Traders of today are significantly different from traders of previous years. And they differ for the better. Smart and ambitious people come to binary options trading, not just hungry for quick earnings.
For a novice options trader, this article will be useful, since in it we will tell all the nuances for beginners who want to engage in options profitably.
In addition to making a profit, they are also interested in full-fledged training in binary options trading. I fully approve of this approach and recommend that every new trader strive to learn, for this I have prepared for you a short, but at the same time effective course of binary options training. Do not waste time and money on paid courses, you can find and study all the necessary information yourself, I will only structure it for your convenience. So let’s get started!
What is an option
In short, a binary option is a kind of tool, or a type of trading, when a trader must predict at what level the price of an asset will be after a period of time chosen by him.
The beginning and the foundation are laid and told, we move on.
Where to start trading?
Initially, there may be an opinion that there are no difficulties here and everything is as simple as possible:
it is necessary to go through the registration procedure with the selected brokerage company,
create a small number of transactions using a demo account,
replenish your own deposit and start making your profit.
In order to find the right answer to the question of how to start the trading process, then first of all you should train yourself to steadily follow the following simple conditions:
- Choose the right binary options platform. Our website systematically presents fresh reviews for the best brokers. I would like to draw attention to the need to view a special section called “Blacklist” in which you can get acquainted with the list of those companies that do not work honestly, that is, deceive users.
- Control of your own sense of excitement. What should be the starting point for those who want to start trading binary options? First of all, before you start doing anything, you should make it a rule for yourself that the trading process should be looked at from the point of view of work. In the event that the user feels that a sense of excitement has arisen somewhere deep inside him, it is worth stopping trading as soon as possible, or if you have enough strength, you just need to take this excitement under control, otherwise all the work will go to waste. The thing is that the feeling of excitement is accompanied by the release of adrenaline into a person’s blood, which causes rash actions.
- Careful consideration of the theoretical material in binary options. We have an excellent training course on our website. In it you will learn everything that we will not have time to consider in the article. This and what is a time frame, expiration, signal, pattern, section, and so on… Start at any time. Study first of all!
- Precious practice and binary options. It is quite logical that theory is very important, but in the case when there are no practical skills at all, it will not be possible to fully clarify all the dark moments in terms of trading. You should definitely choose the trading style that suits the trader the most. This recommendation also concerns the strategy used, as well as the most appropriate types of assets. In addition to all the previously mentioned, it is necessary to determine the time of speculative operations. It is quite possible to decide on all these points in the process of working on a demo account. We will get acquainted with the main details of this process later in the article.
The main advantages and disadvantages of using a training (demo) account
We have repeatedly discussed this topic in previous articles about binary options. In view of this circumstance, at this point in time, we will not waste time on reconsideration and will only describe in general terms what are the advantages of using a demo account for beginners in the field of trading.
The list of the main advantages with confidence includes the following:
- The demo account gives the opportunity to trade binary options to people who have recently started working in this field and at the same time can work without depositing funds to the account.
- If necessary, you can make changes to the strategy used, and you can also adjust additional trading elements until the process itself becomes as automatic as possible, and the risk indicator at the same time decreases to a minimum.
These advantages make it possible for a demo account to become irreplaceable for those traders who have just started working. It is quite natural that the demo account is not perfect and for this reason it will be right to dwell separately on its shortcomings. The very first and probably the main drawback of the study account is that it allows you to relax.
The basic theory of “starting trading on options”
Step by step we will tell you all the nuances so that even a beginner or a “teapot” understands everything.
We begin our training in binary options for newly minted traders with charts. Charts are the most important thing in a trader’s work, they allow for detailed analysis. At the moment, there are a huge number of different resources for analysis, but I recommend that beginners in this business stop at “live charts”. They are the simplest and most convenient to study, they do not need to be installed, there are many useful articles on them on the Internet, and you can always find the answer to any question on live charts. They are also presented on the website. Link to the live chart
Trading is somewhat similar to sports. First you start small, and then gradually increase the workload and eventually become a professional. Using the same scheme, you can describe working with graphs. First, you start with live charts, and then move on to more serious and professional platforms, like meta traders. They are noticeably different from simple platforms, it is convenient to work with several charts in them, there is an opportunity to load your own indicators.
