As with almost all speculative financial instruments, for example in the field of forex or when trading CFDs , there are a few tips when trading binary options that can be useful for successful trading. A very important tip is to first “choose” a strategy based on which to trade. You can choose in www.playmarketstore.com/iqoption between classic trend following strategies or volatility strategies geared towards strong price fluctuations.
Emotional action rarely leads to the desired success. It is therefore important to stick to the strategy and not deviate from it immediately, even if you lose in the meantime.
At the beginning you should only trade with a demo account or with smaller amounts. Gradually, the amounts can then increase continuously, and hopefully with it the returns or profits.
Past profits are never a guarantee for successful trading in the future, you should always practice conservative risk management and only use capital that you can afford to lose.
Another important tip is never to trade with the entire available capital. Depending on risk tolerance, it is advisable to use only 1-5 percent of the total capital per trade. In this way, even longer dry spells, so-called drawdowns, can be survived without total loss of the trading account.
Speculate on different asset classes
With the help of binary options, traders have the opportunity to speculate on falling or rising prices. This speculation isn’t just limited to stocks, though. Many brokers, such as IQ Option offer many more asset classes.
These include:
- indices
- raw materials
- currencies
Traders can therefore operate in different asset classes and thus be active in different markets. This opens up numerous trading opportunities almost around the clock. It is therefore important to choose a broker with an appropriate offer and open the account here. In addition, traders should also make sure to choose a broker that opens multiple trading options. This should not only offer the classic call and put options, but also offer other types of trading.
The most popular trade types include:
- Call/Put Option
- One touch trading including high-yield options
- Range trading
- 60 Sec Trade
While call/put trading is particularly interesting when values fluctuate strongly, range trading can also secure profits in sideways markets. With this type of trading, the selected value only has to remain within a certain price range for a specified period of time. The option is won if this occurs. In one touch trading, on the other hand, the value must reach a predefined price level at least once within the term of the binary options for the option to end in the money. The 60 second trade is particularly interesting for short-term investors and traders. Here, a call or put option is used to set the course development within the next 60 seconds. Ultimately, these are speculative financial bets serious chart analysis becomes difficult in such short periods of time. Early Close allows existing positions to be closed early, while the Roll Over option allows existing positions to be extended. Which options a broker offers in particular can be found on their website or trading platform.
