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Binary options trading: 5 stages of development of a successful trader
Financial analysts have identified 5 steps that a binary options trading trader goes through in professional development. In this article, ForTrader.ru magazine will try to reveal an objective situation for you regarding your professional status.
Financial analysts have identified five steps that a trader engaged in trade takes in the professional development binary options. Of course, the steps are rather arbitrary and differ, by and large, only in the psychological component. Nevertheless, having correctly assessed his current level, the binary options trader will know what he needs to strive for for professional growth. In this article, ForTrader.org magazine will try to reveal an objective situation for you regarding your working status.
Stage 1 binary options trading – unconscious incompetence
The first step is the beginner level traders binary options. Its main characteristic is the unconscious incompetence of the trader. It is at the first stage that the trader begins to understand that trading binary options is a profitable business that brings a certain profit. Along with this, he has absolutely no idea how to achieve stable profitability, so he is working hard to acquire the necessary knowledge.
Stage 2 – conscious incompetence
The second stage is already characterized by conscious incompetence. A trader reaches this level after he has been trading in the financial markets for some time, and he has an understanding that his level of knowledge is insufficient. At this level, the trader begins an active search for information to achieve a positive trading result. As a rule, most of the information is outdated or simply unnecessary.
Stage 3 – the binary options trader’s insight
It is at this level that the binary options trader receives insight, which is also insight. He begins to realize that, in fact, the process of trading binary options is not as complicated as it seemed to him at first. Simply put, the trader’s eyes open and he “ceases to produce entities beyond what is necessary.” At this stage, the trader, as a rule, already builds his own binary options trading strategy, his transactions gradually become profitable.
Stage 4 – conscious competence
The fourth stage is characterized by conscious competence and is more serious professionally than the previous one. At this level, ForTrader.org recalls, a binary options trader only makes informed transactions. He is able to conduct a clear analysis of all the consequences that open to him transactions with binary options.
5th stage – unconscious competence
And finally, the stage, which is characterized by unconscious competence. Binary options trading at this level occurs, figuratively speaking, “on the machine”. Analysis of the current situation takes a few seconds. Decisions to enter into a binary options transaction are made almost intuitively, based on accumulated experience and past transactions. A trader who has reached this level is characterized by absolute calm and complete confidence in their actions. The memory of his first inexperienced steps in binary options trading makes him condescending smile. His transactions bring tangible profits, which is a clear confirmation of his rightness in his choice and confidence in trading activities.
As you can see for yourself, the path of a binary options trader is not easy, however, like the path of any trader, it’s very interesting. Having made your efforts and reaching the fifth, highest step, you will remember with a smile (and with a profit in your pocket) your fear of trading binary options.
Can A Beginner Make Money With Binary Options?
But wait! First we have to see if binary option trading is legal in your country.
Binary Options Trading in your Country
Depending on your country, here are the brokers available to you in April, 2020:
Country | Binary Options Available? | Broker Info | Best Broker |
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NO | Trade stocks, indices, currencies. | eToro (visit site) | |
YES | Regulated US Binary Broker | Nadex (visit site) | |
YES | Regulated AU Binary Broker | HighLow (visit site) | |
NO | Trade stocks, indices, currencies. | n/a | |
Mostly YES | Binary Broker for non-EU/US/AU/CA traders | IQ Option (visit site) |
*Other countries: Binary options is still available to most non-EU/US/AU/CA traders however there may be some exceptions.
- EU Traders are banned from binary options trading. The best alternative is eToro.
- US Traders should go to our US Welcome Brokers page.
- Australian Traders have a great choice available: Highlow.
- All other traders (if you are not from the US, EU and AU) can sign up with IQ Option.
Beginners think that all a trader needs to do is go on one hot streak!
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New traders often say to themselves: “just ten wins in a row and all of a sudden I will be a new trading mogul”. People looking for quick money think, that they can quit while they are ahead on a hot streak and go home richer than they could possibly imagine.
