Doing anything for the first time can be a nerve-wracking experience; you’re scared to fail, but there’s also butterflies-in-the-stomach excitement over the possibility you will actually succeed! This is pretty much what people trying out binary options trading for the first time go through. Luckily, there’s loads of tips and advice available all over the internet (including right here) to help newbies to this kind of trading.
Although binary options are a more affordable type of trade for a beginner, you still want to make sure to secure whatever amount of money you set aside for it by going about the process in the right way. You want to go through every step correctly and have a good mindset to help you make the most profitable trading decisions, so here is a guide to help you along the way.
Your first step will always be to look for a reliable broker. Take some time to read over their entire website before opening an account and depositing any funds. Brokers have different terms and conditions. Once you’ve read through them thoroughly, you can decide which broker you want to go with.
The second step is choosing an asset to trade. Advice and tips abound online in regard to this, but just as with any type of financial transaction, it always pays to be thoroughly informed. Spend plenty of time analysing and studying the assets that you can trade. Since you’re a beginner, most experts would advise you to be on the safe side; start out conservatively and go for the asset with the biggest payout. If you have a good feel about one asset in particular and your analytical skills lead you to believe that things will swing in your favour, you may make a bolder move and maybe you will end up 90% richer at the close of the trade.
Third thing to do pick your expiry time. Timing is an important part of binary options trading and most trades last for an hour or less, although they can last through the day. Selecting the right expiry time will allow you to utilise your best strategies to secure your investment.
Now it’s time to make your prediction. Up or down? At this stage you should have your analysis ready to increase your chances of placing the correct trade.
Finally, decide on the amount of money you feel safe investing for your trade. Investments can be as low as $5 to $10 – which is a fairly safe amount if you’re going into the trade with a good degree of nerves. The Binary Options Experts always recommend beginning on a demo account, so that you can get comfortable with the technical side of placing trades without risking any of your hard-earned cash. Once you are more comfortable and confident, you can begin to trade with small amounts, slowly building up your account.