7 Steps to Profit in Binary Options

Binary Options trading is indeed easy to understand and run, but is being a profitable trader also easy? For professional traders, the answer might be yes, but not so if you are a beginner. You can just follow the general way of trading binary options; select "call" when you are sure the price will go up, or open the "put" option when predicting the price will drop. But that method alone does not guarantee your profit as a trader. In addition to high analytical skills, you also need management of risk management and stable trading emotions.


The things above certainly cannot be reached in an instant. It takes time and patience for beginner traders to be able to finalize their skills and ensure profit consistency. Even experienced traders still regularly learn and practice trading skills from time to time. But you should not be discouraged first after hearing the facts above. It's true we will need a lot of time to become profitable traders, but there are various ways to simplify the process. One method you can do is to follow the following 7 steps:


1. Learn to trade binary options

This first stage is the essence of binary options trading itself. Why do you open an account and trade BO if you don't understand about Binary Options? Maybe you can rely on external signals or even copy trades from other traders' accounts, but that won't guarantee long-term benefits for yourself.

Therefore, as a first step in the journey to become a profitable binary options trader, learn and understand well what binary options are, how to trade, and what to avoid and do. Before running binary options trading in real terms, it is very important for you to have a strong knowledge base about binary options, as well as the ins and outs of the market for the instruments you are trading.

If you can grow interest in trading binary options, this will further guarantee success in the future. However, any difficulty will be mild if you go through a process of learning with high passion.


2. Choosing a Broker
How to choose the best broker will certainly not be separated from every trading learning, including in binary options. Well, this second step can be your first test after exploring the science of trading binary options. Currently, there are many outstanding tips to help you determine the best broker choice. Among all these suggestions, the conclusions are easy: set a broker that is safe and in accordance with your trading needs and abilities. To get more information about what needs to be considered when selecting brokers and adjusting it to your conditions, please open this article.


3. Develop a Trading Plan
In every trading success there must be a plan behind it. If not, then success is only a coincidence, unreliable continuity, and does not guarantee the future of your trading account. Therefore, after learning binary options and choosing a broker, start looking for the right trading system, and arrange your trading plan. Starting from the method of analysis, the strategies used, to the management of money management, make arrangements that you can realize. That is, do not make plans with targets that you cannot achieve.

For example like this, you are still a beginner but expect 100 percent profit in a month. You may also arrange a trading system by just expecting profit, without taking into account the risk of loss at all. Such expectations are certainly not realistic in the world of trading. Let alone in binary options, even in forex spots such things also do not make sense to be expected by newcomer traders.


Besides being realistic, the expected profit and loss should be able to accept. This is to avoid the psychological effects that arise after you experience a loss or profit in large numbers. Check out this article to read tips on making a trading plan for binary options.


4. Perform a Back Test on the Trading System
Finding the right trading system is not enough. Before you test it, the system is still not suitable for trading binary options in real terms. You can back test the trading system by testing it on historical price data. This method is mostly done by other traders because it does not require a lot of time and costs.


5. Apply Forward Test on Demo Account
After testing the system's efficacy with a back test, then you can test it again on a demo account with price data in real time. This method can also be called a forward test, where you will get more reliable results in measuring the quality of the trading system. Market movements in the past did not always show the same pattern as the current price. For that, the results of the back test and forward test can be different. In this situation, prioritize the results of the forward test as an indicator of the success of the trading system.

Unfortunately, the forward test has disadvantages even though the results are more reliable. The testing process here can take longer than a back test. Generally, 1-2 months of testing is recommended so that the forward test results can be more accurate.



6. Trading on a Real Account
Say you have managed to find a trading system that passed the back test and forward test, can this guarantee the success of your binary options trading on a real account? Not necessarily. In fact, there are many differences between demo and real trading. On a demo account you can more freely try the method and enter in many trading opportunities, while in real accounts such decisions will be taken very carefully. If not resolved, caution can develop into fear (fear) that hinders the success of your trading. Fear is one of the most dangerous trading emotions that must be minimized by binary options traders.

Running real trading with stable emotions may not be easy at first. But with the passage of time, trading psychology will be honed if you consistently run a trading plan and are able to learn from mistakes.


7. Continue to Develop Trading
After successfully running a trading system and obtaining the expected profit rate in a real binary options account, your struggle has not stopped. At this stage, you just complete the initial stage to become a profitable trader. After successfully achieving the desired profit, you also need to diligently try to maintain it.

Remember that market conditions are very dynamic. You cannot run the same trading plan from time to time and hope your profit rate will always be the same. For this reason, don't be bored to keep abreast of the latest news and developments in the market. You must always maintain performance by always monitoring the effectiveness of the trading system. There are times when you need to update some aspects, add certain components, or even replace the old system with a new one. If you routinely conduct trading evaluations, you will know when it is right and what should be done to improve the system.


Conclusion
Becoming a binary options trader is not difficult, but being a profitable trader is difficult. Not all traders can collect profits consistently, one of the reasons is because they have not implemented the right approach in seeking profit in binary options. For this reason, the 7 steps above are expected to guide you to become a successful trader with a solid and consistent level of profit in binary options.



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