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.
Thanks for these great binary options recommendations. I’m a beginner to this myself so these tips are perfect for me. If I’m being honest, though, over the course of the past year as an online entrepreneur I haven’t exactly heard good things about binary options. I’m pretty risk averse as well. Would I be correct in assuming you’d have to be pretty risk tolerant to be comfortable in this line of work?
Yes, that is correct, but I would say risk manager … because, risk is a matter of uncertainty … the job is then to lower the uncertainty to an acceptable level.
Hi my name is Edward and I loved this article because investing is very important and plays a great role in my life. I have been trying to teach others about investing and these tips have helped and will help me greatly. The article gave great tips for making money with Binary options and I will be using them very soon.
Thanks for your comment
That was some awesome tips for a beginner. I want to start trading soon and I really liked the rule of maximum 10% of your capital per trade.
I know that I’m a guy that will see one investment/trade and think it is great and then put all of my money there. It’s a stupid behavior and the 10% rule will be very helpful for me.
How long does it take until you can know/feel if it will be a uptrend or downtrend for a specific market event?
I know that question might be impossible to answer but is there certain events that you can kind of “look up” to see if they are suppose to take the market up or down?
Marcus
The trends can be exist at any time frame, the more reliable are those that happen in less than a month.
The only thing that alters trends are economical or political events, like a policy affecting the Dollar or the oil inventory levels effecting the oil price.