Rapid development of Internet technologies made binary options very popular, the number of traders has rapidly increased. They are trying out the possibilities of this financial market and becoming professional investors. What is the reason for the popularity of binary trading? There are several reasons for this: it is an easy way to earn real big money; due to availability of the Internet in every home, any user can access the market; trading options is very easy and you can improve your skills, and earn more money, make options a source of permanent income, a main job.
- 1. Right choice of binary option brokers
- 2. Training of the binary trading from the ground up
- 3. Basics of binary market
- 4. Trading principles
- 5. Preparation for binary trading
- 6. Newcomers’ mistakes
- 7. Technical and fundamental analysis
- 8. Trading strategies: what is it and what they are
- 9. Strategies for binary options on expiration dates
- 10. The best strategies for binary options
- 11. What types of training courses do exist and does a newcoming trader need them?
- 12. How not to lose money
- 13. Reviews
Binary options are contracts that can be executed by one of two options. That is, when trading and opening a transaction, the trader needs to make a forecast of the price dynamics: whether it rises or falls, the asset line on the chart moves up or down. Concluding such transactions, the trader already knows the specific amount of income that awaits him if he correctly predicts the dynamics of the asset or the amount of losses if the forecast turns out to be wrong.
Binary options trading is an Internet trading with binary (binary) contracts, which allows the trader to build a trading system, improve and adjust it, and achieve the best results. Here one can invest in different assets: currencies, stocks of companies, cryptocurrency, etc., use different tools for studying and forecasting the market. Options trading has different comments on it, both positive and negative ones. Someone enthusiastically speaks of the unique possibilities of online trading, large and stable earnings, and the honesty of brokers.
Binary options trading also has negative comments from traders, complaints about the actions of brokers who turned out to be fraudsters. The conclusion that binary options are a scam that is also common on the Internet, influences the people’s attitudes towards trading, confuses newcomers to the market. Of course, there are many fraudulent projects in the network, the purpose of which is to wriggle into favour of a trading newcomer, to get his money and disappear. In such cases, the negative immediately spills onto the Internet, and the unlucky traders conclude that all trading is a scam.
Whose fault is it?
You should carefully study the activity of brokers, trust only those of them who work in the market for some time, has a great number of positive references from real trader. For the binary trading to be efficient, please keep in mind the following factors effecting the trade result:
- The existing effective strategy, which really works and brings profit to the investor.
- The continuously improving trading experience.
- The cooperation with a reliable broker allowing you to gain from binaries and withdraw money from the platform.
- Taking cue from the expiration, risk management rule and money management.
Right choice of binary option brokers
Right choice of the binary option broker is half of the trading success. There are a lot of brokers in the market today who offer and even actively lure traders with the help of aggressive advertising with attractive bonuses and promotions and fabulous incomes. In fact, it turns out that the company has no positive experience, it is a scam and it just takes over the money of the trader, then disappears and does not get in touch. Such fraudulent brokers, whom the market are full of, are usually met by new coming traders, who aren’t familiar with the market, don’t navigate it well.
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It is also profitable for fraudulent projects that a trader loses his money on trading, rather than trading in the terminal on a long-term basis and making a turn-over on which a broker would earn. In order not to run into a scammer, it is important not to be in a hurry when choosing a broker, to be careful, not rely only on profitable bonuses of a suspicious company when choosing a platform, but to use the current rating of binary options brokers, where among the reliable companies you can find convenient and beneficial variant for the trader. Before you started your cooperation with a broker platform, get to know the following information about it:
- the existing positive experience of its operation in the markets, prestigious awards, reputation;
- the availability of licenses of the market solid regulators;
- the existing positive references of the company from real traders,
- the availability of free demo account to get sure the company is professional, its platforms operates steadily, its support service works right and so on, even before you invested in trading.
Training of the binary trading from the ground up
Binary trading becomes interesting for a growing number of Internet users. All of them are beginning to actively study the topic of trading, they are interested in finding useful material on the Internet. Of course, it’s worth mentioning a separate advantage of the network — lately there is a lot of information available on how to start earning with trading: these are not only articles and theoretical materials about what binary options are, how to trade them, with what tools, and also reviews of profitable strategies, signals, automated trading robots, current rating of brokers, etc. There are a lot of materials on the Internet and it is a serious task to choose from them those that are really necessary for newcomer. It should be understood that there are a lot of theoretical materials about trading, and they are all focused on a different level of player knowledge. A newcomer trader who learns to trade options from ground up should understand the basic terms of the market, should be able to work correctly with different tools, types of analysis, should implement the rules of money management and risk management. Let’s talk in this part of the article about the skills that a newcomer of options should have.
- Study the market theory
Starting with options you need to understand the meaning of theoretical definitions, which the trader sees in relevant books, Internet articles, on forums. These are for example «day trading», «scalping», «social trading», «martingale», «technical analysis», «quotations» etc. The ignorance of the terminology won’t let you be wrapped up in this branch of activities, the issues by operating demo and real accounts will occur, as well as while trading in the market.
- Trade on a demo account of the broker
Testing the broker’s terminal capacities on a demo account, which is usually provided for a trader for free after the quick registration on the company website. Here you can trade binary options using the virtual money under real market conditions. Its advantage is that the user doesn’t risk its own funds and may not be afraid to lose them in a loss making deal The demo account is one of the main trader’s tools, allowing not only to study the platform services, but also test the strategies and extensively build the own trading system after he changed to the real account.
Your first demo account you can open filling out the form below. You will be redirected to the broker’s platform, where a demo account with $10,000 will be available for you.
- Study helpful materials
It’s important to realize that just the market theory is not enough for stable effective trading. There are also a lot of helpful articles about the risk management in internet, money management, trading on brokers’ platforms, various techniques of investments in assets, different market analysis kinds and their aspects: these are technical, fundamental and graphical analysis kinds, along with the videos of trading in the market. The helpful materials also tell about the market analytics, news etc. it’d difficult to reach success in trading without monitoring the market mood. The professional in the market becomes the player, who keeps to improve, studies the new information, tests different trading approaches etc.
- Examine indicator signals
Indicators are the technical tools for the market analysis, which generate market signals based on algorithms. First off, you shall study the basic indicators which are largely the best indicators for binary options: Stochastics, RSI, CCI, Awesome Oscillator, MA, MACD, Parabolic SAR, then move on and study the complex indicators like OBV, Gator, ROC, Elder’s Force Index etc. You shall understand that all indicators can be divided in lagging and leading.
