Binary Options Trading is a relatively new way to trade the markets. You don’t need to look at dozens of different indicators and charts—everything you need is contained within the broker’s site. You need to know about the movement of the price and how that might affect future prices. This is something that comes with heavy risk and should only be traded with money you can afford to lose. We will try and help you learn about binaries, but nowhere will we guarantee you will make money. You should not consider this site as trading advice. We will also try and cover all the sites you shouldn’t use. Please be very diligent when it comes to this.
|Brokers||Minimum Deposit||Minimum Investment||Maximum Returns||Trade|
|IQOption Review||Minimum Despoit$10||Minimum Investment$1||Maximum Retursnup to 95%||Get Free Account|
|Binary.com Review||Minimum Despoit$5||Minimum Investment$5||Maximum Retursnup to 95%||Get Free Account|
|Deriv.com Review||Minimum Despoit$5||Minimum Investment$5||Maximum Retursnup to 95%||Get Free Account|
|ExpertOption Review||Minimum Despoit$10||Minimum Investment$1||Maximum Retursnup to 95%||Get Free Account|
|OlympTrade Review||Minimum Despoit$10||Minimum Investment$1||Maximum Retursnup to 95%||Get Free Account|
This is how they work: you pick an underlying asset, a stock, a currency, a commodity, basically anything that the binary broker offers, then you decide whether the price will move in one direction or the other. A call option should be used when you think the price will increase, a put option is for when you think there will be a drop in price. Once you decide where you think the underlying asset will move you select how much you want to risk. The returns are stated right on the broker’s website; usually it’s between 70 and 91 percent for a winning trade. *Amount will be credited to account in case of successful investment.
The items you trade are actually underlying assets, and not the assets themselves. Binary Options Trading does not give you ownership of the assets you invest in. Assets have predictable price fluctuations, you can use this to your advantage.
You can find trades with an expiration time just a few minutes in the future or up to a month long. This appeals to both day traders and position traders alike.
You know exactly how much you will get in return when your trades are successful. Some brokers offer refunds on losing trades, some up to 15 percent. This cushion can help over the long run. Refunds like this are most beneficial to traders just getting their feet wet, but they remain a good choice for almost everyone in the market. Make sure that you are getting a good return on your winning trades as well, however. Sometimes a low winning percentage will offset the refund amount.
New traders need to look out for their best interests. Having a high payout return on winning trades is the best place to start looking. Obviously, you want to make as much money as possible, so it only makes sense to start out by trading with the sites that offer the highest returns. But different brokers have different rates for different time frames and different underlying assets. We are here to make your search a little easier. We’ve compiled information of the Best Binary Option Brokers in the business. Our reviews will help you to wade through the waters of selecting a trading site.
For new traders, you should focus on one type of trade until you have mastered a demo trading account. Expert Option demo is very popular among traders and if you are from USA, you should definitely check the Nadex demo. Trading too erratically will only hurt you. No matter the circumstance a demo account will show you some things and keep you out of a lot of risky situations. Just be ready when it comes to switching.
In order to start binary options trading, the first step is to choose a binary options trading service provider, and create a login at the official website. Creating a login ID is usually easy, and you are not expected to go through a long registration process. However, be sure to only go with a service provider who is well-reputed and has a track record of providing reliable trading services.
While there are a few other binary options trading service providers, binary.com is among the most prominent because of its track record of over 21 years. We are using binary.com as an example to discuss how binary login works. At this brokerage firm, creating a login is only a matter of 2 minutes.
When you visit the homepage of binary.com (or any other reliable service provider), you will find a sign up tab. Visit it and simply enter your email ID and other basic information (if promoted), such as your name and date of birth. A confirmation email will be sent to your provided email ID. Once you confirm your email ID by clicking on the provided confirmation link, you are good to go.
Alternatively, you may also be able to sign up using a Facebook profile or Google account, which is even easier and quicker. Remember that registration and creating a login ID is free for most brokers, and you must not be paying any fees at this step. We explained this in detail in our Olymp Trade review. As soon as your registration is completed, you may log in to your account to get an idea of the platforms (or to start trading right away).