The truth is that you need a strategy and discipline to make successful trades on the long term. You should start by picking a legit broker first.
If you are just starting out with trading, then this is the perfect guide for you to start making money with binary options trading.
Here is our #1 Rated Broker
IQ Option – Best Trading Platform
IQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders.
- Trusted CYSEC Regulated Broker
- Minimum Deposit: $10 (Lowest In The Industry)
- Free Demo Account
How To Get Started With Binary Options Trading
Unfortunately binary options trading was banned in most countries but there are many more assets that you can trade: stocks, commodities, bitcoin, indices and more. There are many safe and regulated brokers.
You can start with a trading signals provider, especially if you are a beginner. FX Atom Pro looks really promissing.
- Step1: Sign up with 24Option
- Step2: Make a first deposit
- Step3: Start trading using trading signals
Alternatively you can choose a reliable broker like IQ Option that offers free demo accounts.
IQ Option is the most trusted trading platform at the moment. They are regulated by CYSEC and they have a stellar reputation in the industry. The minimum deposit is only $10 which is perfect for beginners.
Forex Trading – The Best Alternative To Binary Trading
Binary options trading may be too risky for you. Or maybe you heard too many horror stories about binary trading? We recommend you to try out Forex trading instead.
Forex brokers offer CFD and even Cryptocurrency trading. Most Forex brokers are regulated and have been around for many years. Here is the best Forex brokers:
Rank | Broker | Min. Deposit | Regulated | Features | Review | $100 | YES | + CRYPTO TRADING | TRADE NOW | $200 | YES | + ASIC LICENSE | TRADE NOW | $200 | YES | + COPY TRADING | TRADE NOW
Common Mistakes of Beginners- And How To Fix ThemWhen a beginner goes in unprepared trading binary options, the broker will feast on them. New traders often make mistakes such as taking way to big a position for one trade, taking a bad loss, and then staying way to small the next 5 times. They may even experience winning easily on small trades, but they never make back the big loss. New traders take way too many trades, let emotions control their trading, and don’t have the self control to stay out of low percentage trades that they know have small chance of making them money. After knowing all the pitfalls, why would a new trader ever decide to open a binary options account and become a trader? Well, they do it because they have the power to win systematically if they have some intelligence and a plan on their side. A new trader needs to understand the most common pitfalls, otherwise they may not even know that they are making a mistake while they do it! With that in mind, here are the most common mistakes new traders make, with what they should do instead.
How Beginners Can Make MoneyEven with so many ways to mess up, beginners to binary option trading can make money if they work hard and follow a system. The key to binary options trading is to control risk. As a result, a trader can never lose too much money on any particular trade. Hypothetically, a trader has a 50% chance of being correct on any trade whether they buy a call or a put option. To make money, a trader only needs to be correct on about 60% of trades of the trades that they take. This means that of the trades that a beginner with absolutely no edge (an edge is something giving a trader a better than random chance to make money) would take, they need to figure out how to turn about 20% of them into winning trades. Binary Options – How Much Can You Make?: This is not a simple question. There are certainly traders who make a living with binary options. You could make thousands of dollars every month. However the best is if you start with lower expectations. Making hundreds of dollars steadily is a good way to start. Here are possible ways that any beginner can easily do this:
Binary Option Trading Is Not Easy For BeginnersThe problem with this dream is, how often does this really happen? Let’s just say a lot of brokers would never be in business if it happened very often that beginners made money. Above all, beginners have dreams of being smarter, better, and luckier than everyone else who has every done something, but the harsh reality is that trading in any form is not easy. Especially when it comes to making money from trading, it takes hard work, dedication, and a commitment to learning. And when I say learning I don’t mean just reading a couple articles, I mean actually learning from your wins, from your losses, from hard earned experience. As a result never take a trade and learn nothing from it, especially as a new trader. What Our Readers AskedThe short answer is yes, you can make a lot of money trading binary options. However it will be very hard to do so if your initial deposit is low. Always keep in mind that binary options is risky and you could also lose money. A binary options broker makes money when you lose your trade. This is the main reason why there are not fees when trading. Yes, many traders have success with binary options trading. You can even follow some of these traders. In order to do so, pick a broker that offers social trading. This way you can pick your favorite trader and copy their actions. Do We Recommend New Traders Even Try Binary Options?Of course! Every successful trader was new at some point. Just because a lot of traders go into trading without educating themselves or having realistic expectations doesn’t mean you will as a new trader. In fact, since you are reading this article you almost decidedly will not. At How We Trade our job is to prepare new traders for success. So move forward knowing you have a strong ally in us! Interested in opening an account? Check out our homepage for the best trading platforms, along with our top rated binary options brokers. IQ Option – Best Trading PlatformIQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders.