Lagging are trading tools for the analysis of quotations dynamics (Stochastics, RSI, Awesome Oscillator etc.), leading are the majority of oscillators (MA, Bolliger waves, Ichimoku, Chaikin Oscillator, Parabolic SAR, MACD, ADX, ATR etc.). Handled properly, these tools will give excellent results. Indicators are part of a technical analysis of the market, which is very common among traders today.
- Study trading strategies
There is a huge amount of strategies presented in the market and all of them differ by trading style, set of tools used, some of them are simple, on the contrary, others are designed for professional traders highly experienced in binary trading. The simple strategies aren’t difficult to be set and will be convenient for a new coming player. Which of these strategies is profitable? There are many classic methods of work in Internet, with which different traders work. Their advantage is that they have already been verified by more than one player, their results are predictable, and their effectiveness has been proven. It is worth studying strategies and in order to find among them the system of work that would be best for the trader.
- Use trading bonuses
Which trader wouldn’t like to start trading gainfully? Brokers usually offer for their customers a bonus range: welcome bonuses, holiday bonuses, special bonuses, friends invitation bonuses etc. All these bonuses have their differences, specific features, application rules, they let you get the extra funds for trading and therefore more options for earning. This is gainful for market players. But the main point is certainly in reading bonus application rules, understanding the withdrawal conditions for money earned by customer trading the bonus.
- Deal with a reliable broker
A reliable binary broker is a key aspect of the trader’s success. Exactly the broker provides the trading terminal and the more functional and user-friendly it is, the easier is to work with it. It’s also important to realize that each broker has its own set of available strategies, too (some allow scalping, others don’t), a set of assets, expirations (short-term, middle-term options etc.). The decent broker also has a solid market license, is open for communication with a trader, operates as clear as possible. Sure enough, it has a quality informative website, bonuses for different categories of customers, contests, professional support. After you specified this information about the broker you are concerned, don’t forget to read the references of traders about it in Internet: if there is a lot of negative, and the company is too often listed among scam artists – you’d better pick another broker.
Basics of binary market
To work with the binary options right, it is important to understand the basics of binary market. That is what we will talk in this part of article about. Binary options is financial tool, contract, according to which trader can realize, sell or buy the asset on fixed price at the given moment. Options are not for nothing called binary, which means that they can be realized only in two scenarios: up or down, that is, the asset price either rises or falls. Such an asset has a fixed profit, but at conclusion of contract, it can either generate income, or bring nothing at all, if the trader’s forecast does not come true.
In this market, various assets are traded: currencies, shares of international companies, metals (gold, silver, platinum), commodities and even cryptocurrencies, etc. An investor can choose any assets for work, use different strategies, including making an attempt at trading high-speed turbo options and long-term contracts.
Binary options are a type of derivative, which was first registered in 2008 in the USA and was considered an exotic product for a long time. Today, many people know about it. The essential difference between options and deposits offered by banks is that you can get a profit here at any time and immediately withdraw it from the trading platform. Also, the investor himself actively influences the amount of his earnings, may trade more and less intensively depending on what amount of earnings he needs and how soon he would like to get his money. In order to achieve decent results from trading, it is important to devote time to learning, testing your capabilities on a demo account of a broker, looking for a profitable strategy and creating your own individual work methodology. Different types of analyzes will help here: technical, graphical and fundamental.
Special attention should be paid to effective indicators that are able to generate high-quality signals. Also, when starting work with binary options, a trader should choose a reliable broker, test its capabilities on a demo account, examine traders’ comments on it on the network, check whether it has a license, etc. Additional tools for investing in financial markets are the functionality that a trader can always rely on, which will not let him down and allow him to get a decent income: this is the Economic Calendar, the «live schedule», the MT4 and MT5 terminals, various informers for news, signals and etc. Market newcomers often consider options gambling, roulette at casinos, but this is not the case. Binary trading, of course, is not something unreal, but this is work and it requires serious preparation from the trader, an integrated approach to the study of market opportunities, testing methods, etc.
Binary options are one of the types of financial markets. Such markets as Forex, stock exchanges, etc. are also available to the trader. Each of them has a number of features on the traded assets, trading styles, functionality, but there are those facts that unite all the markets into the general concept of trading; and we will discuss this later.
Trading is the earning of real money from trading in various financial markets. It is even more correct to call it Internet trading, because the main part of the work, regardless of what market the trader invests in assets in, occurs in the Internet. With the development of technology, the Internet has become a part of our everyday life, there are opportunities for making money as a remote work. The same applies to financial markets, access to which can be obtained by opening a broker terminal.
The work in the markets is started from the moment when the interested user decides to get acquainted with the principles of trade. He chooses a broker that gives him the opportunity to work in the market by concluding contracts through the terminal. He begins gradually mastering trade on a demo account. After an introductory trading on a training account, he deposits the account with money and starts investing in the real market. It is also important to get acquainted with the assets available for work: these can be stocks, cryptocurrency, currency pairs, indices. The trader works with different types of expiration: it can be both short-term (from 60 sec and up to 1 hour), and medium-term (up to 1 day) and long-term options (up to six months and even two years), choosing the most appropriate style for trading.
Studying the principles of operation of simple and complex indicators, the selection of an effective trading strategy are also important tasks for an investor who wants to become a professional in the market. Trading offers a lot of strategies (for example, this is trading with the trend, on the news, using scalping, Martingale, etc.), but choosing among them really effective that brings you income is a difficult task, which is still subjected to one who intends to get maximum opportunities from investments in financial markets. Part of Forex brokers or binary brokers allow you to earn with the help of robots, advisors
Professional organizations that have been operating in the market for more than one year offer the trader free signals, high-quality market reviews, trading plans, and opportunities for technical and functional analysis of asset dynamics. Also you can get training in trade on the market on the broker’s site, which offers useful articles, webinars, video courses, etc. Starting acquaintance with the market opportunities, it is important to take a comprehensive approach to working with it and only then the trader will have a real chance to become a professional, to invest money wisely and increase his income.
Preparation for binary trading
In order to become a successful trader and get a steady income from investments in the binary options market, it is important to properly prepare for trading. For a successful start, it is worth getting acquainted with the market consistently, using valuable tips from experienced ones that are specifically addressed to beginners of binary options, where it is usually recommended to start trading with small amount (with minimal amounts), trading on a broker demo account, studying market opportunities, test strategies from different expiration dates, etc. Here we expressly indicate that the training account provided by the broker should be considered an important tool for the initial work of the investor, which will allow to get acquainted with the platform’s capabilities, learn the principles of work on the options market without risking your money. When appropriately working with it, you can feel more confident in the market, make no mistakes, use indicators correctly, and analyze the dynamics of assets. Most brokers offer to work on a demo account without limit in time, which allows testing strategies on a training account while trading on a real account, which is very convenient.
