To become better at anything, it’s good practice to learn from the successes and failures of others, then apply them to what you’re doing. Obviously, none of us knows everything about anything, and you never know what piece of knowledge you might stumble on that can be your key to success.
The same holds true with binary options trading.
In this article, we’ll cover nine tips that’ll help make your binary options trading more profitable. Let’s take a look.
1. Find a Safe Trading Broker
There are two components to successful trading: you and the broker you choose.
Even if you figure out all the ins and outs of successful trading, you could easily lose a high percentage of your profits if you choose the wrong brokerage.
Even worse, if you’re unable to withdraw your money at all it really won’t matter how successful your trading has been. Don’t rush into choosing a long-term broker. Try three or four on small trades before deciding who to make the big trades with.
2. Don’t Put Too Much Stock in the Bonus
This goes in line with point number one. You might get excited by the initial deposit bonus a broker offers, but it’s not really free money.
First of all, you can’t withdraw the bonus money right away. A specified volume of trading must be reached first. This will tie your money up with that broker for longer than it would otherwise take for you to test them out.
Our best advice is to either ignore the bonus money completely or look very closely at what the requirements are to reach it before getting involved.
3. Terms and Conditions
Don’t skip over a broker’s terms and conditions section. Read and review them carefully. Understand your rights and obligations before you tie your money up with them.
Every broker has different rules and you need to understand and adhere to them to pull a profit in your trading.
4. Don’t Trust Spoken Sales Promises Made
A broker’s sales rep or account manager will make a lot of promises to bring in your business. They have a lot of other brokerages competing for your business and they know it. Remember that nothing they say holds any water if you don’t have it in writing.
If they can’t put promises in writing such as when you can withdraw your money or bonus, or what insured trades they’ll offer, then the spoken promises will mean nothing as soon as you speak to another rep.
Get it in writing or pretend the conversation never happened. And if you’re given promises that are outside of the Terms and Conditions, it’s time to run. You’re not talking to a reputable firm.
5. Be Cautions But Aggressive
When it’s time to make a deposit, don’t put down more than you can afford to lose. At the same time, make sure it’s enough that’ll allow you to make some mistakes. These are bound to happen. This is especially true in your early stages of trading.
Make sure your account can sustain the period of “accommodation” so it’s not completely wiped out before you can make up for losses. Conversely, if you have more invested than you can afford it’ll impact the decisions you make. This will negatively impact your approach and you’re likely to fail.
6. Don’t Overlook Demoing
Always start by trading virtual money before you invest your hard earned cash. It’s an old tip but one that you cannot overlook.
No matter how excited you are to start trading real money, you first want to put your skills to the test in an environment that’s free of stress. There are many brokers that require you to make a real deposit first before they let you use a demo account. Don’t do it.
Find a broker that’ll give you free demo money to play with and start perfecting your trading skills without risk or obligation. Then, when you start trading real money, stay consistent with what you’ve learned while demoing and you’ll find success.
7. Avoid the AutoTrade Temptation
Maybe there’s a chance that there are good signal providers in existence. But from experience, it seems that the vast majority boast about knowledge and try to appear better than they actually are.
When big promises of low risk, high-yield, effortless trades are made it’s almost always time to run the other way. Then be prepared for the next broker who will try to make the same promises of AutoTrading riches.
The truth is, it just doesn’t work that way and you can’t fall into the “too good to be true” temptation.
Also, remember to never let a broker do trading for you. Perfect the skill and do your own trades. Which leads to our next point.
8. Define Your Strategy
Never trust brokers or any other trader with your hard earned money. Learn your own strategy through hours of demoing, then follow it verbatim once real money is in play.
This strategy will help build your trading confidence and skills, and you’ll always be in complete control.
It’s your money. Learn skills. Trade it yourself.
9. Learn from Other’s Mistakes
We’ve all heard horror stories about the trader who deposited a bunch of money with a broker who’s account manager promised it would be doubled in a month. Then a week later the money was gone and he was advised to deposit even more to increase risk management.
Don’t fall into this trap.
Start slowly and comfortably, at your own pace, and slowly build your account through wise strategies you’ve learned from other successful traders. Learn more here about trend lines in digital options trading.
Wrapping It Up
Don’t expect instant success and riches when you start out with binary options trading. And don’t believe all the big promises you’ll hear and read about when choosing your broker.
Stay realistic on expectations, demo until you’re confident, and don’t sell the farm right out of the gate.
With these tips, you can start exploiting the trend in your favor.