Discovering the binary options market and the benefits of trading with them may seem at first to be as simple as child’s play. But the real adventure comes when you immerse yourself into the reality of the binaries and start the real trading activity. Being a part of the real environment and watching how money can be made – or lost (prepare yourself for losses, because it’s an inevitable part of trading) – is difficult and not recommended at all without proper preliminary preparation. So instead of taking huge risks and investing money in vain, why not read our simple, but extremely helpful guide for trading with binary options. The guide shows you the basics and adjusts you to your upcoming challenges in the financial markets.
What Are the First Things You Need to Do Before Starting Trading with Binary Options?
Now, let’s see the very first things you must do before starting the real trading experience with binary options. We have categorized these little steps into different sections, but keep in mind that you may have already completed some of them. Though, revise them in order not to miss anything significant and important for a good final outcome and the exciting beginning of yours in the field:
Make sure you are 100% well-prepared and well-educated in the field. Even though you have already moved through this step, you need to be absolutely confident about the specifications in binary trading. This includes everything – from main terms to basic information like what is trading and what are binaries.
Choose a broker to rely on. It must be trustworthy, regulated, officially licensed to operate in the market, beneficial with bonuses and different privileges provided to the customers. Attention – check if the selected platform accepts users from the country you are based in.
Make a registration on the binary options website and find out how to open an account. You must be incredibly attentive, while reading the basic information and the terms and conditions that the broker has established. Missing a detail can be risky,especially while you are just a beginner.
Settle your primary budget. This is a very important step for your binary options preparation. It is very significant for you to know the level of your trading experience and knowledge. According to your skills you can then form a proper budget that will not be either too big, or too small. Taking risk is something you will eventually do during your future trading activity, so investing too little money is not an option. However, bringing all of your money to an initiative you have never faced before is a highly risky. Keep your trading budget balanced.
Consider things like using auto trading tools, subscribing for the educational centre of the broker, applying for bonuses, building up your own strategy and even using some help from a friend until you get deeper into the field.
Think about what assets you should choose when trading with binary options. Then, according to your choice, create a tactic that will fit your skills. No matter what asset you choose, make an analysis of the market and use the real facts for your predictions. Be aware that most binary options platforms offer dozens of assets, so you can easily choose the sphere that you are the better prepared for.
Choose your binary option type to trade. The different binary option types – 60 seconds, one touch and etc. – bring different sorts of pros and cons. It is all up to you to know what to undertake in your own personal experience.
Organize your trading activity in the best way. Convenience is a thing that simplifies any kind of job or initiative. Whatever makes your trading more convenient you should add it to your requirements. For example, ask yourself if mobile or ordinary desktop binary options experience is better for you. Choose a device, make a schedule when to trade by thinking over when you are free and when the market is more beneficial for traders to come into action.
How to Make Trading with Binary Options More Profitable?
Trading with binary options might be easy, but it takes experience to become advanced in it. Still, there are many approaches you can use to improve your initiative, as well as your skills. Check out our suggestions as to the strategies and specifications to take under consideration,to improve your trading experience:
Build up a strategy. The web is full of strategy hints and methods for trading with binary options. What you will choose is entirely up to you. But our recommendation is never overestimating yourself. There are strategies that are just not suitable for beginners and there are tricks that might work with some binary option types, but become absolutely incompatible to others. Things like hedging, mirror trading, signals, drawing support and resistance lines could be good for you to investigate as a start.
Try new things. This means to replace the binary options once in a while and even to change the broker you are trading in. Test modern software types that improve both – the activity and the learning process. The more your perfect yourself, the better you will become. Never stop learning new things and accept binary options field as your new motion. Motivation is everything.
Subscribe for analytical news and analyses of the market. There are many websites that offer such services these days. The best thing about them is that they overview all the financial and economic (even political) news to give you only those that could be helpful for your trading activity. Analyses, on the other side, are essential to make you think faster and consider when the market is great to make money from it.
Top Factors that Make Your Binary Options Trading Successful
Lastly, we want to name for you the top factors that will make your binary options trading activity successful. Make sure you understand and apply each of them to your own experience, too:
Organization and Discipline
Always have a plan and always know what you are doing. You are working with money so to be organized is essential in order not to lose it. Arrange your trading activity in a way that it goes up and forward, but not returning you to the beginning stage.
