5 Binary Trading Tips For Beginners

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

Binary Options – Tips for Beginners

1) Why and how to trade binary options?

Trading binary options is one of the many ways to earn money online. However, for this type of an income, you don’t need to sit long hours in training. It’s very simple and everyone can master it.

The trade itself is always clear and fast.

Trader (you) selects whether the price of gold, silver, or stocks will go up or down. If your guess is correct, you’ll be awarded with up to 190% of the traded amount . This movement can be quite accurately predicted and therefore it’s possible to earn money with binary options.

With a little practice, trading with binary options can become your one and only income. However, it depends on you how much you want to devote to trading.

I am sure everyone knows about traders on the stock market who buy and sell shares for a few hundred thousand or even millions dollars. That’s because the movement of stock prices takes a long time and therefore in order to make a profit you need to buy in bulk and wait for a long time for your money to increase in value.

With binary options, everything is easier, faster and possible earnings are much higher.

Would you like to tell your boss a final goodbye?

A list of 10 main advantages can be found in this article 10 reasons to start trading binary options.

2) I know what binary options are. But how do I know if the price will go up or down ?

As you already probably know, binary options work the way that when you correctly estimate the direction of price movement of gold, silver, or stocks, you earn money.

The price may go up or down.

In order to estimate the direction of the price movement correctly, we use different strategies. There is a lot of them and you can find some them here on our website. Binary Options Strategy.

You may be taken aback, why, when I talk about strategies in my articles, I mention Meta Trader 4, or as shortcut MT4 quite a bit.

MT4 is a software that downloads information on current prices and exchange rates movements from the internet. Afterwards it allows you to work with the prizes in the form of graphs. The graphs given by a broker aren’t enough for a correct long-term analysis and that’s why we use this program.

If you have further questions about the MT4, I’ve written about over 9 articles about it in the Meta trader Show. In this series, you will learn the most important things, including a correct installation process.

Open this program and observe the chart movement. If it seems that we could enter a trade, open a web browser (e.g.. Google Chrome or Internet Explorer) and perform a trade on broker’s platform (e.g. www.olymptrade.com).

We do not trade directly in the MT4 program!

The charts shown by MT4 are called candlestick charts and are a little different than just simple lines. Here is a quick explanation: how to read candlestick charts.

Binary Options Strategy

Now that you already know about this program, you need to know how to use it. We’ll find out in the already mentioned Meta Trader 4 show. But if you want to make the lengthy learning process a bit easier, it’s time to find yourself a strategy.

There’s plenty of strategies to download and try out. Some of them can be found here: Binary options strategy. Or if you want, there are few strategies that I have used as well on the website best binary options strategies. Give that a look.

But remember, you should never invest real money without trying the strategy on a binary options demo account first. You could lose money very fast doing so.

3) Which broker is the best to open an account at and trade with?

You can learn a few basic rules on this page. A list of recommended and approved binary options brokers can be found here: binary options brokers. After clicking on any of the broker’s picture you can get a very detailed statistics, important information to consider and according to it, decide which broker is right for you.

Important factors necessary when selecting a broker:

  • How bigare the profits for each winning trade that the broker offers? Is it 70%, 80%, 90% or even 100%?
  • What is the minimum amount of deposit and each trade?
  • Does the broker offer trading with 60 seconds / 5 min / 10 min options / touch or other types of options? (Everyone has a different way of trading)

The best and most advanced broker on the market right now:

  • IQ Option: Broker with a low minimum deposit of $ 10) and a low minimum tradeamount($ 1) so it’s particularly suitable for beginners. The platform has many many functions you can use – their platform is very good! But beginners might get lost at first. As soon as your deposits combined reach up to $3.000, you get a VIP status, your own personal account manager and access to many educational videos and articles.
  • Binomo: This great broker for smaller countries outside of the European union offers a great custom made platform suitable for beginners. Their platform has been verified by VMT and is trustworthy. Their min. deposit is also set to 10 USD and demo account to try the platform is accessible for free.
  • OlympTrade: OlympTrade is very similar to IQ Option and Binomo. They also offer a free demo trading account and have a low minimum deposit of $ 10. I think it’s a matter of personal preference, with any of the mentioned broker, you will be satisfied. Open up their review and choose one.
  • HighLow: A great broker for Australian traders only. They offer a free demo account, have a low minimal deposit and also give a 50 usd cashback on your first deposit. Are you from Australia? Check it out!
Broker Bonus Min Deposit Payout Review Open Account
FREE DEMO ACCOUNT $ 10 Up to 100 % !* Review Trade Now! FREE DEMO ACCOUNT $ 10 82 % for Standard, 90 % for VIP accounts* Review Trade Now! FREE DEMO AND LOW MIN DEPOSIT $ 10 Up to 90 %!* Review Trade Now! Social trading features $ 50 Up to 95 %* Review Trade Now! Only for Australia $ 50 Up to 100%* Review Trade Now! *in case of correct prediction
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