Many service providers (including binary.com) provide a range of different trading platforms to suit the needs and preferences of different traders. So, make sure to analyze all the platforms in order to choose the most suitable for you. Binary Bots, MetaTrader 5, and Smart Trader are among the most common ones. However, some firms may also have in-house built platforms that may provide better customization to the traders.
The brokerage firm is likely to have sound data encryption and security features in place. However, you must also remember that all your trades and funds are managed from your login ID, so make sure to keep it secure and not share with anyone.
While there are a lot of parameters to judge the standard, authenticity, and professionalism of a binary options trading service provider, it is recommended to never go for a firm that does not offer a free demo account at the time of registration.
A demo account is useful for a number of reasons. Firstly, it is completely free of cost; hence, providing you an opportunity to get a taste of binary options trading without risking your money.
More importantly, it allows beginner binary traders to understand how the market and the trading platforms work. It is not a sensible approach to trade with real money without having the right set of skills and expertise. With binary.com, you get $10,000 virtual money for free to make dummy trades (but in real market conditions) for as long as you desire to learn how the markets work and to develop trading expertise.
Similarly, a demo account may also be useful for professional traders who wish to experiment with a new trading strategy. A well-crafted demo account would replicate actual market conditions, and help you make virtual profits (or losses) in real-time.
This is immensely helpful in developing necessary skills. At the same time, it also helps in instilling essential confidence in the mind of the trader.
Another useful feature of a demo account is that it can be used to test and understand a new binary trading platform. You can use it to familiarize yourself with the trading platform and develop an understanding of various features offered by the respective platform.
Remember that, ideally, your brokerage firm should offer a demo account at the time of registration. It is provided free of cost, and there is also no requirement of the minimum deposit of real money to use it.
A demo account can either be in the form of a computer program (that you need to download into your computer or mobile) or in the form of an online webpage that can be accessed by simply entering the login credentials.
The data and information (such as charts, graphs, developments in the market, and other relevant news), as well as binary trading signals (Such as to buy a particular currency) provided on a demo account, are real. It is strongly recommended to take advantage of this amazing feature offered by various binary trading brokerage firms before starting your trading career with your hard-earned money. When you decide to trade with real money, make sure to follow some money management rules, for example Kelly criterion binary options.
The minimum deposit requirement is another major reason to choose (or reject) a binary options trading brokerage firm. It is because of the reason that, as a beginner trader or as a professional trader with a new firm, you do not want to tie up a lot of money without having any firsthand experience of the quality of services provided by the firm, and any reliable projection of the future profits.
Normally, the minimum deposit requirements may vary from $5 to $500, depending upon a lot of factors, such as deposit method, type of account, and the choice of a particular firm, of course.
At binary.com, the minimum deposit requirement is $5, which is the lowest possible limit for any firm. The minimum funds required for most other firms usually range from $50 to $250, while some firms may demand as much as $500 to let you start trading. On the other hand, the maximum deposit limit is usually $10,000 for most firms (but it also varies).
Once you deposit the minimum amount, you are set to start actual trading. A single trade, however, can only be as low as $1 only.
It is also important to remember that the minimum amount that can be deposited to start trading also varies on the choice of payment method. This is true for binary.com as well as other firms. The $5 requirement for binary.com is applicable if you choose to pay via debit or credit card (or some e-wallets).
If you choose to pay via a bank wire transfer, the minimum possible deposit may vary from $5 to $500. Similarly, the use of different e-wallets may result in different minimum requirements. However, the good news is that there is usually no minimum requirement if you choose to pay via cryptocurrencies. Make sure to be aware of the various crypto related scams, like Bitcoin Revolution app.
But before you decide to choose any particular method, it is also recommended to analyze fixed charges and payment fees applicable for different payment methods. Also, factor in the level of trust you have in your broker and your trading strategy and goals to understand how much funds you require at a minimum to execute trades successfully (and to earn a reasonable amount of profit).