Safety is a must
Whether it is about choosing a good broker like 24Option, or selecting a trustworthy payment method, safety is a factor that should influence your funds and your trading activity. Yes, many people are in the binary options market, but many of them have lost money to scams, too. Don’t become one of them and investigate the security factor.
Ability to lose
People who cannot bear to lose money, should not even come on the binary options arena. Prepare to lose some money and embrace risk cleverly. It should not exceed your analytical skills, but it shouldn’t exclude a little gambling approach, either.
Know when it`s time to stop
Speaking of gambling… Traders tend to increase their trades in both cases – if they lose too much or if they win a lot. In both hypotheses you can make a mistake, because neither the loss, nor the winning forms your strategy. What forms your strategy is the analysis, the market research and the current financial condition of the selected asset.
Progress is everything
Progressing in your trading skills means progressing in your profits. So once you have learnt the basics of binary options, you have only just begun. Become a constant student of the market and the financial trading service. Innovations appear every day these days, ensure that you don’t miss them, and hopefully make huge progress with their applications.
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Sometimes, looking at the rest of the traders` actions can be a good lesson for you. Whether you have friends, or you just look at the common statistic of historic trades, the wider audience movements always has something interesting or useful to tell you.
Realize what trading with binary options is for you. Is it a hobby or a real job? Thus, the motivation and the next goals to achieve can be aligned. It is interesting to know that many traders have begun trading as a hobby, but eventually they have managed to be the pros of 21st century on the financial market Use our guide and revise it once in a while, when you need either some stimulation, or courage to proceed wining more and more from binary options!
Top Five Successful Strategies For Trading Binary Options
If you are trading without a strategy or a tactic to help you with binary options, you might as well
The article was written by Connor Harrison from Binary Brokers (BBZ). BBZ makes an effort to educate their traders so that they can understand recommendations regarding binary options, international legislation, risk management and other issues related to trading.
Trading in binary options is one of the popular trends in the financial markets today. Both experienced and novice traders are rushing to include them in their investment portfolios. Just like any other trading platform or business, you must have a strategy to use in order to consistently be making money.
If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling. Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment. You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning.
Bet or Trade?
Strategies are generally categorized into two groups. These categories are;
Betting model based strategies – In these strategies, it is assumed that the investor will employ betting strategies, whether they are familiar with financial markets or not. These strategies use several tactics that are designed to increase the probability of winning. Strategies based on the news are the best example in this category.
Market behavior strategies – In these strategies, the investor relies almost wholly on technical and statistical data that are readily available or that which they have researched and worked on. While these strategies are a bit harder to understand and master, they are the most reliable ones since they are objective. There are techniques developed to help you understand some of the data, such as charts and which will make it easier for a new trader.
The popular strategies to go for are:
I – Fundamental Analysis Strategy
This strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option. The other factors that you should check out include the employee and the business partners’ satisfaction. In short, this strategy tries to look at the overall picture of the business they want to invest in their stock and at times the overall industry.
II – Technical Analysis Strategy
This is a quite popular strategy in options trading. It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset. It’s quite useful in options trading because as a trader, you don’t have to delve into the company’s financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average among others.
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III – Basic Options Strategy
This strategy is quite popular among options traders. It is designed and employed by a trader to safeguard him/herself from incurring total losses on their investments. You will pick an underlying asset or currency that you are interested in and then if the market movement of the strike price is heading towards a good direction, say upwards, you place a call option. At the same time, you will place a put option on the same asset.
Let’s use an example:
The GBP/USD currency option is going at 1:4000. You place the call option of $100 which will expire in 30 minutes. The payout is 70% and 15% if you lose. In the first 15 minutes the asset is at 1:4015 which is good so far. At this specific time, you buy a put option for the same asset at 1:4015 expiring in 15 minutes at $100. The payouts are the same as those of the call option.
At the end of the 30 minutes there will be two outcomes;
Your 30 minutes call option wins and the 15 minutes put option losses. You will have earned $185 from the 70% call winnings and the 15% consolation refund from the put option (the opposite can happen, put option wins and call option losses).
