As more binary option buying sites open up on the internet, interest in the whole process is reaching a new level. With its basic, win or lose form of trading, binary options are attracting not just those with experience of market trading, but many who make a living gambling online.
Wherever your roots, if you want to make a little extra money in a short space of time; or turn binary option buying into a full time living, here are a few tips. Remember, as with market trading or playing online poker, nothing is guaranteed. You can lose as well as win. We hope with these tips, to push the odds a little more in your favour.
Choosing a Good Broker:
While many areas of binary trading are regulated, many are not. Choose your broker with care. Compare different sites, and always make sure you read the small print. All binary option sites will offer you sign up, and welcome bonuses. Always check to see what the ‘freebie’ entails before signing up. Usually you will have to trade a certain number of options, before the bonus ends up in your account.
Learn before You Earn:
If binary options were as simple as they appear, we would all be living the millionaire lifestyle. Many brokerages offer free, real time onsite training, to provide you with as much insight into the process as possible. Take your time, and use these training options. If you have friends who have experience of binary trading chat to them, get a feel for the whole process before you start.
Study the market in which you intend to trade options. Option trading takes place in almost all markets whether it is stocks, indexes, foreign exchange or commodities. Read up on them, and choose which you feel most comfortable with, not which appears to give the biggest returns. The higher the returns, the greater the risk.
Plan a Long Term Strategy – rather than Short Term Hits:
Buying one or two options every now and then you may get lucky, and come out a few bucks up. However, a long term plan is statistically more likely to bring you more frequent rewards. All successful online gamblers, and those who play the markets, have their own tried and tested long term strategies. Planning ahead doesn’t mean you have to invest more than you can afford. It means planning a way forward, where your personal stake is likely to give you the best returns.
Decide on your Stake – and Stick to It:
Decide how much you can comfortably afford, and stick religiously to it. Whether that amount is from your savings account, or a portion of available income from your monthly salary makes no difference. The biggest mistake most beginners make whenever money is involved; is upping the stake trying to recoup the losses. It rarely works.
Expect to take a hit on your first buy, that way you’re not disappointed. Learn from it, think about your strategy. Continue with your same stake, the next two may recoup some of the loss. Learn from them. Continue along the thinking path, and gradually begin to increase your pot. Use your long term strategy not a new short term one.
Hedge your Buying:
You’ve completed the training courses, read up on the markets, and chatted to friends already trading binary options. As mentioned, broker’s sites will offer bonuses and incentives to sign up with them. Many newcomers sign up with two sites. You can then use these bonuses to ‘hedge your bet’. For example, your option is, the share price of a specific company will be higher or lower in 10 minutes. On one site bet higher, on the other bet lower. One bet will obviously have to be correct, so you will at least make a small profit. Not really an option to be used continuously if you want to significantly increase your pot, but in the early days it gives you a feel of how everything works in real time.
Binary option sites want to retain your custom once you have signed up. Many these days offer re-deposit bonuses to their most loyal customers. Once a qualifying deposit on an option has been laid, then the brokers deposit a bonus into your account. Swelling the coffers for doing little can’t be a bad thing.
Finally – Enjoy Your Binary Option Trading:
Sticking with the steps above, trading with an amount you can afford, and sticking with your long term strategy, should bring you hours of enjoyable binary trading. All the time remembering that you can lose as well as win, start to check out binary option brokers today. Who knows, that pleasant few hours spent making a bit of pin money, may well turn into a whole new lucrative career.