with the nuances of trading in this medium. It is also recommended that you stick with better-known assets that you have knowledge about. Trade them when the markets are active to ensure that volumes are at their highest and liquidity concerns do not overly impact valuations. As with other trading pursuits, the trend is your friend. Be patient enough to wait for strong trends to offer high-probability setups for your trades.

5) Develop a Trading Strategy: If you fail to have a trading plan, then you are planning to fail. Emotions can mess with your mind and destroy your deposit account. The only accepted way, according to the veterans among us, is to develop a step-by-step strategy for how you will approach this market. You do not necessarily have to create your plan on your own. Search engines can bring up a wealth of strategies that others claim to work. You only need to review a few of these to find one or two that you like and then refine to put your own twist upon it. Live by your plan, keep your ego at the door, and you may be one of the few to find success in this genre.

6) Practice, Practice, Practice: The way you make your initial plan your own is with practice on a demo system with virtual cash. There is no shortcut for experience in any trading environment and especially not with binary options. Veterans suggest that one-hour options are the best place to start. See what times of day produce the most consistent swings in market action. Predictable swings are your targets. If you intend to got he turbo route, then try out a few 60-second options during practice sessions. Luck will play a part in winning and losing. The brokers are counting on it, but as Louis Pasteur once said, “Chance favors only the prepared mind.”

7) Money Management Counts: Money and risk management rules are greatly curtailed in the binary options space, but they are still important, if you wish to trade another day. You can either lose your entire investment, receive a small rebate back, or win a large percentage return. Your possible outcomes are fixed at time of order execution. Your downside risk is your option amount, less any applicable rebate in case you guess wrong. Let’s assume you wager $100. If you are conservative, this amount would only be 2% of your $5,000 account balance. More aggressive traders may tolerate 5% or 10%, meaning that you would need balances of $2,000 or $1,000, respectively. These rules are to protect you from long losing streaks, which will happen, even to veterans. If the force of a strong trend is behind your back, you may want to increase your percentage, as well, but never “Double-Up” on a losing trade or “Sell Early” on a winner with momentum. Increasing your investment amount in order to recover prior losses is just another way to become a quick casualty.

8) Find a Reputable Signal Provider: If you want to trade as a profession and not just as a hobby, you may want to invest in an alert/signal service that can point you to potential opportunities in the binary option space. Be careful, however, because there are a lot of software robot providers that claim to be legitimate, but are just ordinary scams or junk. The good ones rely on tested software algorithms that indicate when a particular asset might be experiencing a trending bias. Options do not work that great when markets are ranging. Validate winning percentages, and do a complete due-diligence review before you make a decision. Also be wary of a broker that offers to trade on your behalf. They are trying to entice you to increase your deposit and then enter a losing trade thereafter. Binary option brokers only make money if you lose it.

9) Be Careful with Correlating Assets: How may open positions should you have at any one time? The advice in traditional trading is no more than three, but since your downside risk is fixed with each order, you may find that you can raise this figure a little. Do not feel that you have to be in the market at all times. If you are trading hour options, be sure that they do not extend past a market closing. The point here is that trading is stressful enough without adding to it. If you do have multiple positions open at one time, you want to be sure that you are diversified without correlations working against your interests. For example, the Euro and Gold tend to move in directions opposite to the U.S. Dollar. If you place your positions incorrectly, you could find that one order cancelled out the other, but you would still lose overall, due to the lower payoff ratio.

10) Expect Early Losses and Start Small: You have followed the tips above, developed and practiced your trading strategy for hours on end, and now you are ready to make some real money. Whoa, Partner! Putting real money on the line can due weird things to your brain cells and nervous system, one reason that casualty rates are so high in this industry. High risk means just that. Do not commit funds that you cannot do without. Early losses could be high, the reason that most brokers must have aggressive new client solicitation campaigns together with hefty promotional deposit bonuses. Be aware of the trading commitments that are associated with these bonus programs, sometimes as much as 30 times the value before withdrawal restrictions will be removed. Brokers expect 7 out of 10 traders to fail and get both the bonus and initial deposit transferred to their coffers. There is no rush. Be patient. Do not put pressure on yourself to step up your action. Start out with small amounts, and as you begin to accumulate consistent gains, then increase your amount to something more reasonable, in line with money management rules.

How To Win In Binary Options

Before we can discuss winning in binary options and applying the recommended steps outlined below, we need to establish the type of binary options traders out there.

Before you start conjuring up images of speedboats, palm trees and Miami, let me inform you that winning consistently in binary options is not easy. It requires careful optimization of your odds.

To understand this better, let’s look at a case study of Don Johnson, a professional Blackjack player who beat the casinos for millions on numerous occasions. He now works as a consultant to casinos all over the world.

Basically, he was able to beat the biggest casinos in Las Vegas because he found a way to increase his odds by meticulous planning and almost scientific attention to details of each deal.

How is this relevant to binary options and trading, you may ask. Trading is also a numbers game. One really needs to understand the numbers of potential risk and profit in order to build a winning trading strategy that can produce consistent profits.

