Recommendations for Beginners
The basic (8) eight:
- Always invest following the market trend.
If the market is upward opt for CALL positions, and on a negative trend opt for PUT positions
- Do not make an investment until you have analyzed it.
The objective of the analysis is to identify a trend, upward or downward. Theses trends can by identified from chart analysis and they are affected by market events.
- If the opportunity to make an investment escapes you, wait until it happens again.
…. And if it does not happen, do not make it….. Look for the next trade.
- When you have a bad run stop immediately any further trading and do something else for a while.
If you are losing more than winning close the computer and stop trading …. The feelings around a bad run will not allow your judgment to work properly
- When you have a good run, take advantage of it and increases the size of each trade.
If you are wining it means that you are in line with the market conditions, this is the best moment to invest
- Limit your maximum investment.
The recommended is up to 10% of your total amount per trade. For example, if you have 1000$ in your broker account, you can trade up to 100$ each time. Change the amount if you win or lose. For example, if after the invest of 100$ you end up in the money, your new total would be 1080$ (80% profit), so your new 10% would be 108$ for the next trade.
- Defines a win amount per day.
Have a target per day, for instance … Increase you total amount by XX % or XX $, and stop trading after reaching the target. This is particularly useful at your beginnings, later when you are more familiar with the process of Binary Options trading you will have the alternative to go beyond your daily target, for example in case of a a good run.
- Always read the Terms and Conditions.
Anything available inside the Broker’s platform comes with an associated set of Terms and Conditions. Read them and understand how they will apply to you is a MUST.
And ……. Always try to have a varied life. This is probably the most important of all, do not get too attached to Binary Options trading to avoid the risk of it becoming an obsession, like gambling … Have a hobby, do sport and be passionate with your main job and dedicate plenty of time to your family. Remember why you started with Binary Options in the first place … To improve your quality of live.