Each and every day there are a multitude of individuals preparing to execute their very first trade. Clearly, expectations will be running high, as everyone starts out with the plan to earn substantial profits. Some see the first trade as an experiment of sorts, using this opportunity to watch a live trade in action. Others take the first trade quite seriously, viewing it as the foundation, or starting point for building future success. This is an excellent approach!
For most traders, the first trade will be of the basic binary (put or call) variety. This is a perfectly fine choice. The first decision will be to select an asset use in trading. Due to the fact that some brokers offer in excess of 100 assets, this decision could seem a tough one. Make the decision easy on yourself by selecting an asset that you know something about. Even a tiny bit of familiarity is fine. For example, if you venture into Starbucks most mornings, you know that there are plenty of people lined up to pay as much as $5 for a cup of coffee. This tells you that Starbucks is successful and likely quite profitable.
Brokers typically set up trades in advance. Should your chosen asset not be presented in an upcoming trade, you have two options: either wait for it to be presented, or create it yourself. The Option Builder feature can be used to create customized trades. In either case, you’ll need to perform analysis prior to buying into a binary options trade contract. Charts or graphs (typically provided by your broker) can be used to check out the price performance of your chosen asset. Try to identigy solid trends, as well as volatile price movement.
Don’t forget about fundamental analysis. This step should not require much time. Simply do an internet search for any news or current events linked to your chosen underlying asset. If you do locate any notable occurrences, know that these are likely to impact the value of your trading asset. You will need to determine whether this information is likely to make the price of the asset increase or decrease. Current events can easily turn a price prediction into a failure when this information is overlooked, so be careful not to make this mistake.
Once you’ve completed these steps, it’s time to lock in your trade. We’re going to assume that you have taken the time to peruse your binary options broker platform and understand the basic steps of trade execution. Simply make your selections based on your findings and submit your intent to purchase. That’s it! Now you can relax while waiting for your expiry period to begin. Monitoring your trade while it remains live should be very exciting. At the end of the trading period, you will know the outcome, including whether or not you have earned a profit.
Try not to view your first trade as the crystal ball for all your future trade activity. Profit or loss, you’ll need to continue to perfect your analysis skills and start to consider the use of binary options strategies. Be adaptable and willing to learn as you go along. Remember, this is a learning process which begins prior to your first trade and continues on indefinitely.