In a similar manner, the minimum withdrawal amount, as well as the duration required to process binary options withdrawal (and deposit) requests, also depend largely on the chosen method and the service provider. Understand and analyze all the applicable factors before reaching a particular decision.
The exact amount of investment in binary option trading is very much dependent upon your individual circumstances, aspirations, and preferences, such as available funds, the choice of brokerage firm, short term goals (learning vs. earning), and long term goals.
The good news is that, unlike many other markets such as gold trading, you can start investing in binary option trading with a very low amount.
Some traders allow you to start trading with just $5. Even the highest requirement for a minimum deposit is not more than $500 for a majority of traders. Hence, if you are low on funds or do not want to risk big money, then binary option trading investment may be the right course of action for you.
You can always start with very low investment and slowly increase the investment amount as you learn this particular strategy and start earning real profits.
Hopefully, however, we believe you have sufficient availability of funds. Now the question arises about what is the right amount to start binary option trading. We believe that even if you have an abundance of funds, you should start binary trading with $500, especially if you are a beginner in this market.
Because of this, a certain amount of time is always required to master a new skill, and you do not want to spend a huge amount of money without having any real experience and expertise. Once you gain experience and become comfortable, the sky’s the limit. You may invest as much as you desire in order to earn big sums of profits on a regular basis.
Another important question in this regard is related to how much one should invest in a particular trade. Suppose you have $1,000 in your binary option trading account, and you come across an amazing investment opportunity. Should you invest all your money in it?
Well, unless you are 100% sure about it, we do not recommend it. Instead, the rule of the thumb is to invest 5 to 10% of the available balance in one trade. It reduces risk and ensures diversification of investment into different positions.
For a trade you feel very excited about, you may want to invest up to 20% of your available balance. But remember, no more than 20% should ever be invested in a single trade. Investing all of a majority of funds into a single trade is one of the primary reasons why people end up losing their money in binary option trading, and then they blame the trading strategy for their failure.
In order for a trader to gain the maximum benefits from the 5 minute binary options trading, they need to identify and work with the most suitable binary option platform that can be found. There are many platforms which can be used, but the ones recommended for this type of option are covered in our IQ Option review and Deriv.com review. Furthermore, they can be used on the mobile phone, which makes the trader’s life a lot easier.
The life of 5 minute options has been developing for some time now. Brokers have spent a lot of energy on research, making their traders happy. They believe, the more things you can do with their platform the happier you’ll be. In most cases this is true. However, it is very important to understand the risks of 5 minute binary options. If you’re not readily prepared for them, you should move up to longer timeframes such as 10 or 15 minute binaries.
The great thing about 5 minute trading setup, is that the timer starts immediately after entering the trade. No matter when you enter the market, the strike price has to be beat at the end of 5 minutes or 300 seconds. Although this is a pretty simple concept, it does take some people a while to understand. It’s just like the 60 second trading we discuss on this website, but longer. We highly recommend you test this style on a demo account before risking any money.
Some other notes to consider with this trading method are the payouts. A lot of the times brokers will lower the payout rates to 70%-75%. This gives the broker a huge advantage compared to a longer trade at 85%. Ideally you only want to trade this style if you see a prime trade setup. If you don’t think price will keep moving in your direction after 5-10 minutes then a trade using a five minute option can be considered. Always remember your risk level and try not to over trade.
Most brokers have 10 or 15 minute binaries in which you have to enter before you get to the 5 minute countdown. Make sure you consider this as well. Nice setups can show up on longer time frames, but you can still enter near the five minute mark. You’ll also get a better payout rate. In this type of trading, the higher the rate, the better. This allows you to risk less money when seeking the same amount. In time you’ll learn what works and what doesn’t work for you and your trading. Pay attention to the details and practice.
Although 15 minute binary options are the most common and popular types of options, they still require great amounts of skill on the part of the trader, and the trader can suffer extensive losses if they not well prepared. Proper preparation is a prerequisite if the binary options trader seeks to make profits from his ventures here. Remember that this is a volatile market. Be patient and trade what you see based on solely the price action.