4) How to deposit money?

Have you decided to start trading binary options? Great! But to make money, you first need to transfer your funds to your trading account, make a deposit.

Every broker has the deposit process done a little different, but generally, it’s more or less the same. It is necessary to use Skrill, a credit card or just send the money through the wire transfer – which is the slowest way. Brokers IQOption and OlympTrade have the lowest deposit of only $ 10, followed by ExpertOption – $ 200.

5) How to withdraw the money you’ve earned?

If you’ve read through everything I wrote on this page and you have decided to trade, hopefully, you are in profit. Now you just need to do the simplest step of them all, which is to withdraw the money you’ve earned to your very own bank account.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

You can have them sent right back into your bank account by logging in to the trading platform and clicking the withdrawal button.

The money will be in your account within 7 working days, but usually much faster and you can use it to buy anything you want or you can re-invest.

This is what trading is like – IQ Option platform

You can find a test platform below. This is how entering a trade with a broker looks like. (This is, of course a fake platform only to try trading – it doesn’t reflect real market data)

  • First, choose the direction the price will move and click CALL or PUT
  • Wait for the end of the trade. Did the price move in the estimated direction? You made money!

Open an account with the best broker now!

Broker Bonus Min Deposit Payout Review Open Account
USA Allowed
$10 BONUS $ 100 * Review Trade Now!

And what to do now?

Have you read, tried and mastered all the things mentioned above? Are you ready to go one step further in becoming a profitable binary options trader? Make sure you read the following guides as well.

How to Trade Binary Options as a Beginner?

Binary trading requires basic knowledge, patience and common sense. In this article we guide South African traders through all the steps necessary to place a successful trade in binary options.

As always, we recommend trading only with regulated and trusted brokers such as IQ Option for added benefits such as a free demo account, $10 minimum deposit and only $1 minimum investment. For more brokers, see our broker page. Let’s get started.

What Are Binary Options?

Binary options are nothing else but a prediction of an asset’s price direction in a prespecified amount of time. The price doesn’t have to go too high or too low for traders to make a profit. All they need to do is predict whether the closing price will go higher or lower than the opening price as shown in the figure above.

If the price stays the same, then traders receive their investment back. If the trader predicts correctly, then the profit made can go up to 91% depending on the broker and the asset. On the other hand, if the prediction is wrong, then the trader loses the investment.

Example of a Binary Options Trade

Step 1: Register with a trusted binary broker

Registering with most binary brokers takes only few seconds. All you need to do is fill in the boxes with your email and a password. You also have the option to continue with your Facebook or Google account or simply fill in your personal details like name and surname.

Step 2: Practice with the free binary options demo account

Practice binary trading with a free demo account available to South Africans, before switching to a live account in order to get familiar with the binary trading platform. In this section there is a detailed explanation on how to place a successful trade with the legendary IQ Option platform. Once you feel ready you can switch to live binary trading which is done exactly in the same way as explained here.

Select Asset

To start with, traders need to select their asset from the drop-down menu as shown here. A large selection is available as always by IQ Option.

Set the investment amount

Then, set the investment amount as shown below by clicking on the amount box at the right-hand side of the trading platform. This can be as low as $1 so that novices can start trading with a low investment capital.

Set the expiry time for the binary option

Once the investment amount is set, traders need to select the expiration time. There are binary options available from 60 seconds to the end of the month as shown below. You can even see that the profit percentage changes according to the expiration time. Longer expiration times will offer lower returns.

Once you choose the option’s expiration time then, you can place as many binary trades as you wish.