Often traders choose binary options bonuses as the important point to start trading with a broker. The wish to start work profitable, using additional funds of the company, can not be considered a negative point. You can work with a welcome bonus, special offers and hot promotions, participate in tournaments on demo accounts, – with the right approach, all this will only increase the chances of success and getting decent earnings from trading. Working with a bonus, it is important to remember about the conditions of its provision, that it is not given by the broker for free and you have to work it out, this may be too much for a newcomer, especially if the turnover of transactions is very large. To take bonuses or not – it depends on the trader himself, his confidence, trading experience.
Important factors affecting the success of a trader are: professionalism, the options of the broker’s terminal with which he works, the terms of trade, the effectiveness of his strategy, the well-worked out risk management. These are the parameters that should be understood and taken into account by the newcomer of the market who would like to touch the heights of this work. How can a newcomer earn in the market and is it real? This is possible and traders’ comments prove that you can become a professional only with an integrated approach. It is worth remembering about the training materials provided on the broker’s website, it can be webinars, video tutorials, books, reading specialized forums. Using the opportunities of the Internet, you can easily organize a successful start in trading, dive into the fascinating world of trading and make it the main source of income.
Getting acquainted with the market, newcomers of options make a series of mistakes that prevent them from achieving better results here, lead to disappointment with trading opportunities, to the idea that binary options are scam. Moreover, the mistakes that traders make can also lead to the loss of personal capital, the emergence of impressive holes in the budget. Let’s talk in this part of the article about the errors which are most often met among traders.
- They try to get the immediate profit
A newcomer of the market, having entered the platform, for example, of PocketOption broker, for the first time, is trying to make a profit from trading immediately. Without understanding the basics and features of trading, they already expect the income on the account, deposit their money to it and start to play mindlessly in the terminal, because they think the principle of work here is simple and you just need to press three buttons, conclude a transaction, specify the forecast of the dynamics of the asset and that is, money should appear on the account. In this case, they are waited only by the drawdown of all the money, because trading is not a game, it is a job that requires a serious approach.
- They try to trade mindlessly
One of the common error relates to the fact that traders consider the work with options to be just a gamble. Therefore, having entered the terminal, they immediately conclude transactions on a real account, without thinking about the basics of the market, analyzing the situation, studying the characteristics of an asset, randomly forecast its dynamics and lose money. It is wrong to consider trading as a gamble and a roulette; believing that in order to make money you just need to choose forecast mindlessly and everything is also wrong. Exactly this way money is lost in the accounts of traders, then there are complaints that the broker is a scam, which has wasted the entire deposit.
- They trade with their last money
Trading in the terminal, the market newcomers deposits all the money to the account and begins to trade mindlessly. Of course, with the trading is a gambling approach, it is impossible to succeed and therefore, having earned nothing, he loses money, becomes disappointed with trading. It is wrong to invest all the money in the market; it is psychologically hard to realize that they are no longer there. In any case, a trader should have reserve money, which he cannot invest in the market.
- They work wrong on demo-account
With a thoughtful approach to work in the market, a demo account is a serious tool with a lot of opportunities. It is provided for free and usually market novices use it incorrectly, even in a superficial manner. Only a minor task of a training account is to get the trader acquainted with the principle of trading: when, having opened a demo account, he concludes the first transactions, understanding how he will work and trade here. In fact, the demo account has much more possibilities: it will allow you to understand how professional the broker is with whom the trader plans to work, how high-quality its terminal is, whether the support service works correctly, whether bonuses are available here. In addition, the entire trading functionality of the program is usually available on this account, which also expects the player on a real account: this is market analysis with different tools, reading analytics, training materials, working with a private office, studying the history of transactions, testing strategies, developing its own methods. When using a demo account properly, the trader will increase his professionalism, make sure that the broker service is working.
- They choose broker based on bonus
This is one of the common mistakes of traders, when choosing a broker, they are guided by how profitable its bonus is. There is strong competition on the market for the audience, and therefore a number of companies are conducting aggressive advertising campaigns, making traders super-profitable offers with fabulous earnings. It is difficult to refuse from this and the trader does not think that the choice of a broker is a more serious process, attracted by the bonus. In such a situation, he does not immediately realize that he made a mistake and that the money that he transferred to the broker can be forgotten, because it is impossible to withdraw them from the platform. The scammer, having received the money, immediately disappears, leaving the trader alone with the problem. When choosing a broker, it is important to simultaneously take into account a number of points: its license, experience, awards and prestige in the market, positive customer reviews, bonuses, training account, informative website, etc. These parameters are studied by professional market players who are planning to receive a stable income from trading and seriously cooperate with a brokerage company.
- They mindlessly «grab» the best bonuses
Even if the trader chose a reliable binary options broker, having done a lot of work on studying its reputation, etc., then he could make another mistake, as a result of which he either lost the deposit or could not fulfill the rules of trading. These are bonuses, which are in great variety in the network; and each offer looks better than the previous one. Market brokers offer many profitable offers to newcomers, actively fighting for customer attention, promising him literally whole mountains of gold that traders, of course, lap it up. However, the best bonuses do not mean profitable trading. Having deposited money into the account of such a broker, the unlucky trader cannot then withdraw profit from the bonus and this is a common situation with newcomers. In order not to be a fool, before working with bonuses, it is important to study the company’s reputation, learn about its license, read reviews of its clients, etc. Only when you are fully confident in the honesty of the broker, you can begin to work with its bonuses.
- They trade without knowing the theory of the market
Most often, newcomers, just registering with a broker, immediately begin to trade on a real account in the hope of increasing their profits. They make bets at random, try to guess the forecast of the movement of quotations, not thinking about the fact that the outcome of trading is affected by a number of factors that the player should be aware of. Only having lost money, traders begin to go deeper into the theory of the market, they understand that it operates according to certain rules, that assets have different dynamics, that there are indicators in the terminal, expirations, etc. In this part of our article, we have demonstrated only some of the mistakes that market newcomers make, but there may be more of them. An investor who is interested in trading should understand that the market does not exist on its own, that its own serious regulations work here and you can only try to earn money having a head on your shoulders.
