Before deciding to enter into a binary option trading, you must fully know what you should prepare. Know that the system used in trading binary option is a system of analysis of 2 kinds of opportunities. Where every trader must analyze whether the price of an asset will rise or fall within a certain time frame.
For you Binary Option trader which is still classified as beginner maybe this system more easily said as activity of guessing. Looks easy indeed, but you have to remember that if you give the wrong guess then you will not make a profit. So aside from guessing, the primary key in binary option trading is consistent and do not speculate too much. For maximum results, you can try with Bitcoin Code. Given the profit and loss percentage of the trading binary option is 50:50 then do not be too brave to bet the funds that are too large. Better profit little by little but consistent than big profit then suffering big losses, right?
Always control your risk management (money management), because after all money management factor is the most important key to be successful in this binary trading. Click Here to get the best tips.
At the preparatory stage, you are required to explore information on trading methods and identify which methods are most compatible with your trading style. In addition, set your goals in trading. Whether these trading profits you will use as an additional income or just as a source of income.
- Entry Rules
In determining the strategy for entry position, you will be faced with a variety of options. This condition is generally associated with the proper trading strategy. If in the preparation stage you can already determine how to trade accordingly, then determine the entry rules for each position option that will be placed will be easier.
- Exit rules
Unlike in the forex market, binary options traders need to estimate the time of exit first to close the option at a certain level. For that, taking expiry time is a very important step and can be another determinant of the success of your binary options trading.
- Risk Management Settings
Limiting the potential risk can be done by setting the amount of capital in accordance with the limit of losses that you can use. Generally, the percentage loss determined from the total trading fund is not more than 10%. If you have a 5% risk limit, then you can put a capital of $ 5 on each option placed if your trading capital is $ 100.
- Trading Evaluation
At this stage, you need to evaluate the position of the option you have run. Whether successful or unsuccessful, any evaluation of an option will result in a very useful learning material for developing your binary options trading system. Some things that can always be repaired system is the selection of trading instruments, the use of trading strategies, and management of risk management.