Option Trading Strategies

Here are 19 steps to seal your success in binary options trading

1. Open an account. You can learn as much as you can about binary options, but the information doesn’t get you anywhere until you’ve opened an account. Fortunately, opening one isn’t hard anymore, as you can already do it using your very own credit card.

2. Use the demo. How do you know you already have a good online broker? One of the best ways is to download or utilize the demo. This, of course, gives you limited features, but they do provide valuable insight about how the software works and even how binary options function.

3. Learn a lot about binary option. If you truly want to succeed in binary option, then you have to know it very well. It’s your education that makes you very smart when it comes to making sound decisions and maximizing the tools available.

4. Determine when to invest in binary option. Experts say the best time to do a binary option is every hour since there’s a small likelihood trends change drastically. Nevertheless, when to trade depends upon your goal and a host of other factors that affect market analysis.

5. Find the best online brokers. Find online trading platforms that have 99.99 percent uptime, relevant tools, user-friendly interface, and excellent and reliable customer support. Some platforms can already handle several asset groups too and are accessible even without download.

6. Don’t trade when you’re physically and emotionally spent. Your own state of being can cause you a lot of money. When you’re physically and emotionally tired, you cannot think properly. When that happens, you cannot expect yourself to create objective or evidence-based decisions.

7. Begin slowly and small. You’re not on a racecourse, so there’s no reason why you should really hurry. Instead start small and work your way up. As they say, it’s better to do things slowly but surely.

8. Learn about payouts. Payouts basically tell you how much you can earn when you’re in the money or not. The average range is 60 to 71 percent, though some of the best online brokers can give you up to 90 percent and up. The good ones also provide you with something even if you “lose,” which is around 10 to 15 percent.

9. Check if there’s a mobile version. If you’re always on the road, it pays to find an online trading platform you can conveniently open through your mobile device, such as a smart phone or a tablet.

10. Properly use the various trade signals. Trade signals are suggestions that have been derived by collating various market data sources and creating a thorough analysis on them. If used right, they can mean quick bucks for you. Trade signals, however, are recommended for veterans who are in a much better position to determine whether the suggestions are worth it or not.

11. Get to know more about other financial instruments. In binary options, you really don’t deal with the assets per se but on contracts. But you can do binary options in several financial instruments including stocks, commodities, and foreign exchange.

12. Don’t be discouraged. In investing, you either win some or lose some. You can’t expect to be winning all the time. However , in those times that you lose, dust yourself off, learn from your mistakes, and move on.

13. Watch out for market trends. Though binary options are about speculations, you don’t second-guess. You base your judgment on solid proofs such as market trends, which can be both technical and fundamental. Pay attention therefore to business news, subscribe to business magazines, or find a trading platform that gives real-time market updates.

14. Don’t veer away too much from the trends. There must be a solid reason why many are opting for by the hour than weekly or monthly for binary options. Since you cannot afford to experiment when you’re new, follow what the experts are doing and obey the trends.

15. Never stop learning. There are plenty of changes happening in investing: new technologies and techniques available. Keep yourself abreast to these new changes, so you can further enhance your game plan.

16. Have a plan. What do you want to achieve in the next few months or year: diversify your portfolio, use various binary options trading methods, or build your retirement account? Your goal can affect your strategies in investing.

17. Diversify your portfolio. As mentioned, you can do binary options in stocks, commodities, and forex. Through diversification, you can reduce the effects of potential losses by increasing your chances of profits in other areas.

18. Consider hedging. Hedging is simply a means of protecting you against a potential loss. It’s a great move if you’re sure of the positive movements in prices during the expiry date.

19. Think long term. To really feel the effects of your efforts today, let your money grow over time.


Plus500World's Trading Machine


Where to trade online? Everything you need to know

Most Banks
Trading instruments Popular Shares , Forex, Commodities, Indices, ETFs
View all instruments
Usually local shares and American shares
Worldwide shares Available Limited
Demo account Free unlimited demo account Demo not available
Min. account funding £100 Usually a few thousands EUR
Buy commission 0% 0.1%-0.5%
Sell commission 0% 0.1%-0.5%
Go short Available Short not available
Custody holding charges No Probably
Live quotes Free Usually delayed - pay for real time
Trade with leverage Forex up to x50
Shares up to x10
Commodities up to x12
Not available
Risk level High Low-medium
Dividends Yes Yes
Taxes No taxes deducted All kinds of taxes deducted
Spread Usually 0.2% for shares Market spread
Trading platform Windows, Web, iPhone, iPad, Android, Mobile Usually only web
Advice Never give advice Love to give advice
Technical analysis tools Free Sometimes
Day trading Recommended Not recommended
Long term investments Not suitable - high premium Suitable
Free bonus for start trading £20 Not available
Free bonus for first deposit Up to 30% Not available
Open Real Account   Open Demo Account

Remember that CFDs are a leveraged product and can result in the loss of your entire deposit.
Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.