Binary options training
With the rapid development of Internet technologies binary options gained great popularity, the number of traders who try for themselves the possibilities of this financial market and become professional investors increased rapidly. What is the reason of popularity of binary trading? There are several reasons for that: it is an easy way to earn real money; due to the Internet penetration in every home any user can access the market; trading options is very simple and if you want you can improve your skills, raise your level of expertise and earn even more money, make options a permanent source of income, your main job.
- 1. Choosing the right broker for binary options
- 2. Learning to trade binary options from scratch
- 3. Binary options market basics
- 4. Trading Basics
- 5. Preparing to trade binary options
- 6. Newbie mistakes
- 7. Technical and fundamental analysis
- 8. Trading strategies: what they are and what they are
- 9. Strategies for binary options by expiration time
- 10. Best strategies for binary options
- 11. What trading courses are available and is it necessary for a beginner trader?
- 12. How not to lose money
- 13. reviews
Binary options - are contracts that can be executed in only one of two ways. That is, when trading and opening a deal, the trader needs to make a prediction about the price dynamics: it will rise or fall, the asset line on the chart will move up or down. Making such transactions, the trader already knows the exact amount of income that awaits him if he correctly predicts the dynamics of the asset or the amount of losses if the prediction turns out to be incorrect.
Trading binary options - is Internet trading with binary (binary) contracts, which allows the trader to build a trading system, to improve and adjust it, to achieve better results. Here it is possible to invest in different assets: currencies, shares of companies, cryptocurrencies, etc., use different tools for studying and forecasting the market. Options trading has different reviews, these are both positive and negative comments. Someone raves about the unique features of online trading, large and stable earnings, and the honesty of brokers.
Trading binary options is also tarnished by negative feedback from traders, Complaints about the actions of brokersThe conclusion that binary options are a scam is also widespread on the Internet. The conclusion that binary options are a scam and a scam is also widespread on the Internet, affects the formation of people's attitude to trading, confuses newcomers to the market. There are, of course, a lot of fraudulent projects on the web, the purpose of which is to gain the trust of new traders, get their money and disappear. In such cases, the negativity immediately appears on the Internet, and hapless traders conclude that all trading is a scam.
Whose fault is that?
It is necessary to carefully study the brokers' activity, trust only those of them, which work in the market for not the first day, have a lot of positive reviews of real traders. For binary options trading to be effective, it is important to keep in mind the following factors that affect the outcome of the work:
- The presence of a profitable strategy that really works and brings income to the investor.
- A trading experience that is constantly improving.
- Cooperation with a reliable broker, which will allow you to earn on binary options and withdraw money from the platform.
- Consideration of peculiarities of expirations, risk management rules and money management.
Choosing the right broker for binary options
The right choice Binary options broker - is half the success of trading. There are a lot of brokers on the market today, who offer and even actively lure traders by aggressive advertising with attractive bonuses and promotions, fabulous profits. But in reality it turns out that the company has no positive experience, it is a scam and fraud, and does not get in touch after taking the trader's money. Such fraudulent brokers, which the market is full of, are usually encountered by novice traders who are unfamiliar with the market and poorly versed in it.
Top 3 best binary options brokers in our opinion
Fraudulent projects also benefit from the fact that the trader loses his money in trading, rather than trading in the terminal on a long-term basis and making a turnover, from which the broker would earn. In order not to run into a scammer, it is important not to rush when choosing a broker, to be careful, not to base the choice of platform only on the profitable bonuses of a suspicious company, but to use the current rating of binary options brokers, where, among the presented reliable companies, you can find the option that will be convenient and profitable for the trader.
Before you start working with a brokerage platform, you need to know the following information about it:
- Positive experience with markets, prestigious awards, reputation,
- Availability of licenses from serious market regulators,
- The presence of positive feedbacks about the company from real traders,
- Availability free demo account In order to make sure of the professionalism of the company, the efficiency of its platform, the correct work of the support service, etc. even before investing money in trading.
Learning to trade binary options from scratch
More and more internet users are interested in binary options trading. All of them begin to actively immerse themselves in the subject of trading and are interested in finding high-quality material on the Internet. Of course, it is worth mentioning a special advantage of the net - a lot of information about how to start earning from trading is available here lately: it is not only articles and theoretical materials about what binary options are, how to trade them, what instruments to use, but also reviews of profitable strategies and signals, automatic trading robots, the actual rating of brokers, etc. There are a lot of materials on the Internet and it is a serious task to choose from them what is really necessary for a beginner in options trading. It is worth to understand that there are a lot of theoretical materials about trading and all of them are oriented at different level of player's training. The beginner trader, learning options trading from scratch, must understand the main terms of the market, must be able to work correctly with different instruments, types of analysis, must realize the rules of money management, risk management. Let us talk in this part of the article about the skills, which a trader must have.
- Study market theory
Starting to work with options, it is important to understand the meaning of theoretical concepts, which will be encountered by the trader in professional books, articles on the Internet, on forums. For example, such concepts as "daytrading", "scalping", "social trading", "martingale", "technical analysis", "quotes", etc. Ignorance of the market terminology will not allow you to fully immerse yourself in this type of activity, there will be difficulties with demo and real accounts, with trading on the market.
- Trade on a broker demo account
Testing the possibilities of the broker's terminal on a demo account, which is usually provided to the trader for free after a quick registration on the company's website. Here it is possible, using virtual money, to trade binary options in real market conditions. Its advantage - the user does not risk his funds and can not be afraid of losing them in case of a losing trade. Demo account - this is one of the main trader's tools that will allow not only to explore the functionality of the platform, but also, after switching to a real account, to test the work of strategies on it, actively build their trading system.
My first demo account you can open by filling out the form below. You will be redirected to the broker's platform, where you will have access to a demo account with $10,000 on the balance.
- To study useful materials
It is important to understand that only theoretical notions about the market are not enough for stable successful trading. On the Internet also Many useful articles about risk management, money management, trading in brokers' platforms, different methods of working with investments in assets, different types of market analysis and their peculiarities: these are technical, fundamental and graphic types of analysis, and also this video of trading in the market. Useful materials, in addition, tell about market analytics, news, etc. It's hard to achieve success in trading without observing the market moods. A market professional is a player who is always improving himself, learning new information, testing different approaches of work, etc.
- To study the signals of the indicators
Indicators are technical tools of market analysis that generate market signals based algorithms. To begin with, it is worth studying the basic indicators, which are largely considered to be the best indicators for binary options: Stochastic, RSI, CCI, Awesome Oscillator, MA, MACD, Parabolic SARThen you can move on to the study of complex indicators, such as OBV, Gator, ROC, Elder's Force Index, etc. It is worth understanding that all indicators can be divided into lagging and leading indicators.
