Table of contents:
- 1 1. Maximal 5% percent rule
- 2 2. The two-option rule
- 3 3. Long-term rule
- 4 4. Entry Rules
- 5 5. Overtrading rule
- 6 6. Technical analysis
- 7 7. Choose entry well
- 8 8. Analyze long-term charts
- 9 9. Select maturities according to the trend
- 10 10. Avoid high yield options
- 11 11. Know the market or strategy
- 12 12. 60-second options
- 13 13. Reliable Broker
- 14 14. Trading after the opening of the stock exchange
- 15 15. No trading during news
- 16 BINARY OPTIONS TRADING IN 5 STEPS
- 17 Mobile Trading
- 18 Conclusion: Binary Options rules are necessary
The following rules relate to trading itself and less to risk management, although the two cannot always be separated. For example, the entry rule (buy calls on lows and puts on highs) may not only be advantageous for risk-related reasons.
On this website, I will show you the best 15 tricks and tips for Binary Options trading. Learn from my experience and become a successful trade. With the following rules, you can safe a lot of money.
1. Maximal 5% percent rule
Always use only a small percentage of the total capital available to you. For example, only 5 percent of it as an investment per individual trade. Professional traders are using between 1 – 5 percent of the account balance per position.
2. The two-option rule
Never buy more than two options at the same time, otherwise you may lose track of your risk. Especially if you are trading short-term options like 60-second trades, it can be very confusing.
3. Long-term rule
Beginners should initially only trade long-term options, e.g. options with a maturity of at least one day. It is much more difficult to analyze short-term movements and thus reliable setups, as fluctuations in the price are slower and smaller.
4. Entry Rules
The target price should always be chosen so that the option quickly reaches the “in the money” range. For example, a call option could be bought at a relevant technical low and a put option at a relevant technical high. Make sure that you create your own entry rules for trade. It is important to have a real strategy.
5. Overtrading rule
You should avoid overtrading, e.g. by trading a maximum of two up to 10 options a day – regardless of whether they have ended up in a profit or loss.
6. Technical analysis
Beginners should act after the technical analysis if possible. This provides a good basis and there are many strategies that can be tried out and optimized at your own discretion. Most platforms are offering chart types, technical indicators, or analysis for a technical approach.
7. Choose entry well
Buy call options at lows and put options at highs. This rule should be observed not only in terms of risk but also because low prices are more advantageous than high prices when assuming rising prices and vice versa.
8. Analyze long-term charts
Even for short-term trading, you should analyze long-term charts to identify relevant technical price zones. For example, you choose the 1-hour chart to analyze and search entry in the 15-minute chart.
9. Select maturities according to the trend
The term of an option should be selected to match the trend. For example, if a trend lasts several days (many daily bars), the term should be at least one day to avoid fluctuations within the day.
10. Avoid high yield options
The trading of high yield options such as ladder options sounds lucrative but should be avoided, as on the one hand the boundary conditions are very unfavorable and on the other hand the overview is lost, which would violate them. I recommend sticking to the classic Binary Options.
11. Know the market or strategy
A trader should only focus on a few markets or strategies, e.g. either trade only currencies or follow trend strategies. This also helps to keep an overview and focus on the essentials.
- 60-Second Strategy
- Volatility Strategy
- Bollinger Bands Strategy
- Money Management Strategy
- Trend Following Strategy
12. 60-second options
Always buy 60-second options opposite in the opposite direction after identifying a relevant resistance or support. These zones must be very reliable. Therefore, trading 60-second trades are more for experienced traders.
13. Reliable Broker
You should have a reliable broker so that you don’t fall for black sheep like the binary options scam in Israel. You can see this by the fact that the broker is regulated by an EU authority and has the support that is always available. Important: It is of no use to you if there are many ways of contact, but hardly anyone can be reached through them.
See the recommended brokers in the list below. They are regulated and safe:
14. Trading after the opening of the stock exchange
Beginners should stop trading for at least 45 minutes after the opening of the exchange. The market should first show a certain direction, otherwise, no reliable trends can be identified. On the stock exchange opening, the movements can be very fast and unpredictable.
15. No trading during news
You should avoid trading during the publication of business news if you do not know what effect it will have on the price. Unless you are trading long-term options, it is very difficult to avoid. Either way, you should always be well informed. Responsible brokers and trading portals are happy to share their knowledge with potential investors.
BINARY OPTIONS TRADING IN 5 STEPS
The trading of binary options is always associated with the risk of losing the capital invested. Especially if you are new and inexperienced and still want to devote yourself to particularly complicated strategies such as news trading. Therefore it is important to deal with the financial instrument in advance. For this purpose, we have summarized the most relevant points in the following points and also issue a Binary Options Warning in an article. The guide is particularly useful for trading beginners – the five steps presented here will help traders get to their first trade without detours.
- Choose the asset you want to trade
- Make a forecast and analysis of the chart
- Choose the expiry time of the option
- Choose the investment amount
- Open the trade
Mobile trading is suitable for those who are already well versed in price movements, as extensive technical analysis on mobile devices can only be considered reliable to a limited extent. Therefore apps are usually only suitable as a trading platform and less as an analysis platform. Trading apps are well suited for short-term decisions and trading on the move.
Conclusion: Binary Options rules are necessary
On the way to become a professional trader, you need rules or checklists in your daily trading day. Without a plan, it is difficult to make money on the financial markets. Often beginners are using Binary Options as gambling without knowledge.
This is a big mistake because you can earn constant money even with Binary Options. Before you start trading you should ask which strategy will you use and when will you enter a trade. What are you doing if the market does not move into your favor? Think about different scenarios. On this page, I showed you important rules. They can help you to be a better trader.
Read my other articles about Binary Options:
- 15 Rules for Binay Options – Tips & Tricks
- 5 best Binary Options Broker 2020 – Review & Comparison
- Are Binary Options a gamble?
- Are Binary Options a scam?
- Are Binary Options Robots a Scam? – Honest review
- Best Binary Options App – Comparison & Review
- Binary Option Markets
- Binary Options – Call and Put
- Binary Options – Range Options – Boundary Options
- Binary Options – Touch Options
- Binary Options 60 seconds Trading Strategy & Tips
- Binary Options Bollinger Bands Strategy
- Binary Options commodities trading
- Binary Options demo account – Recommended For Beginners
- Binary Options Money Management Strategy
- Binary Options News Trading
- Binary Options regulation – Why is it important?
- Binary Options review – Critic and warning
- Binary Options RSI Strategy
- Binary Options trend following strategy
- Binary Options volatility strategy
- Binary Options vs. CFD Trading – Which one is better?
- Binary Options vs. classic options
- Binary Options vs. Forex Trading – Which one is better?
- Chart analysis for Binary Options
- Forex Trading with Binary Options
- Hedging Binary Options: Can You Hedge Against Losses?
- How risky are binary options?
- How to avoid Binary Options Scam Brokers
- How to trade Binary Options – Trading Tutorial
- How to Trade Stocks with Binary Options – Tutorial
- Is Binary Options Trading safe? – Consumer protection
- Learn to read Binary Options Candle Sticks
- Trade Binary Options with MetaTrader
- Trade Pivot Points with Binary Options
- Warning about Binary Options – A form of betting
- What are Binary Options?
- Why Binary Options Signals are a scam