Binary Options markets

How to properly distribute risks in binary options

How to properly distribute risks in binary options
How to properly distribute risks in binary options
In the meantime, there is no need to worry about it. ”

There are many such traders who seem to have competently and thoroughly prepared for work. They found a good strategy template, attended several online courses, and know in general terms the main aspects of technical analysis. But in the end, they still lose their deposits, and all for one simple reason - they have not learned how to properly manage their capital.

To protect you from such a sad situation, we have prepared some valuable tips on how to properly manage your deposit. This science is called money management, and it is a very important part of your business in the financial markets.
Limit the amount of the transaction

Regardless of your preparedness and confidence in trading, the amount of your investment for one transaction should not exceed 3-5% of the total amount of your deposit. It's kind of a great safety net. After all, even if you have a series of unsuccessful deals, you still will not drain the entire deposit, since you have limited the amount of investment within the framework of the main rule of money management.
If you prefer to open several transactions at the same time, please note that their total volume should not exceed a third of your deposit. Always remember that the market is chaotic and unpredictable, so always be prepared for the fact that your trade may close in the red sooner or later.
Control your profits and losses

A lot of newbies completely lose their heads after making their first profit. They start to work according to the principle - "Easy earnings". As a result, they begin to trade with absolutely no attention to changes in their trade balance. This can lead to even more waste and losses.
How to properly distribute risks in binary options

How to properly distribute risks in binary options

Experienced professionals are guided by one rule: the profit is divided in half. Let's say you put 50% of the weekly profit on a deposit, thereby increasing it, and spend the remaining 50% on your vital needs. Thus, you are already guaranteed not to spend more than half of your earnings.

It will also not be superfluous if you limit your losses per day. For example, upon reaching 3-5 losing trades per day, completely stop trading until tomorrow. It will be more useful to spend this time analyzing your mistakes and parsing them.
Diversify your risks with different strategies

Any trading strategy can fail sooner or later, and this is normal, since nothing lasts forever in the financial world. The market as a living organism is constantly changing. For this reason, it is better to play it safe and have several very different trading strategies ready.
It is better to do the same with trading assets. It is best not to invest all your investments in the same trading asset. Diversify your risks, choose assets from a wide variety of areas. For example, trade a currency pair and a stock index. After all, if panic befalls the foreign exchange market, then the stock market will be all right.
Options types

It will also be advisable to control risks by trading on different types of contracts. Modern brokers, in order to diversify their assortment and somehow stand out from numerous competitors, come up with different types of contracts.
Now you can find the following types of options: classic Above / Below, Border, One Touch, Ladder, Pairs, Turbo, Long-term, and so on.

Different contracts have their own trading characteristics, you can significantly reduce the risks if you enter into transactions on 2-3 contracts. For example, trade classic short-term High / Low options, and master the long-term Border or One Touch contract.
Be mobile, constantly improve, look for something new and you will definitely achieve success in binary trading!

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