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Binary options are not a new way to trade and make money and many people are well involved in them already. However, there has been a rash of scams and other bad press to cause many to dismiss binary trading and this is a big mistake. There are simply many fantastic brokers out there but many people simply don’t know how to go about choosing a reliable binary options broker. So let’s explain what is involved with being a good broker and how to decide.
For starters, 95% of all complaints about binary brokers are actually based on something incredibly simple and it should be known in advance by any trader. This is the bonus policy of the brokerage. When choosing a reliable broker in binary options, the trader must decide in advance if he or she wants a welcome bonus. Many brokers will offer up to 100% bonuses on the first deposit.
However, be very wary of the ones that are offering more than 100% bonuses as this is a warning sign that brokerage is not a reliable one and could be an outright scam. We recommend keeping clear of such situations but those offering 100% are fine. But the issue is how these or any funds in fact can later be withdrawn. All binary brokers, reliable and not, require the trader to execute a specific amount of volume prior to making any withdrawal. That’s right, if you take a bonus, you are locked in until you complete the volume. So it’s very important to make sure of the following points as they pertain to the bonus:
» Read more: How to Choose a Reliable Broker in Binary Options – Part 2
There are many strategies for trading financial markets. Some employ more didactic methods and other are very empirical. The most important thing for every new trader is to choose a strategy and make sure to stick to a specific set or multiple sets of rules. Otherwise, the strategy can’t be proven right or wrong. All too often, binary options traders choose a strategy of one type or another only to ditch it very soon after adopting it. The problem isn’t that it was profitable or a losing one; it’s that you will never know how to test the strategy unless you know how to compare them.
So let’s start by outlining a few strategies that work in trading binary options. For starters, you will all need to familiarize yourselves with the graphs and charts. Without a deep understanding of how an asset has behaved in the past as depicted on the graphs, a trader can never get a sense for what’s happening now. Understanding the past is the first step in formulating or executing a strategy. In trading, like anything in life, you need a solid plan of attack. And much like war, the market is the enemy. You need to beat the market to win and make money.
So first come to grips with an asset’s past and only then will you be able to make money on its future. Some of the strategies being employed by binary options traders include the break strategy. It’s the most basic of all binary options strategies being used today. It works really simply.