Strategies For Binary Options Trading

binary-tradingAt most binary options brokers, you have hundreds (if not thousands) of commodities to choose from. It’s not hard to work a short-term trading strategy like tracking the release of major products over and over again. That’s a viable strategy for trading company stocks; there are equally effective ways to make smart predictions about the value of currency pairs, commodities, and other assets, too. Binary options trading allows anyone to make money as long as they are willing to do research.

Does Binary Trading Really Pay Off?

Yes! As long as you master the fundamentals of binary trading and keep a close eye on relevant news sources, you can definitely execute profitable binary trades. In order to stay profitable, the most important thing is to justify your investments intelligently. You should never place investments based on gut feelings or simply at random.

To expand on the product release example mentioned above: Say that Apple is planning to release a new model of iPhone in 2 days. Where do you think Apple’s stock is going to be 3 days from now? If you said it will have gone up, your prediction lines up with historical evidence — and it’s highly likely to be correct. Likely investment opportunities like this are happening constantly.

Making smart predictions doesn’t necessarily require constant research, either. Often reacting to basic news information with a little common sense is more than enough to point you in the right direction and inform your trading decisions.

To give a quick example of a time-saving research strategy, you can sit down every month and survey upcoming product releases for the next month. Identify the products that you feel certain are going to be successful and you’ve already come up with a month’s worth of solid investment leads.

The Legality Of Binary Options Trading

Binary-Trading-walter-greenThe regulations concerning binary options differ from country to country. Speaking generally, though, they’re legal in the vast majority of countries. In a few places, domestic brokers can’t offer binary trading services to their fellow citizens. That doesn’t mean that trading with foreign brokers is illegal, though; almost all countries allow it.

Binary options investment is approved and regulated by the governments of the following major countries: the United States, Japan, the United Kingdom, South Africa, the member nations of the European Union, Cyprus, and Malta. In each of these countries, online brokers offering binary options to traders are regulated by financial authorities.

You don’t need to be a resident of one of the listed countries to trade in binary options. The only thing that could stop you from trading in options is an explicit legal ban on the practice, and to my knowledge there’s no country that has enacted such a ban. As long as you deal with licensed brokers, you are entirely in the right.

Is Binary Trading Safe?

There are some important characteristics fundamental to binary options trading that sharply limit the amount of risk you’re exposed to. Unlike stock investment or forex trading, your potential profits and losses are fixed with every investment you make. In contrast, traditional investments have unlimited profit potential — and unlimited potential for loss.

To put real numbers to this concept, consider an investment of $10 with a 90 percent payout rate. You know with certainty that a successful investment will bring you $19. In the same way, you know that your maximum loss is $10 if the investment fails.

This doesn’t mean you should throw caution to the winds when trading in binary options! It makes sense to start out small when you first begin exploring binary trading. Limit the size of your investments until you have a solid feeling for the way the system works. Once you’ve mastered the fundamentals you’ll be able to invest larger amounts.

Where Do You Trade Binary Options?

Placing investments in the binary options market requires the services of an binary options broker. These are licensed and regulated financial service providers that have to comply with the governing regulations of their home territory. You’ll need to open an account with a given broker and deposit money into a trading account in order to execute trades.

The brokers you choose to invest with matter, though. Brokers that offer you a wide variety of assets to invest in, provide favorable payout percentages, and have a strong history of ethical operations are the ones to look for.

Throughout this site, you’ll find plenty of information regarding financial service providers who serve as binary options brokers. I’ve written full reviews of several different binary brokers, and I maintain a list of recommended brokers here. I update this list regularly, adding new brokers who satisfy my standards and removing those whose services become unsatisfactory.

I’d also suggest that you take a look at the other binary guides and informational articles I’ve written in order to sharpen up your trading skills and generate consistently profitable investment strategies.