The lagging ones are trend-following tools to analyze the dynamics of quotes (Stochastic, RSI, Awesome Oscillator, etc.), the leading ones are most oscillators (MA, Bollinger Waves, Ishimoku, Chaikin Oscillator, Parabolic SAR, MACD, ADX, ATR, etc.). With the right approach, these tools will give excellent results. Indicators are part of the technical analysis of the market, which is very common among traders today.
- Learn trading strategies
On the market there are myriad strategies and all of them differ in trading style, the set of tools used, some of them are simple, others, on the contrary, are oriented for professional traders with extensive experience with options. The easy strategies do not have complicated settings, consist of basic market analysis tools, will be convenient for a beginner. Which of these strategies is profitable? There are many classic techniques on the net that different traders work with. They have the advantage of being tested by many traders, their results are predictable and their efficiency is proven. It is worth to study the strategies in order to find among them a work system, which would be best suited for a trader.
- Use trading bonuses
What trader wouldn't want to start trading profitably? Brokers usually offer their clients a number of bonuses: welcome bonuses, holiday bonuses, special bonuses, bonuses for inviting a friend, etc. All these bonuses have their differences, peculiarities, rules of their usage, they allow to get additional funds for trading and, accordingly, additional possibilities for earning money. It is profitable for players of the market. But the main thing, of course, is to read the rules of work with bonuses, understand what will be the conditions of withdrawal of money which the client has earned, trading bonus.
- Cooperate with a reliable broker
Reliable binary options broker - An important factor of trader's success. It is the broker who provides the trading terminal and the more functional and convenient it is, the easier it will be to work with it. It is also important to understand that every broker will have different set of allowed strategies (some brokers allow scalping, some do not), different set of assets, expirations (short-term, long-term options, etc.). A reliable broker also has a serious market license, he is open for communication with the trader, works as transparently as possible. Of course, it has a quality informative website, bonuses for different categories of clients, contests, professional support. After you have clarified this information about the broker you are interested in, do not forget to read the reviews of traders about it in the network: if there is a lot of negative information, if the company is in the list of swindlers too often - it is better to choose another broker.
Binary options market basics
In order to work correctly with binary options, it is important to understand The basics of the binary market. This is what we will tell you about in this part of the article.
Binary options are a financial instrument, a contract under which the trader can realize, sell or buy an asset at a fixed price at a specific point in time. Options are called binary, binary options for a reason - this means that they can be realized only under two scenarios: up or down, i.e. the price of the asset will either rise or fall. Such an asset has a fixed profit, but when the contract is executed it can either bring income or nothing at all if the trader's forecast is not justified.
This market is where the trade takes place various assetsThese are: currencies, shares of international companies, metals (gold, silver, platinum), commodities and even cryptocurrencies, etc. The investor can choose any assets for work, use different strategies, including trying his forces in trading fast turbo options, as well as long-term contracts.
Binary options - a type of derivative, which was first registered in 2008 in the U.S. and for a long time was considered an exotic product. Today many people know about it. The significant difference between options and deposits, offered by banks, is that you can make profit at any time and withdraw it immediately from the trading platform. Also the investor himself actively influences the amount of his earnings, he can trade more or less intensely, depending on how much money he needs and how soon he would like to get his money.
In order to achieve decent results from trading, it is important to spend time studying, testing your abilities on a broker's demo account, searching for a profitable strategy and creating your own individual work methodology. Different types of analysis will also help here: technical, graphic and fundamental.
Special attention should be paid to effective indicators which are able to generate quality signals. Also, starting to work with binary options, the trader should decide on the choice of a reliable broker, test its possibilities on a training account, study the reviews of traders about it on the web, check if it has a license, etc. The additional tools for investing in financial markets are the functionality, which trader can always count on and which will not let him down and will allow him to earn a decent income: these are Economic calendar, "live schedule"The options are often considered by newcomers to the market as a gambling game and a casino roulette, but this is not the case. Newcomers to the market often think of options as a game of chance, a casino roulette, but this is not true. Trading binary options is not something exorbitant, of course, but it is work and it requires a serious training on the part of the trader, a comprehensive approach to the study of market opportunities, testing techniques, 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 in terms of traded assets, trading styles, functionality, but there are those facts which unite all the markets into a common notion of "trading" and we will talk about this further.
Trading is earning real money from trading in various financial markets. It is even correct to call it Internet trading, because most of the work, regardless of the market in which the trader invests money in assets, takes place exactly on the Internet. With the advancement of technology, Internet became a part of our life and there appeared possibilities to earn money remotely. The same applies to financial markets, which can be accessed by opening a broker's terminal.
In the markets the work is built from the moment when the interested user decides to get acquainted with the principles of trading. He chooses a broker that provides him with opportunities to work in the market by entering into contracts through the terminal. He begins to gradually learn the trading on a demo account. After familiarization trading on the demo account he replenishes his account with money and starts investing on the real market. It is also important to get acquainted with the assets available for work: these can be stocks, cryptocurrencies, currency pairs, indices. The trader works with different types of expirationsOptions can be both short-term (from 60 seconds to 1 hour), medium-term (up to 1 day) and long-term options (up to six months or even two years), choosing for yourself the most suitable trading style.
Studying principles of simple and complicated indicators, selection of effective trading strategies are also important tasks for an investor who wants to become a professional in the market. Trading offers a lot of strategies (for example, trading by trend, on the news, scalping, Martingale, etc.), but to choose among them really effective and allowing to get income is a difficult task, which is still within the power of those who intend to get the most out of investments in financial markets. Some forex brokers or binary brokers allow earning also with the help of robots, advisors.
Professional organizations, not the first year on the market, offer trader free signals, high-quality market reviews, trading plans, opportunities for technical and functional analysis of the asset dynamics. Also, at the broker's website one can get training on how to trade on the market, we offer useful articles, webinars, video courses, etc. When starting to become acquainted with the market opportunities, it is important to take an integrated approach to work with the market, and only then trader will have a real chance to become a professional, competently invest money and increase his earnings.
