If you are interested in trading binary options, you probably have a ton of questions. Where do I start? What do I trade? Which timeframes are best? There are a lot of little things that go into being a successful trader, but in the end, it really boils down to what you know and what you feel most comfortable with. A lot of people find that they are best at analyzing and predicting the movement of the types of assets they are most familiar with. It’s important to know where your area of expertise is, and then move forward from there.
Where to Start?
First, ask yourself what your interests are. If you’re interested in tech products, for example, then trading the underlying assets that revolve around the technology industry is your best choice. If you have an interest or knowledge in something, that is probably the best place to start. Regardless of what you know most about, there is probably a way to convert that into money when it comes to trading binaries.
If you like wearing and collecting jewelry, trading gold options can be a good idea. If you like European politics, currency pairs that involve the euro are yours. If you are interested in tech stuff, then certain stocks will pay off. There are so many different categories and subcategories out there, that almost anyone can convert their knowledge into cash on the right day. It’s just learning how to apply what you know to what you need to do to create wealth.
The Next Step
Once you find an asset, then you need to figure out how that knowledge about it will convert to a profit for you. Let’s say you like apps for your smartphone. How does this make you money? Well, you probably know about some of the big companies that create apps. You also know a lot about the phone you use. Things like Facebook, Verizon, and Apple, all have big followings, and trading them as binary options is very feasible if you know enough about them to make it worthwhile. For example, if you know that Apple has a highly anticipated new iPhone coming out in a week, you can take steps to prepare for it. Odds are, the phone will be a huge success, and Apple’s stock will go up n the day of the release.
But how much? And how long will it take? The first question doesn’t make a huge difference, but the second does when you focus on binaries. Sometimes, the boost that an asset gets doesn’t last. News that Apple has a new iPhone is great… until it comes out that it’s an awful product and the stock sours. In this case, taking a 30 day option out isn’t a good idea, but a 15 minute option may have been a very good one at first. In other words, know the repercussions and implications of the news that you are trading on and act accordingly.
Monetizing Your Knowledge
You can’t make money in the world of trading, and doing this consistently involves a lot of know how. You can’t make money until you act, though, regardless of how much smarts you have about something. This requires a few basic things. First, you need money. Most brokers require you to deposit a minimum of $250 to $500 in this industry before you can open an account. It requires an internet connection. And it requires patience. If you have money and an ability to trade, you’re just going to lose money if you are trading for fun, and not for the purpose of making money. You greatly reduce your odds of success if you don’t do the work, and in a field like this, you need every edge you can get to make a decent and consistent profit.
The final thing you need to do is make sure you are getting the most for your money. Finding the right assets and the right timeframes is great, but what if you’re at the wrong broker? What if your current broker is only paying you 73 percent in profits when you’re right, but another will pay 81 percent? That’s 8 percent in difference, a huge number. For every $100 you trade, it becomes an $8 swing. Over the course of a year, it’s not uncommon to make $100,000 in trades–even for a small trader. Suddenly, your profit rate changes by $8,000 when you look at it this way.
The best way to go is: pick an asset, figure out how news affects it and how long the change will take place, and then find the best place to trade it. Once you master these three steps, you will start seeing your profit line go way up. Trading of any sort is not easy, and binaries are not exceptions. But, they are much more simple and easy to master than any other type of trading out there.