How to Invest with Binary Options

binary-options-tradingWhere to invest your money is not an easy choice to make. I have made a lot of investments with my funds; some went quite good while others went very bad. In fact, when you are making an investment you must be absolutely aware that you might lose it most of it.

Lately, I have been putting my money in Binary Options. Binary Options trading is a very simple and easy way of investing and having some real returns, and once I found out about it I started to invest and up until now have been making some profits.  Of course that you need to consider that investing in Binary Options can be as risky as any other high risk/high reward investment and for it to be profitable you will need to use a functional strategy. In this article, I’ll try to give an insight into it, while presenting a demonstration on how to invest in binary options and get some returns.

What Are Binary Options?

Choosing an asset is the first step of your investment. The more familiar you’re with the chosen market, the better your chances of successfully predicting the fluctuations of the asset prices are. For instance, if you have an interest in EUR/USD prices, you may choose to open an investment position with this currency pair.

Binary options are basically making estimates of an underlying asset performance during a specific time frame. In most forms of investment the investor actually purchases the asset they invest in and the value of the profit and loss is determined upon the changing value of the asset. If the investor sells the asset back to the market whenever its value increases, then they’re making a profit, and if they sell the asset back to the market when its value decreases, then at least a part of their money is lost.

In options, the investor trades futures on the market, predicting the asset’s movement for a predetermined time frame.

The one investment possibility is when you predict that the price of the asset will rise, this type of investment is named “High option. The other possibility is presented when you predict that the price of the asset will fall, this type of investment is named “Low option.

Assets traded in Binary Options

  • Indices – Such as FTSE, Nasdaq, Dow Jones, Nikkei, etc.
  • Forex –  Trading pairs for all the major currencies such as USD, EUR, GBP, JPY, etc.
  • Commodities – Gold, Silver, Oil, Corn, Coffee and many more.
  • Stocks – Stocks and shares of the biggest companies in the world from a variety of industries. Some examples are: Google, Deutsche Bank, Coca Cola and several others.

Trading Binary Options 

First you will need to choose your Binary Options Broker. To do that you need to perform your own search and figure out what are the most trustable and benefiting Binary Options Platforms in the Market.

As for me, my choice was 24option. But why did I choose 24option? Because it was part of my strategy since 24option offers a 100% bonus for new depositors plus no risk trading. Besides, 24option also had some other features that could help me stay on track such as the “Sell feature (very useful feature to minimize losses), very helpful advanced chart tools plus a variety of option types to choose from.

You can open an account and start practicing binary options trading right away with the 24option platform with no risks involved. 24option platform guarantees fixed returns on your investments,  24/7 professional support that will teach you how to invest successfully, and much more.

The 24option Education Center also provides novice and experienced traders a valuable resource for learning and improving binary options trading techniques and strategies. Every registered user at 24option has access to high quality educational material at his fingertips, so don’t forget about that.

Trading strategy

You begin by choosing an asset you wish to invest in, let’s say that you are interested in the EUR/USD market. If you believe the price is going to go up in the next 15 minutes, you simply decide how much you want to invest, the time frames (in this case 15 minutes) and select “HIGH. Binary options are a win/lose investment so you will always have to remember that. It means you might get like 85% profit on your investment, but you can lose most of it as well if you don’t manage your risk properly.

First you need to choose an amount to invest. I recommend you to never use more than 10% of your total stack. This is a basic rule for what is called “Risk management. I started with about 2.5% of my whole capital, which was 1000EUR. After doing some research and analysis, I chose the asset I’ll be investing in will be the EUR/USD currency pair.

The strategy I have used is quite simple. All you need to do is to have an estimation as to where the market is inevitably heading; you can do that by analyzing the charts in longer timeframes to evaluate whether the market is heading up or down. After opening a HIGH or LOW position accordingly, you will have to wait for it to expire. If you lose the position, you will need to open the same position with the double amount (50 EUR). If you are still in loss after the second round, you will need to keep opening the same position and doubling the amount until you have your win. Once you have your win, you start all over again from the lowest investment value. Mind you, you can always Sell your option before expiry to save some losses!

I hope this has covered at least some of the important information needed to start trading binary options and will be useful for some. As said before, this is a very simple and easy strategy but it should bring you some good profit if used correctly. Furthermore, my advice is to never invest more than you can afford to lose. If you stick to the rules, you will do fine and gain!

Start trading binaries today.

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