Preparing to trade binary options
In order to become a successful trader and earn a steady income from investing in the binary options market, it is important to prepare properly for trading. For a successful start, it's worth remembering to get acquainted with the market in a consistent manner, to use the valuable advices of the seasoned traders, which are addressed specifically to beginners in binary options trading, where it is usually recommended to start trading from small (with minimum amounts), to trade on a demo account at the broker, to study the market possibilities, to test strategies with different expiry times and so on. Here we would like to point out that a demo account, which is provided by a broker, can be considered as an important tool for the investor's initial work, which allows you to get acquainted with the platform's possibilities, to learn the principles of the options market without risking your own funds. Competent work with it helps to feel more confident on the market, not to make mistakes, to use indicators correctly, to analyze the dynamics of assets. Most brokers offer a permanent demo-account, which makes it possible to test the strategies on a practice account, which is very convenient.
Often traders choose binary options bonuses as an important point for their start in trading with a broker. The desire to get a profitable start by taking advantage of the company's additional funds cannot 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 a decent income from trading. When working with a bonus, it is important to remember about the conditions of its provision, the fact that it is not given by the broker for nothing and you will have to work it off, and that may be difficult for a newcomer, especially if the turnover of transactions will be very large. To take bonuses or not - it depends on the trader, his confidence and trading experience.
Important factors that influence the success of the trader are: professionalism, terminal capabilities The broker with which he works, trading conditions, the effectiveness of his strategy, the elaboration of risk management. These are the parameters that must be understood and taken into account by a beginner who would like to reach the heights in this work. How to earn on the market for beginners and is it real? It's possible and the traders' reviews prove that it's possible to become a professional only by using a complex approach. It is also worth remembering about the educational materials on the broker's website, such as webinars, video lessons, books, reading specialized forums. Taking advantage of the Internet one can easily organize a successful trading start, plunge into the fascinating world of trading and make it the main source of income.
Beginning their acquaintance with the market, beginners of options make a number of mistakesIn addition, the mistakes that traders make can lead to the loss of personal capital, the appearance of impressive "holes" in the budget. Moreover, the mistakes made by traders can lead to the loss of personal capital, the appearance of impressive "holes" in the budget. In this part of the article let's talk about the most common mistakes made by traders.
- Trying to get an income right away
A newcomer to the market, the first time entering the platform, let's say, PocketOption broker, trying to make a profit immediately from trading. Without understanding the basics and peculiarities of trading, they already expect income on the account, transfer their money to it and start mindlessly playing in the terminal, because the principle of work here is simple and consists in only pressing three buttons, making a deal, indicate the forecast of asset dynamics and all, the money should appear on the account. In this case the only thing waiting for them is the drawdown of all the money, because trading is not a game, it is work, which requires a serious approach.
- Trying to mindlessly trade
One of the common misconceptions is that traders think that working with options is just a game of chance. This is why they immediately open transactions on a real account without thinking about the basics of the market, analyzing the situation, studying the peculiarities of the asset, making predictions about its dynamics at random and losing money. It is wrong to consider trading as a game of chance or roulette, and wrong to think that all you need to do to make money is make predictions at random. That's how traders lose money on their accounts, and then there are complaints that the broker is a scam who has lost the whole deposit.
- Trading the last of their money
When trading in the terminal, a newcomer to the market transfers all the money he has into his account and begins to mindlessly trade. Of course, with the "trading is gamble"It is impossible to succeed and therefore, having earned nothing, he loses money, disappointed in trading. It's not right to invest all the money in the market, it's psychologically hard to realize that there is no more of it. A trader in any case should have untouchable money, which he can't invest in the market.
- Not working properly on a demo account
If you take a thoughtful approach to working on the market, a demo account is a serious tool with a lot of possibilities. It is provided free of charge and usually market newbies use it incorrectly, even "superficially". Only a small task of a demo account is to familiarize the trader with the trading principles: when he opens a demo account he makes his first trades and understands how he is going to work and trade here. In reality a demo account has a lot more to offer: it will allow the trader to understand if the broker he is going to work with is professional, if the terminal is of high quality, if the customer service is working correctly or if there are bonuses available. In addition, this account usually provides all of the trading functionality of the program, which is available to the player on a real account: market analysis using various instruments, reading analytics and training materials, working with a personal account, studying the history of transactions, testing strategies, developing one's own methods. Properly using a demo account, the trader will improve his professionalism and make sure that the broker's service works.
- Choosing a broker by bonus
This is one of the common mistakes of traders, who, when choosing a broker, focus on how profitable his bonus is. There is a strong competition for the audience at the market and that's why a number of companies carry out aggressive advertising campaigns, offer traders super profitable offers with fabulous earnings. It's hard to reject this and the trader does not think about the fact that the choice of a broker is a more serious process, grasping for a bonus rather. In such a situation he does not immediately realize that he made a mistake and that the money he transferred to the broker can be forgotten, because there is no way to withdraw it from the platform. The scammer, after receiving the money, immediately disappears, leaving the trader alone with the problem. Choosing a broker, it is important to consider a number of things at once: the availability of a license, experience, awards and prestige on the market, positive customer reviews, bonuses, a training account, an informative website, etc. These parameters are studied by professional market players, who plan to earn a stable income from trading and seriously cooperate with the brokerage company.
- Thoughtlessly "grabbing" the best bonuses
Even if a trader has chosen a reliable binary options broker, having done a lot of work to study its reputation, etc., then he can make another mistake, as a result of which he will either lose the deposit or will not be able to follow the rules of trading. These are bonuses, of which there are many online and each offer looks better than the other. Market brokers offer a lot of profitable offers to newcomers, actively vying for client's attention, promising him literally "mountains of profit", that traders, of course, "are caught by this bait". However, the best bonuses do not mean profitable trading. Having deposited money into the account of such a broker, the hapless trader then cannot withdraw profit from the bonus and this is a common situation with beginners. To avoid turning into a sucker, before working with bonuses, it is important to study the reputation of the company, find out about its license, read the reviews of its clients, etc. Only when you are completely confident in the honesty of the broker, you can start working with its bonuses.
- Trading without knowledge of market theory
Most often, newbies, having just registered with a broker, immediately start trading on a real account in the hope of increasing their profit. They make bets at random, try to guess the forecast of quotations movement without thinking about the fact that the trading result is influenced by a number of factors which the player should know about. Only after losing the money traders start to study the theory of the market, understand that it works by the certain rules, that assets have different dynamics, that the terminal has indicators, expirations, etc.
In this part of our article we have demonstrated only some mistakes which are made by beginners of the market, but there can be more. The investor, interested in trading, must understand that the market does not exist by itself, that it has its own serious laws and that one can try to earn here only "having a head on his shoulders".
