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9 Tips for New Traders to Trade Binary Options
From earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:
9 Tips for New Traders to Trade Binary Options
- The first and foremost advice to be given to any beginner trader is to select a good binary options broker for your help in this field. A good broker, who knows his work, makes all the difference. There are various comparison websites available to make this choice easier for new traders, so one can quite easily consult these websites and choose a good binary options broker of their choice.
- Secondly, it is advisable to increase your knowledge in the field of binary options trading and to know that there is always more to learn. There are training courses available for imparting binary options trading knowledge to new traders. Reading new books on the subject matter and discussing with other traders about the matter also adds to the benefit. This type of trading is a constantly-evolving experience, hence knowledge on the matter is ever expanding.
- Thirdly, trading long term serves better returns, and binary options trading is a long term activity. Developing a long term plan for your binary trading and playing the right cards will ensure that you ultimately come out on top. Resist the temptation to get drawn into fads that do not fit into your overall strategies and strictly stick to your drawn plans.
- Fourth is to reduce your risks by resisting the urge to over-invest. Beginners tend to get carried away to make that one big score but they must employ some self control as that may be a game changer. New traders lose more money by getting carried away and over investing. Binary options brokers advise to invest not just with courage but also with rational thinking.
- Fifth, it is essential to keep a clear head while making any decisions about binary options trading. Beginners should avoid trading when they are emotionally disturbed, as emotions can create havoc with your trading. It is very easy to make the wrong decisions in an emotional state, so it is advisable to stay away from any form of trading until you’ve calmed down and cleared your mind.
- Prepping yourself before trading in binary options is the sixth advice. Studying the market and viewing graphs over time can help new traders predict behavior of any binary options asset, thereby helping them to make well-informed decisions.
- Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
- Hedging trades against each other just ends up decreasing the statistical probability of earning more profits as opposed to increasing them.
- Last, but not least, it is very important to have fun while trading binary options. Beginning binary options traders must ensure that it does not become a bore or a drag; if a trader has fun while trading, then he or she will be naturally inclined towards it and will pay more attention and make better decisions, thereby increasing profits.
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Last Updated on March 25, 2020
How to Set Financial Goals and Actually Meet Them
Serial entrepreneur and working towards Early Retirement Read full profile
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Finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. And that’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?
In this article, we will explore ways on how to set financial goals and then actually meet them with ease.
Table of Contents
5 Steps to Set Financial Goals
Though setting financial goals might seem to be a daunting task but if one has the will and clarity of thought, it is rather easy. Try using these steps:
1. Be Clear About the Objectives
Any goal (let alone financial) without a clear objective is nothing more than a pipe dream. And this couldn’t be more true for financial matters.
It is often said that savings is nothing but deferred consumption. Therefore if you are saving today, then you should be crystal clear about what it is for. It could be anything like kid’s education, retirement, marriage, that dream vacation, fancy car etc.
Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives, however small they may be, that you foresee in the future and put a value to it.
2. Keep Them Realistic
It’s good to be an optimistic person but being a pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.
It’s important that you keep your goals realistic in nature for it will help you stay the course and keep you motivated throughout the journey.
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3. Account for Inflation
Ronald Reagan once said – “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”. And this quote sums up the best what inflation could do your financial goals.
Therefore account for inflation whenever you are putting a monetary value to a financial objective that is far away in the future.
For example, if one of your financial goal is your son’s college education, which is 15 years hence, then inflation would increase the monetary burden by more than 50% if inflation is mere 3%. So always account for inflation.
4. Short Term vs Long Term
Just like every calorie is not the same, the approach towards achieving every financial goal will not be the same. It is important to bifurcate goals in short term and long term.
As a rule of thumb, any financial goal, which is due in next 3 years should be termed as short term goal. Any longer duration goals are to be classified as long term goals. This bifurcation of goals into short term vs long term will help in choosing the right investment instrument to achieve them.
More on this later when we talk about how to achieve financial goals.
5. To Each to His Own
The journey of setting financial goals is an individualistic affair i.e. your goals are your own goals and are determined by your want to achieve them. A lot of times we get on the bandwagon of goal setting only to realize later on that it was not meant for us.
It is important that your goals are actually your goals and not inspired by someone else. Take a hard look at this step at all the goals you’ve set for after this step, you will be on the way to achieve them.
By now, you would be ready with your financial goals, now it’s time to go all out and achieve them.
