One of the keys to success with binary options trading is to stay profitable over long period of time. In order to do this you need to make more money than you lose and do so over the course of several months or even years. Of course you’re going to have days when you lose money, and you may even go on a losing streak where you can’t seem to make a trade to save your life. However, as long as you eventually win more than you lose you’ll stay profitable and keep making money from binary options trading. Here are a few simple yet powerful binary options tips to help you stay profitable…
Tip #1) Always Get Your Money Back and Drawn Trades
You want to make sure that you choose a broker that returns your money on any trade that is drawn or tied. Most, but not all, brokers give you your money back on trades that end in a tie so make sure your broker is one that does not keep your money on a drawn trade. Over time you going to have drawn trades and it would be bad for your overall profitability if you were to have to forfeit this money.
Tip #2) Choose A Broker With A High Payout
Another tip that revolves around your binary options broker is to choose a broker that has a high payout percentage. You want to choose a broker that pays out in least 70% or more. This one is obvious, but the more your broker pays you on your winning trades the more money you make and the easier it is to stay profitable.
Tip #3) Never Risk More Than 5% to 10% of Your Bankroll at a Time
Because there are no guarantees of making winning binary options trades you want to minimize your risk as much as possible. A great way to keep your risk low is to keep a majority of your bankroll out of play. That’s why you should trade with as little capital as possible for your income goals. Some people suggest that you trade with as little as 1% or 2% of your working capital; however you may find that your growth at this level is too slow for your liking. We suggest trading with no more than 5% to 10% at a time to strike a good balance between risk and reward.
Tip #4) Recover Your Initial Investment As Much As Possible
When you make a winning trade is good practice to recover the initial investment from the profits of the win before making another trade. So let’s say you just made a winning trade that netted you $175 and your initial investment was $100. Using this principle you should recover your $100 and then make new trades using only that $75 in profit. After winning a few trades on that $75 go ahead and recover your investment again and trade only with the profits. You don’t have to cover your investment after every single winning trade, but you should do so on a regular interval that makes you comfortable. This is a simple way to keep you from getting in over your head and losing money.
Tip #5) Quit While You’re Ahead
If you find that you’re on a winning streak of three, four, five or more trades winning one after the other thing you should quit while you’re ahead. It may seem counterintuitive to stop trading while you are “hot,” but you can go on a losing streak just as quickly as your winning streak started and be back to square one with no profits to show for it. So if you find yourself on a string of good luck, quit and enjoy the run for what it was, because it’s unlikely that it is going to last for much longer.
Hopefully you’ve found these five binary options tips helpful and you will keep them in mind when you are trading on a daily basis. They may seem simple, but they work very well and they can be the difference between keeping you profitable and you losing your shirt. So trade smart and stay profitable with these great tips.