An inexperienced user may jokingly think about holiday candles, but the conversation will be about the candle type of graph, which is an informative type of graph. Therefore, candles will have to be studied. From the books it is worth recommending the work “Japanese candles” by Steve Neeson. In addition, it is necessary to look at patterns for the chart. To learn binary options for beginners, it is worth knowing that there are three simple models – tweezers, takeover and pin bars. When you study them and work on the chart, then you will be able to expand your knowledge further.
Most resources already have their own indicators by default, so I recommend starting training with them. Gradually studying standard indicators, you will be able to understand the principle of working with them, learn how to use them effectively, understand how each indicator affects binary options. All this with experience will allow you to understand which filters are more effective, you will almost automatically replace some indicators with others and find successful combinations not by the method of scientific poke, but with knowledge.
There are oscillator indicators and trend indicators.
- Trend indicators track, oddly enough, trends and their potential. Can the trend become strong and develop further? All this can be found out using this indicator. Thanks to it, you can easily understand which trend will lead to a crash, and which one can be successfully developed.
- Oscillator indicators help in price monitoring. When traders start selling assets, the price becomes higher, and vice versa, when more buyers appear, the price becomes lower. All this helps to track the oscillator.
Since this course on binary options is abbreviated, we focus only on the basics. However, I would like to note separately that it is important at the initial stage to filter indicators for effective operation. This point is very important, but for some reason it is rarely found even in the most advanced paid courses, so remember it. With experience, you will begin to understand which tool you need more and then you will be able to switch to your own indicators or indicators of other authors.
So, the next stage of training is familiarity with strategies. This knowledge is very important for successful trading. In the fourth lesson of my training course, I will tell you in detail about existing trading tactics, about the subtleties of working with them.
In short, strategies are divided into two categories: trend and countertrend. The first ones work in the direction of the trend, it’s not hard to guess.
So, we have figured out the types of strategies, how they work, gained invaluable experience and are ready to create our own effective strategy, right? But how, you ask?
Take a well-proven tactic, start adjusting it to yourself, to your skills and experience, do not stop looking for successful combinations. This process is continuous, you should always upgrade your trading idea, as the market is constantly changing and requires an instant reaction. If you are able to react sensitively to the slightest changes, you will be able to survive the bidding. Professional traders have been upgrading their skills for five years or more. Strategy is important!
Today, rather unfortunately, robots are a certain trend as a “drain” tool. In advance, each player must understand that the work of robots has no evidence base. In no case can you rely on their signals if you are determined to become a specialist. In no case does it work so that you sit and drink tea while all the work is done for you automatically. Therefore, you do not need to succumb and pay attention to the tricks of some brokers who offer earnings on binary options trading using robots. Robots and advisors are the most frequent divorce of a novice trader.
Often, users who are interested in trading options, for some reason miss one of the most important points in theory. This is definitely news. Many, for example, use one of the most popular tactics – trading on the news. You should not listen to the recommendations of this strategy. Do not start trading immediately after or before the release of serious news. Only when you yourself learn how to analyze incoming news and you will have significant experience, you can forget about this advice.
7. Options trading for beginners without indicators
I will tell you about it in general terms, without delving into the topic, since it is often difficult for beginners, but you can study it yourself. So, trading without indicators is based on the analysis of price changes, since price is a priori a powerful indicator. In this case, the level of resistance and support is determined for successful trading.
I told you about this because this technique will increase the chances of stable profit by trading binary options and its use will be useful. Look for more information on this topic if you are interested, and we will go further.
If you still came to binary options trading and decided to do everything from scratch, then first decide on the size of the deposit. There are certain rules of risk management. If they are followed, then any bet must be one and a half percent of the total deposit.
The most recent, but one of the most important points in binary options concerns the emotions of the user. The main reasons for the failures of novice traders are unnecessary emotions. This is excitement, any fears, negative emotions and disappointments. All this will only interfere with your rational approach to business. That is why it is worth learning to cope with emotions in order to start earning wisely on options.
