Learn how to earn more income in less than one hour with options trading!
Step 1/3: Understand the system
The trading system shown here is based on the monitoring of trends, a strategy widely used by many professional traders and recognized for its effectiveness. An asset rises or falls when pushed in that direction by large financial powers that influence the financial markets such as investment funds and banks. The principle of this method is very simple:
If the recent history of an asset shows a significant and constant increase, it is more probable that it will continue to rise in the near future in that direction rather than the probability that it will go the other way. We will therefore invest on the asset going up.
Obviously, the same logic applies in the case of decline.
Recognize trends - Recognize a pattern on a graph is very simple. It is easiest to use 5 minutes graphs as seen below. The "candles" on the graph represents a period of time equivalent to 5 minutes . Here are the trends that we can detect:
To recognize trends, use the real-time graphics available Here
Step 2/3: The best amounts to invest
Even when you follow the system perfectly, it is normal to lose some of the positions that you open, it is very unlikely to win all of the trades you will do.
This method of trend following will enable you to win more trading then the ones that will be lost, which leads to you earning significantly on your account. There may be a bad day where you will make several losing trades, that is why it is important to follow up with this strict rule of investment:
- If you have $200 in your account, each open position should be $10 tops
- If you have $500 in your account, each open position should be $25 tops
- If you have $1,000 in your account, each open position should be $50 tops
- If you have $2,000 in your account, each open position should be $100 tops
- If you have $5,000 in your account, each open position should be $250 tops
And so on: each position you open should not represent more than 5% of your capital.
Step 3/3: Registering to a binary broker
Register for free and without any obligations at any platform. Most platforms offer members a demo account with virtual trading money. You can use this account to practice and gain experience in options trading and in implementing the trend system. Only when you feel you are ready you should deposit money on your account and then the real trading can start.
Tips for BeginnersLoss/Gain Proportion - Set up an acceptable loss/gain proportion and stick to it. For example, a 1:3 proportion would mean that you would be willing to lose $100 to possibly gain $300. Once you decide the proportion you are comfortable with, stick to it; part of the success of trading is not being impulsive but keeping to a set of rules that works for you.
Overcome Doubt and Hesitation - Long-term investors have the luxury of watching the market for days, months or even years; this is not the case for binary options traders. To become a successful binary options trader you must have the ability to move on a dime and dive into a trade within minutes, while the trend is still active. Those who hesitate often miss the favorable trend or invest too late and lose money.
Train Before You Enter the Big Race - Even though you may be really excited about the prospect of making fast money in binary options trading, keep in mind that you can also lose money fast. Becoming a successful trader depends on being able to recognize trends quickly, it is a good idea to study as much as you can and take advantage of virtual or simulating trading platforms before you invest your hard-earned savings.
Master Your Trading Tools - Online trading services offer powerful trading platforms and tons of market information. It is a good idea to take the time to figure out how you can make your platform work for you, many offer market analysis and trend tools, charts, watch lists, alerts, graphs and much more that can help you become a shrewd and efficient trader.
Know the Rules, Your Odds, Your Risk - Binary options trading can be amazingly challenging and exciting, but just like all games of risk it is important that you walk into the game knowing the rules, your odds and just how much you are willing to risk. Options trading is making sure all odds are in your favor, and it's about quick-wittedness and courage; if you think you have what it takes, suit up and enter the game − you may just profit.