Binary options trading is a high risk (high reward) means of making money online and should only be undertaken by those that are serious about putting forth the time and energy into creating a trading system designed to swing the odds of profitability away from the house and towards your pockets. The highlighted keys to successful binary options trading should lie at the core of your binary options trading system. Implement these ideas into your trading activities and you’ll be well on your way to creating a sustainable source of secondary (and possibly primary) income for you and your family.

Binary Options Trading Key #1: Know Your Names

Limiting the universe of names you trade should greatly enhance your probability for profitability in binary options trading or any other trading you undertake. I’ve traded options both professionally and personally for close to 10 years now and one of the early lessons I learned was to not try to keep up with the happenings in all sectors all the time. There is too much going on in the world and trying to keep abreast of news in financials, retail, technology, energy, healthcare, and biotech sectors is an overwhelming, all consuming chore. However, if you minimize your list of target companies to say 10 or so, you can really get to know the companies intimately and really gain a grasp for how they trade on a day-to-day basis. Fortunately (or unfortunately depending on how you look at it) the binary options trading platforms in the market have a limited universe of assets to trade, thus picking a few to get to know on an intimate basis should not be hard,

Binary Options Trading Key #2: Pick Your Platform

There are several binary options tradingplatforms in the market, all with different selling features. We recommend EZTrader,  Anyoption, and StartOptions for binary options trading and have written detailed reviews of each platform, which can be found at the links below:

5 Reasons You Should Choose EZTrader To Trade Binary Options

5 Reasons You Should Choose Anyoption To Trade Binary Options

5 Reasons You Should Choose StartOptions To Trade Binary Options

In terms of picking underlying assets to trade, if you like to trade stocks I would go with EZTrader and if you’re more of an Index trader I would go with Anyoption. StartOptions is a great platform for beginners as new traders can paper trade positions on a practice account with ease. All the platforms have a decent number of currency and commodity contracts for those that are interested in those asset classes. OptionBit is the lowest cost binary options broker: $50 minimum deposit, $10 minimum trade amount. A review of the OptionBit platform can be found HERE.

Binary Options Trading Key #3: Trade, Trade, Trade

One of the big mistakes I see young traders make when starting out is they fall in love with 1 or 2 ideas and crash and burn with the outcomes. This isn’t a good strategy if you plan to have any kind of lasting longevity in the binary options trading business. The goal is to trade multiple times a day, give yourself a chance to win. Think about it, say you have a system that can accurately predict stock movement in short timeframes 70% of the time. If you only trade once or twice during the day there is a very good chance that you finish the day in the red or breakeven. However, if you trade 10 or more times during the day you theoretically increase your odds of winning. At this time there are no fees for trading, so there are no real obstacles to placing as many trades as you like. In my trading strategy I tend to make 5-10 trades an hour, for at least 5 of the 6.5 hours the market is open. That’s close to 50 trades a day. Give yourself a chance to win!

Binary Options Trading Key #4: Manage Your Risks

Binary options trading is inherently risky. Most platforms will offer returns in the 60-80% range for your winners and return/rebates of 5-15% for your losing trades. Those odds are not so pretty in a vacuum. The house is banking anywhere from 5-25% (risk free) on binary options trades where they can find both sides. The risk profile of placing one trade on and hoping that if goes in the right direction is not a profile I recommend investing in for the bulk of your portfolio. That is why I rarely place one binary options trade on a given asset without following it up with a complementary trade prior to expiration. This follow-up binary options trade can be a purchase of another option on the same asset in the same direction, a purchase of another option on the same asset in the opposite direction, or a purchase of another asset completely, hedging the correlation between the two underlying assets. There are a myriad of ways to structure binary options trades that can diminish a decent bulk of the risk inherent in purchasing one binary options contract. We review the various strategies we use to profitably trade binary options in our FREE Binary Options Trading Course.

Binary Options Key #5: Signup for the Binary Options Weekly Trading Course

As mentioned above, we publish a course covering all items of importance for binary options traders. The Binary Options Trading Course is a FREE course preparing the binary options trader for the week ahead by providing insightful market commentary, key macro and stock specific catalysts on the calendar, and suggested strategies and tips to boost your trading returns. Sign up today by providing your email address in the Binary Options Trading Course signup box in the upper right corner.