Binary Option Trading Tips

10 Binary Options Trading Tips & Secrets

Here are 10 important binary option trading tips. The implementation of each unique piece of advice can't lead to trading profitability, but the cumulative effect of all the following tips may prove positive for your future portfolio value.

General Tips

1. Pick the right Binary Option Broker

The right binary option broker means a broker offering a high payout and refund rate but also a broker that can ensure the safety of your funds. Furthermore, when you choose a broker be aware about the existence of fees {like withdrawal fees} and the existence of the essential trading options.

» Compare Binary Option Brokers

2. Read the News

Read carefully the latest news and compare them with the current market expectations. Check how historically your asset has reacted when such news was released. Is it to hard task for you? That is good, because what is hard it can’t be done by every trader. What can’t be done by every trader may lead you to a long-run trading competitive advantage. A long-term trading advantage may lead you to long-term portfolio profitability.

3. Diversificate constantly your Portfolio

The portfolio diversification is one of the few investing rules that can be proved using mathematics. Diversificate in terms of different markets, assets, currencies and any other way you can. Its free and can save you one day.

4. Don’t be Emotional when you Trade

Don’t trade when you are in a highly emotional state. Trade only when you mind is 100% clear and thus you are able to make the right decisions.

5. Pick and implement a Trading Strategy

Having a strategy or not will strongly determine if your trading activity will prove profitable or not in the long-run. First, you must pick a particular trading strategy, afterwards you must create the framework of rules to implement it successfully.

For example, a trader who picks a low risk day-trade strategy, makes some rules that limit his daily trade number.

» Compare Binary Option Signals

Trading Tips

6. Concentrate only in a few Trading Assets

Don’t try to trade as many financial markets as you can. It is much better to specialize in only a couple of trading assets and not in many assets.

7. Each Binary Option Asset is Unique

Use long-term charting and technical analysis in order to identify past price patterns and other historical similarities. Search about the latest news and learn about the basic fundamental mechanisms concerning a unique asset.

8. You shouldn’t be greed

If you are the holder of an option that is about to touch, close your position and take the money, don’t be greed.

9. Don’t Hedge Trades against its other

It is strongly recommended that you avoid hedging trades against each other.

10. Follow the Trend

Binary options have only two directions. It’s better to pick assets that are moving in a clear upward or downward trend-line. Pick an asset with a particular trend, and follow it using the right expiry time frame.