Preparing For Your First Trade
The thing about binary options trading is that you cannot enter a trade unprepared—ever. In order to meet long term success here, you need to have a viable method of identifying profitable trades and a good money management system to make sure you are never risking too much at any one time or risking too little for the trade to be worthwhile. Trading strategies can take months (or longer) to develop, and if you skimp out on this area of your trading, you will likely not be successful. Do your research on the asset you are looking at and make sure that you have a good entry point picked. This will make sure that you are being efficient at picking winning trades.
The trade you pick doesn’t need to be a monumental one. Small movement of only a 1/10th of a pip will get you a profitable outcome. Still, if you are trying to select only the very best trades, you will not be trading as many trades throughout the day as the person who looks for tiny movement.
Which method you ultimately apply is up to you, but think about it this way: would you rather have a few trades with a really high probability of success, or many trades that look like they will go only slightly in your favor. If you make only a few trades per day, but the quality of their outcome is superior, you might be able to make more money off of fewer trades. Quality is more important than quantity.
However, the immense risk that is associated with binaries is also something that you can easily use to your advantage. The knowledge that you gain because you know what you are risking is a tool that can make money management a whole lot easier. For example, when you are trying to determine your weekly goals for profits, you can easily determine how many trades and of what amount those trades need to be in order for you to hit your goal.