Trade with the Best Binary Options Robot

Beginner Strategy for Binary Options

If you are new to binary options trading, you probably are not sure what type of trading you should use. The world of binaries is surprisingly big, and the choices can be overwhelming. A lot of new traders simply go for what seems quick and easy, and this is seldom the right choice for those that are just beginning. It’s something that is done purposefully by brokers because it earns them money–namely, placing an emphasis on the ultra short term 60 second (and faster) trades.

So, where should you start? There are three main categories to look at and choose from. These include: type of trade, type of asset, and timeframe. Let’s look at each one individually.

Type of Trade

There are a bunch of different trades beyond the traditional call/put options, but you really shouldn’t trade the others until you’ve mastered the call AND the put. These are the simplest form of binary option, and they are the easiest to predict with accuracy. You can be an extremely successful trader and never move beyond these choices. No matter what exotic options your broker offers, such as boss capital, you need to start here because this is the most basic building block since they are based solely upon motion and not the amount of motion. You just need to predict the direction and be right, it doesn’t matter by how much you’re right.

Type of Asset

In the United States, there is a big emphasis on the stock market, but individual stocks receive the majority of that attention. You should actually be placing your beginning attentions on the major indices, namely the S&P 500, since this is the most consistent of the indices (read: easiest to predict). You can branch out from there to the stocks you are knowledgeable of. Forex is a huge area of interest, but it’s pretty complex, and unless you’ve traded in the Forex markets before, you shouldn’t start here. Commodities are also complex, and should be traded only once you’ve mastered the basics. This isn’t to say that you might not be an expert on the price of wheat because of prior experience. If you are, you can and should capitalize on this. There are always exceptions to the rules, but these guidelines for asset selection are what work on a most general basis.

Timeframe

You don’t want too short with your first few weeks of trades, but you also need to see results if you want the motivation to keep going. Single day results are going to be most influential, but these can be tough to predict with accuracy. In this light, you should be looking to start out your trading with transaction that last at least an hour. This helps you overcome the variance that comes with the minors bumps and drops that will occur in the market from minute to minute, and it gives you fast profits when you’re correct. Once you figure out how to identify trends and momentum, you will be well prepared for this and will be able to start making consistent profits.

Don’t get me wrong; the ultra short term trades have a distinct place within a well balanced portfolio, especially when you are finding yourself trying to maintain profits during intense and shifting uncertain markets–kind of like what’s going on right now. However, it’s not something that beginners should try because it’s a difficult thing to time right, and a strong technical analysis knowledge is needed. It’s a skill that those who stick with it will develop over time, but it’s not something to rush into unless you are looking more to gamble than to make a consistent profit.

Trade with the Best Binary Options Robot