Trading binary options is a good way to make a lot of extra money on the side. Some people even do it professionally. The downside to this is that if you are not doing it correctly, you can lose money. We don’t want that to happen to you. That’s why we’ve put together this brief guide to getting you started down the right road. Even if you already are a binary options trader, but you are not earning money consistently doing it, this should help you take a look at what you’ve been doing incorrectly and get back to where you need to be to be successful.
Find the Right Broker
Having the right broker on your side is very important. Binary options brokers have tiny little differences between them, and over the course of time, this can make or break you as a trader. For example, some brokers specialize in Forex trading and have an extensive list of currency pairs for traders to select from. This is great if you are intending on trading currencies. If not, this might not be the right broker for you. Other brokers will sometimes offer different rates of return. If you are looking to trade an average of 15 minute expiries per trade, you will want to get the best rate you can find at this level. If one broker is offering a 75 percent return on these trades and another has a 78 percent return, that 3 percent extra is a bigger deal than you might think. Over the course of a year, it could mean thousands of dollars extra in your pocket. One important aspect when it comes to picking a broker is the offering of binary demo accounts. This practice account could save you a lot of money early on in your trading career.
Find the Right Strategy
Next, you need to make sure that you are trading the right way. Now that you have a favorable place to trade, you need to trade in a way that will make you money. Not every one of your trades will be correct, but you need to be correct often enough that you are turning a profit. There are many great strategies out there that are perfect, even for beginners. One method is called trading the news and it involves waiting for something to happen, and then reacting quickly to it. Let’s say that it’s suddenly announced that there’s going to be a big oil shortage. This would mean that crude oil prices are going to go up. Putting together a strategy that takes advantage of this will call options on crude would make sense, and will more than likely be profitable. Stringing together a few trades as the rest of the world reacts to rising prices will turn you a nice little profit. Just be sure that you are getting your news in as timely a manner as possible. A streaming service on your desktop or an email or SMS alert setup will go a long way here.
Find the Right Service
Some traders like to incorporate signals services into their trading strategy. If you can find one that will make you money, there’s absolutely nothing wrong with this. In fact, a good service can give your trading a nice jumpstart and help you make more money faster than you ever would have been able to do on your own. There are two main types of binary options signals services. One is an alert system. You will simply be given a message, either by email, text, or phone call that you should make a certain trade at a certain time. The other type is a robot, where trades are made automatically from your account. These are pretty new still, but have been used in Forex trading for a long time. If you choose the correct service, something like this can take a lot of pressure off of you to make money as you won’t even need to be at your computer to trade now. You can go away on vacation, come back, and see that the robot has made you money while you’re gone. Just beware that there are not only reputable and successful services out there. Some are not going to do what they claim to do and will lose your money. It’s very important that you do your own research before you pay for a service and then deposit money into an account to trade using that service. If it’s not a legit thing, you’re just throwing money away.
Find the Right Equipment
Some traders like having two screens on their computer so that they can see everything that they need to without a hassle. Other traders go directly from their smartphones. Whatever you choose, make sure you are set up correctly. With a slow connection or a slow computer, you may miss out on some really good trades. Worse case is, you end up getting a bad fill on a good trade. If you want to trade from your phone, make sure your broker has mobile trading. If you want an elaborate charting system spread out over two screens, make sure you have the right hardware and the right charting package to deliver you the best results possible. It’s pretty simple, and you will need to make changes as you go, but having the right equipment and setup will only help make making money easier.