Tag Archives: Options

What to do before you start trading

So, you’ve decided that you want to start trading as a hobby. As it’s been increasing tremendously in popularity over the last couple of years, you have surely read a lot about it and you’ve become more and more interested. The best place for you to start would probably be binary options trading as it is the most easily understood trading instrument, and you could pretty much learn the basics in just a couple of minutes. But does this necessarily mean that you should just open an account straight away and start trading your hard earned money? Well, if you want to risk losing a lot, the answer is yes. But if you’re determined to gain profit you shouldn’t just jump into the game and start playing with the professionals just yet. There are certain things you need to know before you start trading. If you speak spanish, i have found a great site called Opciones Binarias, where you can find a lot of different strategy guides and reviews!

Let’s make it clear: If you start trading without any knowledge of strategies or systems that can be used to your advantage, you are pretty much gambling with your money and you might as well go put it all on a single color on the roulette table. The whole idea behind financial trading is to learn the market so that you can invest in safe options that will have a good chance of paying off in the end. So first of all, I would recommend that you learn a little more than just the basic concept of binary trading. Even though the concept is very easy to grasp, being that you invest in an asset to go either up or down in value within a time frame that has been specified, the principles behind it aren’t as easy. What determines if an asset will go increase or decrease in value? This is what you have to learn. My first recommendation would be to find a binary options portal, where you will get access to beginner’s guides and strategies. This will give you a good push in the right direction when you first start out. A good example of a binary portal is http://binaryoptions.pm.

When you feel comfortable with the basic strategies in trading, it’s time to create an account with an online binary broker. The good thing about binary portals is that they usually offer a wide range of reviews over brokers that are licensed and regulated. This means that you will get to pick the one that you think suits you. When you’ve created your account, I suggest you make a small deposit, and start off by only trading the minimum sizes in the beginning, in order to get a feel for what it’s like. As a side note, a lot of binary brokers offer more extensive strategy guides and educational centers which can be extremely helpful for the beginner. You will soon realize that the more you trade, the more you will pick up on, but instead of getting hungry of big payouts, let your trades slowly increase in size as you learn, as this will give you a smooth increase in profit, which is better than going crazy with loads of money straight away, potentially risking to lose considerate amounts of money.

Believe in yourself

When new traders get in to the forex market, eager to learn everything there is to know, they often make the mistake of thinking that knowledge is everything in trading. While knowledge is one of the most important parts of forex trading, knowledge alone is not going to make you one of the great traders. An equally important part of forex trading is, although you might have not thought so, your psychology. You will find that when your trading with forex currency, you will have a constant battle with your mind, resisting the urge to make moves that you shouldn’t.

Every successful trader knows that discipline is one of the most fundamental keys to trading. If you are not disciplined enough, you are soon going to be losing money. Why is this? Well, the vast majority of human beings ideally want as big profits as possible in the shortest possible time, and preferably whilst having to put in as little effort as possible. I mean wouldn’t you rather win a million dollars on the lottery rather than having to work for it?

So why is this so bad, wanting to make profits quick? Well, just like in any other income-related activity, there just no way of getting rich quick. A spanish trading central called cambiodivisas.eu has an interesting artcile on this subject.There’s no “become a millionaire in just a month” program that we can all follow, because if there was, everyone would have been a millionaire by now. In order to make really quick and big profits in forex trading, we have to take big risks, and the more risks we take, the less probability of predicting the outcome we will have. Essentially, this means that you might as well put your money on the roulette wheel if you want to make money.

The forex traders that become successful (learn more on how to get successful on this site!) are the ones that accepts the fact that trading takes time to learn, and also that it’s something you go in for long-term. In order to be successful you need to learn how to resist the urge of wanting to invest in a high risk trade, and stick to your program. Ignore the gambler inside you. Even though your trading might not be as exciting as a high risk trader’s, but the fact is that even though the high risk trader might have loads of fun when he wins big, the fall he will take when he finally loses his money will be much harder. You, on the other hand, will be rewarded over time, and as long as you stick to a good trading strategy, you won’t have to deal with any hard falls.