Stock market trading is complex and therefore many of us tend to give it a wide berth. However, a great (and much simpler) alternative is binary options trading. In tough economic times, you don’t want to lose your net worth overnight, and so you should pick safe and reliable ways to invest. This is a great way to do so.
Any new and unfamiliar undertaking carries with it a certain amount of risk. Obviously, you don’t want to throw your money away needlessly. This is completely understandable. It is also why it would not be a good idea to step into this without first becoming comfortable with the basics. So, you may want to practice before you start. But how?
Paper trade the old-fashioned way. Paper trading originates from the period of time when getting daily stock updates meant consulting the newspapers. Before jumping into the stock market, people would trade stocks in an imaginary capacity – that is, they would circle their stock picks and then read the next day to check if there predictions were correct. With trading binaries, you can do exactly the same today. Pick a few strategies and use them on the options you think will succeed. Then, make note of how well your picks would have performed.
Get a demo account. Once you have done some paper trading and feel you are ready to get into more complex strategies, trying to keep all of the different possibilities in mind will most certainly prove to be too difficult to manage. At this point, you should consider getting a demo account. This will allow you to continue paper trading in essence, but you will have an actual account with a demo site. This will enable you to be in a position to put in various funding options which are customized to replicate your situation, and you will be able to watch in real time to see how successful your strategies would be on the real market.
Don’t go all in at once. You have probably done paper trading and have been making use of a demo account by this point. If you are doing well then you are probably anxious to get started trading. However, there is a caution to be had; don’t go all in on your trading just yet. Think of your first account as another test account, but with real money. Instead of putting ten percent of your funds into it, start with only a single percent. Then, split test your various strategies until you find a winning combination. Don’t think about trading larger sums until you have a consistent system.
Shadow a trader you know. This is probably among the most important advice you might not normally receive. There are successful traders all over the place. Why should you start from the beginning when you can do the equivalent of standing on the shoulders of giants? Your broker can be another helpful source of guidance. While there is a lot to trading, there is plenty of free advice to be taken advantage of to go along with it.
Get to it – but safety first. It’s a race, not a sprint. Stock market marketing seems to revolve around the idea that you can beat the market and make millions in a short time. This is a great way to lose your money like a gambler. Instead, think of it as a long term investment; if you sow a seed, it may take time, but you will build a massive tree in the end. And that is what you’ll find with binary options trading.
We make it our mission to not recommend anything but the best – which, according to industry experts, is IQ Option, the top regulated broker for your country with a minimum deposit of ONLY $10!
Between 74-89 % of retail investor accounts lose money when trading CFDs