It’s easy to become interested in trading binary options. There are stories all over the Internet about traders who have paid off their debt, quit their job and even amassed impressive fortunes thanks to binary options. However, it’s a lot harder to make it through this novice stage and actually begin seeing regular profits. That’s why we’ve put together these four tips. Starting out with binary options will still be a challenge, but they’ll help you through the minefield.
Spend at Least 40 Hours Educating Yourself
It is vital that you know what you’re doing before you begin trading binary options. Yes, many of the most important lessons you learn will come from experience, but if you rush in and set up an account immediately, before you know what you’re doing, expect your time as a trader to be short, disappointing and expensive.
We recommend new binary options traders spend at least 40 hours educating themselves about this unique world before taking a step in. There are tons of good books on the topic, blogs like these, YouTube videos and much more. If nothing else, this initial phase is a good test of your potential. If you can’t be patient for 40 hours while you learn about trading binary options, you probably shouldn’t do it.
Do Demo Trading for Another 40 Hours
Once you have the lay of the land, it might feel like you’re ready to spread your wings and get out of the nest. But we recommend new binary options traders practice just a bit more patience and spend another 40 hours on a demo account where they can trade without risking any real losses.
These demo accounts are such great tools that you simply can’t afford to take them for granted, especially when you’re just starting out with binary options. In fact, you should continue using them as time goes on to test out new strategies.
Chances are it will become immediately clear why it’s a good idea to use a demo account within the first day of “trading.” You’ll most likely be going back to your books, blogs, etc. and checking your notes to see why certain trades didn’t work out the way you wanted.
Take Your Time Selecting a Broker
All right, you’ve put in 80 hours of solid learning and practice. You’re almost there. Now you just need to find a qualified broker who will help you reach your potential. With so many out there these days, it can be like trying to find a needle in haystack though.
Once again, take your time. Go on forums and see who gets recommended by high-ranking members. Ignore spammy comments from people who only ever show up to recommend brokers; it’s most likely the broker themselves or one of their employees.
Be wary, too, of scams. Many brokers will promise you the world to sign with them, but you know what they say about things that sound too good to be true.
The Right Software Is Important
Finally, one of the most important factors a broker can offer new binary options traders is the right software. Later on, you might need the help less and less, but for now, make sure the platform you’ll be using every day is accommodating to someone new to trading options. Better still, look for brokers who will let you try it for free.
Starting out with binary options may seem intimidating, but if you take the above four tips seriously, you’ll soon find yourself trading every day, enjoying yourself and even seeing profits.
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