With only under 30% of traders earning profits, most investors are in doubt if trading in this market will truly allow them to achieve financial success. Binary options may offer simplicity and high earnings, but to know how to trade binary options successfully you have to stay committed so you will eventually gain experience and discover strategies to consistently make money.
Critics point this out every time, saying when you trade $100, you are more likely to get $70 to $90 only in returns if you win. If you lose, your $100 is gone. Clearly, your risk is bigger than your reward. But what they overlook is that the trading process is so easy and that returns may come in a few minutes and even seconds – faster than in other markets. With right strategies, you will never ask how to trade binary options successfully again. Here are some of them:
- Pick an asset to trade.
This is not a simple task as you have to choose from more than 150 financial assets available – Forex pairs, indices, commodities, and stocks. Select assets basing on volatility and liquidity as returns is dependent on price movement. However, trading these assets should be done at the right time. For example, ideal binary options trading time for US stocks and indices is between 1300 to 2300hrs GMT.
- Monitor economic data news releases.
Assets for binary options trading are wide-ranging. Each day, news on economic data is released and this can considerably stimulate movement of prices of certain assets in the market. Keep track of the news each day as this can help you predict asset prices accurately and avoid performing trades when you know the news can affect trading thereby reducing your risk to trade.
- Make trading binary options more diverse.
Choose the binary option broker that will give you the opportunity to trade on various types of binary options as these will help you improve profitability. Some brokers offer Short-Term and Long-Term Binary Options, Call/Put, One Touch, Ladder, Weekend, and Pairs.
- Manage your capital well.
Amateur and professional traders differ in their focus. The former sets their eyes on making profits while the latter concentrates on managing risk, which is among the strategies on how to trade binary options successfully. You should make sure that you do not risk over 5% of your capital to binary options trading. In the same time it is important to use binary options strategies in order to avoid chaotic trading ( e.g. please read more about binary options hedging strategy )