Technical and fundamental analysis
Earning on binary options trading, it is necessary to be able to forecast the market correctly, as it affects the effectiveness of transactions. Before you start trading it is important to learn the basic tools of market forecasting, to find out about the possibilities of fundamental and technical analysis, which have a number of differences. If both of these types of analysis work correctly, they can become reliable sources of signals and lead the trader to a decent income. It is important to understand that trading options is not a game, placing bets at random will not bring a positive result, the trader will just lose his money. So the role of the strategy here, of course, can hardly be overestimated. In this part of the article, we will talk about the features of technical and fundamental analysis of the market.
Fundamental analysis of the market - is one of the most common types of situation analysis for traders. If it works correctly, it will simplify trading and increase the amount of funds in the account. The peculiarity of this type of analysis is that the player, when forecasting the dynamics of assets, focuses on external factors that affect it. Fundamental analysis of the market uses data on the macroeconomic environment of states, as well as the general economic background between countries. In order to make money with such data, it is important to understand the importance of macroeconomic news, to see their influence on the rise or fall of asset prices. Factors which create the economy of the states are of great importance here: indicators of the economy, capital flows, changes in the interest rate of the country's Central Bank. What is important here is not only statistics in numbers, but also how investors and the market will react to it. Some news are positive, others are negative. All this provokes investors' behavior on the market, purchase or sale of assets. You should also keep in mind that this kind of analysis will not guarantee an accurate market forecast, because there will always be some sudden factors which cannot be predicted. Most of the strategies here are medium 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, by changing, affects the market. One of the central bank's main tasks is to control inflation, and if inflation becomes severe, the bank must curb it by raising the key rate. This slows down the economy. Why does a trader need to know about this? A country's currency exchange rate depends on the key rate. A rate hike by the U.S. Central Bank leads to a stronger dollar. Other significant news items that greatly influence the dynamics of currency quotes are statements of central bank heads. At the slightest comment from them about the strengthening of the currency (or its weakening) it can provoke a storm of trades. It is also worth keeping in mind the news related to the changes of national economic indicators, such as business activity index or sales volume, unemployment rates and reports of state economic sectors. All this news can also provoke an active movement in the market, but the main factor here is still the key rate. As a conclusion it should be mentioned here that when trading binary options according to a news strategy or any other technique with the use of fundamental data it is important to follow the news: key rates, statements of Central Bank heads, bankers' interviews, economic forecasts, turnover and trade balance of the country, etc. This will allow you to know exactly what the market trends will be and to make profitable forecasts.
Technical analysis - is a type of analysis in which the generators of signals are technical parameters of the market: for example, volatility, price levels, patterns in the construction of quotations, automated analytical programs or indicators that determine market trends on the chart. When you open a trading chart, you can see the quotes of the asset, which at first glance, move chaotically, however, it is not so simple. There are a number of regularities which can be used to predict the movement of an asset and make profit out of it. This is exactly what technical analysis of the market deals with. The advantage of this type of analysis is that you can trade turbo options, medium-term and long-term contracts.
This type of analysis should be considered as one of the trading strategies. By adding indicators, graphic elements to the chart, you can clearly see the real picture regarding the dynamics of quotations, the position of market forces (overbought, oversold), as well as assume their future dynamics. Then the only thing to do is to conclude a contract, point the direction of the price movement: up or down and expect profit. There are many strategies based on the principles of technical analysis of the market: indicator strategies, strategies that use data from patterns, graphical figures and specific indicators, both popular and rare. This type of analysis is very popular among traders, moreover, it is the most common way to start your first steps in studying the market opportunities.
Trading strategies: what they are and what they are
Trading strategy - is a certain algorithm of actions that the trader performs in order to conclude a deal to buy or sell a binary option when certain conditions appear on the market. Traders who are new to trading most often conclude transactions at random thinking that this will be enough to make money from the financial market. However, with such an approach they are going to be disappointed in binary options, because deals will be closed with approximately the same ratio of profit and loss, so it is out of the question to make profit. Trading strategies is a peculiar scenario of trader's behavior in order to increase the number of positive deals and get a decent income from the options.
Strategies use automatic means of analysis (indicators, oscillators), simple patterns of market dynamics (technical analysis), fundamental indicators (fundamental analysis). Thus, it is possible to distinguish types of strategies for trading binary options:
During the technical analysis of the chart, the trader turns to the study of the chart of value movement. Unique metrics, indicator data, which generate signals of the appearance of specific conditions for profitable trading, can be used in the work.
It uses the data of the graphical elements available in the broker's terminal, pattern shapes, etc.
- Based on fundamental data
Such strategies use various events occurring in the world that affect the dynamics of asset prices. For example, news trading strategies use quarterly company reports and political speeches, statements by heads of central banks etc.
In addition, there are a number of strategies on the market, which are designed to significantly increase the efficiency of work, improve trading statistics. They are usually combined with the main strategy:
- The method of averaging trading positions
This option trading technique is more commonly used with channel and trend systems when inertial movements of the asset line are made outside of the channel levels and trends. This is a simple method, which is quite popular among market players. If, when trading with the trend method, the line breaks through the level without any preconditions, the averaging method of transactions is connected into the work. What is its principle of operation? During the movement of the line beyond the level of the main trend it is necessary to conclude additional transactions in the direction of the slope of the trend movement or trend channel. In this case the trader expects the income on a whole series of transactions, the volume of his earnings will increase. It is convenient to combine this technique with strategies that include oscillators, which help to accurately determine the trend reversal, the end of local price corrections.
This interesting and very simple trading methodology will allow you to extract the maximum profit from trading and reduce its likely risks. How does this strategy work? Having opened one trading contract, the trader opens at once, when the first position is located in the profitability zone, one more deal, but with the opposite outcome. As a result of such trading, a market player gets profit on one deal or on two deals at once. In the first situation, the losses of one of the transactions are compensated, and in the second situation, the trader receives additional income.
Another popular and quite effective trading methodology, which consists in a system of doubling the bet each time a contract has a loss. This strategy allows to cover the losses and simultaneously increases the amount of income on the account. It is important to double the lot size even before receiving a profitable transaction, then the overall statistics of work in the market will always be profitable.
Strategies for binary options by expiration time
All strategies differ in the use of different expiration times - that is, the time after which the option expires and the trader learns the result of his prediction. Thus, depending on the type of expiration, all strategies can be divided into the following types:
- Strategies for trading 60-second options
This is turbo options trading strategiesWhen in 60 seconds a market player will know the result of his prediction. Features of such strategies: they are simple and easy, they do not use complex indicators, because their work is aimed at making unlimited volume of transactions during the trading session. Such strategies are very popular with traders, especially with those who enjoy the excitement, as they offer high payout percentages and the possibility of earning impressive amounts of money. The disadvantages of such trading methods include: higher risks of losing funds, limited methods of market analysis, a lot of unnecessary "noises" which prevent from taking the right decision on the asset dynamics.
