Binary options trading is a fairly new investment strategy, but the tactics and strategies you use are really no different than any other type of stock or commodity trading. Binaries are unique and they offer returns from 70% to 95% on investments in a very short period of time. Your trading practices need to be approached with discipline, however in order to be successful.
The tools that a traditional trader uses can be handled by a binary trader. Following the markets and learning about your underlying assets is critical for success. Tools include using charts of price histories, following indicators, learning trading strategies, analyzing, and adhering to money management rules. Any deviation from trading rules, strategies and practices can prove to be catastrophic.
Tools for Trading
Charts are available online for reasonable prices. Being a successful trader means investing up to $200 dollars a month subscribing to services and market publications. You can keep things simple and minimize your costs however. Google-search market charts, find free charts on your binary options trading platform or customize your own charts. Reading market charts can be a little daunting at first, but once you have studied, questioned and used these market charts they will become a part of your trading strategies. Charts will give you the ups and downs of your chosen commodities, the best times to trade and how to read trends.
Indicators are part of trading strategies used in charts. You will only need to become proficient in a few select indicators to determine what assets, timing, and investing is best for you. Indicators are technical tools used by traders to predict the direction of commodities, indices or money markets. Determine your indicators by studying the number of times an assets has reach highs and lows.
Following trends is very important. You can use the charts and indicators to determine where the market is going and where it has been. Trends can go up or down or even sideways and at particular times. Learn to identify up or down by even a mere point to receive a payout when trading in binaries. “The trend is your “friend” when trading in binaries.
Money management is a good tool to learn when you are trading in binaries. Understand money management and only trade what you can afford to lose. Money management is risk management. Do not rely on luck or the results could be disastrous.
Trade journals are tools that traders use to document their performances. Study the charts from the previous day and document your trade performance. Identify strategy and adjust your trading approaches. Eliminate what does not work and write down what successes you have. This is essential when trading in binaries.
Do not deviate from your rules or the rules of the “house.” Learn and find out everything you need to structure your trades. Binaries are similar to gambling. Know that the house “always ends up winning” if you do not know what you are doing.