Guide to Binary & Forex Trading for Beginners
By Rylie Holt
Binary trading is fast and a simple extreme financial instrument that helps people to earn money as investors by speculating the value of an asset, share, or property, whether it will go up or down in the future period. Forex can be defined as trading with foreign currency. Many binary options in forex are available with popular pairs like USD-CAD, EUR-USD, and USD-JPY. The timespan is our choice that may be as little as 60 seconds. It is named as a binary option because we can either win it all or lose it all. The risk and reward that is known in advance just make people attracted to this structured payoff.
The common and main options in this process
- High/low or up/down: The most basic option in the process is high/low, which indicates that the price or value will increase or decrease.
- Boundary/Range: This option is used to set a figure, whether it is high or low. Traders use this option to predict the levels at which the price finishes. It is used to figure out whether the price will finish within the boundary or outside of it.
- Ladder: Ladder is used for arranging the price levels just as the rungs of a ladder. The trader gives a range of price levels that are processed with equal intervals to finish the trade higher or lower than at the end of the trading day.
- Touch/no-touch: These are used to set levels, whether it is higher or lower than the current price. It is used to predict if the current price will touch the levels or not that are given by the trader before the time expires.
How to do Binary and Forex Trading?
Choosing a broker:
The main step in Binary and Forex trading for the beginners is to select a broker with the best prioritization. You have to check whether the broker is regulated or not. Make sure that you read a few times the terms and conditions of the broker and get a clear idea. Try to find an experienced broker. Because experience plays a major role in trading. The other considerations are you have to check deposit and withdrawal options and if he offers trading tools. Also, consider the trader who offers demo accounts in the beginning.
Selecting the asset or market for trading:
There are many assets like forex. It is very crucial to select the assets that provide the trending prices. Forex is considered as the best market to trade. Forex is also called as Foreign Exchange Market or FX. It is considered as the largest market and the most liquid market in the world of trading. Millions of people are using the forex market for trading. Due to its volatility, accessibility, possibilities, regulations, and technology used in attracting traders the most.
Selecting an expiry time:
It mainly depends on our choice to set the expiry time. You can select the desired time between 30 seconds to a year. Also, choose the best time to trade.
Selecting the size of the trade:
Your trade amount is at 100% risk and the most determining step. So be careful and select the desired amount. Forex trading consists of sizes like mini, micro, and nano, etc.
Clicking “call or put”:
Click the call or put option by your imagination of whether the asset value rises or falls. Buttons may be displayed differently like “buy or sell”.
The final step is to confirm:
Many brokers give an option as a chance to check and confirm if the given details are correct before the trade is confirmed.
The major regulators in the trading industry:
- UK regulator as FCA, Financial Conduct Authority.
- Cyprus regulator as CySec, Cyprus Securities and Exchange Commission.
- US regulator as CFTC, Commodity Futures Trading Commission.
- Australian regulator as ASIC, Australian Securities and Investments Commission.
Useful Tips for New Traders:
- You should have good control over your emotions. Do not be over ecstatic or over sad.
- You should set a limit on your trading bets and do not be addicted as it can disturb your emotional stability.
- Make sure you prefer a try with the demo accounts before jumping into the real money.
- Stay updated and informed about all the recent activities in the global markets to get a keen understanding.
- Learning should be endless. You will eventually become an expert by learning every day.
- Be quicker but also wiser when you are on the platform.
- Learn how to achieve a clear analysis of charts.
Facts about trading:
- Licensed brokers are safe for traders, and you should always go for a licensed broker.
- It is a big fact that more than 50% of the total traders lose their money they deposited on the first day of their trading.
- The main three mistakes that the beginners do is choosing the wrong brokers, relying on serendipity rather than calculations, making too many bets in a short time without analyzation
- Do not succumb and do not believe only in the strategies of brokers. Withdraw immediately if you have achieved a certain expected amount and stand firm on your ideas.
- Self-controlling and setting the limits are the key qualities a successful trader does.
- 99% of the trading systems do not work as some of the brokers offer them to other parties and clients.
- People who experience high profits in trading lose their sight of high risks because risks and profits are interlinked.
- Instant success is impossible, and if it happens when you are a beginner, be ready for the losses very soon and learn from the experiences.
- Trading is not at all an easy task. It requires endless study and learning.
Try hard till you know to calculate and win. Keep learning until you are confident. If you want to achieve in binary trading, be patient until you can identify the strategies. Consider peace with the losses and do not care about what other people think about. Do not compare your trades with others; gain belief in your strategies. Just sit back and observe rather than giving a reaction.
“Never, ever argue with your trading system – Michael Covel”