11 Ways to Achieve Your Financial Goals
Whenever we talk about chasing any financial goal, it is usually a 2 step process –
- Ensuring healthy savings
- Making smart investments
You will need to save enough; and invest those savings wisely so that they grow over a period of time to help you achieve goals. So let’s get down to ensuring healthy savings.
Ensuring Healthy Savings
Self realization is the best form of realisation and unless you decide what your current financial position is, you aren’t heading anywhere.
This is the focal point from where you start your journey of achieving financial goals.
1. Track Expenses
The first and the foremost thing to be done is to track your monthly expenses. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you would be surprised to see how small expenses add up to a sizeable amount.
Also categorize those expenses into different bucket so that you know which bucket is eating the most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pump up your savings rate.
2. Pay Yourself First
Generally, savings come after all the expenses have been taken care of. This is a classical mistake which almost everyone of us do. We pay ourselves last!
Ideally, this should be planned upside down. We should be paying ourselves first and then to the world i.e. we should be taking out the planned saving amount first and then manage all the expenses from the rest.
The best way to actually implement is to put the savings on automatic mode i.e. money flowing automatically into different financial instruments (for example – mutual funds, retirement corpus etc) every month.
Taking the automatic route will make us lose control of our money and hence will compel us to manage in what’s left with us thereby increasing the savings rate.
3. Make a Plan and Vow to Stick with It
Budgeting is the best to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be made.
Nowadays, several money management apps and wallets can help you do this automatically. It’s easy and who knows, you may just end up doing what people fail to do.
At first, you may not be able to stick to your plans completely but don’t let that become a reason why you stop budgeting entirely.
Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.
You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.
4. Rise Again Even If You Fall
Let’s be realistic. It’s not like the world will come to an end if you made one mistake. This isn’t called leniency but discipline.
If you fail to meet your budget for a month, don’t give up the entire effort just like that. Instead, start again.
Remember that flexible plans are the most realistic plans. So go forward and try to follow your financial goals as planned but if for some reason, the plan gets out of hand for you, do not give up on it just yet. This has a lot to do with your psychology rather than any material commitment.
All you have to do is to stay on the road and vow to stay on it, no matter how much you fall down.
5. Make Savings a Habit and Not a Goal
In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.
Make Savings a habit rather than a goal. While it might seem to be counter intuitive to many but there are some deft ways of doing it. For example:
Always eat out (if at all) during weekdays rather than weekends. Usually weekends are expensive. Make it a habit and you would in turn be saving a great deal.
If you are travelling buff, try to travel during off season. Your outlay will be much less.
If you go out for shopping, always look out for coupons and see where can you get the best deal.
So the key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice which will be harder to sustain over a period of time.
6. Talk About It
Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission. And it would be rather easy to lose the grip over your discipline.
Therefore in order to stay the course, it is advisable that you keep yourself surrounded with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.
7. Maintain a Journal
For some people, writing helps a great deal in making sure that they achieve what they plan.
So if you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.
Use this journal to write down all essential points such as your short term, mid term and long term goals, your current sources of income, your regular expenses which you are aware of and any committed expenses which are of recurring nature.
When you have a written commitment on paper, you are going to feel more energised to follow the plan and stick to it. Moreover, it is going to be a lot more easier for you to follow you and track your progress.
At this point, you should be ready with your financial goals and would be doing brilliantly with savings; now it’s time to talk about the big daddy – Investments.
Making Smart Investments
Savings by themselves don’t take anyone too far. However savings when invested wisely can do wonders and we are at that stage where we will talk about making smart investments.
8. Consult a Financial Advisor
Investments doesn’t come naturally to most of us therefore rather than dabbling with it ourselves, it is wise to consult a financial advisor.
Talk to him/her about your financial goals and savings and then seek advice for the best investment instruments to achieve your goals.
9. Choose Your Investment Instrument Wisely
Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about them.
Just like “no one is born a criminal”, no investment instrument is bad or good. It is the application of that instrument that makes all the difference.
Do you remember we talked about bifurcating financial goals in short term and long term?
It is here where that classification will help.
So as a general rule, for all your short term financial goals, choose an investment instrument that has debt nature for example fixed deposits, debt mutual funds etc. The reason for going for debt instruments is that chances of capital loss is less as compared to equity instruments.
10. Compounding Is the Eighth Wonder
Einstein once remarked about compounding,
Compound Interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.
So make friends with this wonder kid. And sooner you become friends with it, quicker you will reach closer to your financial goals.
