Binary trading can seem like a daunting process at first and you may have a whole host of question that you would like answered about it first before you set off and start betting all of your hard-earned cash! In this guide, we will go through with you what exactly binary trading is and the strategies that you should be using to ensure that you make a success of binary trading and do not end up losing a lot of your money.
Binary Trading Strategies
Before you put down any money binary trading always make sure that you have a strategy in place. Strategies will vary from person to person and it really all depends on your budget and your time scale. One strategy for someone looking to earn a profit in one day will obviously follow a completely different strategy compared to those who are looking to bet on a longer time scale.
First of all, we would recommend that you follow the 5/15 rule when you start off binary trading. This includes a maximum loss margin that you can afford to lose as it will not harm your profit potential. If you want to make a good investment with low risk you will need to use what we call the 5/12 rule. This is a risk management tool within binary trading and this is the percentage investment executed in a single trade and is parallel to the investment percentage of the entire capital investment. This binary trading strategy is adopted by most traders and will help you keep track of your cash and ensure that you do not bet too much.
If you are looking to enter into binary trading more aggressively than this then you may want to instead try the 10/30 rule. This type of binary trading can lead to a higher return on investments, however, this also means that there is much more risk involved! With the 10/30 rule traders can invest up to 10% of their existing total capital on single trades and up to 30% during trading sessions.
Record All of Your Binary Trading and Trends
If you want to become a pro at binary trading then you will need to ensure that your record all of your movements within this industry. When you do this you will then be able to understand your assets a whole lot more and this will help you make future trades and investments a success! On the flip side, doing this will also let you see where you went wrong exactly so that you do not make the same mistake twice.
Binary trading definitely will not be everyone, but if you are looking for a thrill, a bit of risk and a way to make quick cash then this could be a great option for you. Just as you would with gambling be sure to have a binary trading budget that will ensure you do not wager too much of your own cash and end up in a bad situation. Get started binary trading today and see how much profit you can potentially make!