Choose the direction you expect for the price in the future (Higher or Lower)

This can be done by choosing the price direction, either by clicking on the higher button if you believe that the price will go higher than the opening price.

On the other hand, traders can click on the lower button if they believe that the closing price will be lower than the opening one as shown here.

Wait for the binary option to expire

Finally, you wait until the expiration time comes and if you have won then, the amount will be shown in a green box as shown in the picture below.

Step 3: Make a deposit and switch to live trading

Making a deposit even in South Africa is pretty simple and requires only few minutes of your precious time. Simply click on the green deposit button at the right top corner as shown above and follow the instructions. You are now ready to start trading.

Risk Warning: As always, we inform our readers that trading involves risk. Always invest funds that you afford to lose.

5 simple Binary Options Tips & Tricks

What is the key to success with Binary Options? – On this page, I will show you the best and simplest Tips & Tricks for trading Binary Options. That is a piece of advice for beginners or advanced traders. With more than 5 years of experience in trading, I know what I am talking about. It is always the same mistakes why traders lose their money to the markets.

It is important to go through all the steps and techniques on this website because only one mistake can cost you a lot of money:

1. Know the risk of trading (Risk management)

If you start trading you have to risk money on the stock exchange in order to make a profit. Most of the time this fact is misunderstood and traders care less about the risk. Binary Options are very risky to trade because you can lose the invested amount of money. That means you have to have a higher hit rate than 50% to make a profit over a long time horizon.

Sometimes there are loss stikes for beginners or advanced traders. It always can happen to you because the market is different and flexible in his price movements. Sometimes you lose more than 10 trades in a row. That’s why you need sensible money management.

Sensible money management means long-term success.

Money Management:

It is important to use your funds wisely. That means that you should protect your account against loss strikes. Most traders risk too much money of their account balance and then they wonder why they start trading irrational and with emotions. It is harder to lose 100% of the account balance than 10%. Sensible money management means that you only risk 1% of the account balance per trade.

Example: You got an account with the balance of 10.000$. Risk of 1% is 100$ investment in each trade. That allows you to lose more than 10 trades in a row and so it is easier to accept the loss.

Also, you should always use the same amount of money for your invest (percent of account balance). Professional traders know this fact and they are growing their accounts continuously and not in huge steps.

2. Start investing with a small amount of money

Nowadays you can start trading with a small amount of money like 10$. In my opinion, you should start with a small deposit like 50$ or less. After you feel comfortable and do a profit with the small account balance you can invest more money. It is important to stack up risk if you trade well and profitable. You never should do it the way around. That can be very bad for your hard earned money.

  • How much money do you want to fund into your account?

That is another question for traders. As mentioned before I always start with a very small amount in a new trading account. After I gained some profit I feel comfortable and able to invest more funds into my account.

3. Choose a regulated Binary Options Broker

Another tip to improve your results is to choose a regulated Binary Options Broker. It is much safer for your funds. This is the shocking truth! Unregulated brokers sometimes scam their clients. That is what should be avoided by this tip. I personally cannot trust an unregulated company that´s why I created the comparison below. In the table, you will find regulated brokers for trading Binary Options. The funds are safe with them and you will get your payout directly.

Best Platform
Highest Yield
Best Support

Broker: Review: Regulation: Yield: Advantages: Open Account:
1. IQ Option (5 / 5)
Read Review
CySEC (EU) up to 100%+
2. Olymp Trade (4.8 / 5)
Read Review IFC 92%+

Huge diversity
High Yield 92%
Bonus Program 3. Expert Option (4.8 / 5)
Read Review VFSC, FMRRC 90%+

Good Platform
Account Types
Good Education

4. Develop a strategy and trading rules

Trading without a plan is not a good idea. Every professional trader got his own strategy. From my experience, it is not a good idea to copy a strategy for 100% too. First of all, you should practice trading in the demo account for getting new experience in the markets. In addition, you can learn strategies and get higher knowledge through the education center of the broker or the internet.

On my site “Binary Options Strategy” you can learn about my best method to trade the markets. It is important to get a trading routine by strict rules. It should be lite a system which is working correctly. In conclusion, there are a lot of good working strategies on the internet but most traders do not follow the rules exactly. It is very hard to trade the exact rules for a human.