Both the call and the put options end up in the money. You will get $340 ($170+$170). Since it’s almost impossible to lose on both options, the general risk of loss in this strategy is only $15 in order to win $140.
IV – Algorithmic and signals
There are apps which are sold and which are very good at trading or analyzing the market data. You might find it appropriate to invest in such an app. This app is installed in your computer and gathers data that you want and then analyzes it to come up with the best possible outcomes. Technical and fundamental analysis data are used here.
The computer will then pick a trade for you to trade in. You could even go ahead and design the app to be actually trading for you. You will however need to be regularly updating the raw data that the app picks its analyzing details from.
V – Co-integration Trading Strategy
There could be two stocks in the market that have a high correlation relationship. This could be because they are in the same industry and are traded in the same market, hence affected by many factors the same way. Given the high correlation between such a pair of stocks, you will find that whenever there is a gap between them it will close soon after. The gap can be caused by the weakening of one stock temporarily. The main task here is to identify the gap.
After identifying the gap, you should buy the call option for the stock that is weak or a put option for the asset if the stock higher in price is bound to come down. Eventually, the two assets will come to the correlation path and that should be the ‘point of exit’.
Strategies, just like investment options, are many and you could end up with one which gives you consistent winnings. If you are a new trader, research well and identify the one strategy that best suits your trading portfolio and pattern. If you are a bit more experienced, you can create your own strategy or combine two existing ones to form a hybrid.
9 Tips for New Traders to Trade Binary Options
From earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:
9 Tips for New Traders to Trade Binary Options
The first and foremost advice to be given to any beginner trader is to select a good binary options broker for your help in this field. A good broker, who knows his work, makes all the difference. There are various comparison websites available to make this choice easier for new traders, so one can quite easily consult these websites and choose a good binary options broker of their choice.
Secondly, it is advisable to increase your knowledge in the field of binary options trading and to know that there is always more to learn. There are training courses available for imparting binary options trading knowledge to new traders. Reading new books on the subject matter and discussing with other traders about the matter also adds to the benefit. This type of trading is a constantly-evolving experience, hence knowledge on the matter is ever expanding.
Thirdly, trading long term serves better returns, and binary options trading is a long term activity. Developing a long term plan for your binary trading and playing the right cards will ensure that you ultimately come out on top. Resist the temptation to get drawn into fads that do not fit into your overall strategies and strictly stick to your drawn plans.
Fourth is to reduce your risks by resisting the urge to over-invest. Beginners tend to get carried away to make that one big score but they must employ some self control as that may be a game changer. New traders lose more money by getting carried away and over investing. Binary options brokers advise to invest not just with courage but also with rational thinking.
Fifth, it is essential to keep a clear head while making any decisions about binary options trading. Beginners should avoid trading when they are emotionally disturbed, as emotions can create havoc with your trading. It is very easy to make the wrong decisions in an emotional state, so it is advisable to stay away from any form of trading until you’ve calmed down and cleared your mind.
Prepping yourself before trading in binary options is the sixth advice. Studying the market and viewing graphs over time can help new traders predict behavior of any binary options asset, thereby helping them to make well-informed decisions.
Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
Hedging trades against each other just ends up decreasing the statistical probability of earning more profits as opposed to increasing them.
Last, but not least, it is very important to have fun while trading binary options. Beginning binary options traders must ensure that it does not become a bore or a drag; if a trader has fun while trading, then he or she will be naturally inclined towards it and will pay more attention and make better decisions, thereby increasing profits.
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Last Updated on March 25, 2020
How to Set Financial Goals and Actually Meet Them
Serial entrepreneur and working towards Early Retirement Read full profile
Finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. And that’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?
In this article, we will explore ways on how to set financial goals and then actually meet them with ease.
Table of Contents
5 Steps to Set Financial Goals
Though setting financial goals might seem to be a daunting task but if one has the will and clarity of thought, it is rather easy. Try using these steps:
1. Be Clear About the Objectives
Any goal (let alone financial) without a clear objective is nothing more than a pipe dream. And this couldn’t be more true for financial matters.
It is often said that savings is nothing but deferred consumption. Therefore if you are saving today, then you should be crystal clear about what it is for. It could be anything like kid’s education, retirement, marriage, that dream vacation, fancy car etc.
Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives, however small they may be, that you foresee in the future and put a value to it.
2. Keep Them Realistic
It’s good to be an optimistic person but being a pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.
It’s important that you keep your goals realistic in nature for it will help you stay the course and keep you motivated throughout the journey.
3. Account for Inflation
Ronald Reagan once said – “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”. And this quote sums up the best what inflation could do your financial goals.
Therefore account for inflation whenever you are putting a monetary value to a financial objective that is far away in the future.
For example, if one of your financial goal is your son’s college education, which is 15 years hence, then inflation would increase the monetary burden by more than 50% if inflation is mere 3%. So always account for inflation.
4. Short Term vs Long Term
Just like every calorie is not the same, the approach towards achieving every financial goal will not be the same. It is important to bifurcate goals in short term and long term.
As a rule of thumb, any financial goal, which is due in next 3 years should be termed as short term goal. Any longer duration goals are to be classified as long term goals. This bifurcation of goals into short term vs long term will help in choosing the right investment instrument to achieve them.
More on this later when we talk about how to achieve financial goals.
5. To Each to His Own
The journey of setting financial goals is an individualistic affair i.e. your goals are your own goals and are determined by your want to achieve them. A lot of times we get on the bandwagon of goal setting only to realize later on that it was not meant for us.
It is important that your goals are actually your goals and not inspired by someone else. Take a hard look at this step at all the goals you’ve set for after this step, you will be on the way to achieve them.
By now, you would be ready with your financial goals, now it’s time to go all out and achieve them.
11 Ways to Achieve Your Financial Goals
Whenever we talk about chasing any financial goal, it is usually a 2 step process –
Ensuring healthy savings
Making smart investments
You will need to save enough; and invest those savings wisely so that they grow over a period of time to help you achieve goals. So let’s get down to ensuring healthy savings.
Ensuring Healthy Savings
Self realization is the best form of realisation and unless you decide what your current financial position is, you aren’t heading anywhere.
This is the focal point from where you start your journey of achieving financial goals.
1. Track Expenses
The first and the foremost thing to be done is to track your monthly expenses. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you would be surprised to see how small expenses add up to a sizeable amount.
Also categorize those expenses into different bucket so that you know which bucket is eating the most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pump up your savings rate.
2. Pay Yourself First
Generally, savings come after all the expenses have been taken care of. This is a classical mistake which almost everyone of us do. We pay ourselves last!
Ideally, this should be planned upside down. We should be paying ourselves first and then to the world i.e. we should be taking out the planned saving amount first and then manage all the expenses from the rest.
The best way to actually implement is to put the savings on automatic mode i.e. money flowing automatically into different financial instruments (for example – mutual funds, retirement corpus etc) every month.
Taking the automatic route will make us lose control of our money and hence will compel us to manage in what’s left with us thereby increasing the savings rate.
3. Make a Plan and Vow to Stick with It
Budgeting is the best to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be made.
Nowadays, several money management apps and wallets can help you do this automatically. It’s easy and who knows, you may just end up doing what people fail to do.
At first, you may not be able to stick to your plans completely but don’t let that become a reason why you stop budgeting entirely.
Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.
You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.
4. Rise Again Even If You Fall
Let’s be realistic. It’s not like the world will come to an end if you made one mistake. This isn’t called leniency but discipline.
If you fail to meet your budget for a month, don’t give up the entire effort just like that. Instead, start again.
Remember that flexible plans are the most realistic plans. So go forward and try to follow your financial goals as planned but if for some reason, the plan gets out of hand for you, do not give up on it just yet. This has a lot to do with your psychology rather than any material commitment.
All you have to do is to stay on the road and vow to stay on it, no matter how much you fall down.
5. Make Savings a Habit and Not a Goal
In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.
Make Savings a habit rather than a goal. While it might seem to be counter intuitive to many but there are some deft ways of doing it. For example:
Always eat out (if at all) during weekdays rather than weekends. Usually weekends are expensive. Make it a habit and you would in turn be saving a great deal.
If you are travelling buff, try to travel during off season. Your outlay will be much less.
If you go out for shopping, always look out for coupons and see where can you get the best deal.
So the key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice which will be harder to sustain over a period of time.
6. Talk About It
Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission. And it would be rather easy to lose the grip over your discipline.
