Tips for Trading
So lets explore how to make maximum returns and profit from your invested capital.
Main Tips for Trading Gurus
1. Choose the right broker.
Did you know that binary options are also called all-or-nothing options and fixed return options (FROs) because you either get profit or you lose your investment? Betting with these options contracts is simple – you determine whether the price of the asset is higher or lower than the strike price at expiry and you buy a call option (if you think prices will go up) or a put option (if you think prices will go down). Now, trading in binaries is as simple as that, brokers can afford to pay their clients as much as 75% of their initial investment if they make the right prediction! In addition to the 75% profit for in-the-money contracts, some brokers may also offer a 15% rebate for investments which expire out-of-the-money! Of course, you also need to realize that some brokers will offer zero rebates with a lower payout so you had better do your research so you don’t miss out on this high-paying benefit.
2. Trade in the short term.
Binary options brokers offer several expiration periods. It can be as short as one hour or as long as one year. Now, if you want to make fast money, then the best way is to bet on short term contracts, particularly those which expire hourly. This way, you don’t tie up your capital and you can use it for other investments. Moreover, prices of assets in binary options are locked in 15 minutes before the expiry time, hence, if you bet on hourly contracts, you have a better chance of predicting the correct price movement.
3. Read the news.
Binaries rely on the value of underlying assets such as stocks, foreign exchange or commodities options . We all know that prices of assets depend on several factors and in order to predict their price movement, you need to know previous prices as well as current events. Hence, it is important that you read the news like a hawk – especially if you’re investing in these short-term options contracts.
4. Plan your trading schedule.
Did you know that the price of a company’s stock shoots up when it releases new products? Also, are you aware that the price of the US Dollar is affected by the decision released by the Fed? Aside from these, other factors that affect the price of an asset includes the opening/closing of a market (for example, in stock, index and commodity trading). Binary trading may be available 24/7 but there are times when you’ll generate less profit. Knowing these information are important when you’re serious in investing. Many expert traders agree that timing is a crucial factor in their success – they realize that day trading principles may not be appropriate in certain cases and they will have to adjust, depending on the news, and sometimes, the time of day they trade.