Increasing profitability is the key to successful trading. Different people have different methods of doing this since everyone has slightly different strengths when it comes to placing your money. The bottom line, though, is getting the most out of every dollar that you put at risk. Why settle for a 5 percent return on your cash when you can get 8? That 3 percent difference adds up a lot month after month, year after year, creating a difference in tens of thousands of dollars or more over time.
Like the number of ways of trading, there are many ways to increase your profit rate, and one of the newest ways is through binary options trading at 24option. The buzz around these is that you can earn 80 percent in profits or more on every single correct trade you make. And while your profit rate at the end of the year will likely not be this high, it is possible for many traders to boost the amount of money that you are making with this form of trading if it is approached right.
Binaries allow you to create profits on merely picking a direction that the asset you are looking at will go correctly. You don’t have to wait around for a huge amount of movement, just movement in the right direction. Even a penny produces a profit.
This is a great tool for technical analysts that are able to precisely time their trades with high accuracy. For example, by looking at the euro/ U.S. dollar pair graph with a set of Fibonacci lines overlaid upon it can help you to visualize your trades and eliminate a lot of the guesswork that binaries attract.
That brings us to the first pitfall.
Binary trading is not easy. Because you are only predicting direction, and not amount, people think that the market is already beaten. But movement, especially on the short term, is very fickle and sometimes bordering on random. And the way that binary payments are structured, if you are incorrect the same number of times that you are correct, you will not break even as you might suspect, but lose a lot of money. You need to be right very often to make a profit, and this involves a high degree of skill. Technical analysts tend to thrive in binary option trading because of the fact that they already have this skill and they have the tools at their disposal to increase it and fine tune it.
One of the benefits that others will apply to binary trading is the fact that there are so many different things that you can do with them. This is great for brokers looking to attract a lot of clients, but once you have an account created, this isn’t to your benefit. Trading everything in all possible ways is going to hurt you much more than it will help you. When you are trading, you need to find the most profitable method and then work with it. It will be an ongoing process, and you will find yourself fine tuning your approach often, but it is a much more efficient process than trying it all. When you refine your approach in one area, you are mastering it to the best of your ability, and not focusing on a wide net of mediocre results. Find what works, then make it work better.
How Binaries Help
These pitfall are common things that new binary traders tend to do, but binary options, when used correctly, should allow you to avoid these things when thought about logically. If trading 15 minute EUR/USD binary options is more profitable than trading 60 second index options, why would you throw your cash away where it’s not as effective? A diversified approach is good when you are looking at the big picture, but not if parts of your trading are flawed. Binaries make it very clear what works for you and what does not, and by eliminating the weaknesses from your trading, you are giving yourself an automatic raise. This is thanks to their clear success/failure delineations. Tracking your progress is much easier with this than any other type of trading, even for advanced traders.
Binary options give you a huge degree of customization, and for the advanced trader, that is a good thing. With your charting packages, you’ve probably noticed that you have strengths in some areas, and not others. There are many exotic options evolving now, such as the one touch option, the boundary trade, the pairs, and other innovative trading techniques. These are great to look at, and can be very helpful, but only if you’ve done the research and gained the experience to see what works and what does not. If you are new to binaries, there are still opportunities for you to master them and profit big, but you need to look at the simplest type of trading first, namely the call/put options. Binary option trading has a ton to offer both new and pro traders, and they are a great method that many people have found to boost their overall profit rate over the long term.