From what you read before you know what Binary Options are and how to earn on them. In this topic, we will be increasing the probability of success and we will answer the question: “what to do to make money?”
#1 Demo – your first steps in investing in options should be referred to the virtual account. Not so long ago almost no broker offered this type of service, fortunately at the moment many of them allow customers to use demo account.
Even if the broker doesn’t have the information about the possibility of setting up a demo account, often you just have to send a message to support with request of creating such an account for a trial period. You can simply say that you would like to know how the platform works and what instruments are offered.
At the same time it is worth to ask for a perpetuity demo account because many brokers delete the account after a few days, weeks or months. You should write to support team that you want to start a real account, but before you ask for the opportunity to test the investment opportunities in the virtual account, strongly indicating that as soon as you finish the test, you return the request to delete the demo account and setting up an real account.
Demo accounts are basically only needed to one thing:
- “Do not waste your money in the process of learning how to invest in Binary Options”
- Thanks to the process of learning and improving your investment workshop you don’t lose anything at all. This is a major advantage offered by the top brokers so you might want to use it.
#2 Type of investment – the fundamental thing before choosing a destination broker is targeting your way to a specific asset or more precisely select which option you want to specialize.
A common mistake in investing in Binary Options is entering into any position that platform offers. This is a huge mistake which in most cases leads to a zero deposit. If you want to be successful you need to choose few options and focus on them. Why type of investment is more important even before the choice of a broker I will describe in section 3.
Each particular type of Binary Options requires a different approach to the subject:
- separate investment system
- separate investment plan
- different analysis
- different Money Management
- Specific financial instruments on which works best
Sections don’t have to be radically different from each other, may be similar but they shouldn’t be the same for each option. If you haven’t succeed on options now you have the answer what you missed for gradual earning.
Most popular options:
- Binary Options or High / Low Options
- Wizard Options where you program the investment parameters
- One Touch options where the price must reach a certain level
- 60 sec Options
I suggest immediately throw away 60 sec Options from your investment portfolio, I see that many novice commits the worst possible mistake and immediately throw themselves into the deepest water. 60 sec Options are the fastest way to reset the deposit, if you’re not sure of what you are doing and most of novices are. However this is the fastest way to make profits but only for some very experienced traders with the perfect plan, strategy and a strong psyche.
I don’t want to suggest that on 60 sec Options you can not make money, yes it is possible but each individual trader must realize that it is difficult and requires a very good preparation and rapid reflexes to enter the option at the most convenient time. You need to be glued to the monitor for the most of the time you want to spend for investing. Despite of these disadvantages 60 sec options are the fastest possible way to multiply the capital.
The most interesting are the Wizard Options and One Touch Options and for novice traders I recommend go to in this direction. For a little more experienced, Binary Options with expire time 15 – 60 minutes would be a good choice. Of course, using these options requires spending more time and doesn’t release you from having full investment strategy.
#3 Broker – each of brokers available to consumers has its strengths and weaknesses, except of platform support thing that is worth noting is the return on investment.
If in the previous section your task was to focus on one particular option so at this point the most important task is to find such a broker who offers biggest return on investment on a particular option you’re interested in.
Detailed characteristics of brokers, their strengths and weaknesses as well offered return on investment you can find HERE.
For example, Exbino platform offers return from One Touch Option at 670%, while competitive broker Opteck offers only up to 100% return on investment. Despite of the fact that the operations on One Touch Option at these brokers are different, it’s clear with which broker it’s more profitable to invest on this particular type of option.
On the other hand Opteck platform offers high rates of return on Binary Options at 85%, while earlier mentioned Exbino offers only 75% return on the same options, the difference is noticeable.
Every, even small difference in the rate of return on investment is an important milestone towards profitability. Even a small difference in the return on several trades makes a difference from the perspective. Even average strategy can become a very profitable, same as a good strategy with a low return on investment might not be very effective.
There’s not too much work when choosing a broker, but at this stage you can increase your investment opportunities to a large extent.
#4 Invest according to the plan – the most important task facing the professional investor is to stick to the principles of the investment plan, the plan includes everything that is important to the efficiency and profit investing, leaving no room for the so-called acrobatic trading.
Trading Plan is a collection of the following items:
- Time of investment and type of options
- Investment System
- Money Management
- Financial instruments and assets type
Time of investment and type of options – that is how much time you can devote to invest in Binary Options, and with which options you are going to invest. These two elements are inextricably linked.
If you are not able to devote more time than half an hour a day to invest then it’s not reasonable to deal with binary options, in this case the best would be One Touch options and Wizard Options.
In the first case, the One Touch option, expiry time depending on the broker is even five days, what more is connected with the return of up to several hundred percent. Therefore, it is a great alternative for busy investors who don’t want or can not spend a significant amount of time trading. Selecting this option will determine the slow and steady capital growth without exposing investors to too much stress. Investing in such a way can be great form of risk diversification as well as an opportunity to generate additional revenue. In the case of Wizard Option – investor itself decides when the option is due to expire so that the position can be entered at the beginning of the morning session and be ended at the evening. Greater investment horizon let with more effectiveness predict the direction of the trend than in the case of binary options, in which even correct direction doesn’t guarantee winning the option because of even temporary correction.
Investment System – a set of rules for entry into the position most often based on technical analysis, less often on fundamental analysis. Entry into position on the principle of “It seems to me that the price will move up” is not the investment and intuitive trading should be immediately rejected, unless someone is stubborn and has a syndrome of God (hopefully it will disappear after a few zeroed deposits) then he will need a little more time to come to a suitable conclusion.
An effective system is about precise and strong entry into the position based on signals generated by it, not at the time when you want to enter the position, but only when the system generates a strong signal to buy or sell.
It is also very important of the perspective for beginners who are about investing as playing a computer game, when they have 20 minutes of free time they throw a few orders on the market. As a result of such approach will be inevitably reset of the deposit. The time that you can devote to trading should be a key element that determines what type of investment strategy you choose.
Money Management – managing your money in the investment process. It determines how much of your money you can invest for individual investment. To develop an appropriate MM necessary would be selection of the option by which you will invest, as it is crucial in the development of the principles of prudent capital management.
It may seem overly complicated, but in general, it’s just about investing a small proportion of yours resources and invest as much as strong the signal is.
Financial instruments and assets type – after selecting the option in which you want to specialize it’s time for the choice of instruments by means of which you will invest.
The majority of brokers selection is similar so your task is to choose the instruments and assets in which your system is best, just to maximize the probability of winning. In most systems, the choice should be oscillating around the most liquid and most technical assets.