Binary options trading has a simple trading process. In binary options, there are only two possible investment positions which are yes and no. One advantage of binary options trading is that it carry a limited risk. The maximum amount you can loss is your initial investment. It requires only a low deposit. Another benefit is that it has short term contracts that range from 15 minutes to 1 week. The following are some tips on how you can make money on binary options trading.
Have a Solid Knowledge in Binary Trading
If you want to make money with binary options, you must first have a solid knowledge. You can read articles to learn about the different strategies in binary trading. Newbies must learn to read the charts because understanding the chart is the key to winning in binary trading. Reading the chart can help you to determine the future course of an asset based on the patterns of the price movements in the past. You don’t have to be afraid of reading charts as they are actually easy to understand. Reading chart is a technical analysts strategy.
Choose a Good Binary Options Broker
When selecting a broker, you must make sure they offer a good trading platform. The trading platform must provide real time data, and latest market data coverage. They should provide a wide range of indicators and charting methods. The platform should enable you to easily back test your trading strategy without much hassles. The broker you sign up with should be established in the binary options market for many years. You can read reviews to determine the reputation and credibility of a broker.
Develop a Winning Strategy
You must develop a winning strategy that can help you to generate profits repetitively in binary trading. It takes a lot of time to develop this winning strategy. Before you can develop this winning strategy, you must read a lot of articles on binary strategies such as price action.
Use Trading Signals
If you don’t know how to develop a strategy, you can invest in a binary signals service. If you subscribe to this service, you will receive a new signal every time the system detect a profitable trade. There is always risk in making money in binary options. Therefore, it is important to practice with a demo account before you really place a trade.
Analyze the News
Beginners must learn how to analyze the news. There is a good chance you will win in the binary options trade if you place the trade 30 minutes before or after an important event. For example, if Sony is going to release a product in the next 30 minutes, there is a high chance the asset’s price will increase in this time frame. If you are trading currency pair, you should pay attention to the Non-farm Payroll report from the US Department of Labor. This report has a track record of influencing the USD conversion rate. The USD value will rise if the report reveals a lot of jobs are created in the previous month. The USD value will drop if a lot of jobs are lost in the previous month. The report is released on the third Friday of every month.
Boost Your Profits With Welcome Bonuses
Many binary options brokers are offering welcome bonuses for traders who sign up for a new account with them. The bonus can help you to place the first trade. It will help you to become familiar with the trading platform. The bonus is usually a percentage of your deposit. There is a minimum demand you need to fulfill before you can withdraw the earnings and bonus. You should use the bonus with care as it can help you to boost your profits.
In conclusion, it is not that difficult to make money in binary options trading. All it takes is a lot of practices. Most brokers offer high return rate of about 75% – 85% for the standard option. Some brokers would return 10 – 15% of your initial investment for out of money trades.