What Type Of Experience Do I Need To Have To Trade Binary Options?

People want to know what type of experience do you need to have to trade binary options. Simply, you predict if the market is going up or is it going down, and if you predict correctly, you will gain anywhere between 70%-90% profit. Easy, right? Because of the fast profits, and huge gains, binary options has a global audience wanting to cash in on all the action.

Every traders goal should be to capitalize on their returns. Implementing an effective strategy and applying straightforward techniques, will help to identify certain signals in the market that guide you in trading binary options. In order to do so, brokers will usually have demo accounts for you to practice trading.

1. Having A Strategy

Binary options trading can present several risk factors, and to decrease them, every successful trader has a master plan. Minimizing your risk is very important. As a new trader, it’s highly recommend to focus on one asset. This will allow you to put your center of attention on building your strategy. Steadily trading will help you see the movement of your asset to help predict the direction and will become obvious.

2. Trend Strategy

This strategy is great for beginners. In your demo account, practice placing trades when you see a trend line forming. Basically, your asset is either going up or it’s going down. Get comfortable placing your trades. For example, in demo mode, your broker might start you out with $10,000 to practice trading, but when you are ready to go live, you are going to start out with $1000. Practice using increments that our going to mirror your results with real money and see if you can profit. So if you start with $1000, then make sure your trades are between 2%-5% of your initial investment.

3. Straddle Strategy

During market volatility, traders can increase there chances for profit, but you need to keep your eye on the market to make great predictions. For example, the market has been declining, and it’s about to go the other direction. Place your trade with a call option when it’s down, and then when it is up, place your put option. This takes practice and is a strategy used by many.

Even though you don’t need to have a degree in economics or have a license to trade binary options, you still need to practice your craft everyday. If this is something you are wanting to do, you need to take it serious. Do your research, practice on your demo account, and make realistic trades that reflect your trading when you go live.

4 Ways How You Can Quickly Improve Your Trading Results

In today’s article, I would like to summarize several important points that helped me quickly to become a better trader in the area of automated trading. Some of the points might be a little bit surprising, but I believe that there will be interesting topics you can think about.

1. COOPERATION

There isn’t any other thing that would help me to improve my own trading so dramatically as cooperation with other traders. In the past, I used to be an unapproachable trader, proud of my self-sufficiency. On the other side, I got the opportunity to work with other, really skilled people, and I consider this to be the best what could happen to me and to my colleagues.

Team spirit and cooperation with people, that are on the same wavelength, where every team member has his unique skills, extraordinary experience, and know-how, this all can perform miracles. This experience has also taught me to be much more open in other projects. The trust is, of course, crucial, and in my case, it takes always a long time before my co-workers deserve my full trust. What I have always cared about, was their broad- and open-mindedness, because these are, according to my experience, the most important values that my co-workers need to have (and their high level of skills, of course).

When looking for co-workers, I recommend not to hurry and slowly test their limits, especially when it comes to their skills. It is also important to work with people, that understand trading and have real experience in trading, as well as experience in live trading – without this experience there wouldn’t be enough of pragmatism, caution, and care (as beginning traders without any real experience are rather naive).

2. PAPER, PEN AND CHART SCREENSHOTS

I probably couldn’t count a number of trading hours that I spent just with paper, pen and chart screenshots.

I have found out that this old-fashioned technique is really powerful. You are not disrupted by other tasks, you don’t over-complicate things and you can focus on what is really important.

Mostly, I print out the chart containing several indicators, trades or breakout levels and I just think about them – if I get any idea for a rule, system, or how to make the trades better. I just let my creative part of my brain flow and I make notes.

I spend all day making notes (you can get really a lot of ideas within a day), then I move to the computer and start to work and test those ideas.

Trading is, to a certain level, a creative process and pen and a paper have really improved my trading more that I can even admit to myself.

3. MARKET SYSTEM ANALYZER

Successful automated trading is about a portfolio. It is about the ability to see the bigger picture.

Indicators And How To Use Them In Binary Options

Indicators and how to use them in binary options is exercised by many traders. As you begin to build your blueprint for fast profits, it’s best to always have a strategy and to never fall astray from it. What might work for one trader, doesn’t work for another. Like anything else, you have to practice, put in the hours, and learn if you want to become a successful trader. For any new or seasoned trader, there are two indicators that are popular among many.

1. CCI- Commodity Channel Index

This indicator is good for support when making a decision on a trade. It comes with +100 and -100 levels. The market tends to be within these levels about 80% of the time and 20%-25% out of these levels. So for an example, if you see the market going up and over the +100 level this is a good indication for a long trade with a strong uptrend. If the market was reversed and was going down pass the -100 level, then that’s a good sign for a downward trend and a short trade.

2. MACD- Moving Average Convergence/Divergence

This indicator reveals changes in the strength, direction, momentum, and duration of a trend in a stock’s price. As a momentum indicator, it shows the relationship between two moving averages. At a default setting, this is set to a 12 day exponential moving average minus a 26 day exponential moving average and the line signal is set at a 9 day EMA. Then you have the histogram which performs the variation between the MACD line and the signal line. Typically, when using this indicator, you look for the lines to cross each to make a trade. Be cautious because this is not usually correct. An experience trader will usually look for a set up in the market to make the trade and will have confirmation from another indicator before the trade is in place.

Using these two indicators conjointly, often helps traders make good decisions on entries when placing a trade. Like anything else, practice makes perfect. Give yourself time and have patience while you are trading. A concern with many traders is controlling your emotions. Sometimes after a loss, you lean on wanting to gain it back quickly, and recover your loss. This usually results in losing more than you expected and now your emotions are extremely high.

Indicators, and how to use them in binary options is another tool many traders lean on when it comes to making decisions on the open market. Continue to learn everyday. See yourself as a successful trader, and remember to never give up.

If you are looking for some reputable brokers to start practicing your trading, click on the link below.