Start investing early so that time is on your side to help you bear the fruits of compounding.
11. Measure, Measure, Measure
All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments; taking stock of how our investments are doing.
If there is one single step where everything (so far) can go wrong, it is at this step – Measuring the Progress.
If we don’t measure the progress timely, then we would be shooting in the dark. We wouldn’t know if our saving rate is appropriate or not; whether financial advisor is doing a decent job; whether we are moving closer to our target or not.
Do measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!
The Bottom Line
This completes the list of tips for you to set financial goals and actually achieve them with not so great difficulty.
As you can see, all it requires is discipline. But guess that’s the most difficult part!
Binary Options Guides
Binary options trading revolves around predicting whether the underlying asset price will be going up or down from the strike price. The logic behind it is really that simple. It is a case of getting it right or getting it wrong. There is no middle ground. The added factor in this is that there is a time frame in which the trade expires and by the end of it your prediction has to be correct in order to profit from the trade. This type of trading is not a guessing game, despite it being so simple. It is in fact very important to be educated and gain experience in trading binary options as there are various crucial factors which influence the capabilities of being well versed in this type of online trading.
As we previously said, there are many factors which can influence a person’s ability to boost their profit potential when trading binary options. For this reason, we have decided to provide South African traders with guides which cover many of the most important things binary options traders need to know.
One thing we also need to mention is that we have regularly get feedback from traders in South Africa which tells us that the guides we provide to them are definitely making an impact and are very useful for them to figure out which broker or auto trading software might be the right fit for them.
Our guides are designed to provide relevant information on all things concerning binary options trading in South Africa. Some are aimed at representing and explaining certain useful tips, others are more in-depth and are best suited for those who are on their path to know more about binary options than just the basics and all the factors that may be important in a specific trading context.
Guides as an Essential Tool
As we mentioned before, in our guides Section, we have attempted to go over all important elements of binary options trading and everything else related to it which can help South African traders.
When it comes to, for example, binary options auto trading software, we know that it is extremely popular among traders all across the world because it provides a whole new dimension of binary options trading experience. It takes the manual research and number crunching out of this important equation and provides a streamlined and straightforward way of boosting profit potential.
Binary signals, which have also become a staple in the repertoire of many South African binary traders, along with others from other countries worldwide, have also found their respective place in our guides. They can be used independently from binary robots, but are the foundation of the auto trading software.
When traders consider all of the things they need to be familiar with in order to simply start with binary options trading, it is clear that there needs to be a clearly indicated starting point from which they can depart into this exciting journey. Binary Options Guides offer that advantage and they have long been the first step for many South African traders.
A Step-by-Step Guide to Binary Options Trading
Binary options have long been popular among the small investors who do not have the funds to invest huge amounts of money into a traditional way of trading on the financial market. Considering the fact that binary options trading typically offers various trading tools, trading options and features it is clear how this type of trading is a great fit for those who like to customize their investment plans as much as possible.
In the next couple of sections we bring you all the bits and bobs of binary trading that we believe, every trader will find useful, regardless of their experience and education levels. We also aim to provide you with clear guidelines on how to develop your trading potential and take specific precautions to protect yourself in this type of financial trading as it does come with inherent risks which everyone should be aware of.
What Exactly are Binary Options?
Considering that the term itself is pretty self-explanatory, it might seem that trading binary options is just a guessing game. It does seem that way at first. Seeing that there are only two options in binary options trading – predicting if the asset’s price will rise or fall in a designated time frame it does seem simple to the inexperienced eye. However, there are many important factors that South African traders need to take into consideration.
One of the first factors is actually figuring out what are the ways of correctly predicting the price fluctuations on the global market. It is important to understand various aspects of global market trends which heavily depend on the global economy and also specifically on the type of asset or multiple assets you have decided to place trades on.
Everyone knows that the main characteristic of the global markets and the financial industry is the fact that is is highly fluctuating and unpredictable. The great thing about binary options trading is that the potential profit, but also potential losses, are known in advance to every trader that wants to place a trade. These risks and possible profits are actually known even before you place the trade. This way you are never surprised at the specifics of the outcome, which is a really big psychological advantage when it comes to trading.
Understanding and Mastering the Trading Process
Understanding how the trading process actually works is paramount for any type of financial trading, and the same is clearly true for binary options trading in particular. Although it does seem relatively simple in its core, the truth is that the trading itself and the decision making behind it is anything but simple. This is not meant to discourage potential South African traders from choosing binary options trading as their way of participating in the global markets, but we do believe that potential success depends on the complete understanding of the factors involved.