Create a checklist for your trading routine, I will give you an example:

  • Check out the market news
  • Which time is it?
  • Which markets are open?
  • Where was the open of the markets?
  • Are there any support and resistance prices in the market today?

Development of a trading strategy

Personally, I got strict rules for entering the market. My “false breakout strategy” allows me to trade only on certain levels in the market. I am searching for highs and lows and wait for the break. That’s all that I am doing. Very simple and clean. But it is hard to follow the rules every time because the market always moves and maybe gives you other opportunities to trade. I try to ignore the other opportunities for better results of my strategy.

5. Do not do overtrade

This is the last tip for trading successful Binary Options. Overtrading is one of the most common mistakes of beginners. Especially for a short-term day trader, it is difficult to do not overtrade. That means to trade a high volume in a lot of different trades. In my opinion, you should make a rule that you do not trade more than a certain amount in one hour. The problem is the concentration of human consciousness.

In addition, it is important to take breaks from trading to get a recap and relax for some time. Short-term trading is one of the hardest methods to trade the markets. The price always moves very fast from the one end of the chart to the other end. I recommend to trade a maximum of 1 hour and then do a break for 10 minutes. Do not become addicted to the markets. Often it will blow up your account if you do not trade rationally.

  • Just spend one hour by trading the markets
  • Do a break after it
  • Start again for one hour
  • There should be a daily time limit and trade limit

How to win Binary Options every time?

Did you ever ask this question to yourself? From my experience, it is impossible to win every trade. The best traders got a hit rate of more than 70%. They also got lose trades or strikes. It is all about the probability to win in the markets. The probability cannot be 100% because there are other humans who react to the markets. You can not make a forecast for 100% about to a human reaction.

Another possibility to get knowledge about the hit rate of your strategy is to do research and analyze bar by bar the last price movements. Do it by yourself and you will find out that there is not the same price movement occurring every time. In addition, you should never trust somebody who says that he always win Binary Options.

In conclusion, the key to success is practicing trading and get more knowledge about the markets. The best way to practice is a free demo account with virtual money. It is simulating the real money trading and you trade without any risk. After you learned a proven strategy the way is open to earn a lot of money.

What are the best trades for beginners?

Binary Options is a flexible financial product. You can customize the trade like you want before you click the call or put button. But what are the best options for beginners?

From my experience, I recommend for beginners to do not do short-term trading like 30 or 60-second trades. It is a way too fast for beginners. All in all, it is easier to use higher timeframe because you got more time to react to the markets. Beginners are too slow for watching 30 or 60-second charts. Furthermore, beginners should trade the most traded assets by their broker because they give them the highest profit of 80-95%.

  • Avoid 30 – 60-second trades
  • Trade the most traded assets by your broker

Beginners should avoid short-term trading

Review of the Binary Options Tips and Tricks

On this website, I showed you different techniques to improve your trading results with Binary Options. You will get more profitable trades if you follow my tips and tricks. In conclusion, there are a lot of different mistakes traders make. Often they do not know what they are doing and then they wonder why they lose a huge amount of money.

As mentioned before knowledge is the key to success. That’s why I created this page for you.

  • Risk Management
  • Start with a small amount
  • Regulated Broker
  • Strategy and rules
  • Overtrading

The tips complete each other. Every bad trader starts with wrong risk management. Stop increase the risk if you are losing. Professional traders increase the risk if they are winning. It makes no sense to risk more money in a losing strike. It will make the losing strike even bigger. On the other side, you should increase the risk in a winning strike. Start with a small amount of money for your first trades. If you do it well and feel comfortable with the platform, you can increase the risk. You will gain more and more self-confidence after you won some trades in a row. That allows you to trade better and accurately.

The most beginners ask: which is the best Broker for Binary Options? – I recommend using a regulated broker like IQ Option, Olymp Trade or Expert Option. Check out the upper table and create a free demo account or read the big reviews of the brokers on my website. It is important for me to use a regulated broker because I cannot trust unregulated one. I want to be safe by investing money and not get scammed.

The last 2 tips are supporting each other. By using a professional strategy you will not overtrade in the markets. Strict rules and knowledge is the key to success with Binary Options. I hope you enjoyed this page and you will make less losing trades.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Choice!
    Free Trading Education!
    Free Demo Account!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!!!

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