- Strategies for trading options from 5 to 30 minutes
Such strategies are also related to high-speed trading, although they provide more opportunities for market analysis (example: 5 minutes, 15 minutes, 30 minutes). These methods of trade also do not differ difficult process of work, they allow to be quickly guided in a situation in the market and to conclude a considerable quantity of transactions within the trading session. Unlike the previous type of strategies here it is possible to trade more stably, to study data of indicators, signals of graphic elements, to observe history of dynamics of assets. Such moderate trading allowing to get unlimited profit due to the considerable quantity of opened deals during one session is popular among professionals who can correctly use various instruments of market analysis. Besides advantages (high profitability, minimum of investments, etc.) there are also disadvantages of trading: the riskiness of such fast trading, market "noises", you need to be able to work with indicators correctly, etc.
- Strategies for trading options from 1 hour to 24 hours
Such strategies allow you to make money from trading medium-term options. Their peculiarity is that it is a quiet trading, less intensive and measured. Such trading is popular among professional investors who need to take time for detailed analysis of the market and get stable earnings from trading. They know how to use the basic tools of the market correctly. It is not possible to conclude unlimited number of contracts, such work suits investors who prefer quiet analyzing of the market, making use of various strategies, indicators, fundamental factors etc. They carefully study the history of an asset, piece together all the facts and make a good profit after conclusion of a deal. In addition, here the risks of losing money are reduced, it is easy enough to reach a steady profit. Among the disadvantages of such strategies: long waiting for the results of trading, the need for large investments in trading, these strategies will not suit those market players who like the feeling of excitement and risk, the work requires knowledge of the fundamental and technical analysis of the market.
- Strategies for trading options from one day to one year
Such strategies allow you to work effectively with long-term binary options, taking advantage of all their advantages correctly. Not every broker is able to implement such strategies, they are less popular on the market and are only used by experienced investors. To trade such options, the trader must have considerable experience in analyzing the market in different ways (using fundamental factors, indicator data, etc.). In a long term deal, the trader will have to invest more funds, which will not be needed in the near future. Advantages of such strategies: reduced risk of loss, such trading methods are a source of stable earnings from trading, they are easier to forecast, it is a great option for investors who appreciate deep analysis of the market and consider trading to be their main source of income. Among the negative aspects of such strategies: long waiting time to complete the transaction, the need to invest large sums of money, they will not be comfortable for users who like the feeling of risk, prefer high-speed trading, of course, require more experience in assessing the market.
Best strategies for binary options
Can I find the best binary options trading strategy? Are there any such strategies at all? Yes, there are such strategies, but they are mostly individual and will depend on the market player's qualities, his peculiarities, choice of trading options, expiry dates. Impatient traders work with express options, while those who prefer to analyze the market situation before opening the position should use the long-term options. It is important to understand that there are no risk-free methods on the market, because there are always losses and risks. There is no ideal strategy that will work for all traders, but every serious market player will eventually have his own best strategy, which will take into account his peculiarities in the best way and bring him significant profit.
When starting to work with binary options, one has to remember that it will be very difficult to achieve decent results without using a strategy. Using the basic tools of the market, the trader will be able to gradually immerse himself in the world of financial markets, will receive a stable profit. Although it is possible to deny the effectiveness of a particular trading technique, but negative reviews often become a lack of preparation for trading.
By starting to work with binary options correctly, paying attention to training and testing knowledge on a training account, the trader will be able to achieve a good result. Options is a job that requires complete immersion into it, finding the right strategy that will be comfortable and convenient for the trader. The advantages of such strategies: minimization of risks, increase of profit, reliance on the experience of traders, comfortable trading without the uncertainty of the result. When searching for your own strategy, it is necessary to keep in mind the number of hours which trader is ready to devote to the market, peculiarities of assets, signals of indicators. The complex approach to trading as a serious occupation will let you find the best binary options trading strategy and get the most out of working on the financial market.
To make money trading the financial markets, it is important to take the time to prepare for this activity. Here again, let's say that the market is a job that requires awareness, knowledge, and testing of trading techniques. Choosing the best strategy that best suits the trader is also one of the important tasks of an investor planning to make trading the main source of income. Often, popular strategies that have already been tested by many traders and that prove to be effective can be of great help to market players. Let us tell you about such popular binary options trading strategies.
This is a classic approach to trading, which is based on the use of cyclic patterns of the market. The strategy allows you to get accurate forecasts of the dynamics of quotations, it is simple and convenient, it is suitable even for beginners in the market. To begin with, price levels should be plotted on the chart (resistance and support), you will need the "Line" tool for this. The tool will allow you to accurately determine the levels of the value of the asset for the execution of the contract when the quotes turn from it. In an uptrend, the support level and the pattern of price line bounces from it when it is touched is used. In a down trend the resistance level is used, and contracts are concluded when the price line bounces from this level. You can also add two lines to the chart to work with two directions of market dynamics at once, it will make trading dynamic and increase income in the account.
Another popular binary options trading strategy based on signals from rare indicators. With this technique, you can work not only with options. Contracts are concluded here on the rebound from the borders of the channels, and the signals are confirmed by Stochastic.
In order to buy options KOLL, you must wait for the situation when the price line enters the zone of blue or red from below; as well as in those cases when a point of beige color is formed, when the Stochastic is located below the 20 mark. You can buy an option on the next bar after the signal candle has closed. In order to buy PUT options, you have to wait for the situation when the price line goes into the blue or red zone from above; as well as when a point of beige color is formed, when the Stochastic is located inside the overbought zone. The option should be purchased on the next bar after the signal candle closes.
As you know, the main task of a trader is to correctly determine the level of quotes reversal and predict the vector of their further dynamics. One of the simple and effective tools allowing to accurately achieve these tasks is RSI - Relative Strength Index, which precisely defines the dynamics of market trends, as well as overbought/oversold moments. The classic strategy of working with the indicator is simple and clear, it allows the trader to make correct forecasts about the dynamics of the asset. The contract is concluded when the trend line reverses in an extreme market zone: if it reverses at 70, we buy a Call option, if it is at 30, we buy a PUT option.