Technical and fundamental analysis
When making money on binary trading, you should be able to predict the market correctly, because this affects the effectiveness of transactions. Before you start trading, it is important to study the basic tools of market forecasting, to learn about the possibilities of fundamental and technical analysis, which have a number of differences. When working correctly, these two types of analysis will become reliable sources of signals, and lead the trader to a decent income. It is important to understand that options are not a game, that bidding at random will not bring a positive result, the trader will simply lose his money. Therefore, the role of strategy here, of course, is difficult to overestimate. In this part of the article we will talk about the features of the technical and fundamental analysis of the market.
Fundamental market analysis is one of the most common types of situation analysis among traders. When working correctly, it simplifies trading, increases the amount of funds in the account. The peculiarity of this type of analysis is that the player, when predicting the dynamics of assets, is guided by external factors that influence it. Fundamental market analysis uses data from the macroeconomic environment of the states, as well as the general economic environment between the states. In order to earn with such data, it is important to understand the importance of macroeconomic news, to see their effect on the rise or fall in asset prices. The factors that create the economy of states are of great importance here: economic indicators, capital movements, a change in the interest rate of the country’s Central Bank. Not only statistics in figures is important here, but what the reaction of investors and the market would be to it. Some news is positive, others are negative. All this determines the behavior of investors in the market, the purchase or sale of assets. It is worth remembering that such an analysis will not act as a guarantee of an accurate market forecast, since there will always be sudden factors that are impossible to predict. Most strategies here are medium-term and long-term, because this analysis takes a lot of time, and requires serious preparation.
Another important indicator of this type of analysis is the key rate, which, changing, affects the market. One of the main tasks of the Central Bank is to control inflation, and if strong inflation starts, the bank must control it, raising the key rate. It slows down the economy. Why does the trader need to know about this? The currency of the country depends on the key rate. The rate increase by the US Central Bank results in a stronger dollar. Other significant news publications that strongly influence the dynamics of currency quotations are statements by the heads of the Central Bank. In case of slightest remark about the strengthening of the currency (or its weakening), this can provoke a storm of trading. You should bear in mind as well the news that are associated with the change of economic indicators of countries: for example, the ISM index in the country or sales result, unemployment level and reports of economy sectors of the state. All this news is also capable of provoking active movement in the market, but the key factor is still the key rate. As a conclusion, we note that when trading binary options on a news strategy or other method using fundamental data, it is important to keep track of such news: about key rates, statements by heads of central banks, bankers’ interviews, forecasts for the economy, trade turnover and trade balance of the country, etc. This will let you know exactly what the trends in the market are and make profitable forecasts.
Technical analysis is a type of analysis in which the signal generators are the technical parameters of the market: for example, volatility, price levels, quotation formation patterns, automated analytical programs or indicators that determine market trends on a chart. By opening a trading chart, you can see asset quotes, which, at first sight, move indiscriminately, however, this all is not so simple. There are a number of regularities by which one can predict the movement of an asset and make money on it. This is what the technical analysis of the market does. The advantage of this type of analysis is that here you can trade both turbo options and medium-term and long-term contracts.
This type of analysis should be considered one of the trading strategies. By adding indicators, graphic elements to the chart, you can visually see the real picture regarding the dynamics of quotes, the position of market forces (overbought, oversold), as well as forecast their future dynamics. Then it remains only to make a contract, indicate the direction of the price of the asset: up or down and expect profit. There are many strategies that are based on the principles of technical analysis of the market: indicator strategies, strategies that use data from patterns, graphic figures, and individual indicators, both popular and, on the contrary, rare. This type of analysis is common among traders, moreover, the first steps in exploring market opportunities begin most often from it.
Trading strategies: what is it and what they are
A trading strategy is a certain action algorithm that a trader uses in order to conclude a transaction to buy or sell a binary option when certain conditions appear on the market of an asset. Newcomers of trading often conclude transactions at random, thinking that this will be enough to make money from the financial market. However, with this approach, they will be disappointed in binary options, because transactions will be closed with approximately the same ratio of profits and losses, so there can be no question of earning income. Trading strategies are a kind of scenario of a trader’s behavior in order to increase the number of positive trades and get a decent income from options.
Strategies are used in the work of automatic analysis tools (indicators, oscillators), simple patterns of market dynamics (technical analysis), fundamental indicators (fundamental analysis). So, we can distinguish the types of strategies for binary trading:
- Based on technical analysis
During the technical analysis of the chart, the trader turns to the study of the movement of value chart. The work can involve unique metrics, data indicators, which generate signals of the specific condition emergence for profitable trading.
- Based on indicators of graphic elements
Here we use the data of graphic elements available in the terminal of the broker, figures of patterns, etc.
- Based on fundamental data
Such strategies use various events around the world that influence the price dynamics of assets. For example, trading strategies on the news use data from quarterly company reports, political speeches, statements by the heads of central banks, etc. In addition, there are a number of strategies in the market, which are designed to significantly increase work efficiency, improve trading statistics. They are usually combined with the main strategy:
- Method of trading positions averaging
This option trading method is more often used with channel and trend systems when performing inertial movements by an asset line beyond channel and trend levels. This is a simple method that is quite popular among market players. If, when trading with the trend method, without any prerequisites, the line breaks through the level, the averaging method of transactions is put into operation. What is its principle of work? During the movement of the line beyond the level of the main trend, additional transactions should be concluded in the direction of the inclination of the trend movement or the trend channel. In this case, the trader gets profit for a whole series of transactions, and his earnings will increase. It is convenient to combine this method with strategies that include oscillators that help to accurately determine the trend reversal, the end of local price corrections.
This interesting and very simple trading method will allow to get the maximum profit from trading, reducing its probable risks. How does this strategy work? Having opened one trade contract, the trader opens immediately another transaction, when the first position is located in the rate of return zone, but with the opposite outcome. As a result of such a trade, a market player gets a profit either on one transaction or on two at once. In the first situation, the losses of one of the transactions are compensated, in the second, the trader gets additional income.
One more popular and quite effective trading method, which involves system of doubling the rate every time a loss is incurred under a contract. This strategy allows you to cover the losses and at the same time increases the amount of income on the account. It is important to double the lot size before getting a profitable transaction, then the general statistics of work in the market will always be profitable.
Strategies for binary options on expiration dates
All strategies differ in the use of various expiration dates — that is, the time after which the option expires and the trader finds out the result of his forecast. So, depending on the type of expiration, all strategies can be divided into the following types:
- Strategies for trading 60 second options
These are strategies of trading turbo options, when after 60 seconds a market player finds out the result of his forecast. Features of such strategies: they are simple and easy, they do not use complex indicators, because their work is aimed at concluding an unlimited volume of transactions during the trading session. Such strategies are very popular with traders, especially among fans of excitement, because they offer high payment percentage, the possibility of impressive money making. Among the disadvantages of such trading methods are: increased risks of losing funds, limited methods of analyzing the market, a large number of unnecessary «noises» that prevent you from making the right decision on the dynamics of an asset.
