Binary options trading is for many people the first step in to the world of financial trading. It’s a financial instrument that is easy to use and doesn’t take long to learn. Compared to other forms of trading that often takes years and years to learn in order to be truly successful, binary trading offers a solution that is much more simple and stripped down, but with the same opportunity to make decent profit. Having said that, I would like to address the fact that no one can just start trading binary options and expect to get rich without first learning a few things about the market and how it works. You can find some useful information on a good site to open live account with on sites such as binaryoptions.media, which works as sort of a trading hub for beginners. Here are some basic things for beginners to think about when you start trading.
Firstly, I’d like to point out that you should never be to focus on the payout rates on a particular option. It’s easy in the beginning to see a very high percent payout on a certain asset and assume that he should invest in a position on it just because there is a chance of a high payout. Chances are that the future market price is highly unpredictable and you might just end up losing your investment. Instead, focus on the assets that you actually do know something about. There’s no point in starting to trade with options without having a realistic prediction of how the price trend will go – you might as well just put your money on red or black in roulette in that case, as your chances of winning that trade will only be around 50%. If you choose an asset that you have some information about instead, you are much more likely to predict it correctly.
Second of all, don’t be impulsive. It’s easy to find an option that you think is certain and just buy it straight away expecting a big profit, but it’s always a bad idea to quickly decide on such things. Instead take a good look at the graphs, make a proper analysis and then make your decision.
Lastly, never put too much of your total capital on the market! I cannot stress this enough, risk management is vital for any successful trader, and it’s advised never to have more than 5% of your total capital exposed to the market at the same time. No matter how sure you might feel about an option, there’s still the risk that you might lose it. Read more about risk management here!