Notes

How to start trading binary options from zero

analytical instruments


Options have gained huge popularity in recent years. Some of them were able to earn a decent amount of money, while others lost the same amount. Often the problem lies in the fact that beginners open deals relying only on intuition. We have prepared for you a detailed tutorial on how to start trading binary options and make stable money.



Learning binary options from scratch



Before trading options, any trader needs to get familiar with the market. You can learn the trading process in 3-4 minutes, and you can learn to understand the market all your life.



In order to start trading binary options, you need to choose one market, your asset. It can be oil, a currency pair, or shares of some industry…



During this time , it is recommended to read special literature for traders, which will tell you about the features of technical and fundamental analysis.



A minimal list of what you need for beginners:



1. Select one asset for analysis;

2. Read and learn the basics of fundamental and technical analysis;

3. Apply the acquired knowledge to the selected asset;

4. Choose a trading strategy and define risk management (transaction amounts);

5. Start working on the strategy by combining it with technical and fundamental analysis of the situation.



It is important to understand with reason that there is not a single trader who would trade only in a plus and not make unprofitable transactions.



Some of the trades will be positive, some will definitely be negative – you must be prepared for this and treat losses rationally, effectively-you will be able to eliminate mistakes and eliminate them. It is important to ensure that there are fewer and fewer errors in the long run.



As a result of practicing a strategy or certain principles of your trading, you can find out a whole range of useful things:



-How profitable is the strategy — most often it happens that you have to give up what worked in theory, but in practice did not work;

- Willingness to trade psychologically-this concerns compliance with risk management, time spent working, changing interests;

- Stability - thanks to experience comes stability in the conduct of trades and their results.



Choose your own trading strategy



A trading strategy is an exact sequence of your actions that determine the entry points, exit points, and timing of trades. Even on our website, interesting and selected strategies are published, but you need to choose the one that is closer to you and brings a minimum of psychological discomfort. Examples:



- If it is difficult to hold a position for more than 1 hour, and the person is constantly monitoring the terminal, then it is better to consider short-term strategies;

- When you have more patience and it is easier to open positions for a week or a month, you can pay attention to long-term trading and long-term trends;

- You can't rely on technical analysis — you need to study news trading, etc.



The list can be quite impressive, because in technical analysis alone there are hundreds of examples from figures and patterns, ending with the Fibonacci or Gann theory.



Each trader is an individual who has his own preferences and behavioral characteristics, which is why there is no single and correct strategy. Two different types of people may use the same information and strategy, but one of them will always have the best result due to personal characteristics.



Determining the start-up capital



Once the trader has decided on a strategy, it's time to choose the amount of available starting capital. Usually this issue is solved simply by the available amount of money, but this is not always correct. If you don't have enough money, then trading is not for you.



Trading is a high-risk activity. Professionals do not risk more than 1% of the deposit for one transaction. This means that if you want to open a trade for $10, you must have at least $ 1,000 in your account.



Regulated binary options brokers have minimum initial deposit amounts of $ 150-200. With such deposits, you need to be very careful about trading and not try to open trades often. Trading should be conscious.



Choosing a broker



When considering different brokerages, you should pay attention to the following factors::



- Reliability is the most important criterion, you can not invest money where it can simply not be withdrawn. To do this, first of all, we look at the broker's regulators.

- Reputation — it is not superfluous to study information about reviews, what people write and think online. However, there is often competition in this area, and many opinions are custom-made, so you need to check them for truthfulness and treat them critically.

- Minimum deposit-naturally, the trader should have enough for the minimum deposit, otherwise the broker will not work.

- Assets – whether the broker provides the asset you need.



Taking into account all the above parameters, it is quite possible to choose a good broker and not be disappointed in it.



Timely withdrawal of part of the profit



Every trader sets certain profit goals in one way or another. Reinvestment is a noble cause, but it is important to know the measure and periodically withdraw funds from the account.



This is exactly what the legendary trader advised many years ago trader Jesse Livermore — withdraw half of every profitable trade. Unfortunately, even if you follow all the rules, there is always a chance to lose money. There may be an unprofitable series of trades. This habit will help the trader stay afloat.



Keeping a trading diary and self-improvement



It is part of human nature that people often make mistakes, трейдерыand options traders are no exception. To start and successfully continue trading binary options, you need to take care of yourself.



The most effective way is to keep a transaction diary and track statistics. It must include:



1. Reason and conditions for opening a transaction

2. Term of the transaction;

3. Option opening and closing rate;

4. Transaction amount and financial result;

5. Comments.



Working with a diary will allow you to track your weaknesses and mistakes, and take measures to prevent them. Any professional takes such things seriously, so it would be foolish to neglect them.



Now you know how to start trading binary options. Once you start trading, you need to take all measures to protect your deposit. Namely: observe risk management, withdraw part of the profit, and keep a transaction diary. Such a comprehensive approach will make it possible not only to "start" trading, but also with a high probability to achieve at least minimal success in this.

Website: https://vfxalert.com/p/how-to-trade-the-binary-options