- Trending Strategy RSI
The RSI allows you to easily identify price reversals when the price rebounds from the trend level. In the strategy you will need to put on the trading chart trend lines (support and resistance levels). This will allow you to easily track market signals, the direction of the trend. Deals are made here when the price line breaks the trend level.
- Copy trades - binary options and profitable social trading
Copytrading or social trading is one of the simplest and most profitable trading strategies,
which will allow you to earn money by copying trades of experienced traders. This is a great option to simplify and automate trading, trusting the professionals of the market. Moreover, copytrading is an effective and simple system of work. The option is available to any willing player in a broker's terminal, for example, at Etoro and Just2Trade. In the WYSIWYG platform you can easily set up your account, explore the possibilities of the system traders, choose a convenient strategy and immediately start trading. In order to take advantage of Etoro's copy-trading option, you need to register on its website and explore the features of the social trading page.
This effective strategy works on pairs with low spreads in the trend direction. Its peculiarity is that it relies on the signals of the HMA and MACD indicators, it works in the trend direction. This method is based on the use of author's indicators, trading on small time intervals. It also uses the following indicators: TZ Pivots D, RSI BAR, Parabolic SAR, Renko Scalping, Trend filter.
To buy a BUY option, you need to wait for the following signals on the chart: TrendFilterDominator should turn green, HMA (45), NonLagDot, HMA (25) also turn green; Parabolic is below the price chart; MACD is above zero; RSIFilter and RenkoScalp_MSAlert show a blue cube; stop-loss size is 15-20 points. To buy a PUT option, wait for the following indicator signals to appear on the chart: TrendFilterDominator, HMA (25), HMA (45) and NonLagDot turn red; Parabolic is above the price chart; MACD is below zero; RSIFilter and RenkoScalp_MSAlert show a red cube; stop-loss size is 15-20 pips.
The news binary options trading strategy is also one of the most popular among traders. In addition, this is the most accessible and simple form of options trading. In order to determine the dynamics of the quotes, it is customary here to study the "news background" directly affecting the asset trend change: these are statements of heads of state, various ministries, large corporations, etc. Knowing the news release that will affect the change in the dynamics of the asset, the trader can take advantage of it and make profitable deals.
To buy option UP it is necessary to execute the following actions: to study the Economic calendar, to carry out the technical and fundamental analysis of the market, to find the long-term bullish trend, if on news the price will go up, it is possible to buy option COLL. To buy option DOWN it is necessary to perform the following actions: to study data of the Economic calendar, to carry out the technical and fundamental analysis of the market, to find the long-term bear trend, if the price on news will go down, it is possible to buy option PUT.
What trading courses are available and is it necessary for a beginner trader?
Any trader who would like to become a professional sooner or later begins to think about taking trading courses. Training is a serious step for a novice market player, which can prepare him to work in real trading conditions. However, so many different courses are offered on the Internet and it is hard to choose among them something appropriate for a certain player: some courses are created for beginners, some - for those who already have experience in the market, some training programs are oriented to work with definite instruments, indicators and types of analysis. In addition, the quality of training will also be relevant.
There are a lot of different paid training courses on the market. Most often, the services of learning to trade in the market are provided by professional organizations, brokerage websites, successful traders. You can study the programs of these courses and read reviews about their quality. We offer you a selection of paid training courses on the market, which you can use right now.
- Trading courses with Xelius Group
Xelius Group is an organization that provides training services for traders of different experience in financial markets. The company develops innovative products for market analysis and forecasts, provides quality advice on competent investment of funds. You can choose one of the professional training courses on the platform, pay for it and get access to the materials, which gathered all the rich experience of traders and analysts of the organization. The courses are taught by professional investors who have achieved excellence in trading. The programs, depending on their type, offer a lot of possibilities for the client: video lessons, theoretical and practical studies, strategy parsing, chat with manager, master-classes, support of alumni after training, etc. Such a comprehensive approach deserves attention of traders, because it will allow not only to get useful knowledge, which is not available online, but also to practice practical skills, which is also very valuable.
- Training courses in trading with RUSS-INVEST
This is another investment company that offers its clients Internet trading, custody services, trust management, etc. Thanks to the highly professional staff, they also offer high-quality training courses for traders. Courses are dedicated to particular subjects, for instance, learning the basics of technical analysis, strategies for option trading, risk insurance. On the site you can explore the course programs, which include lectures, error analysis, and a three-month customer support. Courses are offered both in groups and individually. This is also an interesting program that is perfect for those investors who plan to make a decent income from trading.
- Trading courses with A-Lab
A-Lab Trading School is another example of an integrated approach to teaching trading on financial markets. The company has been operating since 2008, during this time more than 1500 students have been trained, besides more than 500 traders had an opportunity to cooperate with the school and earn money on their knowledge. On the company's website you can study the peculiarities of its work, traders' reviews, read information about available courses. There are a lot of training programs: for example, "Trading Training", "Trading for Beginners", "Learning to Trade Cryptocurrency", etc. Information about the cost of the courses is available after registration on the website. During the training, which takes place online, the client expects a lot of theory, practice, full accompaniment and support, conducting transactions in real time, etc.
Cost: available after registration
- Trading training courses with FIBO Group
Trading training courses with FIBO Group Academy is also a great option for an organization that offers a lot of opportunities for the trader to learn and work steadily on the market. Many courses are available here for market beginners ("Complex trading package", "Three touches", "Trading signals - the way to successful investing", etc.) and professional investors ("Price action. One-on-one with the price", "Elliott Wave Theory. Elliott Wave Theory", "Fundamental Analysis and Economic Calendar Reading", "Ishimoku. Quiet Trade Indicator", etc.). Training is conducted only by professional investors with successful experience in the markets. On the site you can read the description of courses, conveniently sign up for them and pay for training. The courses will allow you to plunge comfortably into the world of financial markets, understand the theory of trading, get tested and start trading. After the training, clients receive certificates.
Cost: from 199$
- Trading courses with Stanislav Stanishevsky
This is a variant of paid training, which is provided by a trader with successful experience in the market. This trader has been trading in the market for many years and offers help in learning to players of different levels. On the site you can read information about the courses, pay for them, study Stanislav's biography, you can also read the reviews of his clients, mostly they are positive here. The trader is ready to share with clients information about his strategies, these are quality materials which are not available on the Internet. At the moment you can only buy the course "Secrets of Successful Trading" on the website. The author guarantees 100% a refund for the video course if the strategies resulted in a loss of money. In addition to the course available in kit #1 and in VIP format, bonuses are offered here.