Familiarizing yourself with the basics of binary options trading, if you haven’t already, is a must before you even think of opening an account with a broker of your choice. It is fairly obvious that if you do not have enough knowledge or experience in binary options trading, the decision of which broker to actually choose is going to be a difficult one. As you can see, everything starts with understanding the basics of the trading process and all the additional information, guides and education you invest in during your journey as a South African binary options trader will only serve to elevate your potential and additional leverage in your further trading path.
Question on how to master binary options trading in South Africa interest most people who are about to join this online investment with plans to achieve payouts. In our experience, binary options industry has for a few years now, been very popular in South Africa.
To traders in South Africa, binary options trading has several advantages and therefore, are the reason why they decide to invest in binary options. Possibility to trade in numerous assets, try out different tools and strategies, get more info from education materials are among the main reasons for binary options trading popularity on the South African market.
Choosing the Binary Options Broker
There is no binary options trading if there are no brokers. So, clearly, the choice of broker and the process of picking one is very important indeed. Not all brokers are the same and not every binary broker is suitable for every type of trader. Considering there are so many of them on the market is wise to learn as much as you can about those you find interesting so you can be prepared to make the best possible choice.
Choosing the right binary options broker is the most important step when planning to master binary options trading in South Africa. With more than 400 brokers on the binary market, traders should be careful when trying to figure out which broker is safe to trade with.
Some brokers are CySec regulated, others may be regulated with other financial authorities while some might not be regulated at all. We recommend South African traders to find out as much possible about this industry, including broker reviews and valuable info regarding financial transactions and available trading features. Features, such as demo account or using mobile platform are welcomed to all registered traders.
Binary brokers listed on our site are reviewed and recognized as great trading platforms with whom traders don’t have to worry about the safety of funds.
How to Trade Binary Options on a Trading Platform?
Many reputable brokers offer traders option to trade in a selection of different currencies, stocks, commodities, and indices. This way, registered traders are able to choose between different assets and choose that one which they find the most suitable for trading.
Since trading binary options trading has just two possible outcomes; up or down, traders invest in assets for a predetermined time. Therefore, they are able to select the preferred time of expiry, which can range from 60 seconds, over few minutes, days and even up to 150 days.
South Africans can also choose between different trade options, such as High/Low, 69 Seconds, One Touch and much more, but it all depends on a particular binary broker and features available.
Understanding how binary options trading works is the key element of a successful trading process. It is advised that traders use demo account for practice, try out strategies and overall, get the most from binary options trading.
Asset Index in Binary Options
By Asset Index, we find a list of assets which traders in South Africa can use when trading binary options. It is possible to trade with currencies, commodities, stocks, and indices. Each trading platform offers distinctive asset list to registered traders.
Traders should, however, keep in mind how in some cases, external influences can affect on asset price and change its direction. Therefore, South African traders need to know these facts before they place a trade. By external influences we mean weather catastrophe or a flood.
This comes as an important segment of the successful trading process, where our readers can learn how to maneuver binary options trading in South Africa.
Although some might rely exclusively on luck, for traders to be continuously successful and earn money, it takes more than pure luck. Pro traders always educate themselves in order to understand what does it take to profit from binary options.
To help with this, education materials are extremely useful. Plenty of brokers on South African market offer just that; a wide range of education components, which traders can use to increase their benefit potential from the trade.
Many South African brokers have an amazing Education Centers with a selection of different educational tools for a premium binary trading journey. These materials include FAQ, ebooks, economic calendar, webinars and a set of guide article; for traders of all levels of experience.
In these materials, traders are able to search for needed information, whether that is about how to deposit or withdraw funds or typical questions regarding available features on a particular trading platform.
Questions Traders Frequently Ask
In addition to the Education Center, there are other relevant sources of information that South African traders can use. Seeing that there are certain things that traders ask on a regular basis, we have compiled a list of those questions to further provide you with the much-needed info.
What does Call option mean?
Type of option where traders predict that price of an underlying asset will rise in comparison with strike price.
What does Put option mean?
Type of option where traders predict that price of an underlying asset will be lower in comparison with strike price.
What are underlying assets in binary options?
Underlying asset is a financial term used in binary options trading. Assets include: stocks, currencies, commodities and indices. Exactly number of available assets vary depending on particular binary options broker.
Who is binary options broker?
