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4 Methods for Improving Binary Options Trading Earnings

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4 Methods for Improving Binary Options Trading Earnings

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You likely began binary options trading lured by the high returns. It’s true; there are substantial profits to be made. So, after a few months of trading you begin to wonder how everyone else is making so much more than you. Here’s what experienced traders know about making big profits over the long haul.

1. Employ a Money Management Strategy

Too many traders see low profits because their losses are so high. This is an easy fix. Simply begin risking a lower amount of your account balance on each trade. Inexperienced traders tend to do the opposite, piling in more and more money in the hopes of countering their losses with a huge gain. But this isn’t how it works.

Experts recommend risking no more than two percent of your account balance per trade. Think you can’t make money this way? Consider this: a trader who risks two percent each time he trades and loses only nine percent of his account balance. A trader who risked ten percent per trade and experienced the same six losses has lost 53 percent. In the long-term, obviously, the trader risking less eventually ends up with more money.

2. Develop a Sound Trading Psychology

Investors who aren’t successful at binary options trading have some things in common. Their investments are based more on emotion or “hunches” than legitimate strategies. They keep throwing money in their accounts, even when their losses are substantial, without thinking through why they lost and how to counteract it.

Successful traders master control of their investments. Their trades aren’t based on stress; they trade with the prevailing trends and keep ahead with research. The ones who make the money are those who keep their heads and don’t lose control. Approach trading with the mindset of the serious trader, not a gambler.

3. Master Trading Losses Management Techniques

Aside from managing your money wisely and keeping your head on when trading, you need to master a few techniques for better earnings. Consider hedging a shaky call option with a put option to offset your losses. For example, we know when trading currencies, the value of the EURUSD is strongly tied to the Dow Jones average. If you’ve invested hopes the EURUSD is going to fall and it looks like it’s on the rise as expiry time nears, place a put option on the Dow Jones.

Or, maybe you’ve placed a call option on a stock, such as Apple computers. An announcement from the company about poor reviews of its new tablet computer sends stocks downward. Go ahead and place a put option on the stock to offset the losses of the call option trade. Smart, experienced traders do this all the time.

4. Keep It Simple

Lastly, successful traders aren’t always chasing after the latest “no fail” strategy. They use a few tried and true strategies that have proven to work for them in the past. Savvy traders know there’s no such thing as a sure thing. They use the everyday strategies, knowing that you win some and you lose some. So long as you’re using smart money management techniques, a few losses aren’t going to send you to the poor house.

Once you master good money management, put yourself in a sound psychological place, and employ some smart strategies, you too will see greater success in binary options trading.

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4 Methods for Improving Binary Options Trading Earnings

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About Michaela McNamara

In conjunction with Affiliate Media, Inc. Michaela McNamara established BinaryReview.com in 2012 with the intention of providing new options traders with the tools, reviews and.

FX Empire – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. FX Empire may receive compensation from the companies featured on the network.

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Written by: J.M. Porup

Novelist J.M. Porup is An American Dissident in Exile. Read More

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