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A Beginner's Guide to Binary Options Trading

Binary Options trading is the new kid on the block with the block being the world’s financial trading arenas. Binary Options give traders who do not consider themselves experts on the most complex financial instruments, or who do not have the means to invest thousands of dollars in their first trade, a feasible option. With Binary Options, you can benefit from significant profits, while taking advantage of both a minimal investment as well as instant gratification.

Because this industry is relatively new, we thought we would give you the information you need to get started making money with Binary Options.  In addition to the information below, you can also peruse our binary options brokers reviews for the latest information about the best binary options brokers.

1. What is Binary Options trading?

Binary options trading is an up and coming financial trading method in which there are only two possible outcomes, hence the name Binary. The premise of Binary options trading is that you, the trader, guesses if the asset will increase or decrease in value by the time the position expires. If you were right, you take away the profit and if not, you lose your investment minus a small percentage that remains in your account.

2. Option Types

The type of options contracts (trade types) available for placing  with the broker. Click HERE to learn about each type of options.

- Up/ Down

- Touch

- 60 Seconds

-Option Builder


3. What does it mean for the average trader?

This new trading method provides traders with instant results and gratification. Binary options trading is mostly conducted in a Web based environment so you can do it from any computer connected to the internet, PC or Mac. The trading is much simpler and more straight forward than any other kind of financial trading.

4. What are the benefits of Binary trader?

Some of the benefits of Binary options trading include instant results, simple trading, low risk, Web-based trading, game-like experience, and potential for huge profits.

5. What are the down sides?

The down sides of Binary options trading, like other markets, are that without sufficient preparation in the form of research, you can lose money. With the fun experience binary trading provides, many people trade it like it is a casino and that can be dangerous.

6. What are the risks?

Contrary to other markets, the risks in Binary options trading are actually pretty low and completely depend on you. You know from the get-go exactly how much you want to invest and you cannot possibly lose more than that.

7. How do I know which broker to use?

Just like in other markets, you want to find a broker that is reliable, dependable, and offers superior service. The binary broker industry is in its infancy but there are enough choices out there. A few things to look out for in a binary broker include responsive customer support, a user friendly platform, flexibility in the trading assets, and an easy to navigate website. Click HERE to view our Binary Comparison and Review table, which compares all the popular Binary platforms so you don’t have to.

8. Is binary trading complicated?

The major advantage of Binary options trading is its simplicity. You are either in the money or out of the money. If you think the asset will go up, you select the Up arrow in most binary platforms. If you think it will decrease, select the down option and set your price. You can then see what the asset is doing in real time and wait till the position expires. It does not get much simpler than that.


How To Trade Binary Options Successfully

How do you do binary options trading successfully? Psychology is what drives people to do things. People do particular actions because they are driven to. Painters and photographers are more inclined to artistic psychology, while people who are participating in stock and finance have a more financially driven. This makes them more capable when in comes to trading in the market successfully.  Among these kind of people are traders, mostly are new, who do have the psychological drive for binary option trading correctly, but are doubtful on which strategies, platforms,  timing, and the like to use when trading.  This means that if a person wants to deal in the financial scene, you have to be psychologically prepared for market nerves.

Keep in mind that the stock market is a business and this business is very dependent and driven by different emotions, exactly the reason why traders need to keep their cool and stay as clear headed when trading. Some traders stay with a losing position hoping that a miracle will save it. Some are driven with greed, these traders hold on with their winning positions and do not do anything about it until it expires, turning their investments unprofitable and worthless. Emotions are both beneficial and disadvantageous when it comes to binary option trading. We should be well aware with the fact that binary option trading lets the trader anticipate price movements of underlying assets. If the anticipation is right, the trader is rewarded with a predetermined payout.  In some cases, there are traders who prolong the hold of a losing investment which they think still has a chance to recover so they can make a bigger profit. If things don’t go with their prediction, he will loose a lot. This means that traders need to have a control over their emotions so as to be successful with binary option trading.

Successful binary option trading needs one to become driven and consistent by facts. Emotions have no place in trading. Traders need to be conscious of what is happening in the market, which lets him choose which tools, platforms and strategies to use. Remember that not all of these tools, platforms and strategies work the same way in all situations. Some of these would work for someone and may not work on you. Traders should not follow or use another trader’s strategy. When you trade, you should have your own plan and learn to analyze all the angles and the markets current condition before trading.

False situations and alarms made inside the market by sellers and buyers are normal due to their own interest. New traders who are not knowledgeable of practices like these may fall of these traps and can face very big losses. A way to bypass problems like these is to fundamentally analyse the binary option trading market and doing technical analysis with the assets you have chosen for trading. Trading should be done with psychology and intuition. Compared with other financial instruments being used, binary options trading definitely are easier. However, like other options, you need the correct strategy and practice this professionally. You should never treat your investments as a gambling game.

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