- Strategy for option trading from 5 to 30 minutes
Such strategies also refer to high-speed trading, although they offer more opportunities for market analysis (example: 5 minutes, 15 minutes, 30 minutes). These trading methods are also not distinguished by a complex work process; they allow you to quickly orient in the market situation and to conclude a large number of transactions during the trading session. Comparing with the previous type of strategy, you can trade more stably, study the data of indicators, signals of graphical elements, watch the history of the dynamics of assets. Such moderate trading, which allows you to get unlimited income due to the large number of opened transactions during one session, is popular with professionals who know how to use various market analysis tools correctly. Here, besides the advantages (a high percentage of profitability, a minimum of investments, etc.), there are also disadvantages to trading: the riskiness of such high-speed trading, market noises, one should be able to work correctly with indicators, etc.
- Strategy for option trading from 1 hour to 24 hours
Such strategies make it possible to earn money from trading in medium-term options. Their features involve a calm trading, less intensive and measured. Such trading is popular with professional investors, for whom it is important to spend time on a detailed analysis of the market and get a steady income from trading. They know how to use the basic tools of the market correctly. At the same time, it will no longer be possible to conclude an unlimited number of contracts, such work is suitable for those investors who prefer to calmly analyze the market, use different strategies, indicators data, fundamental factors, etc. They thoughtfully study the history of an asset, put together all the facts and, having concluded a transaction, receive a decent income. In addition, the risks of losing money are reduced, it is easy enough to reach a stable income. Among the disadvantages of such strategies are the following: long wait for the result of trade, the need for large investments in trading; these strategies will not suit those market players who love the feeling of excitement and risk; they require knowledge of fundamental and technical market analysis.
- Strategy for option trading from a day to a year
Such strategies allow you to work effectively with long-term binary options, taking advantage of all their advantages correctly. Such strategies can be implemented not in every broker, they are less popular in the market, they are used only by experienced investors. In order to trade such options, a trader must have considerable experience in analyzing the market in various ways (using fundamental factors, these indicators, etc.). More funds will have to be invested in the long-term transaction that the player will not need in the near future. The advantages of such strategies: reduced risks of loss, such trading methods are a source of stable earnings from trading, they are easier for prediction, this is an excellent option for those investors who need a deep analysis of the market, and for those who consider trading the main source of income. Among the negative aspects of such strategies: a long wait for the completion of the transaction, the need to invest large funds, they will be inconvenient for users who love the sense of risk, prefers high-speed trading, and of course, require more experience in assessing the market.
The best strategies for binary options
Is it possible to find the best strategy for binary trading? Are there any such strategies? Yes, there are such strategies, but they are most often individual and depend on the qualities of the market player, his features, choice of trading options, expiration dates. Impatient traders work with express options, and those who prefer to analyze the situation on the market before opening a transaction should pay attention to long-term options. It is important to understand that there are no win-win trading methods on the market, because there are always losses and risks. There is no ideal income strategy that would suit absolutely all traders, but every serious market player eventually gets its own best strategy, which takes his features into account in the best way and leads him to a substantial profit.
Starting work with binary options, it is necessary to remember that without using a strategy it will be very difficult to achieve decent results. Using the basic tools of the market, the trader will be able to gradually go deep into the world of financial markets, and will receive a steady income. Although it is possible to deny the effectiveness of a trading method, but negative comments often become a result of lack of preparation for trading.
Starting work with binary options correctly, paying attention to the issues of training and testing of knowledge on training account, trader will achieve good result. Options are the work which requires full immersion in it, search for appropriate strategy which is comfortable personally for him. Advantages of such strategies are minimum risks, increase of profit, based on traders’ experience, comfortable trading without doubt in work results. Looking for new strategies, one should remember about amount of hours which trader is ready to devote to work in the market, assets peculiarities, indicator signals. Complex approach to trading as serious deal will allow you find you the best strategy for binary trading, get maximum profit from the work on the financial market.
To make money with trading in financial markets, it is important to devote time to preparing for such an activity. Here again, we say that the market is a work that requires awareness, knowledge, and testing of trading methods. Choosing the best strategy, the most suitable for the trader — is also one of the important tasks for the investor who plans to make trading the main source of income. Often, popular strategies that have already been tested by more than one trader assist market players and become productive and working. Let us tell you about such popular binary trading strategies.
This is a classic approach to trading, which is built on the use of cyclical patterns of the market. The strategy allows you to get accurate forecasts of the dynamics of quotations, it is simple and convenient, suitable even for newcomers of the market. To begin with, it is necessary to build price levels on the chart (resistance and support), for this you will need the Line tool. The tool will allow you to accurately determine the asset value levels for processing a contract when quotes reverse from it. On an uptrend, the level of support and the pattern of price bounces when touched are applied. In a downward trend, a resistance level is applied, and contracts are concluded when the price line bounds from this level. You can also add two lines to the chart for working with two directions of the market dynamics at once, this will make trading dynamic and will increase the earnings in the account.
- DRAKE DELAY STOCHASTICS strategy
Another popular binary trading strategy, based on signals from rare indicators. By this method, you can work not only with options. The contracts are concluded here on the rebound from the borders of the channels, and the signals are confirmed by Stochastics. In order to buy COLL options, you need to wait for the situation when the price line enters the blue or red zone from below; as well as in cases where a beige point is formed, when the Stochastics is located below the 20 mark. You can buy an option on the next bar after the signal candle is closed. In order to buy the put options, you need to wait for the situation when the price line enters the blue or red zone from above as well as when forming a beige point, when the Stochastic is located inside the overbought zone. The purchase of an option should be carried out at the next bar after the signal candle is closed.
- Classic RSI binary strategy
As you know, the main task of the trader is to correctly determine the level of reversal of quotes and forecast the vector of their future dynamics. One of the simplest and most effective tools to accurately achieve these objectives is RSI, the relative strength index, which precisely determines the dynamics of the market trend, as well as overbought/oversold moments. The classic strategy of working with the indicator is simple and clear, allowing the trader to make a correct forecast about the dynamics of the asset. The contract is concluded at the reversal of the trend line in the extreme market zone: if it unfolds at level 70, we buy the COLL option, if at the 30 mark we buy the PUT option.
- RSI trend strategy
RSI makes it easy to identify price reversals when rebounding from a trend level. In the strategy you will need to put trend lines (support and resistance levels) on the trading chart. This will make it easy to track market signals, the direction of the trend. Transactions are made here when the price line breaks through the trend level.
