Binary trading is probably the easiest methods of trading because of easy yes or no investment decisions. In this article we will tell you how, as a binary trader, give yourself a distinct edge and enhanced chances in a number of ways. The techniques that we will tell you can be learnt by anyone having little to no experience in the world of trading. We guarantee that it will have considerable affect on your trading abilities.
Gather knowledge about the assets:
The assets that you can trade here can be in the range of hundreds. Each asset is unique having its own properties. We recommend you to give your time in understanding just a few assets rather than going straight, in understanding them all. The more knowledge that you can gather about an asset the easier it would be, for you, to predict why it’s showing its distinct behavior. If you focus on just a few number of assets only then it is the best and most profitable practice, opening doors to further possibilities.
Work hard and practice.
Practice is all about patience and putting your hard work, will and concentration on a single entity. This is the only way to learn in binary trading. The more you practice the more the chances are that you will do it right this time. You really don’t have to waste money in doing that. Make a practice account to get the feel of the trading. Demo accounts are a great way to try new strategies.
Be in touch with the latest happenings:
You don’t have to become a couch potato and dig the news channels all day long. Following certain good websites will be just enough even for the naïve user. Be aware of the major market events. Read the daily market analysis, provided by popular websites, of markets such as Forex, Stocks, Commodities and Indices. Have access to an economic calendar. This will help you predict the market volatility.
Select the right platform.
This is probably the most important step. There is no shortage in choosing a platform because a large number of them are available. The major problem is how to choose a right one. The following points will ease the work for you.
Number of assets: Every platform will offer you with a different variety of assets. The number can vary from as little as 10 to even 100. Don’t judge a platform on the basis of the number of asset it offers. The more important thing to consider is choosing a platform that offers the right kind of assets for you and especially when trading currency and stocks. It is however certain that more the assets the more the profit opportunities.
Returns: Different platforms offer different returns and it is important for you to compare them because they vary widely. For example trading gold on two different platforms can give you a difference of as much as 20% in the profits.
Deposits and withdrawals: This one is often overlooked by many traders. Every platform has different rules regarding deposit and withdrawal process. The affect will be on your liquidity because of certain penalties and limitations. So going through the terms and conditions is important.
A final word on how to trade
After all, that has been told, is done i.e. choosing a platform, an asset and doing all the research it’s time to trade. There are just 4 steps to do it.
- Select an asset from Currencies, Stocks, Indices and Commodities.
- Select the call or put option and make your prediction.
- Finalise on an amount to invest
- Wait for the expiry period
What will happen at the expiry is that, if your prediction was correct, at the closing time you selected, you will receive the said payout. If incorrect, you will receive only a portion of your invested money.