In order to give our readers an overview, we have compiled 20 rules and trading tips for trading binary options. Everything a beginner should know when he wants to start trading can be found in the following list with the short description:
5 risk management rules5 percent rule Set only a small percentage of the total capital that is available to you. For example, only 5 percent of it as an investment per individual trade. The two-option rule Never buy more than two options at the same time, otherwise you will lose track of your risk. Long-term rule Beginners should initially only trade long-term options, e.g. B. Options with a term of at least one day. The analysis of short-term movements and therefore reliable setups is much more difficult because fluctuations in the price are slower and less. Entry rules The target price should always be chosen so that the option quickly in the "in the money "Area is coming. For example, a call option could be bought at a relevant technical low and a put option at a relevant technical high. Overtrading rule You should avoid overtrading, e.g. For example, by trading a maximum of two options a day - regardless of whether they ended up in profit or loss.
The rules above not only ensure that the risk as a whole is reduced somewhat, but also promote discipline when trading, also deal with the psychological aspect of trading.
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The 10 trading rules
The following rules refer to the trading itself and less on risk management, although the two cannot always be separated. For example, the entry rule (buy calls at lows and puts at highs) can not only be advantageous for reasons of risk.Technical analysis Beginners should act according to the technical analysis if possible. This forms a good foundation and there are many strategies that can be tried out and optimized at your own discretion. Choose entry well Buy call options at lows and put options at highs. This rule should not only be observed in terms of risk, but also because low prices are more advantageous than high ones if one assumes rising prices and vice versa. Analyze long-term charts You should also analyze long-term charts for short-term trading, to identify relevant technical price zones. Select terms according to the trend course The term of an option should be selected to match the trend course. For example, if a trend lasts for several days (many daily bars), the term should be at least one day to avoid fluctuations within the day. Avoid high yield options Trading high yield options such as ladder options Sounds lucrative, but should be avoided because on the one hand the boundary conditions are very unfavorable and on the other hand the overview is lost, which would violate them. Know the market or the strategy A trader should only focus on a few markets or focus strategies, e.g. For example, you can either only trade currencies or follow trend strategies. This also provides an overview and concentration on the essentials. 60-second options Always buy 60-second options in opposite directions after you have identified a relevant resistance or support. These zones have to be very reliable. Therefore, trading in 60-second trades is more for experienced traders. Reliable broker You should have a reliable broker so you don't fall for black sheep like the binary options scam in Israel. You can recognize this from the fact that the broker is subject to regulation by an EU authority and can always provide support that can be reached. Important: It is of no use to you if there are many contact options that hardly anyone can reach. Trading after the opening of the stock exchange Beginners should stop trading for at least 45 minutes after the opening of the stock exchange. The market should first point in a certain direction, otherwise no reliable trends can be identified. No trading during news You should avoid trading during the publication of economic news if you do not know what the price implications are are. Unless you are trading long-term options - then you can hardly avoid it. In any case, you should always be well informed. Responsible brokers and corresponding trading portals like to share their knowledge with their potential investors. This page also provides detailed information about everything worth knowing about binary options. You can see some examples in these important messages for trading: KW25, KW27, KW29 and KW30.
Binary options trade in 5 steps
The trading of binary options is always associated with the risk that the capital invested to lose. Especially if you are new and inexperienced and still want to devote yourself to particularly complicated strategies like news trading. It is therefore important to deal with the financial instrument in advance. We have summarized the most relevant points in the following slideshow and also issue a binary options warning in a post. The guide is especially useful for beginners as a guide - with the five steps presented, traders can easily get to their first trade.
BINARY OPTIONS - Key Factors for Success Trading Binary Options 2020
5 further tips for trading
Some additional things, e.g. Traders should also keep an eye on, for example, for whom the mobile trading of binary options is suitable or how it is with profits and losses in terms of tax.Mobile trading Mobile trading is suitable for those who already knows the course well, because the extensive technical analysis on mobile devices can only be classified as reliable to a limited extent. Therefore, apps are mostly only suitable as a trading platform and less as an analysis platform.
Trading apps are good for short-term decisions and trading on the go. Taxes Profits from trading binary options are subject to Capital gains tax, which was 25 percent plus solo or church tax in 2016.
German brokers automatically pay taxes. For foreign brokers, the trader must contact the tax office himself.
Profit and loss account is possible after detailed information.