For successful training and subsequent trades, it is important to take into account two nuances:
- If you have chosen a binary options strategy, but absolutely do not understand how it works, and hope for luck – quit trading right away. It’s probably none of your business. Well, if you are ready to work hard and not hope for magical trading methods that will make you a millionaire in one week – continue to study the subtleties of trading, never stand still. Once again I repeat and I will repeat again – nothing will bring you profit except your own work. You will never earn good money on the trading market lying on the couch and using “magic” algorithms, they DO NOT WORK and are designed for gullible novice traders.
- Analysis of the economic situation is the key to successful trading. Without analysis, you will never be able to choose the right strategy, unless you become one of a million lucky ones. But it’s useless to hope for a chance, analyze the situation yourself and listen to analysts.
Trading for beginners: what is not worth doing?
One of the most effective methods of learning anything (including binary options) is comparison. Comparing your actions with actions that should not be performed. Here are a few basic mistakes of novice traders that can lead to failure (evaluate your actions and exhale freely if they are not on this list :)):
- Do not count on incredibly effective and profitable indicators that unscrupulous people on the Internet are trying to “sell” to you. There are no magic indicators that bring instant profit without drawdown, remember this once and for all. How many newbies write to me all the time that they spent a lot of money on wonderful indicators, and everything only got worse, so options are a divorce for suckers and everything like that. Friends, scammers are everywhere, be vigilant.
- Forget about using robots! It’s one thing if you use them to clog up your computer with viruses and spend a few days (and maybe several thousand rubles) on cleaning, but it’s another thing if you lose your deposit forever. Once again, there are no miraculous ways to do nothing and earn money at the same time.
- Trading with analysts is obviously the wrong step. There are no analysts, these are ordinary managers.
- Try to choose adequate and proven brokers for trading, otherwise you risk running into scammers who will make unprofitable transactions and refuse to withdraw your funds.
That’s all, these are the basic mistakes of beginners. There are dozens more articles on similar topics on the Internet, where this issue is disclosed more widely. Look for it, read it, write it down and never do that.
Rules for successful training and trading of “binaries”
Here we are at the last stage of our short course of study. Before completing this binary options training course for beginners, I want to give you some very important tips that I really needed when I was a beginner myself, but unfortunately there was no one around to share this knowledge with me.
Forget about martingale, never use this method, do you hear? Never. I advise you to always use risk management. Only in this case you will be able to protect yourself.
Binary options trading is not a game and you cannot “play” them, treat it not as a way to make quick money, but as a full-fledged serious work. As a means of earning money, a binary option is quite suitable. Be always calm and restrained, do not get excited, do not become greedy. All this will lead to the collapse of your personality, not just your career in trading. Do not be afraid of drawdowns, this is a natural part of your job, you will never be able to trade successfully 365 days a year, there will always be bad days, do not try to win back.
An unobvious, but very important tip: start a special diary in which you will record your progress (or vice versa, regression). The diary will help you track your activity, results, strengths and weaknesses. At first, it is difficult for many to keep a diary, but this is its peculiarity. He disciplines and eliminates laziness, and a lazy person in trading will never achieve anything.
As a conclusion or conclusion, I want to note once again that independent learning is, in my opinion, the most effective. Don’t be afraid to study and waste time, it will save you money and at the same time allow you to earn more. Modern courses offer successful training and promise mountains of gold, but in fact their words are just a dummy. Only thanks to your own experience and skills will you be able to advance in learning and trading binary options.
You may decide that my attitude towards paid courses is somewhat biased. But judge for yourself, at such courses, you are told the basics and rules of using indicators in the most stretched form for long hours. That’s all you’ll learn there.
But all this information is publicly available on the Internet! And absolutely free! Don’t let anyone profit from you, be smarter and learn on your own, or find a smart trader who will share with you his wisdom of successful trading.
In this article-course about binary options, I tried to tell you concisely and clearly about the subtleties of trading. About what I know myself and what successful traders taught me. I am sure that this article will help you to start successfully and become a real professional. Study, study for free, ask questions, strive for new knowledge and only then will you succeed. Good luck!