Binary broker is the one who offers a trading platform to interested traders who want to trade binary options. Each broker offers different platform, which includes a variety of trading tools, features and trade options.
What is auto trading in binary options?
Binary automated trading is an innovative way how to trade binary options by using sophisticated trading software which place trades on your behalf. There are several available software which you can trade on and that accept traders from South Africa.
What is the initial step in binary options trading?
South African traders can choose whether they want to trade automatically with trading software, binary options brokers or try out social trading networks. BinaryOption.co.za site offers a selection of auto robot and broker reviews for traders to read them and decide which platform is the most suitable.
How do I trade with binary automated system?
Under robot tab, traders first have to click on button Trade with and afterwards you will be redirected to a specific software website where you can register, deposit and begin trading binary options.
How do I register with binary robot or social trading platform?
Once you have selected preferred platform to trade on, you will need to complete a registration. Several information should be submitted, such as first and last name, email address, country and phone number.
Is binary options trading legal in South Africa?
Yes, trading binary options is legal in South Africa.
What is minimum deposit to trade binary options?
Minimum deposit amount depends on a broker’s platform which is connected to a particular auto trading software. Binary industry average is $250, while several brokers might offer lower deposit amounts.
Where do I learn how to trade?
On binaryoption.co.za you can find a list of useful guide tutorials regarding binary options trading in general, automated trading and traditional way of trading binary options, and much more.
How to identify and avoid binary option scam?
To avoid scam in binary trading, we recommend you to carefully choose trading software or broker by reading their reviews listed on BinaryOption.co.za site. You can check Education section and find more detailed information concerning binary scam.
Do I have to provide documents to deposit or withdraw money?
Yes, before making any payments, you have to authorize your trading account by providing following documents, such as ID card photocopy, copy of credit card and proof of residence.
Which ever direction South African traders decide to take with their binary options trading it is important to remember that you are advised to start out slowly. Take your time to properly understand the basis and then making an informed decision about which direction they want to follow, which broker or auto trading software to choose among the wide selection. At any rate, understanding the guiding principles, as well as risks is very important and those aspects should not be neglected if they wish to boost their success potential in binary options trading.
Binary Options Guides
Binary Trading South Africa is a place for South African traders to find relevant guide articles which can assist them to have better trading knowledge of binary options.
We continuously strive to bring our readers in South Africa guide about topics that interest them the most in order to gain more experience and become pro traders with better trading results.
Below in our Binary Guide section, you can find selection of articles on various trading topics.
Deposit Methods with Best Regulated Brokers in South Africa
What is Social Trading?
How to Avoid Scam in Binary Options?
Most Profitable Auto Trading Robots in South Africa
Best Tips on How to Master Binary Options
Binary Auto Trading Robots
Binary Options Introduction – South Africa
In recent years, binary options trading became a popular system which interest individuals in South Africa to invest in binary options.
Trading with binary options is a quite simple process and easy to understand. No complex procedures and technicalities are involved in this trading system.
Like other parts of the world, binary options trading is highly popular among the traders in South Africa. Traders can choose whether they want to invest in currencies, commodities, stocks and indices.
Trading binary options is actually trading with fixed payout and time of expiry. There are only two options; asset price can rise or can fall. The idea behind binary options trading is to figure out will asset price be below or above target price.
To able to make a right prediction for predetermined time, a certain trading skills are required.
Although, trading binary options isn’t difficult as people might think, it still needs a certain effort involved and understanding of how binary trading works.
BinaryTrading.co.za Guide Section
Under Guide tab, traders can learn many useful tips and tricks with only goal to become more experienced and have better option for profitable trading journey. South African traders can find out more about how to choose the right binary broker and detect scam in binary industry.
Also, traders can learn what is binary auto trading, as well as social trading and why are these investment types so popular among traders in South Africa.
We find Guide section to be very useful because of its many advantages.
Traders can get guidelines from our articles which can later be used to profit from binary brokers. This is especially important for new and inexperienced traders who are thinking about joining binary trading platform.
Services such as demo account and different trade options are significant for trading process. On demo account, traders have an amazing opportunity to test the platform and try out different tools and strategies to see which one work the best. This is risk free since South Africans deposit virtual and not real money.
In case you are not sure about which broker to choose and want to know more about trading features, we recommend to read our Guides and get valuable information.
Free Trading Education!
Free Demo Account!
Big Sign-Up Bonus!
Good Choice For Experienced Traders!!!