Where Can You Practice Trading Binary Options?
You can practice binary options trading on Deriv.com. You just open a free demo account and practice with an unlimited amount of virtual funds. You’ll know it will be time to move on to real binary options trading when you’re making money 70% to 80% of the time, which is the percentage that professional traders tend to maintain.
As you practice, you should be looking to grow and develop certain skills and techniques.
One of the first things you’ll have to do is find a trading time frame that works with your life. Some people like the excitement and immediate feedback fo very short-term trades. They might bet on what the market is going to do in the next 10 minutes, for example.
If you only have a little time to spare then a 24 hour trading strategy might work better. You won’t make money quite as fast, but you will have a lot of time to make reasoned decisions and to make money gradually.
First, decide on your optimal trade size. You don’t want to trade every dollar in your account. Instead, you should look at trading about 1 to 4% of the money that’s in your account.
You should also decide how much you will withdraw and the bank at a minimum. For example, if you start with $50 you might decide you will withdraw and bank $150 as soon as you make it, leaving $50 in the account. You’ve made a profit and you still haven’t lost more than you started with.
Finally, you should set the number of trades you’ll make every day. Making 10 to 15 trades each day is relatively low-risk, and should result in you winning about 10 trades which results in a net profit.
Learning Your Broker’s Analytics Tools
Every broker offers certain analytics tools that help you make better trading decisions. For example, Binary.com offers an analysis of the potential risk and reward before you purchase any contract. It will tell you whether the trade is of limited risk or a major risk. It also allows you to sell your contracts before it expires if you don’t like the way the wind is blowing, minimizing losses.
Most platforms will also offer tools that you can use to watch trading trends. You should be able to see whether the market you wish to trade options on is generally trending upward or downward with relative ease.
Choose and Test a Strategy
It may take a little trial and error to discover the strategy that really works for you, but that’s what test accounts are for! If you’re patient, willing to learn, and ready to do everything you can to build the skills then you might just become an expert binary trader who makes great money. You might even have some fun along the way!