How To Become a Successful Trader in 2016

I’m sure, you’ve already heard about how simple it is to trade binary options. It’s advantages can’t be denied, I’m sure you know them yourself and if not, you can find them here. Everywhere, on blogs or Youtube, you can find people that earn good money with the help of binary options.

Nevertheless, before you do jump into it, there are couple things you should know. Make sure you don’t just jump into binary options mindlessly, really don’t, it could lead to a complete loss of all your finances that you decided to deposit to the broker. You really have to study a little bit, before you start.

Binary options trading is a serious business and therefore it’s really important to be keep yourself informed on what you’re about to do, even before you start. You can have a look on our tips that could help you become a successful trader in 2016.

1) Choose the right broker

It’s really important. You don’t need the best and the latest tool that someone has just invented. You’ll be fine just with choosing the right broker to trade with. You need a reliable and trusted broker and only then, it’s safe to trust him with your money and trade.

Unfortunately binary options trading is also marked with plenty of dishonest fraud brokers. This category includes a lot of brokers that want to look like a high quality trusted company. Sometimes however, they are brokers that only want to rob you off of your money and not to help you earn any. Even this, unfortunately, happens, so be careful.

Once you’ve chosen a broker, make sure that it’s a trusted, regulated broker with lots of good reviews that offers quality services and a quality platform where you can trade.

Trusted binary options brokers

Broker Bonus Min Deposit Payout Review Open Account
IQ Option
FREE DEMO ACCOUNT $ 10 Up to 91 %* Review Trade Now!
CoinBase
USA Allowed
$10 BONUS $ 100 * Review Trade Now!
Olymp Trade
FREE DEMO ACCOUNT $ 10 82 % for Standard, 90 % for VIP accounts* Review Trade Now!
*in case of correct prediction
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

2) Use binary options demo

Most of the traders don’t make a profit, unfortunately, that’s the truth. The reason for their failure often isn’t insufficient capital, but the lack of knowledge. A lot of traders fail because of a completely different reason and that’s too little time devoted to education and studying, not only theoretically, which has a huge influence on their trading. One of the things that one just has to learn is – when is the right time to enter a trade. There is plenty of unsuccessful trades that could’ve ended up successfully, if only one would enter a trade couple of seconds earlier or later.

These are things one has to learn by practicing and the best way to do so is on a demo mode. How to get a demo with one of the best brokers.

3) Choose assets that you immerse into

Most of the brokers offer broad range of different assets. Most of them try to offer popular and exotic options that are tempting to novice traders and some also offer, for example, weekend options. Most of the brokers though, don’t, because almost all the assets can’t be traded on the stock-market over the weekend and therefore the markets won’t move.

When trading, you should keep an eye on, only a part of the market, there’s no need to look out for all the actual currencies. This will help you find information much easier and you’d be able to use them for your trades. For novice traders, we normally recommend  to focus on global indexes. These assets are not moving as fast as, for example, commodities, gold or oil. Currency pairs could also be quite unpredictable.

If you are going to have advanced knowledge about binary options, you could broaden your rage of assets.

4) Be careful with probability

All binary option trades are made in a way, so that broker earns money on amateurs. Yes, it works this way. Maybe you have a chance to earn 70, 80 or 90 % profit, but once you lose, you’ll lose it all. It’s important to realize that the probability works against you. So people that trade randomly, lose.

That’s why we should know how many trades we need to come out ITM, so we can end in profit, if we continue to trade with the same amount. This is called a breakeven ratio.

The basic formula is 100/(80/100 + 1). Then you only need to replace 80 with the amount of percent we get for the winning trade and the result will be a number in percent – our breakeven ratio.

If our breakeven ratio is 55.5%, we need to win 6 trades out of 10 to be in profit.

We can’t have 100% of successful trades. It just doesn’t work that way. But having 6 out 10 is not that complicated. It’s important to be well-informed and that’s why we have created this website. To keep you guys informed.

5) Money managment

If you don’t know what money managment is, read about it here.

If you really want the year 2016 to be a year when you earn money with binary options, make sure to look into money management again. The difference between an amateur and a professional is how they manage their money.

Basically it’s all about discipline and about how you manage your money when trading. We all know how trades can end, there are only two options. One is that you’ll win a huge amount or you’ll lose it. Trading is a game with probability. There is always going to be a risk, but we need to lower this risk and increase the probability to win and even though you can lose more than your breakeven ratio says, you can balance such losses with how you manage your money. If you do not do it the right way, you won’t last long in this business.

Author

Step

More about the author: Step

I've wanted to build a business of some kind and earn money since I was in middle school. I wasn't very successful though until my senior year in highschool, when I finally started to think about doing online business. Nowadays I profitably trade binary options full-time and thus gladly share my experiences with you. More posts by this author

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