7 Tricks To Be Professional At Binary Options Trading
Most of you already know what binary options are, as you are here for the top tips and tricks on trading binary options.
But, for the uninitiated, we will give a short brief. Binary Options are financial instruments that allow you to trade on all kinds of assets such as forex, stocks, futures, crypto, indices, and much more.
There are only two directions in binary trading and this is where it gets its name from. By accurately predicting the outcome, you win a payout. If you are wrong, you get nothing and lose your initial investment.
The time from when you place the trade till the time the trade lasts is the expiry time. When you think the price of the asset will increase, you buy a call option. Moreover, when you believe the price will decrease, you purchase a put option.
This is just a short introduction to binary options. Head on over to our introductory guide on binary options trading that covers all the concepts of binary options in great detail.
After that, learn how to trade binary options successfully.
Can Anyone Be a Pro at Trading Binary Options?
Binary Options are simpler and far less complex compared to other forms of trading. They are easy to understand and are beginner-friendly.
But does that mean it is easy to score profits when trading binary options? Let’s take a look at statistics and probability.
In a study conducted by FinanceMagnates, where they covered 7 brokers, the average payout ratio was found to be at 95.69% and on an average 74.1% of the traders ended up facing losses in their trades.
This means roughly 1 in every 4 traders end up making money trading binary options. By now you’ve realized even if they are simple to trade, it doesn’t mean everyone’s making off of it.
What’s the difference then? Why are some traders professional while the other majority keep losing money and blame their broker?
Are they missing out on some secret information that only a select few are aware of?
Sorry to burst your bubble, but there is no secret mantra or formula that will make you rich overnight. There are however, a few tricks and tips that you can apply in your trading that will help you stay ahead of the curve.
The aim of this article is to share with you our 7 best tricks to become a professional Binary Options trader. Read on to find out what these tricks are.
Trick #1: Knowledge is the key
This cannot be stressed enough that adequate knowledge is the key to success in any form of trading.
In binary options, you have to completely familiarize yourself with concepts such as in the money, at the money, out the money, expiry time, strike price etc. These are the very basics of binary trading.
Jumping straight into trading without education and research is exactly like driving a car without knowing how to do so.
You will eventually crash and face the consequences.
Trick #2: Utilize the Power of Demo Accounts
Practice or demo Accounts are underrated in the sense that not many traders realize their importance.
Most traders see it as a way of testing out a broker before depositing money.
Instead, you should consider demo accounts as a practice tool where you keep trying different strategies and see what works best for you.
If won’t matter if you fail a hundred times because the funds are not real. Everything else including the market conditions, price charts, etc. is real. In this way, you can keep your emotions in check while sharpening your trading skills.
The demo account is free to use and is offered in both web and windows. Moreover, IQ Option demo offers unlimited funds and you can use it for however long you like.
Moreover, you can practice different strategies in the demo account.
Our IQ Option strategy guide contains a comprehensive list of the best tips, strategies, and all the trading information related to IQ Option’s trading platform can be found there.
Trick #3: Stick to Longer Expiry Dates
The conventional idea is that binary traders are short-term and fast-paced.
If you have been trading binary options in shorter timeframes, and having little success it with, you need to slowly transition to longer trades.
Let me explain why.
By short-term trading, we mean trades that last from 60 seconds to 1 hour. Even though these timeframes may seem tempting as a quick way to make money, it would be wise for you to open positions that have a longer expiry period.
The market is volatile. The market for certain assets, such as forex or crypto is very volatile in nature. The price changes are rapid and hard to anticipate in shorter intervals.
Most indicators would give inconclusive results in shorter times. Therefore, your chances of being accurate would decrease.
Don’t let the greed of making quick money get in the way of trading successfully.
Trick #4: Develop a Professional Mindset
You may have all the experience, knowledge, and tools to be successful at trading, but without the right mindset, you will not get very far.
What separates a professional from an amateur apart from skills is his mindset. Even professional traders face losses.
But what differentiates them from you is that they take their losses as a lesson and move forward. You need to adapt to that mindset. Some of the traits that a successful professional trader possesses are:
- Mental Toughness
Trick #5: Choosing a Broker that Works Best For You
We’ve seen many novice traders who don’t take the time to choose a broker for them.
There are factors such as regulation, withdrawals, minimum deposit, customer support, payout percentage that you should consider before choosing a binary options broker.
Even if you have considered these factors, you are left with so many options to choose from that you are left confused.
We at Binoption constantly test and review the best binary options brokers that are guaranteed to deliver you the best trading experience.
Not on that but also we extensively check these brokers and recommend only the ones that satisfy all the requirements.
Our Recommended Brokers
Maximum Payout: 100%
Demo Account: Yes
Maximum Payout: 93%
Demo Account: Yes
Maximum Payout: 95%
Demo Account: Yes (Paid)
Trick #6: Strike a Balance with Copy Trading
Copy trading allows traders to copy the positions of top traders.
This allows new traders to make money without knowing how to trade.
What we mean by striking a balance with copy trading is to not completely relying on it.
Traders can use copy trading as a tool to learn trade from the top traders, and at the same time earning a passive income. It is notable that BinaryCent broker also offers copy trading.
The trick is not to blindly copy them. In the long run, it’s always wise to personalize your trading strategy to get the optimal results.
Trick #7: Consider Automated Trading
Automated trading systems are based on trading algorithms that trade on your behalf.
They were designed for beginners to earn from trading without having to learn it.
These days, trading robots have become more advanced. Their accuracy and performance have increased attracting all sorts of traders.
Our recommendation would be to use a combination of both automated and manual trading to achieve optimal results. Treat automated trading as a supplementary tool rather than being completely dependent on it.
Our Recommended Robots
Returns up to 90%
Demo Account: Yes
Returns up to 80%
Demo Account: Yes
Regulated and Trusted
Returns depends on trader
Demo Account: Yes
Fully Automated Bot
There you have it, our collection of the best tricks and tips to make you a professional binary options trader.
Remember that becoming a professional is not something you can achieve within a day, or a week, or even a month.
It will take years of practice and persevering to get where the top traders are. One of the major reasons why most traders don’t become successful is because they give up way too easily.
They fear of losing their investment and hesitate to trade further. Hence, it would be wise to invest a small portion of your investment (3-5%) in a single trade.
Once you are confident in your trading skills and are willing to take bigger risks, you can go for the big trades. We hope you get the success that you desire with binary options trading and stay in touch with us for more binary options information.