6 Insider Secrets on How To Make Money With Binary Options
Binary options, abbreviated as BO, refer to a simple Yes or No proposition about whether an asset will be above or below a certain price at a given time. For instance: will gold price be above $1000 at 2.30 p.m. today? If you are of the opinion that th3e price will be above the quoted figure, you buy the BO. However, if you think that come 2.30 p.m. the price of gold will be below $1000, you sell your BO. It’s that simple.
The simplicity of BO has made it appeal to many traders. Simple though it may appear, it is still important that you know how it works. In addition, you also need to understand the time frame as well as what markets you can trade binary options. In this article, we share with you insider secrets of how to make money with binary options trade. Read on to learn more.
1. Know how to read the charts
If you want to make money with binary options, it’s important that you learn how to read the charts. You will find that charts are very important for you to make money using binary options. In facts, any solid strategy will involve reading as well as analyzing charts.
Simply put, the charts let you predict how an asset will behave in future by looking at its past price behavior. This, after all, is all you require to make money with binary options.
But this is not to mean that the charts are difficult to read. They are quite easy to read and once you understand them, you will be on your way to making money with binary options. Strategies based upon reading as well as analyzing charts form part of technical analysis.
Usually, technical analysis follows a simple set of rules that are freely available on multiple websites. The most basic kind of technical analysis is to find out the support and resistance levels markets haven’t been able to break previously. Technical analysis will also help you identify trending assets.
Another straightforward way to use charts is by looking at moving averages, for example the average price in the last 10 days. The whole point is that it gives you better representation of what the price does over an extended period of time.
2. Diversify your trades
Another strategy that will enable you make money with binary options is diversifying your trades. It’s important to ensure that the binary option site that you sign up with will allow you to place different number of binary options trades.
Some sites on the internet let you only access binary options trades they want you to place. You need to avoid such sites. By having access to many trading opportunities, you will be in a great position to select a site that gives you a precise kind of binary option that ensures a profitable trade.
3. Forex Trading Profits
This type of trading option tends to be a little bit volatile but it is one that savvy traders use to make money with binary options trade. It involves you getting in early and then placing your trades online.
Several things can take place during the day to alter the value of a currency. By having the most current news, you will be able to react fast and place trades. This gives you better chances of winning trades.
Examples of things that can dramatically impact on the value of your chosen currency include financial news stories as well as things such as weather. Therefore, it’s important to think critically about the currencies to trade.
4. Take advantage of Binary Option Bonuses
This is one of the simplest ways through which you can lock in lots of profits with binary options trade. It involves taking advantage of the various different kinds of sign up bonuses available to new players.
Through these bonuses, you can be guaranteed of making a profit by trading online for the very first time. These welcome bonuses provide you a hedging in your trade through bonus cash found at various sites.
Therefore, if you just starting with binary options, you may want to give this strategy a serious thought. Know what you will be able to earn through signup bonuses and then bet anyway on a trade and you are guaranteed of making money on the binary options trades. Note that you are allowed to claim these bonuses just once upon signing up. Therefore, make sure that you take full advantage of the bonus cash and offers.
5. Early Exit Trades
Many sites offer early exit option to their customers on the trades that they have made. You will find this one tough especially if your trades make profits. But if there is still sometime before your trade matures, it will be left to you to decide whether to take early exit profits or not. Note that these won’t pay you the full amount of money that you will have made had you waited for the trade to mature.
However, if you have already made some profits, this can be the best thing to do in order to guarantee a profit.
6. Stay away from tips and gossips
You will come across all kinds of sites that offer you gossips and “hot tips”. As a beginner in binary options trades, it can be easy to fall for such ‘guaranteed winning trading tips’.
To make it worse, some sites even charge for this information. But the truth is to never fall for these sites. If these sites knew how the binary option trade would pan out, don’t you think they themselves would have placed trades on the BO? They wouldn’t sell you tips that guarantee you a win!
The fact that binary options trade involves a simple yes or no has made some people to think that they can just wake up one morning and start making money online. You will need a few tips here and there to be able to make money with binary options trades. Know how the charts are read, take advantage of the welcome bonuses, don’t rely on tips and gossips and try to use the early exit profits strategy.