Binary options: how to invest and not lose?

Binary options trading attracts more and more market players, mostly on the Internet. Everything seems easy, beautiful and above all profitable. Market experts warn – it is not a game, you can play to win but for that you need a thorough knowledge and not just luck.

Binary options market dynamically changes over time, it is the first thing one should realize before investing money. Many inexperienced market players treats it as a kind of gambling. Therefore, it is not surprising that they do not reach a high return on investment. However, if you want to earn and achieve a profit of up to 80 percent of the contribution, you need to develop a reliable system and plan of action, preferably with few alternatives.

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When to enter into the position

Each asset market is different from one another, so get to know it before investing. It is worth to observe selected items and know when to enter into them, and, above all, when not to. Before playing on a binary options market it is worth to take a look at the current economic and political situation. Sometimes it is surprising how some seemingly unrelated financial market information can influence an increase or decrease of assets. Such actions will help determine the amount of hits per day, and also narrow the time horizon of the investment. On the other hand, if one trades recklessly, occasionally and counts on luck it is hard to earn anything.

Binary options is not gambling

This instrument raises a lot of controversy on the stock market from the very beginning. Many of the financiers treat trading on forex binary options as gambling. In their opinion, speculation about whether the value of the assets rise or fall is nothing different. However, in this way, one can approach both trade of stocks and shares or investments on the market of raw materials. If the life savings are entrusted to to a stockbroker without fundamental knowledge or no idea as to what to do and why, such investment can also be compared to a lottery. Money put on the stock market should be treated as if they are already lost, because there are no such instruments that guarantee a sure profit.

Realistic requirements for profit

Not every invested penny brings a profit, success in the case of binary options begins at the 60 percent of the closing of the position on the in-the-money option. Novice investors often make a grave mistake and put all the savings on one type of option. Please note that this is not a deposit on which the Bank Fund guarantees profit. If one wants to make a profit on binary options it is required to diversify the investment portfolio. It is a look at the markets and selection of the most promising ones. It works best to play on several markets by means of matching strategies to their dynamics. The most popular are call and put options.

Strategy is the key to success

It comes down to predicting whether the price of the asset before the expiry of the position will be higher than the price for which the product was purchased (call options), or lower (the put options). What often works is touch and no touch strategy. It involves assessing whether the value of the asset reaches or does not reach the specified value. In the boundary options it is estimated if the item comes up beyond certain spreads. If the forecast proves to be effective, one can obtain a refund compatible with the course that appears at the conclusion of the transaction. Important also is the time interval in which the level of the asset will change. Depending on the type of market it can change within a week, day or even 2 minutes. Binary options 60 seconds strategy is a popular form of investing on very dynamic markets. However, it requires some practice and is not recommended for novice stock players.

Binary options demo account

Novice market players often burn with optimism about their skills. They think that they can earn big money with a small contribution of their own and also in a short period of time. Such conviction is often perpetuated in them by the ads on the stock market websites. On many large brokerage platforms, you can find a demo account, this is the best way to learn how to play the stock market with no real risk. Demo accounts allow to get to know the binary options market from the inside and review the current situation on them. With demo accounts, you can try out your ideas and strategies without the risk of investing money. Keep in mind, however, that not every strategy works on every platform, this is because they operate differently. It is worth to choose later the broker account on which we tested our skills.

Investing in the stock market is not gambling, but it involves some risk. In contrast to lotteries or gambling it can be predicted and calculated. If life savings are spent on something, you can not assume “and what if I succeed”. Entering binary options market is fairly easy, however it requires a thorough analysis. The best market players can win up to 80 percent of the capital invested, but it requires appropriate training and knowledge and time.