There are also many trading courses on the Internet that are absolutely free. What are the features of these programs and is it worth spending your time on them? It is worth understanding that no one will share valuable and working information for free. Most likely such courses will turn out to be a scam and a fraud, and the trainer will just be interested in making money and not really teach the trader anything. It often happens that the trainer is just an agent recruiting inexperienced users to a dubious office. In this case, the free courses will serve as advertising. If a market player implements the strategy offered here and loses his money, he will be solely responsible for it. Taking part in such courses, the trader will never have a 100% guarantee that this quality training will really work, that it will help to make money from the financial market in the future. It is better to treat such free programs with care, to avoid them at all, especially since the information presented to the trader is usually freely available on the Internet. We offer you a number of free courses, which are available today on the Internet.
- Project opcium.com
You can find a lot of useful material on the website dedicated to binary options trading training in the "Introductory Trading Course for Beginners" section. This includes information about options, hedging, demo accounts, risk management, etc. Here we also give answers to questions about what bonuses are available for beginners, how much can be earned on binary options, what are the advantages and disadvantages of trading with robots and so on. All this information can be found on the Internet, perhaps it will be presented in more detail than on this project. In addition, let us note here the disadvantage of such Internet projects: there is no accompaniment of the trainee by a professional manager, there is no practical part, only lectures are given.
- Project options-review.com
This site, dedicated to binary options trading, also offers the user the information that is available on the Internet. Two types of courses are offered: "For Beginners" and "Advanced. Among the materials of the first type, let us note the standard topics: "4 steps to successful binary options trading", "Time of trading sessions", "Binary options news trading" etc. In the second course there are only such 4 topics: "Instruments of graphical analysis", "Candlestick absorption strategy", "Trading on a rebound from a trend line", "What is a flat or a sideways market in financial trading? Here the user can study the materials provided and use them at his/her own risk. It is not supposed to be supported by a professional manager, there is no option to follow the trades, etc. - These are those "attributes" inherent in free courses.
- Project treideram.ru
A similar situation awaits the trader on this project dedicated to binary options trading, as well as on the forex market. There is a useful section "For Beginners" where you can learn the basics of the market: basic concepts, information about signals, strategies, expirations, etc. You can also explore other articles on the site: "Strategies", "Market Analysis", "Trading Secrets". As authors of the project note, advantages of a resource are the huge base of articles, recommendations, video tutorials etc. However, this project offers only theory of work in the market, the trader will not get a manager's support here, etc.
- Project finstudy.info
This project offers the interested user a free download of the book "10 Steps to Successful Trading" in order to enter 5% investors who have achieved success with trading in the financial market. The book offers a concise guide to popular ways to invest in 2018, it reveals issues such as "Breaking the Myths of Trading", "What is Social Trading Investing", "How to Make Money in Financial Markets", "How Brokers Manipulate You", etc. By downloading the book for free, the reader will get valuable tips for work: "Fundamental Factors in Trading", "Pitfalls in Trading", "How to Minimize Risks", etc. Here again, only theory awaits them, they will have to practice on their own, to test the strategies, while in the paid training projects the user support is offered, etc.
How not to lose money
When trading on the binary options market, it is important to work carefully and thoughtfully, making a decision to participate in any offer, promotion, bonus, you should understand that it concerns money and it is easy to lose if you don't know the rules of using bonuses, the broker's terminal, etc. Generally, there are enough "stumbling blocks" in the market which can easily lead to the risk of losing the capital, if not taken into account. In this part of our article we will tell you how not to lose your money trading.
- Study the "User Agreement"
It is important to study the provisions of this document even before you start trading with the broker on a real account. "User Agreement" is a document that is publicly available on the broker's official website. It may have another name, but it contains a lot of useful information about how trading takes place, what the rights and obligations of the company's client as well as of the broker himself are, what he is responsible for and in what case the losses fall on the trader's shoulders. Moreover, this document is constantly updated and it is also the task of the client of the company to follow its updates.
Making the decision on any problem, for example, in case of force majeure, technical failures, loss of money as a result of not closed transaction in time (at failure of the terminal, for example), the broker will be guided by provisions of the "Agreement" where it is written, what will be the reaction of the company to such situation. Even if the trader does not read its provisions, in any case, the decision on questions, complaints and clarifications is made by the rules described in this document. Most often the "Agreement" contains such clauses, which "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.
- Study the terms and conditions of bonuses
Any bonuses provided by the broker, as well as promotions, special offers, know the rules of work. It is important to read them before the trader decides to use the bonus, because there is a high probability that after reading such conditions, he will not want to work with the bonus. Often rules for working with bonuses are unprofitable, difficult to follow for a trader, especially for a beginner, so market professionals sometimes advise to avoid bonuses altogether and there is some truth in that.
The terms and conditions of their use contain provisions for working off the money, it is also written here about whether it is possible to withdraw from the platform profit earned by trading bonus to the card, which is also very important, the timing of the offer, etc.
- Trade by strategy
Trading in the financial market, as we've already noted, is not a game. It's easy to lose money here, you may not even notice it. Work on the strategy, market research using indicators, oscillators, etc.. - This is what will allow you to see the confirmation of a prediction, use the signals of instruments and, having made a deal, make a profit. Conscious trading is an important part of market player's success.
- Study the broker thoroughly
Here again, we must note the importance of working with a reliable broker who is ready to cooperate with clients honestly and transparently, offers them a lot of opportunities to earn money and hassle-free profit withdrawal. A fraudster, having lured the trader to the platform by deception, attractive offers and received his funds, will not allow this money to return to the trader in any way.
If a broker does not return your money, you have the option of getting it back through chargeback. Chargeback organizations help to get justice not only for traders, but also for any network users who have transferred money and received a service/good of improper quality, have been cheated, have lost money. They are called chargebacks. What is it? This is the procedure of payment cancellation and refund to the user's card, based on the rules of the international payment system. It's worth mentioning that it's an obligation of banks working with payment systems to accept IPS (International Payment System) conditions - the payment system, which has its own rules and laws which all its participants have to follow. In order to get his money back, the trader must exactly follow the recommendations of the company, which will gather all the documentation, prepare a proof of evidence and start working with the bank. The sooner the trader contacts the company, the more likely it is that the money will be returned to him.
Starting to trade binary options on the financial market, in addition to learning the basics of the market and its instruments, testing the terminal, finding a strategy, etc. it is also important to control your emotions: excitement, fears, greed, insecurity, etc. That's what trading psychology is all about. It helps traders to get rid of excessive emotions, to feel more confident while trading, and to do what is really important and interesting to them - trade in the market. It's no secret that fear of losing money, lack of confidence in the result, etc. - All that can prevent you from trading, lead to mistakes and, of course, to losses. That's why it's important to get rid of the things that prevent a trader from diving into work. Let's talk about that in our article.