- Transactions copying — binary options and lucrative social trading
Copy trading or social trading is one of the simple and profitable trading strategies that will allow you to earn money by copying trades from experienced traders. This is a great option to simplify and automate trading, relying on market professionals. Moreover, copy trading is an effective and simple system of work. The option is available to any player in the terminal of the broker, for example, at Etoro and Just2Trade. In the WYSIWYG platform, you can easily set up your account, explore the capabilities of the system’s traders, choose a convenient strategy and start trading immediately. In order to use the option of trading with Etoro, you need to register on its website, explore the possibilities of the social trading page.
- HULL SCALPING – trading scalping strategy
This effective strategy works on pairs with a low spread in the trend direction. Its peculiarity is that it relies on signals from the HMA and MACD indicators, and it works in a trend direction. The basis of this method is the use of authors indicators, trading in small time intervals. The following indicators are also used here: TZ Pivots D, RSI BAR, Parabolic SAR, Renko Scalping, Trend filter.
To buy a COLL option, you must wait for the following signals to appear on the chart: TrendFilterDominator should turn green, HMA (45), NonLagDot, HMA (25) — also turn green; Parabolic is located under the price chart; MACD shows a level above zero; RSIFilter and RenkoScalp_MSAlert show a blue cube; stop loss size — 15-20 points. To buy an option of the ITB, you need to wait for the following indicator signals to appear on the chart: TrendFilterDominator, HMA (25), HMA (45) and NonLagDot turn red; Parabolic is located above the price chart; MACD shows a level below zero; RSIFilter and RenkoScalp_MSAlert show a red cube; size stop loss 15-20 points.
The news binary trading strategy is also one of the most popular among traders. In addition, it is the most affordable and simple form of options trading. In order to determine the dynamics of quotations, it is customary to study the news background that directly influences the change in asset trends: these are statements by heads of state, various ministries, large corporations, etc. Knowing about the release of news, which will affect the change in the dynamics of an asset, a trader can competently take advantage of this and conclude profitable transactions.
To buy an option UP you should do the following: study the economic calendar, conduct a technical and fundamental analysis of the market, find a long-term bullish trend, if the price goes up on the news, you can buy a COLL option. To buy an option DOWN, you need to do the following: study the data of the Economic calendar, conduct technical and fundamental analysis of the market, find a long-term bearish trend, if the price goes down on the news, you can purchase a PUT option.
What types of training courses do exist and does a newcoming trader need them?
Any trader who would like to become a professional, sooner or later begins to think about taking courses of trading. Training is a serious step for a newcomer market player which is able to prepare him for work in real trading conditions. However, the Internet offers so many different courses from which it is difficult to choose something suitable for a particular player: some of the courses were created for beginners, some for those who already have experience in trading in the market, some training programs are focused on working with certain tools, indicators, types of analysis. In addition, the issue of the quality of education will be relevant as well.
The market offers a lot of different paid trading courses. Most often, trade education services in the market are provided by professional organizations, brokerage sites, and successful traders. You can study the programs of these courses, read reviews about their quality. We offer to your attention a selection of paid courses of work in the market, which you can already use now.
- Trading courses with Xelius Group
Xelius Group is the largest Russian organization that provides training services for traders of different experience with the financial markets. The company develops innovative products for analyzing and forecasting the market, provides quality consultations on competent investment of funds. On the platform, you can choose one of the professional training courses, pay for it and get access to materials that contain all the rich experience of traders and analysts of the organization. Courses are presented by professional investors who have achieved heights in trading. Programs, depending on the type, offer a lot of opportunities to the client: these are video tutorials, theoretical and practical classes, analysis of strategies, chat with the manager, master classes, support for graduates after training, etc. Such an integrated approach deserves the attention of traders, since it will allow not only to gain useful knowledge that is not available on the network, but also to work out practical skills, which is also very valuable.
Price: $250 and more
- Trading courses with RUSS-INVEST
This is another largest investment company, which offers customers online trading services, depository services, trust management, etc. Thanks to the highly professional staff, here they also conduct high-quality training courses for traders. Courses are devoted to specific topics, for example, the study of the fundamentals of technical analysis, options trading strategies, risk insurance. On the site, you can study the programs of courses that include lectures, error analysis feedback session, three-month customer support. Courses are offered both for groups and individuals. This is also an interesting program that is perfect for those investors who plan to earn decently from trading.
Price: $160 and more
- Trading courses with A-Lab
The A-Lab Trading School is another example of an integrated approach to training for trading in financial markets. The company has been operating since 2008, during this time more than 1,500 students have been trained, in addition, more than 500 traders got the opportunity to cooperate with the school and earn money from their knowledge. On the website of the company, you can study its features of work, comments of traders, read information about courses available. There are a lot of training programs here: for example, these are Training for Trading, Trading for Beginners, Training in Trading Cryptocurrency, etc. Information about the cost of courses is available after registering on the site. During the training, which is online, the client will have a lot of theory, practice, full support, conduction of transactions in real time, etc.
Website: Website: https://www.a-lab.ru/
Price: available after registration
- Trading courses with FIBO Group
Trading courses with the Academy FIBO Group is also an excellent example of an organization that offers the trader a lot of opportunities for training and stable operation in the market. There are many courses available for market newcomers (Comprehensive package for trading, Three touches, Trading signals — the path to successful investment, etc.) and professional investors (Price action. One on one with the price, Elliott Wave Theory. Wave trading, Fundamental analysis and reading of the economic calendar, Ishimoku. Indicator of calm trade, etc.). The training is conducted only by professional investors of who have successful experience in working with markets. On the website you can read the description of the courses, conveniently apply for them and pay for the training. The courses will allow you to comfortably immerse into the world of financial markets, understand the theory of trade, get tested and start trading. After training, customers receive certificate.
Website: Website: https://fibo.guru/
Price: $199 and more
- Trading courses with Stanislav Stanishevsky
This is a paid training provided by a trader with successful market experience. Trading on the market not the first year, this trader offers assistance services in training players of different levels. On the site, you can read information about the courses, pay for them, study the biography of Stanislav, also you can read here reviews of his clients, mostly they are positive. The trader is ready to share with clients information about strategies, these are high-quality materials that are not available on the Internet. Now on the site you can buy only the course The «Secrets of successful trading». The author guarantees a 100% refund for the video course, if the strategies led to the loss of money. In addition to the course, available in the set number 1 and in the VIP format, bonuses are offered here.