15 minute binary options happen to be the ones offered by almost every single broker. This means that they are readily available across all platforms. Some people hear this and rush in head first. They disregard some of the common rules that they must observe. Lack of proper preparation leads to monetary losses. Every professional trader will tell you how important it is to stay focused and learn everything you can on a demo account first.
The 15 minute binary option presents one of the quickest ways to trade while coming with some controlled amounts of risk. It is not a reckless way of investing money as long as the brokers you are trading with have a solid reputation and are able to give you the returns they had stated as per your agreements. This means that the onus is once again on the trader or investor to carry out proper and extensive research as to what needs to be done beforehand in relation to selecting brokers.
Traders are able to trade the 15 minute expiration up to 3-5 minutes before expiry in some cases which allows you to trade your setup almost up to the last minute.
The trader needs to rely on some tools which help with technical analysis of the trends being displayed in the charts. One of these tools which has been proven as quite effective in this regard us the one known as MACD indicator. This is one of the tools that is best known to allow the trader to make accurate predictions in regard to how long a price trend will last. It is difficult to find another tool that allows the trader to make as accurate predictions as this one. Using more than one tool as confirmation, however, can increase your success rate. Figure out a strategy that works and keep trying to make it better. Trial and error will be your friend here.
Any trader interested in binary options is able to get involved in 15 minute options and even 5 minute options. No matter what you do or where you are you can be setup for a 15 minute trade. Most platforms offer them every 15 minutes. Although some times are better than others to trade, this does give you more choices when it comes to the fast paced trading world of binary options.
All who trade binary options will have access to a number of helpful strategies, techniques, methods, and indicators. Strategies often involve the processes of technical and/or fundamental analysis. On the technical side of things, it’s going to be indicators which are the ingredients that help traders identify existing price trends, after which this information can be used to forecast future price trends. Divergence is a tool that can help you with this.
At a base level, divergence reduces risk levels by allowing you to formulate more accurate predictions for your each of your trades. When used as a technical analysis tool, divergence may be used to help you narrow down any asset movement which would indicate an upcoming price reversal. Reversals are quite common, as no price can move in the same direction indefinitely. Whether you’re using it to identify price trends or reversals, any information which is going to allow for better price forecasts is going to be advantageous.
The divergence tool operates using a pair of indicators; price and oscillator. The oscillator can be of any form, such as CCI, stochastic, or RSI. Generally, the underlying asset price and oscillator are paired. The oscillator points to higher placement whenever the underlying asset price rises. On the other hand, there are going to be times during which the oscillator indicates the opposite price area. When this happens, true divergence is considered to be taking place. Trades can be taken according to what the indicator has revealed with regards to movement.
Whenever this true divergence is noted, there is going to exist the possibility of a price reversal. This suggests that the considered asset may begin to lose some of its value. In situation such as this, binary options traders need to closely assess the situation by determining whether or not investors are buying or selling the asset. Divergence may also tell you if a price is likely to remain stable. It really doesn’t matter which action investors are taking, so long as you are able to pick up on the trend and use it to profit.
There are two kinds of divergence, regular and hidden. The regular indicator is linked to a low price, but a high (or low) oscillator price range is noted. This signals a reversal in the general asset price trend. Hidden is when the asset price is high (or low) and the oscillator is in the lower range. This typically indicates a continuation in the existing price movement for at least some period of time. When this type of movement is noted, Boundary, Range, and No Touch trades may be a suitable select.
Divergence functions as an outstanding aid in figuring out whether or not anything out of the ordinary is about to take place with regard to the existing asset price trend. As a trader, you’ll be able to use this information to make key decisions. Therefore, divergence is viewed as one of the better tools to use when completing technical analysis for the purpose of successfully and profitably trading binary options.
