This binary options guide will explain to you what binary options are and how to get started in 3 easy steps. Binary Options Hub recommends to practically follow this tutorial step by step. By the end of the tutorial you will be ready to start trading binaries online.
If binary options are not for you – you will understand it in the middle of the tutorial. So save your time and your money, focus and read the text below. This binary options guide might be the only piece of honest information about binaries available online.
Read Binary Options Guide now and learn how to trade binary options!
Step 1 – Understand the Binary Options
It is vital to understand the market before you move on any further. Most of the sites will promise you 1000% return on your investment in 3 days with binary options. Unlike them, Binary Options Hub is an honest website and we are here to explain to you the details before you commit to online trading of binary options. Find out the most important info in the binary options guide below!
What are binary options?
Binary options are nothing more than a type of an online gambling. Don’t trust anyone who says that binaries are an investment, they are not. Although trading binaries is risky, the whole system behind binaries is transparent and this makes it a great alternative to online casinos. You can also predict the binary options strike prices, so it is not completely random. Got it? Great, continue reading our binary options trading guide!
How to trade binary options?
Trading binaries is relatively easy, when compared to trading stocks, foreign exchange, futures or other types of financial instruments. With binary options you need to:
- Select the direction of your trade (either UP or DOWN)
- Choose the time frame (between 30 seconds and 3 months)
- Pick an asset of your choice
Once you purchased a Call (upward direction) Option on EUR/USD that will expire in 30 minutes for 100 USD, you expect to nearly double the size of your bet or lose it. As simple as that. You main aim here is to correctly predict the future move of the asset’s price. Read the above again, as this is a vital example in the binary options guide. Also, take the time to read our strategies, so you will know what you are doing.
Should I trade binary options?
Most of the websites will tell – Yes, do it, click here to open an account now. At Binary Options Hub we want to give you a valuable advice. Trading binaries is risky and you may lose your deposit in minutes, if you are not careful enough. Risk always equals return, hence you may also gain fast income. This is why you should only consider trading binary options when you:
- Have a sufficient amount of funds to risk
- Can keep your emotions aside from your trading
- Have an interest in financial markets
The main issue that beginners in binary options trading face is just mindless and clueless trading. They begin with placing some small bets, get some lucky trades and then lose some money. Afterwards, such traders end up losing lots of money while trying to cover previous losses. Don’t make a mistake – trade binaries only if you have an idea about financial markets and only if you are OK with fully losing your deposit.
But, binary options payouts are great and you can certainly make profit if you know what you are doing. Still interested? Read below a binary options guide on how to get started.
Step 2 – Get a Binary Options Demo Account
So, seems that you are brave enough to get started with binary options and try to beat the odds. The first mistake the newbie binary options traders make – they jump into action straight away. This is a no-no. You need to have a binary options account – but it is safer to start with a demo account.
Such an account will help you to learn and master the platform. You will eventually want to test the software, click here and there, to see how it all works. It is safer to do this with a simulated or demo account, using simulated money where your actual money is not at risk. So let’s get the ball rolling and get a nice demo account, shall we?
- Click here to sign up with 24option
- Provide your personal and account information. Don’t be afraid that you are asked for too much, you’d rather spend a few more minutes signing up with a trusted binary options broker than spend a few weeks getting your deposit back.
- Perform a deposit. This is vital. Why? Because most of the rookie binary traders end up signing up, spending their time learning and then never trade actual cash. Deposit, but DO NOT trade. If you decide later that binaries are not for you, withdraw your money – with 24option it is free.
- Ask the support officers for a demo account. Simply click on the live chat and request a support to supply you with a demo account. As you already have a live account, they will do it in a matter of minutes.
Step 3 – Learn To Trade Binary Options
You already have a binary options demo account, so now it is time to get started. First you need to pick the instrument you are going to trade. Start with only 1. It should be an instrument you are mostly knowledgeable about. Nothing seems to ring a bell? Well, perhaps you national currency is not EUR or USD? Try trading it. Maybe you are into technology? Then Sony, Apple or Google stocks might be just a right bet.
Secondly, consider the ‘time frame’. Don’t go for anything small at first. Try to work on 1 hour expiration (or even higher), as such moves are easier to predict. Betting on 1 minute, 5 minute or similar moves is just pure gambling, you may of course try it and test your luck, but Binary Options Hub doesn’t recommend it in the binary options guide for the starters. This might be useful only when you got some advanced skills.
Thirdly, trade, trade, trade! Make at least 10 demo trades. Don’t make silly trades, try to come up with a justification for all of your trades, write them down and check them up after the options expiration has been reached. If after 10 demo trades you are totally clueless why you lost or earned – check out the education section to find out more about binary options trading strategies. Now the theory of the binary options guide has come to an end – let’s get some market action.
Step 4 – Start Making Money on Binary Options
Once you got a sense of the platform and a general idea of what you are trading it is time to start trading binaries for real. Many traders make the mistake of over trading on a demo account. Don’t be afraid – start trading live if you feel confident.
Remember that deposit you had to make at step 2 of this binary options guide? Great, now switch to your live account and start trading. Binary Options Hub recommends you not to risk more than 5% of your balance per trade. In other words, if your deposit is 1,000 USD, don’t trade more than 50 USD at a time.
What is important is to have a maximum amount of trades per day and per week set in your head. The worst nightmare is to spend the whole day trying to get your money back – you will end up losing all of it. If you lost some, take a deep breath and accept it. Go away from your PC and come back the next day motivated to fight the market back. Binary Options Hub recommends you to trade not more than 5 options a day and a total of 20 options per week. That’s it, nothing else to cover in the binary options guide, now let’s get into action!
This is an end of the Binary Options Guide for the beginners. Binary Options Hub hopes that the Binary Options Guide had been helpful for you. If you are still in doubt – contact us and we will do our best efforts to get you started shortly. If you do not like 24option – check our list of the best binary options brokers.