Website: Website: http://trader-nt.ru/
Price: $80 and more
There are also many trading courses on the Internet that are absolutely for free. What is special about these programs and is it worth spending your time on them? Here you should understand that no one will share valuable and working information for free. Most likely such courses will turn out to be a scam, and the trainer will simply be interested in making money and not teaching traders anything. It often happens that the student is simply an agent for attracting inexperienced users to a dubious company. In this case, free courses will serve as advertising. If a market player starts to implement the strategy proposed here and loses his money, the blame for this will be only on him. Taking part in such courses, the trader will never have a 100% guarantee that this is a quality training, that it really will be working, will help in the future to earn money from the financial market. It is better to be careful with such free programs, to avoid them, especially since the information that is presented to the trader is usually available in the public domain. We bring to your attention a number of free courses that are available today on the Internet.
- Opcium project
On the website devoted to the training of binary trading, you can find a lot of useful material in the section Introductory course in trade for beginners. This is information about options, hedging, demo account, risk management, etc. It also answers the questions about what bonuses are available for beginners, how much you can earn on binary options, what are the advantages and disadvantages of trading with the help of robots, etc. All this information can be found on the Internet, perhaps it will be presented in more detail than on this project. In addition, we note here the disadvantage of such Internet projects: there is no support for the student from the professional manager, there is no practical part, only lectures are given.
- Options-review project
This site devoted to trading binary options, also offers the user information available on the Internet. 2 types of courses are offered: For beginners and Advanced. Among the materials of the course of the first type, we note the standard topics: 4 steps to successful trading in binary options, Time of trading sessions, News trading in binary options, etc. In the second course, there are only 4 such topics: Graphic Analysis Tools, Strategy Engulfing Candle, Trading on a rebound from the trend line, What is a flat or a side market in financial trading? Here the user can study the materials provided and at his own risk apply them in their work. It does not assume support by a professional manager, there is no option to support transactions, etc. -these are the attributes relating to the free courses.
- Treideram.ru project
A similar situation awaits the trader on this project dedicated to trading in binary options, as well as in the Forex market. There is a useful Beginners section in which you can learn the basics of the market: basic concepts, information about signals, strategies, expirations, etc. You can also explore other articles of the site: Strategy, Market Analysis, Secrets of trading. According to the authors of the project, the advantages of the resource are a huge base of articles, recommendations, video tutorials, etc. However, this project also offers only a theory of work in the market, the trader will not receive manager support, etc.
- Finstudy.info project
This project offers the interested user a free download of the book 10 Steps for Successful Trading in order to enter into 5% of investors who have achieved success with trading in the financial market. The book offers a brief guide to popular investment methods in 2018, and here the following issues are discussed: Destruction of the myths about trading, What is investment in social trading, How to make money in financial markets, How brokers do manipulate you and etc. Having downloaded the book for free, the reader will receive valuable advice for the work: Fundamental factors in trading, Pitfalls in trading, How to minimize risks, etc. Here, there is only theory again, one will have to practice independently, test strategies, while paid training projects offer user support, etc.
How not to lose money
When trading on the binary options market, it is important to work carefully and thoughtfully, when deciding whether to take part in any offer, promotion, bonus, you should understand that this involves money and is easy to lose if you do not know the rules for using bonuses, the broker’s terminal, etc. d. In general, there are enough sticking points of the work in the market; without taking them into account, the user easily risks losing his capital. Let us tell you in this part of our material about how not to lose your money when trading.
- To study the User Agreement
It is important to study the provisions of this document before you began trading with a broker on a real account. User Agreement is a document that is available on the official website of the broker in the public domain. It may have another name, but it contains a lot of useful information about how trading takes place, what are the rights and obligations of the company’s client, as well as the broker itself, for which it is responsible and in which case the losses fall on the trader’s shoulders. Moreover, this document is constantly updated and it is also the task of the company’s client to monitor its updates.
Making a decision on any issue, for example, in case of force majeure, technical failures, loss of money as a result of a transaction not closed on time (in case of terminal failure, for example), the broker will be guided by the provisions of the Agreement where it is said what kind of company reaction on such a situation should be. Even if the trader does not read its provisions, in any case, the decision on issues, complaints and clarifications is made according to the rules described in this document. Most often the Agreement contains such clauses that work not in favor of the trader, this, of course, complicates the work with the company. In our reviews of binary options brokers, we also do reviews of the Agreement, so it is important to read them in order to be fully aware of what awaits you on the platform.
- To study conditions of bonuses provided
Any bonuses provided by the broker, as well as promotions, special offers, have some operation rules. It is important to read them before the trader decides to use the bonus, since there is a high probability that, after reading such conditions, he will not want to work with the bonus. Often, the rules for working with bonuses are unprofitable, difficult for the trader, especially for a newcomer, so market professionals sometimes advise to avoid bonuses at all and there is some truth in this.
The terms and conditions of their use contain provisions for working out money, and it is also specified here whether it is possible to withdraw from the platform the profit earned by trading with a bonus, on the card, which is also very important, the period of the offer, etc.
- To trade with strategy
Trading in the financial market, as we have already noted, is not a game. It is very easy to lose money here , you can even not notice. Work on strategy, market research using indicators, oscillators, etc. – this is what will allow you to see the confirmation of a forecast, use the signals of the instruments and, having set a transaction, make a profit. Conscious trading is an important part of the success of a market player.
- To study the broker carefully
Again, we note here the importance of working with a reliable broker who is ready to cooperate with clients honestly and transparently, offers them plenty of opportunities for making money and trouble-free withdrawal of profits. The fraudster, having lured the trader onto the trader’s platform by fraudulent, attractive offers and after receiving his funds, in no way will he allow this money back to the trader.
- To use chargeback
In case then the broker does not return the money to you, there is an option to return it using the chargeback procedure. Organizations providing chargeback services help to achieve justice not only for traders, but also for any users of the network who transferred money and received a service/goods of poor quality, were deceived, lost money. They are called chargeback. What it is? This is a procedure for canceling a payment and returning money to the user’s card, which is based on the rules of the international payment system. In order to return his money, the trader must follow the recommendations of the company, which will collect all the documentation, prepare the evidence base and start working with the bank. The faster the trader contacts the company, the greater the likelihood that the money will be returned to him.
- Psychology of trading
Starting binary trading in the financial market, in addition to learning the basics of the market and its tools, testing the terminal, searching for strategies, etc. it is also important to control emotions: excitement, fear, greed, insecurity, etc. This is the issue of the psychology of trading, which will help the player to get rid of excessive emotionality, to feel more confident during trading and to do what is really important and interesting for him — to trade in the market. It is no secret that the fear of losing money, uncertainty about the result, etc. — all this can prevent the trading, will lead to the commission of errors and, of course, losses. Therefore, it is important to get rid of what prevents the trader from immersion into work. We will talk about this in our material.