- Do not be afraid to
Starting to trade on the real account, the trader is afraid to make the first step: to start trading, to make a bet, to choose the forecast. Fear of losing money begins to drown out the "voice of reason" and that's all - the trader loses his mind, attention, makes mistakes, which immediately affects the quality of trading. It is important to remember that there will always be losses, and they happen to professionals with great experience. Losses should not scare a player, they should call to improve the trading experience, the experience of market analysis. The task of any trader is to make the number of losing trades less than positive ones and it is better to focus on this goal, especially since it will also reflect well on the trading result.
- Don't be greedy
When starting trading, it is important to understand that greed, the attempt to earn all possible money will not lead to a good result. Making one transaction after another thoughtlessly, it is difficult to correctly analyze the situation on the market, losing attentiveness, the mood that is necessary when working in the market. Thus, in the pursuit of "all the money" it's easy not to notice the changes in the market mood, lose all the capital in the account and get nothing. It is important to remember that earning as much money as possible at once during the session should not be the goal. It is important to reach a stable income, to be able to feel the market, to react to its dynamics in time, to work with a strategy that will bring consistent earnings. Therefore, you should not rush to place deals, on the contrary, start work calmly, study the market, make a bet and then act according to this scenario, keeping a calm mindset.
- Don't turn on the excitement
Trading is not a game of chance where you have to guess the outcome of a bet. Even though on the surface binary options resemble roulette and appeal to the simple principle of work, this is a serious business, in which the trader expects both profits and losses. The difference between the market and the game is simple: playing is more about having fun, trading is a source of income. To have regular income you have to work a lot, study, test trading strategies. You should not start trading without any reason, you need analytics, money management, trading plan. Besides, it is important to prepare thoroughly for every deal, open it only if you are sure of the correctness of the forecast, monitor the account balance.
- Remember patience
The financial market requires serious knowledge, experience, and balanced decisions. It does not tolerate rashness, attempts to keep up with everything. Patience is an important quality which sober a trader up, makes him/her go to work completely, make a reasonable decision concerning the market forecast. Impatience is a quality typical more to a beginner of the market. Having just started here, he is not so concentrated, not attentive, he is in a hurry to make a bet first, and then he starts thinking about its result. Yes, of course, he worries about the effectiveness of his actions, but the state of complete calm is more useful here and will make the work more productive.
- Not to win back.
Starting to work on the financial market, the trader often makes one serious mistake - he tries to win back in case of unsuccessful transaction. In this case his emotional background is already unstable, his attention and concentration are lost, the trader is in a hurry to have time to win back.
This leads to further loss of money. The desire to win back is natural, the trader would like to get the situation back under control, fix it, but is it worth it to open another series of contracts after two unsuccessful trades, which are likely to be negative, because the trader has already lost focus, concentration. The rule of "three trades" is worth remembering, according to which after three trades it is better for the trader to refrain from working on the market, leave it altogether. This way he will save his money and not make more mistakes.
- Risk Management
Professional traders, not the first year on the market, call one of the secrets of their success the constant adherence to the rules of risk management. Risk management is the fundamentals of risk management that a player faces while trading. These are loss of money, psychological emotions, greed and wrong work with deposit. Using risk-management basics, it is easy and simple to prevent losing capital on account, besides you can feel confidence in your abilities, to trade successfully on the market. It is often considered a mistake of many traders to work without risk management basics. In this case, it is difficult to monitor the state of the deposit, to behave correctly in case of loss. Of course, this is one of the reasons why traders leave the market, get disappointed in trading binary options. In this part of the article, we will tell you about the basic rules of risk management, following which you will reach the heights in trading.
- Transfer the minimum amount to the deposit
It's not a good idea to deposit all your money with a broker, especially if you're just starting out with options. This is because there is a great chance of losing all that money, especially if a beginner has no strategy and does not know the rules of risk management. It is worth to define for yourself a limit of money that you can trade and that you can lose. Working within such limits will discipline a trader, and in case of losses, from which even an experienced player is not insured, it will not be felt for a deposit.
- Contribute no more than 5% to the trade
When starting to trade options, it is not recommended to invest more than 5-30% of all funds in the account. In this case, if the trader is unsuccessful, he will always have an opportunity to win back the money, to get a profit on trades. In addition, with small losses he will not be disappointed in trading, will be able to correct the strategy, eliminate mistakes and improve the result.
- Trade a minimum number of assets
It is not advisable, especially if a player is just starting his trading, to work with several assets at once, because it is important to understand their characteristics, carefully study their dynamics, and analyze their behavior in the future. All this will be done by an experienced player, but not by a beginner, who can make a mistake with forecasts, who is not able to keep track of the account balance. It is better to trade 1-3 assets, focus on them, then, after the trader feels more confident, it is possible to expand the number of trading instruments, but in this case he will already have extensive experience in market analysis, building a strategy for a particular asset, etc.
- Trading without emotion
When trading on the financial market, it is important to have the right mindset for it, because trading is serious work that requires attention, concentration, and reaction in making decisions. It is difficult to react in time to constant price dynamics if the player's attention is distracted, if he is "stuck" in thoughts of losing, uncertainty, fears. Emotions are the trader's enemy, because of which it is easy to overlook the state of the account, the sharp changes in trends. It's worth eliminating this "enemy" in order to focus on what really matters to the trader - options trading.
- Remember the "rule of 3 deals"
This is a simple and easy to remember rule that can also minimize losses and risks, keep capital in the account, feel more confident in the market. This rule is that after spending 3 trades, no matter what they were - positive or negative, it is worth to leave the market, take time to analyze your results in order to achieve more the next day. Most often, players, after a series of losses, try to win back, regain their lost money, but in the end lose them as well, which is quite logical. Trying to win back will not lead the trader to anything but losses, it is worth remembering.
- Keep a transaction diary
It is also a very simple rule to study the results of your work, to see the percentage of wins and losses, to trace the effectiveness of a particular strategy. A tool like a transaction diary is not the same as the trading history, which you can study on the broker's website. In the diary you can record income, expenses, type of strategy, asset, expirations, make notes, etc. - i.e. it is even more, detailed and valuable work statistics, which will allow you to study a lot of trading parameters at once, eliminate shortcomings and, of course, improve your results in the market.