Perhaps the most important part of getting ready for binary options is finding the very best return on your investment. Your return on investment (ROI) is sometimes even more important than which underlying asset you end up selecting. A high ROI can offset the knowledge gap that you have concerning an asset if it is substantial. For example, if you are trading an asset with a 65 percent correct trade rate and you are getting a 70 percent ROI when you are successful, you can easily find a better ROI and start making more money with a lower correct trade rate.
The way it works is quite simple. You need to find a ROI that is high enough so that even if you are wrong a few more times per 100 trades, you are making a higher rate of return when you are right. There are binary brokers out there that offer better rates on some of the lesser traded assets in order to lure traders toward them. Finding these assets can play a vital role in increasing the amount of money you make trading binary options.
The first step that you need to take is to compare and contrast between different brokers. If you are comfortable trading U.S. stocks, look around between the major online binary options brokers, demo trade and find which one presents you with the highest ROI. There are many brokers out there and they are all competing for your business. You should always trade with the broker that gives you the most money. This might mean that you need to have an account with more than one broker as rates can often vary from day to day. If Broker ABC has a higher rate of return than Broker XYZ, you obviously want to go with ABC. However, XYZ might have a higher ROI for the same asset a few days later. Spreading your bankroll out between these different brokers will give you the most flexibility and will ultimately make your profit rate a bit higher.
The second method is to compare assets within the same broker. This step is vital for two types of traders. First, the trader who is crunched for time needs to do this in order to make sure that they are getting the highest rate of return on their money. If you do not have enough time to skim through several different brokers, sticking with a single broker will help you out without having to go to several different brokers’ sites. The second type of trader that will want to use this technique are those individuals with a smaller bankroll. If you cannot effectively spread your money out between three or more brokers, sticking to a single broker can still be profitable for you. You need to get over the notion that you can only trade one asset however. If you are familiar with technical analysis methods for short term trading, trading a different type of asset will not be a huge stretch as the principles that govern one asset are easily translated to another.
Having a high ROI can also be accomplished via a third method. Some brokers offer rebates on unsuccessful trades—some as high as 15 percent. If you are wrong occasionally this will end up paying off for you. The best way to figure out if this will benefit you is to calculate your correct trade rate. If you are right 60 percent of the time, this means you are wrong 40 percent of the time. Figure out what your average rate of return is and then do the math to see if the 15 percent rebate will help you out here.
Let’s look at a quick example. Assume you have a correct trade rate of 60 percent with an average return of 72 percent. If you have a 15 percent rebate on your incorrect trades, this means that 40 percent of the time, you are gaining 15 percent of your original investment back. The math for a standard trading amount of $100 over the course of 100 trades looks like this:
(60×172) + (40×15)
This gives you a return of $10,920, or a profit of $920.
If you are trading at a correct trade rate of 63 percent without a rebate, you might think that your higher correct trade rate will help you out more, but the math says something different. Assume the same 72 percent ROI. The math looks like this:
(63×172) + (32×0)
This gives you a return of $10,836, or a profit of $836. As you can see, despite your better correct trade rate, you are still not making as much money as you would with a rebate. The difference might be slight, but over a period of time this is money lost. Finding out your correct trade rate, then, is an essential part of your long term success with binary options.
To some it may appear confusing to look at; when in fact, it is really easy to understand. Once you get everything loaded on the chart you will see exactly what we are looking at. Pivot, support, and resistance lines will tell you a story that will help.
First, we recommend you to get any MT4 charting package. All binary brokers have different price feeds, so it isn’t uncommon for you to see one price, while others see something different. This is why having the same charting package will make things even cleaner for you to understand the charts.
Here are some things you should consider on the charts after they are setup.
A very important item to discuss is the price differential between the actual binary brokers. Prices change so fast that you may not see the difference, but there will be those times when you are questioning the broker for slippage. This price movement is just part of trading in general. There may be some kind of arbitrage trading strategy to look at in the future, but for now, be aware of these price differences.
Also, price on the MT4 chart will definitely be different than the price at the binary option broker because of the spread.Some spreads are fixed and other can change at any moment. The price you see on the chart is the bid price. In most trading formats there is a bid and ask price for buyers and sellers. With Binary brokers you see the actual price. This is something you should pick up on relatively quick.
