Binary Options Trading Site – 5 Important Pointers For Newbie Traders

Binary Options Trading is one of the popular ways to make money online. It involves investing money in commodity or stocks. If you are a new trader, you have to visit an online broker site to open your account and use its proprietary software to start the process.

However, you must know a few important pointers before creating an account and making the initial deposit:-

Pointer #1 – Site must be legitimate

Many sites are not legal and just created to fool people. Taking initial deposit as soon as possible is the sole purpose of such sites and the entire content will be planned and written accordingly.
So, you must check if it holds a valid license from regulatory bodies like CFTC, CySEC, ASIC, FCA etc.
It’s critical to verify the credentials by conducting your own research and ensure it is 100% genuine and authentic.
You can read reviews on Google and also try to reach fellow traders through social media, LinkedIn or other business directories. They will give honest and unbiased reviews to help in your decision.

Pointer #2 – Beware if you are getting many calls

If you are receiving unnecessary calls from the agents to deposit more money, it is a clear indication that there is something fishy about the site.

Pointer #3 – Realistic Promises

The site must offer realistic trading solutions to its customers and not just promote the software through catchy taglines like ’100% Profit Guarantee’. These taglines lure the people to open an account instantly and lose their money later.
A good broker site will explain the features of the trading software in detail and how it can help to make consistent money online. It must explain the type of indicators and signals accurately.
A signal is a manual or automated indication that it is the right time to invest your money in a commodity or stock.

Pointer #4 – Information

Information is the core part of the research to make your decision easier.
You will find FAQ section to view the answers to many common questions. It will increase your knowledge and understand this business segment in detail.

Pointer #5 – Read Binary Options Software Reviews

There are many neutral review portals providing in-depth reviews of new and popular software with videos.
Reading these reviews and taking part in forum discussions with other investors can make your job easy.
It will help to find the right software to start hassle-free, safe and secure trading.

These 5 Mistakes Can Ruin Your Binary Options Trading Career

Everyone loves taking risks, but when it comes to investing money, you need to be very careful. When you take risks, the outcomes might not necessarily be favorable. Instead of earning those glorious profits that you dream of, you might make some unexpected mistakes! The same thing applies to binary options trading too; people make silly mistakes, which in turn ruin their career.

If you are a newbie in Binary options trading, you must be aware of the right ways. The first and foremost thing which you must keep in mind is that even ‘Small things matter a lot’. Underestimating the effect of even a small mistake is WRONG. This attitude might make you get used to ignoring such little details. Given below are five mistakes that you need to be very careful about; have a look…

Lack of preparation
Is it a right decision to enter the field without the much-needed experience and knowledge? Obviously NOT! You might face some worst experiences if you are not thorough with the basics. This trading is simple, practical and easy, but only if you know the right way to do so. Proper fundamental and technical knowledge is a MUST.

Wrong broker
Choosing the wrong broker will cause grave troubles. Yes, the situation becomes disastrous if you partner with the bad person. Many people have a tendency of going with brokers who offer cheap packages and lucrative deals. People choose this route, either because they don’t have proper knowledge or either they get incorrect recommendations. Traders get lured by tremendous returns and attractive bonus.

Wrong deposit amount
Many people are confused as to how much amount they need to set for the initial deposit. They are curious to know about what is the right amount to deposit and how can it influence the trading. Knowing the deposit amount is extremely significant, because only an ideal amount would increase the chances of winning. Many traders make a mistake here, as they deposit money, which is beyond their funding capabilities. This is when they have to face losses.

Wrong trading instrument
For attaining success, choosing the right asset is vital. It is the choice of strategy which increases or decreases your chances of winning. The price movement of the asset should be thoroughly analyzed. Now, since Binary Options offers a variety of instruments, the traders get lost in them. Consulting with an experienced broker can surely help.

Failure to grasp ideas
We all know that the main specialty of this is short-term trading i.e. it can reach down to one minute or five minutes trading. If a trader is choosing this style, success is guaranteed. However, making profits in short periods is not that easy. Inexperienced traders often fail here, as they don’t use proper speculations, which in turn render higher risk.
When you avoid these mistakes, you will surely have a rocking career in Binary Options Trading.

Risk Management On Binary Options

Risk management in binary options is very important. Don’t take this lightly. Many factors contribute to being a successful trader, and its up to you, to learn these things before you start putting money in the market for profit. The quick money, and huge profits, lures thousands to take part of the action, and hopefully in the end will make just that. Here are 4 things to know that involve risk, when trading binary options.

1. Key Aspect Of Risk Management

Traders will never lose more than the amount they decided to trade with. This is low risk to most people because you know exactly what you will lose. There’s no marginal losses that can surpass your initial investment when trading. Here’s what we know. You have a $100 trade and you lose. What’s your total loss? $100. That’s it. Trader knows this going in. Lets take that same trade and it wins. The broker is paying out 80% for that trade. You get $180, meaning you get back your $100 investment plus $80 profit.

2. Percentage Per Trade Of Initial Investment

For all beginner traders, make sure you trade no more than 2% to 5% of your initial deposit. For example, if you started with a $1000 deposit into your broker account, your trades should be no more $20 to $50 a trade.

3. You Will Not Get Rich Quick Trading Binary Options

The sooner you grasp this, the sooner you will control your risk factors. Learning this industry take time. Remember, these brokers usually give you a free demo account to practice your trades for a reason. Some even have little universities inside their website to educate you. Any seasoned trader would highly recommend to take of advantage of opportunities like that.

4. Brokers Terms And Conditions

This is very important to read for any trader, before signing up. Make sure you understand methods of withdrawing money, when it comes to that time. Some brokers put a hold for several days and some allow for withdraws to go through the same day. Also, make sure you understand the bonus money. Brokers will sometimes match your deposit or give you at least a $100 bonus for signing up. This does sound enticing, but you don’t have to take it. Read the rules first, before accepting.

Knowing the risk factors that are involved with binary options, and that you are not going to get rich quick, could help you in the right direction in becoming a better trader. Remember to always do your research before signing up with any broker.