Top Five Successful Strategies For Trading Binary OptionsIf you are trading without a strategy or a tactic to help you with binary options, you might as wellThe article was written by Connor Harrison from Binary Brokers (BBZ). BBZ makes an effort to educate their traders so that they can understand recommendations regarding binary options, international legislation, risk management and other issues related to trading. Trading in binary options is one of the popular trends in the financial markets today. Both experienced and novice traders are rushing to include them in their investment portfolios. Just like any other trading platform or business, you must have a strategy to use in order to consistently be making money. If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling. Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment. You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning. Bet or Trade?Strategies are generally categorized into two groups. These categories are;
The popular strategies to go for are:I – Fundamental Analysis StrategyThis strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option. The other factors that you should check out include the employee and the business partners’ satisfaction. In short, this strategy tries to look at the overall picture of the business they want to invest in their stock and at times the overall industry. II – Technical Analysis StrategyThis is a quite popular strategy in options trading. It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset. It’s quite useful in options trading because as a trader, you don’t have to delve into the company’s financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average among others. Suggested articlesFBS Launches Online Trading School – FBS Trading BootcampGo to article >> III – Basic Options StrategyThis strategy is quite popular among options traders. It is designed and employed by a trader to safeguard him/herself from incurring total losses on their investments. You will pick an underlying asset or currency that you are interested in and then if the market movement of the strike price is heading towards a good direction, say upwards, you place a call option. At the same time, you will place a put option on the same asset. Let’s use an example: The GBP/USD currency option is going at 1:4000. You place the call option of $100 which will expire in 30 minutes. The payout is 70% and 15% if you lose. In the first 15 minutes the asset is at 1:4015 which is good so far. At this specific time, you buy a put option for the same asset at 1:4015 expiring in 15 minutes at $100. The payouts are the same as those of the call option. At the end of the 30 minutes there will be two outcomes;
IV – Algorithmic and signalsThere are apps which are sold and which are very good at trading or analyzing the market data. You might find it appropriate to invest in such an app. This app is installed in your computer and gathers data that you want and then analyzes it to come up with the best possible outcomes. Technical and fundamental analysis data are used here. The computer will then pick a trade for you to trade in. You could even go ahead and design the app to be actually trading for you. You will however need to be regularly updating the raw data that the app picks its analyzing details from. V – Co-integration Trading StrategyThere could be two stocks in the market that have a high correlation relationship. This could be because they are in the same industry and are traded in the same market, hence affected by many factors the same way. Given the high correlation between such a pair of stocks, you will find that whenever there is a gap between them it will close soon after. The gap can be caused by the weakening of one stock temporarily. The main task here is to identify the gap. After identifying the gap, you should buy the call option for the stock that is weak or a put option for the asset if the stock higher in price is bound to come down. Eventually, the two assets will come to the correlation path and that should be the ‘point of exit’. Final WordStrategies, just like investment options, are many and you could end up with one which gives you consistent winnings. If you are a new trader, research well and identify the one strategy that best suits your trading portfolio and pattern. If you are a bit more experienced, you can create your own strategy or combine two existing ones to form a hybrid. Best Binary Options Brokers 2020:
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