Maybe you’ve traded in some other place before, but probably you haven’t. That’s the beauty of trading with binary options–you really don’t need to have had any previous experience in order to be successful here. You can start from scratch and still be successful. Experience helps, but it isn’t exactly necessary. If you’re new to trading, you still probably have some sort of knowledge of the financial markets and how they work–even if you don’t think you do! Start with what you know and what you’re interested in. Are you a tech geek? Do you love your iPhone and your laptop? Or are you more interested in other things, like politics, or gardening, or maybe the entertainment industry? Regardless of what you’re interested in, you have market knowledge already. Now you just need to apply it.
Right now, the tech industry is big in binary options. Pretty much every broker offers the big tech company stocks as underlying assets. You can find Google, Apple, Microsoft with ease. Sometimes you can find others, too, like Samsung, Yahoo, and Dell. You can even find international choices like Turkcell. There’s a lot of flexibility here. So just take what you know of this market and apply it to how the stocks will perform. Does Apple have a new product coming out? Do you think it’s going to be a highly hyped product, but ultimately fall flat? In this case, taking out a series of call options over the short term, but going with longer term put options for down the road can help make a profit quickly. It’s not quite as easy as this, but it’s definitely a good way to get your feet wet and learn how the market works.
This concept can be applied anywhere really, although in some cases it can be a bit more difficult. For example, if you’re a political news junkie, you’re probably starting to think how you can apply that to making money trading. It is admittedly a bit more difficult, but think about it like this: what political decisions affect the economy? Fed moves have big implications, for example. When the President makes a decision that affects the Fed, currencies and some commodities are instantly affected. The dollar’s activity hinges on these things, as do gold and sometimes oil prices. So if you think the dollar is going to become less valuable, that could be a hint that other currencies will rise in value against it. So the EUR/USD pair would go up in value as the dollar sinks and the Euro rises in comparison. Gold will go up in value as people take their money out of greenbacks and put them in the most sought after commodity.
Little things like this are what affects every single asset all over the world. You just need to find the connection between what you know and what that knowledge means for the economy. There are always exceptions, but you need to start somewhere and this will give you a valuable leg up on your competition and might even eliminate the instant losses that the vast majority of new traders will experience.
There are a lot of other things you need to know, but knowledge of your area of trading will go a long way and encourage. This starting point can easily be supplemented with what is called trading the news. Just keep yourself posted in what’s going on in your field. If you like trading the tech stocks, keep yourself updated with what the major players are doing. You probably already do this, anyway, so it’s not really a big jump. Just keep learning and keep observing and your trading success will grow equally. For new traders, this strategy can go a long way until they are ready to start tackling some of the more technical concepts.