There is a lot that your binary options broker doesn’t want you to know as a trader. If you find out about these binary options secrets, your trading is going to change forever. Some of the secrets don’t feel like they are going to help you out at all, but what you need to do is trust in the system and wait for them to work. Doing these right is going to help you out a lot more than you may think.
Shorter Doesn’t Always Equal Better
A huge myth in the world of trading binary options is that the shorter the trade lasts, the more control you have over whether it is a win or a loss. A lot of traders think that these shorter trades allow them to take advantage of the sharper, quicker swings in the price of the asset. Brokers, for the most part, don’t tell their clients that this isn’t the case. You can’t really blame the broker for doing this, of course. They can only make a profit if their traders lose some of their trades, after all.
However, it is entirely the fault of the masses of traders out there who have become addicted to the adrenaline rush of a high risk trade that lasts for a few minutes. Always try to make your trades last for as long as you think they should. Try not to go under 5 minutes with the expiry time, because this will lead to a lot of stress and more losses as well.
Analyze Economic Data Dumps Before Trading
You also should never trade with your broker right after a new store of financial analytics has been released to the public. Right before or after this type of data dump happens, the market becomes a lot more volatile. This flood of new information or the thought of it does nothing more than reduce how effective you are at trading binary options by taking away your need to compete. Even worse is the release of this type of data by your broker.
They aren’t out to intentionally make you lose your trades, but they can make you be more random with your trading because you don’t know which assets to invest in right before or after this release of data. Never trade during a volatile time like this. Take the time to analyze your assets and compare them to the data you have received.
Signals aren’t a Binary Options Exclusive
If you are a trader who uses signals a lot while binary options trading, you should know that signals were invented for the stock market. If you start using them with Forex trading or commodities, you are going to be in some hot water. Do not let past trends in the life of the asset define how you invest in your binary options. Sure, all those analysts out there will tell you that you have to look at the history of the asset.
The truth is that while this works for stock trading where you look at the performance of the company as a whole, it doesn’t work nearly as well for commodities. Also, you need to think about the fact that signals lag. No matter how fast they come to you, the fact of the matter is that for the signal to be sent to you the event has to already have happened.
Last but not least, you need to go with the flow. This is one of the most important parts of binary options trading. Now, you do need to understand that taking longer trades is a good idea. In fact, it is a great idea. Not succumbing to the wishes of the many technical analysts and signals out there is another great idea. Going against the popular trades and not following the bigger asset trends? Bad idea. Very bad idea indeed. If you want to commit binary options suicide, this is what you need to do.
If you can take all of your assets and invest in the ones that have a good lifetime, that are being invested in by many other users, and are going to serve you well in the long run leads to a higher chance of that asset’s trade ending with you being in the money.