Therefore in order to stay the course, it is advisable that you keep yourself surrounded with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.
7. Maintain a Journal
For some people, writing helps a great deal in making sure that they achieve what they plan.
So if you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.
Use this journal to write down all essential points such as your short term, mid term and long term goals, your current sources of income, your regular expenses which you are aware of and any committed expenses which are of recurring nature.
When you have a written commitment on paper, you are going to feel more energised to follow the plan and stick to it. Moreover, it is going to be a lot more easier for you to follow you and track your progress.
At this point, you should be ready with your financial goals and would be doing brilliantly with savings; now it’s time to talk about the big daddy – Investments.
Making Smart Investments
Savings by themselves don’t take anyone too far. However savings when invested wisely can do wonders and we are at that stage where we will talk about making smart investments.
8. Consult a Financial Advisor
Investments doesn’t come naturally to most of us therefore rather than dabbling with it ourselves, it is wise to consult a financial advisor.
Talk to him/her about your financial goals and savings and then seek advice for the best investment instruments to achieve your goals.
9. Choose Your Investment Instrument Wisely
Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about them.
Just like “no one is born a criminal”, no investment instrument is bad or good. It is the application of that instrument that makes all the difference.
Do you remember we talked about bifurcating financial goals in short term and long term?
It is here where that classification will help.
So as a general rule, for all your short term financial goals, choose an investment instrument that has debt nature for example fixed deposits, debt mutual funds etc. The reason for going for debt instruments is that chances of capital loss is less as compared to equity instruments.
10. Compounding Is the Eighth Wonder
Einstein once remarked about compounding,
Compound Interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.
So make friends with this wonder kid. And sooner you become friends with it, quicker you will reach closer to your financial goals.
Start investing early so that time is on your side to help you bear the fruits of compounding.
11. Measure, Measure, Measure
All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments; taking stock of how our investments are doing.
If there is one single step where everything (so far) can go wrong, it is at this step – Measuring the Progress.
If we don’t measure the progress timely, then we would be shooting in the dark. We wouldn’t know if our saving rate is appropriate or not; whether financial advisor is doing a decent job; whether we are moving closer to our target or not.
Do measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!
The Bottom Line
This completes the list of tips for you to set financial goals and actually achieve them with not so great difficulty.
As you can see, all it requires is discipline. But guess that’s the most difficult part!
7 Tricks To Be Professional At Binary Options Trading
Are you a professional at binary options trading? If not, then you are in the right place to boost up your energy.
Most of you already know what binary options are, as you are here for the top tips and tricks on trading binary options. But, for the uninitiated, we will give a short brief.
Binary Options are financial instruments that allow you to trade on all kinds of assets such as forex, stocks, futures, crypto, indices, and much more. There are only two directions in binary trading and this is where it gets its name from.
By accurately predicting the outcome, you win a payout. If you are wrong, you get nothing and lose your initial investment. The time from when you place the trade till the time the trade lasts is the expiry time.
When you think the price of the asset will increase, you buy a call option. Moreover, when you believe the price will decrease, you purchase a put option.
It is just a short introduction to binary options. Head on over to our introductory guide on binary options trading that covers all the concepts of options trading in great detail.
Can Anyone Be A Professional At Binary Options Trading?
Binary Option is simpler and far less complex compared to other forms of trading. It is easy to understand as well as beginner-friendly. But, does that mean it is easy to score profits when trading binary options?
Let’s take a look at statistics and probability.
In a study conducted by FinanceMagnates , they covered on Japanese binary trading industry. The average payout ratio was found to be at 95.69%. On an average 74.1% of traders ended up facing losses trades.
Roughly 1 in every 4 traders ends up making money trading binary options. By now you have realized even if they are simple to trade, it doesn’t mean everyone’s making off it.
What’s the difference then?
Why are some traders expert while the majority keep losing money, and blame their broker?
Are they missing out on some secret information?
Sorry to burst your bubble, but there is no secret mantra or formula that will make you rich overnight. There are, however, a few tricks and tips that you can apply in your trading. It will help you stay ahead of the curve.
Via this article, we will share with you the 7 best tricks to become a professional Binary Options trader. We will suggest you read till the last to find out what these tricks are.
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