If you are having a hard time understanding candlesticks, there is a course that will give you everything you need to know about charting. Steve Nison is the original western hemisphere guy when it comes to Japanese candlesticks and provides you with sound information which in turn helps you out with price action.
Once you get your chart setup at the particular broker of your choice you can then start watching price action around these lines. Remember these lines won’t always hold in the direction you want. They are guidelines to watch as price moves. You use them to make better educated guesses of what price will do next. Over time you will learn a lot about how price moves throughout the day. Once you’ve spent many hours in front of the charts finding solid binary trade setups will be much easier. The time you put in now, will help you save a lot of time and money down the line.
Another aspect of the MT4 charting package that we like to use are alerts. These alerts can be set to tell you when price has reached a certain level on the chart. This allows you to do other things and not miss a potential trade setup. There is a tab on the chart that let’s you set these alerts in seconds. These come in handy and also let’s you stay out of the market when conditions aren’t favorable.
It may take you some time to learn all the intricacies of the MetaTrader chart, but over time it will become pretty clear. There are a lot of different things you can do with them. Being a binary trader we use it for price action. If you ever decide to trade spot Forex, knowing these charts will come in hand. It’s better to get the education you need before risking your money.
*** Resource Information ***
A pivot point calculation looks like this:
Pivot(P)=(H+L+C)/3 Basic math will give you the calculation of the pivot.
Key = P=Pivot – H=High – L=Low – C=Close
The great thing about the indicator is that it does everything for you on a nightly basis. This means the plotted lines will not have to be calculated by you every night. It is completely automated. It’s a very nice feature to have as a trader.
Here is how you find all the resistance and support levels, using the calculation from above.
Resistance(R1) = (2×P)−L
R2 = P+H−L
R3 = H+2×(P−L)
Support(S1) = (2×P)−H
S2 = P−H+L
S3 = L−2×(H−P)
When you are just getting started as a trader it can be a pretty lonely place. There are websites out there that offer trading forums and chat rooms. Although we don’t have one we wanted to share a little information about it. Trading with a group of traders in a chat room or forum can make your educational phase much quicker. At least the getting started phase.
You might have found our site by looking for a binary trading forum or chat room, but that is okay.
As a new trader you can definitely gain a lot of information from these services, but please be warned. There are a lot of bad traders and people that are only after your money. We don’t want you getting stuck in a bad situation when you first get going. There is also 1-2 guys that really stand out and have a huge following. These are the people you want to learn from, but try not to only trade the way they do. You have to come up with your own system of binary options trading. It’s not easy and anyone that tells you that is lying.
Making friends in a forum won’t necessarily be your goal, but if you can find one or two people to work with, it may help you over the long run. Each person has their own perspective and you don’t want to just listen to what others say. You should want to apply your own input. As a newbie this may be hard, but over time you will come up with some valuable information.
Using a forum or a chat room as a tool is a great idea. Just make sure you don’t fall into the wrong one with the worst information.
We hope that, by now, you have gained enough understanding of binary options trading as well as its important features. You may also have shortlisted some binary options trading brokerage firms to open your account with one of them.
Let’s talk about binary options trading signals now.
Remember, we said earlier that there are two basic ways in binary trading that may be used to decide which position to take for a particular asset. The first method is to gather all the relevant data from various sources and conduct a technical analysis of historical data to predict future price movements. This is the conventional method and, while it has its own uses, it may require a lot of experience, background knowledge, and time to conduct a successful analysis. In reality, many traders, especially the newcomers, may not have one or all of these but one of the important ones that you have to pay attention to is the best time to trade binary options.
The other way to predict price movements for binary option trade is via binary option trading signals.
These signals are generated by highly sophisticated computer software that has been created for a very specific purpose. Data, information, news, and the latest developments are continuously fed into the system. With the help of high-speed internet, big servers, and super processing speed, big servers, and super processing speed turn all the data into useful trading signals in real-time.
