Getting started with binary options
You have probably heard a thing or two already about the fabulous possibilities binary options offer. You can make tremendous returns on your investments in a very short period of time by trading binary options.
This is a form of investment that is available to anyone, and easy to understand. However, it always pays to come prepared. If you would like to get started with binary options, we recommend that you gather some information first.
Here at binaryoptions-guru.com you can learn everything you need to know in order to give your trading career a flying start. Read our articles, and follow our links, and you will soon get the hang of the biggest secrets to succesful binary trading.
This is your best chance to cash in on the fabulous wealth on offer in the global financial markets. Learn more about getting started with binary options by reading the rest of this introductory article!
Getting started with binary options trading
Binary options trading is a very straight forward form of investing. The basic premise is to predict the price movements of a specific asset over the course of a set time period. Let’s start with an example. Do you think that the price of silver will go up or down in the next minute?
If you think you know the answer, you invest in a binary option that matches your prediction – an up option (often referred to as a “Call” option) or a down option (often referred to as a “Put” option). Depending on how much money you have to invest, and how confident you are of you prediction, you place a certain amount of money into the trade.
You make a binary trade like this with a binary broker. The binary broker will immediately tell you how much money you stand to make if your prediction is correct. For a simple up or down option like the one in this example, most broker will pay a return of somewhere between 70 % and 80 %. Some, like for example Banc De Binary, even offer up to 91 %. That means that if you invested $100, and your prediction was correct, you would make a profit of between $70 and $80 (or even 91 %). Not bad for 10 minutes’ work.
There are many other forms of binary options. They will ask you to make other forms of predictions, for example exactly how much the price of an asset will go up or down, or whether the price will move outside of certain price ranges. All these options function along the same principle: you make a prediction, and get paid a certain return if you are correct. More complex binary options pay higher returns than simple up/down options – in some cases up to 300 % or more.
Binary brokers offer binary options that pertain to all sorts of assets. Assets can be stocks in big corporations, major currencies, commodities such as metals or oil, and so on.
Can I make money with binary options?
As the example above shows, you can make a lot of money on binary options. Each trade can take as little as 30 seconds, and you can make a profit of several 100 % each time – over the course of one trading day, that adds up to a lot of potential trades, and a lot of money-doubling opportunities.
Of course, you are not going to win every trade. To begin with you should be patient and careful. It is important to pick trades that you really believe in, that offer a good chance of winning, and that fits with your strategy. You must also make sure that you do not become greedy and invest too much in each trade. Sure, it is tempting to put down big amounts of money in the hope of a massive return, but a foolhardy tactic can be very expensive in the long run. Once you get the hang of it, you can trade more often with a bigger investment.
A helpful rule of thumb that many binary traders follow, is to never invest more than between 2% and 5% of your total account balance per trade. By doing this, a losing streak is not going to wipe you out.
What do I need to get started?
The very first thing you need to do is to establish a good level of knowledge about binary options. By visiting binaryoptions-guru.com you are already on the right track to achieving that! Read our helpful articles, and soon you should have a good grasp of the basics.
Once you feel like you know enough to make your first trades, this is how you take your first steps towards success:
- Find a broker that offers a free trial here on the site (this link takes you to Finpari’s home page)
- Register as a member with the broker
- Take advantage of the free trial to make pretend-trades without risking your own bank balance
- Once you have enough confidence in your abilities to invest real money, you simply transfer money into your brokerage account
- You can now trade for real, and earn serious money on binary options
But a good basic understanding of binary options and an account with a binary broker are no guarantees for success – they are only the beginning, the fundament. You need several other things in place in order to really hit the big-time. Here are some further tips about what you can do to make a good profit on binary options over time:
- Study technical analysis – the markets move in certain patterns. By studying technical analysis you can learn how to make predictions about future market movements, based on statistical models. The best traders in the business are the best technical analysts.
- Subscribe to binary signals – even the best traders on the planet are no match for computers. This is because the human brain simply does not compare when it comes to processing power. A lot of very sophisticated software programs have been developed to do technical analysis. All professional traders use this sort of software. The good news is that so can you – for a monthly fee you can receive computer-generated trading recommendations. These recommendations are called binary signals.
- Use a binary robot – if you subscribe to binary signals, you will receive a certain number (usually around 4-6) recommended trades via email or SMS per business day. You will then have to complete the trade manually with your broker. This means that you can miss out on a lot of trades, if the signal arrives, for example, when you’re at work, going for a run, or on a date. A robot is a computer program that quite simply executes the trade indicated by the signal automatically. By using a binary robot you outsource your trading to the experts.
Using a robot might sound very tempting, but there is one considerable catch: robots can be expensive. The cost can be so high that there won’t be enough money left in your budget to invest in binary options, and what’s the point in that? The good news is that the best robot on the market, BinaryOptionRobot, can be used free of charge. This is a very good offer, especially for new traders who are not yet experts on technical analysis.
I want to learn more – who do I ask?
If you are on the lookout for more in-depth information, you can click your way around our site. Here at binaryoptions-guru.com we have written a lot of articles we hope will satisfy even the most inquisitive trader.
You should also be aware that many brokers make a lot of helpful information available on their websites. In so-called education centers, you will find all sorts of resources that will help you become a better – more profitable – binary trader.