5 simple Binary Options tips and tricks that work. What is the key to success with Binary Options? – On this page, I will show you the best and simplest Tips & Tricks for trading Binary Options. That is a piece of advice for rainbow strategy binary options beginners or advanced traders. With more than 10 years of experience in trading, I know what I am talking about. It is always the same mistake why traders lose their money to the markets. It is important to go through all the steps and techniques on this website because only one mistake can cost you a lot of money: What you will read in this Post.
1. Know the risk of trading (Risk management) If you start trading you have to risk money on the stock exchange in order to make a profit. Most of the time this fact is misunderstood and traders care less about the risk. Binary Options are very risky to trade because you can lose the invested amount of money. That means you have to have a higher hit rate than 50% to make a profit over a long time horizon.
Sometimes there are loss stikes for beginners or advanced traders. It always can happen to you because the market is different and flexible in its price movements. Sometimes you lose more than 10 trades in a row. That’s why you need sensible money management. Money Management: It is important to use your funds wisely. That means that you should protect your account against loss strikes. Most traders risk too much money of their account balance and then they wonder why they start trading irrationally and with emotions.
It is harder to lose 100% of the account balance than 10%. Sensible money management means that you only risk 1% of the account balance per trade. Example: You got an account with a balance of 10.000$. The risk of 1% is 100$ investment in each trade. That allows you to lose more than 10 trades in a row and so it is easier to accept the loss. Also, you should always use the same amount of money for your investment (percent of account balance). Professional traders know this fact and they are growing their accounts continuously and not in huge steps.
2. Start investing with a small amount of money. Nowadays you can start trading with a small amount of money like 10$. In my opinion, trading binary options with candlesticks stocks you should start with a small deposit like 50$ or less. After you feel comfortable and do a profit with the small account balance you can invest more money. It is important to stack up risk if you trade well and are profitable. You never should do it the way around. That can be very bad for your hard-earned money.
How much money do you want to fund into your account? That is another question for traders. As mentioned before I always start with a very small amount in a new trading account.
1. Know the risk of trading (Risk management) If you start trading you have to risk money on the stock exchange in order to make a profit. Most of the time this fact is misunderstood and traders care less about the risk. Binary Options are very risky to trade because you can lose the invested amount of money. That means you have to have a higher hit rate than 50% to make a profit over a long time horizon.
Sometimes there are loss stikes for beginners or advanced traders. It always can happen to you because the market is different and flexible in its price movements. Sometimes you lose more than 10 trades in a row. That’s why you need sensible money management. Money Management: It is important to use your funds wisely. That means that you should protect your account against loss strikes. Most traders risk too much money of their account balance and then they wonder why they start trading irrationally and with emotions.
It is harder to lose 100% of the account balance than 10%. Sensible money management means that you only risk 1% of the account balance per trade. Example: You got an account with a balance of 10.000$. The risk of 1% is 100$ investment in each trade. That allows you to lose more than 10 trades in a row and so it is easier to accept the loss. Also, you should always use the same amount of money for your investment (percent of account balance). Professional traders know this fact and they are growing their accounts continuously and not in huge steps.
2. Start investing with a small amount of money. Nowadays you can start trading with a small amount of money like 10$. In my opinion, trading binary options with candlesticks stocks you should start with a small deposit like 50$ or less. After you feel comfortable and do a profit with the small account balance you can invest more money. It is important to stack up risk if you trade well and are profitable. You never should do it the way around. That can be very bad for your hard-earned money.
How much money do you want to fund into your account? That is another question for traders. As mentioned before I always start with a very small amount in a new trading account.