These signals are periodically transferred to the traders (via an email or notification), and the trader may decide to automatically or manually execute trades on the basis of these signals. The binary option trading signals provide single-line information about which position to take for a particular asset in order to earn profits.
These signals are usually time-sensitive. Hence, it is often recommended to execute these signals with the help of an automated trading software to ensure prompt exploitation of time-sensitive opportunities.
Many binary option trading platforms will provide such signals free of cost to traders who are registered with them. Similarly, there are some firms that specialize in binary signals, and a trader may subscribe to their signals in exchange for fixed monthly or annual fees.
The fees usually range from $5 to $250 for one month. However, remember that high-priced signals will not ensure better profitability. So, make your decision by carefully analyzing the track record of a service provider.
Before we answer this crucial question, there is a need to understand that the binary option is a trading strategy, similar to various other trading strategies. It is not an out-of-the-world scheme to help traders make millions or to scam them. Binary trading is as safe (or as unsafe) as you make it. Yes, it is true that it entirely depends on whether you make binary trading safe for you. So, how is it really possible?
From registering yourself with a binary option trading brokerage firm to making your trades, every step you take will decide how safe binary trading is going to be for you.
As the first major step, you should carefully analyze different brokerage firms, choose one registered with different relevant regulatory authorities, hold relevant licenses for investment activities, and have a verifiable track record. This will ensure that you are not scammed by someone who is using binary trading as a cover for fraudulent activities. Also, make sure that the trading platforms provided by your firm are trusted and reliable, as there could be a danger of a major software/ hardware failure if the platform is not reliable.
Similarly, your lack of skills may also result in you losing your money in the market. Hence, it is always recommended to start investing in a demo account.
Once you gain a reasonable level of expertise, start investing in binary options starting with a low amount. While the minimum deposit requirements may be as low as $5, some traders prefer investing thousands of dollars straightaway with the hope of making big money. Never make this mistake unless you are fully confident in your abilities.
Last but definitely not the least, never bet all your money on a single trade, no matter how amazing the odds may seem. The fact of the matter is that even if you win big once or twice with such an approach, you will likely take a wrong position every once in a while (and end up losing all the available funds). As discussed in an earlier section, investing all money in a single trade or in a single position is one of the biggest reasons why traders (especially amateurs) fail in binary option trading.
Remember, it is easier to blame the firm or the trading strategy than to accept your shortcomings or wrong steps. Never look for shortcuts to earning big profits, and binary options trading will never be unsafe for you.
It is a big conception among many traders is that weekends are entirely off for trading because some popular stock markets and trading firms are closed on Saturdays and Sundays. This is what makes binary trading vs stock trading interesting.
However, modern technology and differing time zones mean that at least some (usually a considerable portion) of trading opportunities are available on the weekends. Many firms and markets in gulf countries operate on the Western weekend.
Even those who are aware of the fact that weekend trading is possible often choose to ignore the opportunity with the intention of taking rest.
Weekend trading may provide an excellent opportunity for those who are willing to work even on weekends. It is primarily because fewer people are active on weekends; hence, it becomes easier to exploit opportunities. Moreover, the simple rule of thumb is that the more you trade, the more experience you gain and the more profit you are likely to earn.
Even if firms are closed along with many markets and government agencies, remember that news and socio-political events do not close on weekends. As a trader, you must be aware of the impact these news and events could have on price movements for various financial assets and commodities. Hence, weekend trading is never a lost cause. In fact, it may be an amazing opportunity that many refuse to take benefit of.
So, when registering yourself with a broker, we recommend that you choose one that offers weekend trading (normally most online brokers will offer). Weekend trading brokers are a lot more common than you may think. Below is a list of some of the many brokers that offer weekend trading:
If you decide to trade on weekends, make sure to make necessary adjustments to your trading strategy in order to gain maximum out of the opportunity. Some strategies that work on weekdays may not be as effective on weekends, and the opposite is also true. It’s all about finding the right strategy for the right occasion and gaining the maximum out of it.