Binary Options Recommendations
Binary Options Recommendations 5.00 / 5 (100.00%) 1 vote
Many traders are looking for binary options recommendations to help them become more successful and profitable traders. While it is possible to get recommendations regarding what to trade specifically, these are called signal services, this article will focus on some more general recommendations that will focus on improving the actual trading process, and risk management. These binary options recommendations can be used throughout the trader’s career to continue to make profits in any market conditions and with any assets and as such are more valuable than simple one off trade ideas. Read on and see if these recommendations can help in your trading too.
Trade The Correct Expiry
In an effort to make profits as quickly as possible many traders begin by working with the 60 second expiries. While rapid profits can be made this way, these options are the most difficult for new traders to master. They require a very good understanding of technical analysis and great skill at recognizing chart patterns and reversals. Most new traders simply don’t have this skill yet. There are also those who simply aren’t as suited to trading with technical analysis. Some traders are better with fundamental analysis, and for these traders, focusing on longer term binary options will be much more profitable in the long run.
Use Proper Money Management
Too few traders consider money management at all, and this is a shame because many blown accounts could be avoided through the use of proper money management techniques. New traders may begin with a $250 account and start trading $50 per contract. All it takes is five consecutive losses to blow an account out when trading like this. While that may seem like a lot, it really isn’t. Strings of losses are common, and this is especially true when the trader hasn’t learned to control his emotions. Each successive losses causes more fear in the trader and as fear builds, the ability to trade logically decreases. This increases the probability that each trade will be a loser, as the trader takes greater and greater chances, and forgets about looking for high probability trades as he tries to bring himself back to break even. By limiting trades to no more than 2-3% of the available funds traders can avoid this situation and build their account balance over time.
Never Trade an Untested Strategy
Many times a trader reads about a new strategy that sounds as if it would work perfectly, but rather than testing the strategy in a demo account he jumps right into trading the strategy with real money. In many cases the strategy isn’t suitable for the asset he is trading, or it isn’t meant for the current market conditions. Since the strategy is new to the trader he doesn’t understand why it isn’t working, and ends up losing far more than expected as he tries to force the strategy to work. By testing the strategy first he could have avoided these losses, and may have even been able to make the strategy profitable.