Many people aspire to make a living from binary options because they don’t want to get stuck in their 9 – 5 jobs. It is possible to trade binary options for a living but it takes time as there are a lot of things you need to learn. You will have to be willing to invest your time and stay calm when you lose your money through trading. One important point you need to remember is to always set a realistic goal so that you won’t get disappointed. Below are some tips on how to succeed in trading binary options for a living.
Educate Yourself on All Aspects of Binary Options
First of all, you must educate yourself on all aspects of binary options. You must get to know the various types of binary options such as high/low, one touch, range high/low, and spread high/low. High/low options involve making prediction on whether the market price will go up or down on expiry. One touch involves setting a boundary above or below the price level. In range high/low, you have to predict whether the price will be higher or lower than a given range. In spread high/low, you must predict whether the price will be higher or lower than the given price the broker offers at the expiry.
Beginners must learn how to read and study the binary options charts. By studying the chart, you will know how to make technical analysis to spot profitable trades. It is important to know how to use candlestick chart to predict the best buy and sell time. Getting familiar with different binary options strategies can help you to make the correct investment and reduce your financial risk.
Know the Market You Want to Participate
Knowing the operation hours of the market can help you to plan your schedule and set aside time for trading. You should avoid trading on the weekends if you are trading forex options due to price fluctuations. Selecting a market hours that does not interfere with your busy schedule is crucial as it will help you to focus and make the right trading decisions. If you have a day time job, forex options is your best choice as the market will still be open when you come back from work. Forex options is ideal for US traders as there are many brokers that put restrictions on other types of assets.
Choosing the Right Expiry Time
You should choose an expiry time that is easy for you to manage. The expiry time for binary options can range from 1 minute to 24 hours. Options with short expiry time range from 1 minute to 5 minutes. Options with medium expiry range from 5 minutes to 2 hours. Options with long expiry expires about 2 – 24 hours. Short expiry is suitable for commodities and indices. Long expiry is suitable for traders who want to trade stocks. For forex binary options, you should choose medium expiry.
When choosing the expiry time, you must first check the market pattern by studying the chart history. The release of a financial report can affect the the price of the asset. You can select the expiry time according to your prediction after studying the chart. If you think the price will go down, you should increase the length of the expiration time so that it expire after the release of the financial report.
It is not advised to use automated binary trading software. Trading on your own is the best as you will be able to develop your trading skills. Many professional traders develop their own trading strategies instead of using automated software.
Make Use of Mobile Trading
Many brokers offer mobile trading for traders. You can download the mobile trading app and take your phone with you wherever you go. The advantage of using a mobile platform is that you can check your options trades and place new trades when you are working.
Most beginners will lose money when trading binary options in the long term. The best way to trade binary options is to keep your day job to support you until it has become profitable enough to cover your salary.