5 Golden Rules for Trading

Rule No.1 Do Your Homework

Before you make a trade you need to know if an asset value will go up or down. You can't always just trust your gut, sometimes you need real facts. This is why we recommend learning how to read the charts - be they fundamental analysis, economic news and data or charts. Make sure you read daily Market reviews to stay informed on whats going in the markets. This will help you stay informed on the past and future of events. There is an abundance of free technical analysis and signal services available on the internet, making your job a whole lot easier.

Rule No. 2 Know Your Assets

It is crucial that you understand all about the assets you trade. Top investors see the connections between assets and can anticipate movements. With so many platforms offering tons of assets we believe it's advisable to specialize in just a few than try and understand them all. The more you learn about an asset the better you will understand why it's moving in a certain way. This will make predictions about where it's going much easier. Some of the most popular assets available are Gold, Oil, and the EUR/USD.

Rule No.3 Manage Your Money

Money management is the key to a long and profitable career in the trading world. Unfortunately, it's something frequently overlooked. Make sure you know how much you are willing to invest on a particular trade or even on a whole trading session. This will ensure that you don't over invest in the spur of the moment and lose your money. Binary Options can form an integral part of someone's overall investment in the financial markets but make sure the trades are planned and the investment levels decided beforehand.

Rule No. 4 Be Adaptable and Stay Strong

This may sound a little contradictory but a key advantage of binary options is that you can profit in bearish, bullish and volatile markets. Be flexible and choose the best trading strategy for the current conditions and be strong enough to stick with it if it's the right technique for the trading conditions. For example, the ‘Straddle' technique which involves buying and selling at low and high points in a volatile market can double your profit if both trades end in-the-money. However it is no use when the market is moving strongly in one particular direction. So have flexibility in your strategies but stay strong with a potentially winning strategy. If all the indicators are pointing one way, go that way and be strong once you've gone that way.

Rule No. 5 Practice Makes Perfect!

Most platforms offer some sort of demo account. Some are time restricted, others not. They exist for your benefit, so use them! A demo account is probably the best way to familiarize yourself with the platform as well as the actual customer service being offered which is also important. Use a demo account to try out new techniques and trading strategies before you implement them with real money. Remember… Practice makes perfect!

So what are you waiting for? Go make some money trading Binary Options!