Top 5 Binary Options Trading Tips for 2013
Top 5 Binary Options Trading Tips for 2013April 9, 2013
Today’s binary options brokers offer a variety of trading features designed to provide you with a variety money-making opportunities that are only now starting to receive the attention they deserve.
Let’s take the Tradologic platform for example. Traders wanting to try out this software can check out the features offered by Optionbit. This leading broker offers features such as digital (High/Low), 60 seconds, touch, one touch, and range. Traderush on the other hand is powered by the Spotoption platform and offers Options Builder, Options Pro, One Touch, and 60 Seconds.
1. Bonus Volume Requirements and Win Withdrawal Criteria
Both of these brokers offer Forex, indices, commodities, and stock in their asset index. However, each platform reacts differently to bonuses and manages their risk department differently. For example, the welcome bonus on Traderush must be traded at least 30 times the bonus or 20 times if you accept a refund bonus. With Optionbit you need to execute trades 15 times the amount you invest.
In both cases the minimum deposit is $200, but one broker places the requirement on the bonus while the other on the purchase amount. You also learn from this that there is no such thing as a free lunch, because one site may give you more incentive to trade, but it also has to mitigate risk by implementing more aggressive volume requirements.
2. How to Choose the Broker that is Right for You?
This is probably the most important decision you can ever make. Before you do anything (definitely before depositing) make sure you try out a demo account and start simulating practice trades. Based on this experience your decide immediately if the software and features are what you are looking for.
Secondly, ask for help from the support staff. The level of professionalism and speed in which they respond will tell you how good they really are. You will be surprised, there are small brokers that give you very good service, and very big and well known ones that will not be up to par. Finally, ask to speak to an analyst/account manager and get their advice. If you feel they are too pushy or don’t have a good understanding of the material, stay away.
3. What are the Best or Most Popular Assets?
In essence, you are really asking yourself “what are other people trading and how are they making money?” This is a very important question because it will help you in the next two steps, but more so since it helps you focus on the main issues at hand and cut out the static. Your next step will be to join professional trading forums and subscribe to newsletters in order to understand more and improve your methodologies. I can tell you right now that for long positions AAPL and GOOG stock are extremely popular, short selling varies from various wireless company stock like America Movil all the way to cellular corporations like Telecom Italia, taking hits due to the Euro Zone crisis.
4. What is the Most Commonly Used Trading Feature?
Generally speaking there are two features that are considered to be the most popular among day traders as well as Wall Street professionals. The first is called digital options AKA binary options or High/Low. The logic is simple, you simply need to guess the direction of the trend (above or below the resistance line) and if the contract expires as you predicted during the selected time frame you would be “in the money” or have a winning trade.
The second most popular feature is 60 second options. This is probably as close as it gets to financial betting, but if you are looking for a high risk high reward trading instrument you have come to the right place. The other features tend to be a bit less popular, but they are all variants of the same concept or idea.
5. A Trading Strategy is Not Based Purely on Entry and Exit Points
Before you even think about depositing money and investing you better have solid strategy down. Equally important is to stick to it even when you are down, on the other hand, if you see it is not performing like it should consistently, you should be able to refocus your efforts and either fall back on your exit strategy or alternatively re-invest in order to build a substantial trading balance.
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