There are numerous new traders in South Africa eager to dig in and start their binary options trading journey.
After all, this can be a lucrative business venture and traders all over the world want to benefit from it. However, every beginning is hard, so every bit of help is welcomed.
In this guide, we will give top 5 binary trading tips for new traders so that they may have a flying start in trading binaries.
Tip no.1 – Don’t Limit Yourself
We understand that all new traders feel intimidated and unsure. This is normal. However, new South African traders should not limit themselves when it comes to trading binaries.
In fact, the beauty of binary options trading is in its diversity.
Starting from numerous binary brokers to a fantastic range of underlying assets and trade options, to helpful strategies and trading tools.
In fact, there are even several ways to trade binaries – manually, automated trading, semi-automatic or social trading which is becoming very popular in South Africa.
If newbie traders are afraid to start the standard, manual trading with one of the brokers they can go for fantastic solutions like Binary Options Robot.
This is a superb trading software run by an advanced algorithm which will scan the market conditions according to set preferences and deliver suggestions (trading signals) on the trades that stand a chance of being most successful.
Traders can then either accept or decline the trade.
On the whole, whichever options budding South African traders select first, it is worthwhile to get well-informed beforehand without limiting themselves to just one solution.
Tip no.2 – Pick a Regulated Binary Broker
With more than 500 binary brokers available on the market today it can be a bit tricky to select the one which will tick all the boxes.
However, new traders in South Africa may speed up this process if they sort brokers by regulation. So, the second in our top 5 binary trading tips is to rather pick a regulated binary broker than a non-regulated one.
Regulated binary brokers show a level of commitment to both their registered traders and the running of business in general. Regulated binary brokers abide by the rules set forth by regulatory authorities.
On our site, we strive to provide South African traders with detailed reviews so this can be a great start as traders have a large amount of information all in one place.
Our reviews look into all important aspects of binary brokers – regulatory status, general information, platform info, account types, customer support and banking information.
That way traders save time and may get valuable information.
Tip no.3 – Selection of Trading Services and Underlying Assets
Binary brokers or binary robots which provide a selection of trading services and underlying assets which can be used in the trading process is a fantastic way to start.
Yes, novice traders in South Africa will not be able to use them all at once but slowly they will be able to get familiar with them and progress.
Other binary brokers opt to use popular trading software like TechFinancials, PandaTS or SpotOption.
At any rate, the more trade options and tools available the better as this can improve the trading process immensely.
The same goes for underlying assets since wisely spreading the investment across all four categories of commodities, stocks, currencies and indices is a good way to secure better profits.
Also, traders should always look for a broker which offers a demo account as well as mobile trading app.
The chances these trading tools and features provide make them worthy of mentioning in our top 5 binary trading tips for newbie traders in South Africa.
The Importance of Demo Account
Demo account is a powerful trading feature which can be useful to all binary options traders, especially to beginners. With the demo account, which is usually free, prospective South African traders get to experience binary options trading but in a risk-free environment.
Well, the funds are virtual but the experience is very much real and traders do not have to worry over possible loss of funds.
This way traders get to familiarise themselves with the trading platform, available trade options and underlying assets. This can be fantastic to gain not just the insight into the trading process but also become more secure in their trading skills.
Handy Mobile Trading Apps
And why is a mobile trading app so important?
Well, in this exceedingly fast day and age who has the time to sit behind the computer all day and monitor the market, carry out trades and learn as much as possible along the way.
In using the mobile trading app, South African traders can do all that on the go, save valuable time and profit.
Tip no.4 – Use Early Exit Option in Binary Trading
Market fluctuations are part of any financial trading, binary options included.
However, there is a remedy for that as well and it’s called early exit.
This can be a powerful tool which is why we have included it in our top 5 binary trading tips for new traders.
The majority of binary brokers have this option yet many traders fail to use it. Instead, they wait for the options to expire.
New South African traders can use this option if the price of the underlying asset they selected is not going in the desired direction which can save their trade.
Tip no.5 – Don’t Underestimate the Power of Edu Materials
Power is knowledge and new traders need the knowledge to make binary options trading profitable. That is why our fifth tip kindly points out not to underestimate the power of educational materials.
This is the 21st century so South African traders don’t have to sit in the dusty library to learn how to trade binary option.
The information is just a click away.
Binary brokers are very dedicated in this respect and there are entire sections dedicated to education. There, traders may find eBooks, webinars, guided video tours, a variety of strategies even blogs are there to be used.
Acquiring trading skills is a process, it will not happen overnight but will a little bit of effort and invested time, the proof might as well soon be evident in the profits South Africans could make.
And that makes learning about binary options a worthy goal.