- Not to be afraid
Starting trading on a real account, a trader is afraid to take the first step: start trading, place a bet, select a forecast. The fear of losing money begins to drown out the voice of reason and the trader loses mood, attention, makes mistakes, this immediately affects the quality of trading. Here it is important to remember that losses always happen and they happen to professionals with great experience. Losses should not frighten the player, they should call for the need to improve trading and market analysis experience. The task of any trader is to make so that the number of losing trades is less than positive ones and it is better to focus on this goal, especially since it also has a good effect on the result of trading.
- Not to be greedy
Starting trading, it is important to understand that greed, an attempt to earn all possible money will not have a good result. Concluding transactions thoughtlessly one after the other, it is difficult to correctly analyze the situation on the market, attentiveness, attitude, which are necessary when working in the market. So, in the pursuit of all the money, it is easy not to notice the change in market sentiment, to lose all the capital in the account and be left with nothing. It is important to remember that earning as much money as possible immediately during a session should not be a goal. It is important to reach a stable income, to be able to feel the market, respond in time to its dynamics, work with strategies that will bring in a regular income. Therefore, you should not hurry to put deals, on the contrary, you should start work calmly, study the market, make a bet and then proceed according to this scenario, keeping a calm mood.
- To switch off excitement
Trading is not a gamble where you should guess the outcome of a bet. Although outwardly, binary options resemble roulette and attract with a simple principle of operation, however, this is a serious business, in which both income and loss await the trader. The difference between the market and the game is simple: we play more for fun, trading is a source of income. In order to make income constant, you need to work hard, study, test strategies. You should not start trading for no reason, you need analytics, money management, a trading plan. In addition, for each transaction it is important to prepare carefully, open it only with full confidence in the accuracy of the forecast, monitor the status of the account.
- To remember about patience
The financial market requires serious knowledge, work experience, and informed decisions. He does not tolerate rashness, attempts to keep up with everything. Patience is an important quality that sobers the trader, makes him completely devote himself to work, make an informed decision regarding the market forecast. Impatience is the quality typical more for the newcomer of market. Just starting the work here, he is not so concentrated, inattentive, in a hurry to first make a bet, and then begins to think about its result. Yes, of course, he is worried about the effectiveness of his actions, but a state of complete calm here will come in handy more and make the work more productive.
- Not to recoup
Starting work in the financial market, the trader often makes one serious mistake — trying to recoup in case of a failed transaction. At the same time, his emotional background is already unstable, attention and concentration are lost, the trader is in a hurry to have time to recoup.
This leads to further loss of money. The desire to recoup is natural, the trader would like to return the situation under control, correct it, but is it worth after two unsuccessful transactions to open a series of contracts that are likely to be negative, because the trader has already lost attention, concentration. Here it is worth remembering the rule of three transactions, according to which after three transactions, a trader should refrain from working in the market, leave it at all. By this he will save his money, and will not make even more mistakes.
- Risk management
Professional traders, working in the market not for the first year, point out the constant adherence to the rules of risk management as one of the secrets of their success. Risk management is the basics of risk management that a player meets during trading. These are is a loss of money, psychological emotions, greed, incorrect work with a deposit. Using the basics of risk management, it is easy and simple to prevent capital from flowing on the account, in addition, you can feel confident in your abilities and successfully trade in the market. The work without taking into account the basics of risk management is often considered to be the mistake of many traders. In this case, it is difficult to monitor the status of the deposit, to behave correctly in case of losses. Of course, this is one of the factors due to which traders leave the market and become frustrated with binary options trading. In this part of the article we will tell you about the basic rules of risk management, following which you will touch the heights of trading.
- To deposit minimum amount of money
You should not transfer all your money to a broker’s deposit, especially if you are just starting to work with options. This is because the probability of losing all this money is great, especially if the newcomer does not have a strategy, he does not know about the principles of risk management. It is necessary to determine for yourself the limit of money that can be traded and which can be lost. Work in such a framework will allow disciplining the trader, and in the case of losses from which even an experienced player is not immune from, this will not be considerable for a deposit.
- To invest in trading no more than 5%
Starting option trading, it is not recommended to invest in the transaction more than 5-30% of all funds in the account. In this case, if the trader fails, he will always have the opportunity to recoup the money, have climbed into positive territory of trading. Moreover, in case of small losses, he will not be disappointed in trade, he will be able to correct the strategy, eliminate errors and improve the result.
- To trade minimum number of assets
The player should not, especially if he is just starting his trading, work with several assets at once, since for this it is important to understand their features, to study their dynamics carefully, to analyze their behavior in the future. An experienced player will make all this, but not a newcomer who can make a mistake with the forecast, can not keep track of the account balance. It is better to trade 1-3 assets, focus on them, then, when the trader feels more confident, one can expand the number of trading instruments, but in this case trader will already have a lot of experience of analyzing the market, building a strategy for a particular asset, etc.
- To trade without emotions
When trading on the financial market, it is important to have the right mindset for this, because trading is a serious work that requires attention, concentration, and reaction in making decisions. It is difficult to react in time to the constant price dynamics, if the player is absent-minded, if he is stuckin thoughts of loss, uncertainty, fears. Emotions are the enemy of the trader, because of which it is easy to neglect the state of the account, rapid changes in trends. It is necessary to eliminate this enemy in order to focus on what is really important for a trader — on options trading.
- To remember about the «3 transactions rules»
This is a simple and easy-to-remember rule that can also minimize losses and risks, reserve capital in the account, and feel more confident in the market. This rule is that, after conducting 3 transactions, no matter how they were – positive or negative, you should leave the market, take the time to analyze your results in order to achieve more the next day. Most often, the players, after a series of losses, try to recoup, recover their lost money, but in the end lose it, which is quite natural. Attempting to recoup will not lead the trader to anything but losses, one should remember it.
- Keep a diary of transactions
It is also a very simple rule that will allow you to study the results of your work, see the percentage of victories and losses, track the effectiveness of a particular strategy. Such a tool as a diary of transactions is not the same as the history of trading, which can be studied on the broker’s website. In the diary, you can record income, expenses, type of strategy, asset, expiration, make your own notes, etc. — this is still a large, detailed and valuable work statistics, which will allow you to study immediately a lot of parameters of trades, eliminate shortcomings and, of course, improve your results in the market.