Archive for the ‘Forex’ Category

How to set up a strategy in binary trading

Trading online in various ways started to become popular about 7 years ago when different forex brokers went online and opened their doors to the public. Over the years it has kept growing in popularity and when binary options came about a few years later the peak was reached and millions of private hobby investors started trading online. I’ve traded binary options for about to years myself, and I’ve had some pretty good results so far. In this post I’m going to go over a few tips on how to build your strategy when you trade binary options.

The first thing I want you to realize is that binary options is an extremely fast form of trading, perfect if you want immediate results, and don’t want to have to wait months for your stocks to go up on the stock market. Binary trading is quite different from the traditional form of investment, where you buy an asset and then sell it once the price has gone up for it. In that sense, binary trading is more like betting on sports. What you do is that you pick out an asset, and then you make a prediction of whether that asset will go up or down in value in the nearby future. And when I say nearby m I really mean nearby. Trades on the binary market often have a time frame of 15 minutes, or even less sometimes. This means that you pick an asset, and determine if the price will be higher or lower in 15 minutes. If you are right, you get a massive 80% return on your investment. If you are wrong you will instead lose the money you invested on the trade.

This of course, means that there is a high risk involved in binary trading (Read more about risk and how to manage it by clicking here!). The biggest mistake I see people do is that they invest way too much into a single trade. As we can never predict the future of any event with a 100% certainty, there’s always a chance that you might lose your trade, which is something you have to account for. This will happen every now and then, even for the best of traders in periods. It’s just the way the market works. Therefore, it’s extremely important to have good money management. You can find a detailed guide on money management on this website. What it means is basically that you should never invest a big part of your capital in to one trade, but instead spread the risk into several small trades so that you can afford to be unlucky on some of them and still make a profit. You shouldn’t set a goal of making a quick buck, as it would be too much of a risk, but rather aim for long term profit when trading the binary market.

A really good website to visit in order to learn more about binary options trading is binaryoptions.pm. They aim to educate new traders and give them a good start in the trading world, and I definitely recommend you to read the guides on their website before you start trading for real, as it will give you a good ground to stand on so that you won’t be completely lost when you do visit a binary broker. You can click here to go there!

Tips for forex trading

In this article I wanted to post out some of my personal tips in order to achieve higher success in online forex trading. The reason for this is that forex trading seem to be getting really popular within the last couple of months, and with so many beginners coming on to the scene, I figured it would be helpful to get to now some basic things in order to get going.

First of all, choosing the right broker is one of the most important things in your whole forex trading career. I’m not only talking about avoiding scam sites here, as you can probably figure out yourself. Although many forex trading sites look the same, they can actually differ quite a lot. Always pick a forex broker that is licensed, and has a stable support team. Other things to look for are the spreads. You want the spreads to be as low as possible! Although it might not seem like a lot if they differ just a pip from site to site, these numbers can really grow when you start making a lot of trades on the fast paced forex market.

Another tip I have for beginners is to visit forex trading centrals. These website were extremely helpful to me in the beginning, as they provide pretty much everything you need to know when you are starting out. Sites like forextrading.pm have everything from beginner’s guides, strategies for both new and advanced traders, as well as a huge section of reviews over different trading websites so that you can easily build an understanding over which trading websites are good and which aren’t. Another good thing about these trading centrals is that they often can offer you better deals at certain brokers than you would have gotten if you went to the brokers site straight away!

Another big key to forex trading is to not let your emotions to take over. That is why I never advise people to trade money they can’t afford to lose. I can promise you that this is pretty much a recipe for disaster in the trading world. The reason it’s so important to detach yourself from your emotions is that they tend to affect your decision making. Say you have got all your money on a single trade. Now, you know the right decision is most likely to wait as the currency goes down initially, as you have predicted it to go up soon again, but regardless of that you chose to sell your currency at a loss as your emotions won’t let you take the risk of losing.

I would also advise that you straight away choose a broker which offers a large selection of currencies to trade with! Although you might initially only trade with the popular currency pairs, such as EUR, GBP and USD, you will soon notice as how you get more skilled you get more and more interested in trading with other less well known currencies. You can read more about currency trading on this page!

 

 

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