For example, there is a big difference in numbers and profits when you win 75% of the time and when you win 80% of the time.

It’s all about understanding your risk exposure and profit potential and optimizing the conditions of your trades to achieve better results and stay on the winning side.

Just like Don would carefully study the casinos and the options offered by them, a binary options trader should study the brokers to see which broker will offer the best odds.

In addition, a binary options trader must look at trading strategies that minimize losses and gradually increase trading profits.

Depending on your broker set up, on average you need to have a trading strategy that gives you at least 60% of wins in order to make money in binary options.

What works for some users may not necessarily work for others. Moreover, not everyone will be committed to do what it takes to win because motivation and character play a big role in that.

So let’s first meet the people who play binary options, as they can be clearly divided into specific groups based on their desires, motivation, available free time, and patience.

Types of the most common binary options traders

What works for some users may not necessarily work for others. Moreover, not everyone will be committed to do what it takes to win because motivation and character play a big role in that.

So let’s first meet the people who trade binary options who are not professional traders or trade for a living. We can assume that professional traders know how to use binary options effectively to enhance and diversify their investment portfolios. However, with the exception of few countries, binary options is generally open to all members of the public who are of legal age and have some money to invest or play with.

The most common types of non-professional traders can be clearly divided into specific groups based on their desires, motivation, available free time, and patience.

Jack – The Gambler who just wants to gamble

Meet Jack with a gambling personality. He loves the odds of binary options and the rush from 60-second trades online. Jack trades by looking at the tick chart provided by his broker and his gut feeling. He doesn’t do technical or fundamental analysis but he just believes in his luck and intuition. Sure, it landed him in trouble before, but when he is on a winning streak he can make it all back and then some. He approaches binary options like a roulette table in a casino. ‘One must dream big’, he often says.

ADVICE TO JACK – Take all your winnings and run. The longer you play the more you will lose because the odds in binary options are in favor of your broker. If you are in profit than you’ve already won. Now it’s the perfect time to stop.

Lucy – The Bonus Taker who gave it a shot

Meet Lucy who was initially very interested in binary options and has invested some of her money on trades as advised by her broker on the phone. Unfortunately she lost half of her investment already and is now desperate to win in back. Lucy also accepted the bonus offer from her broker and her account is now locked until she makes more trades. She is much smarter with her money than the reckless gambler and she understands that there is more to binary options trading than meets the eye. However, she is still at a university completing her degree and has no time to learn trading now. She is worried that she will lose her money completely if she continues to trade herself.

ADVICE TO LUCY – At this stage your best option is to use a professional signal service and copy the trades of professional traders. Yes, it is a paid service but it will at least allow you to compete at a level where you can actually start winning. Compare binary options signals here. If you don’t have time to learn and to practice trading now, using professional signals is your best option.

Dennis – The Trader with a goal to win

Meet Dennis who found out about binary options and got really excited about this new investment opportunity. Unlike Jack or Lucy he does not jump in to start trading immediately. He first opens a free demo account and places some trades. However he quickly understands that trading binary options is not a game and needs a serious approach. Dennis knows that he needs to learn to trade if he wants to keep winning and that he can not rely on everything his broker tells him. He read a lot of sad stories of people who quickly drained their trading accounts by paying heed to their broker’s suggestions and he is smart enough not to make the same mistakes they did. Dennis understands that he needs to have an edge over his broker in order to win in binary options and be profitable.

ADVICE TO DENNIS – Although Dennis is new to trading he quickly grasped that it is much more difficult and challenging that he initially thought. The advice to Dennis is to try to learn directly from a professional trader or other reputable sources and to practice as much as possible before trading on a live account.

Ilona – The News Trader

Meet Ilona who is a very clever binary options trader. She works as a secretary for a mining company and follows world affairs very closely. Ilona knows the mining industry quite well and trades binary options on news and recommendations she hears in the office or the press. She understands the connections between certain current affairs and the prices of commodities. She finds binary options platforms very easy to use and convenient. Ilona trades commodities like Gold, Silver, and Copper but only when she is quite certain of the outcome. Most of her trades are entered via a mobile application and last a few days. She usually wins but suffers an occasional loss too.

ADVICE TO ILONA – As a professional directly involved in the commodity market she has very good access to information and she uses that to her advantage. This edge helps her to beat the broker and make a profit in binary options. Although Ilona’s system has value she could benefit from confirming her trades with technical analysis. However this requires more time and additional set of skills to learn.

There may be other types of binary options traders yet these four types of people generally sum it up. Although some of them may win a few times, all of them will benefit from the following advice.

How to Trade to Win

About 90% of traders lose. Trading is not easy and there is much more to it than placing trades. A lot of trading is psychological but it is also about optimising your odds and controlling your risk exposure.

Below are the steps that should be followed before committing to trade binary options online. More importantly they should be followed by anyone who is serious about winning.

Understand how binary options work

This may sound very obvious but many people trade binary options without actually fully understanding how they work.

In a common scenario of 80% payout to a 100% loss you need to win 55.55% of the time to break even .

If you lose your trade than you lose 100% of your traded amount.

The good thing about binary options is that the rules are clearly defined right from the outset and it is impossible to lose more than your traded amount.

This is different from Forex or stock trading where due to slippage or huge sudden price changes, the trader, if not protected by the broker, can actually lose a lot more than the traded amount.

In binary options however, the brokers are the market makers and they set the odds to their advantage, similarly to a casino.

Open a demo account with a regulated broker

Trading with a regulated broker is much safer and more secure, but the broker needs to be regulated in the country of your legal residence. If you’re in the USA your only option is Nadex exchange. Instead of using an unregulated and dodgy binary options broker that might steal your money, use a long-established and fully regulated CFD broker, such as EasyMarkets. For more information about brokers please read our guide on how to choose a broker.

Always, always practice your trading on a demo account. Not only will this improve your strategy, timing, and platform experience, it will also prepare you psychologically for the real thing.

Practice your best trading strategy on a demo as long as it takes until you become profitable (in theory at least) Our advice is not to trade on a live account until you’ve grown your demo account by at least 100% making at least 100 trades using your tested strategy.

If you can accomplish this with your strategy you might be ready for the real thing, but make sure that your broker is regulated.

Trading with a regulated broker is much safer and more secure, but the broker needs to be regulated in the country of your legal residence. If you’re in the USA your only option is Nadex exchange.

Instead of using an unregulated and dodgy binary options broker that might steal your money, use a long-established and fully regulated binary options of CFD broker, such as Binary.com or EasyMarkets.

Familiarize yourself with your broker’s trading platform

Once you open a demo account familiarize yourself with the trading platform and all of its functionalities. Make various trades on a demo to see how the platform behaves and how it performs. Also read your broker’s rules and conditions for withdrawal before you make any deposits and begin to trade.

BONUS OFFERS – If you decide to accept a bonus offer for your initial deposit understand that there will be certain limitations imposed on your account, such as minimum amount of trades before your first withdrawal.

Choose an appropriate trading strategy

In order to win at binary options you must follow a trading strategy. You will not win by guessing. Your strategy could be based on technical analysis (charts) or/and fundamental analysis (news).

There are many trading strategies available but unfortunately what works for some may not work for others. You can view examples of some strategies by looking at our Free trading strategies section. The strategy you choose should take into account your time availability, experience and your skill level.

Use professional charts for technical analysis

Your broker will most likely offer online charts but many traders prefer to use third-party superior charting software for technical analysis. These include free platforms such as MetaTrader or ThinkorSwim .

Using better charting software will allow you to be a better trader. One of the greatest advantages is that you can add indicators and draw your analysis to your charts and it will stay there until your remove it from your charts. Your broker’s charts do not offer this type of flexibility.

All professional traders use dedicated charting software because it is more reliable and it gives them more information and better tools for analysis.

You may find that in order to run those professional charting programs you will require to update your computer, or get a dedicated computer for trading.

Practice your strategy and signals on a demo account first

In order to become confident and test your trading strategy use a binary options demo account. Only proceed to trading on a real live account if you’re winning on a demo account! Otherwise do not proceed to trade with real money.

In addition to trading on a demo account every serious trader should keep a trading journal in which all taken trades are clearly registered, including the reasons for taking the trades and their results. This should be done with utmost care so that it can form a basis for your trading on a live account. If you choose to subscribe to professional binary options signals you should first test them on a demo account to see how and if they work.

Understand risk management/exposure

All professional traders will agree that risk management is the most important aspect of trading. It is also the main reason why even good traders can actually lose money and ultimately fail.

Risk management should be studied on its own but for the purpose of this brief guide, it must be said that you should never trade more on each position than 5% of your investment capital. Many professional traders use 1% or 2% for each position.

If you deposit $1000 into your broker’s account, the maximum amount you should place on a trade is $50, which is 5% of 1000. We use percentage to indicate the trade amount as it is a relative number and should be adjusted with your capital.

If your investment capital increases to $10,000 the maximum amount for each trade could be adjusted to $500. Subversively, if you account decreases to $500 the maximum amount put on each trade should not exceed $25. To learn more about the subject read Risk Management 101.

Create and follow your trading plan

In order to win consistently one should create and follow a trading plan. The plan is basically your trading manual which is custom prepared for you, and only you. Your trading plan should include your strategy, your goals and expectations, and clearly defined rules of behavior. The good trading plan will help you to become a disciplined and a profitable trader.

Before you venture into the world of binary options trading please remember that it can be risky to your capital. Simply put, do not trade what you can’t afford to lose.

Compare binary options signals

Trading and/or betting on financial markets is mostly a numbers game, but it also requires a lot of discipline, patience, and self control.

If you are not a trader or simply don’t have the time to do your own technical analysis, your best alternative is to use professional trading signals that will help you win in binary options.

To find the right binary options trading signal or strategy, please refer to our free online guide about binary options signals. This guide also contains reviews and a comparison of winning binary option traders and professional signal providers.

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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