If you plan to trade binary options or Forex, or perhaps both, you’ll need to commit some time to learning how to trade successfully. Knowledge is indeed power, and the more you know about how to analyze the market, the more you will earn from your trading endeavors. There are several options to choose from when you’re ready to learn, and here we’ll provide you with the details needed to make the selection that works best for you.
Free or Paid Training
At a base level, there are two types of training available – free or paid. The internet is loaded with free information and resources for Forex and Binary Options Education. However, there can be some value in paying for a structured training course that takes you from beginner, to intermediate, to advance level. Obviously, everyone has their own budget restrictions and their own idea of how much (if any) money they are willing to spend. If you do not have any money to put towards training, there is nothing to worry about. The free resources online can still get you to where you want to go.
Many brokers now offer free education resources. Why? Simply because they hope that you will become their client. Affiliates may offer free trading education as well, for basically the same reason. In neither case is there anything sinister going on. In both instances traders are being offered something of value in exchange for the possibility of some gain. Don’t hesitate to take advantage of free Forex education or free binary options training if they are offered to you and appear to be a reliable source of information.
Moving Past the Basics
After you feel that you’ve securely mastered the basics of pricing binary options, it’s time to move on to learning about analysis. Both binary options and FX trading require that you to undertake both technical and fundamental analysis. Fundamental analysis involves analyzing market conditions based on factors such as investor sentiment. The “mood” of the market is impacted by things such as data releases (employment numbers, GDP, inflation, etc.), so you will want to be alert to the dates and times of the release of important financial numbers such as these.
Technical analysis is considered to be more complex, and for good reason, as it involves asset values and the study of price movement. Although MT4 is known for being for Forex traders, those who trade binaries will also want to download MetaTrader for the purpose of completing technical analysis. There are plenty of online articles and classes to help you master the use of MT4 and technical analysis and for those who prefer to see each step, there are lots of online videos that will walk you through the various processes step-by-step.
What about Trading Strategies?
Another important piece of the puzzle is binary options and Forex trading strategies. Strategies range from very basic to quite complex. They can also involve one or both of the aforementioned types of analysis. Traders must be careful when selecting strategies and no-risk testing should be considered a must. If you plan to learn strategies from one of the “gurus” that are well-known among traders, understand that you might be asked to pay for access to their methods.
A simple trick that might save you some money is to simply search online for the method title to see if it is being offered for free. However you choose to learn strategies, be sure to test each using either a demo account or very low investment amounts in order to reduce risk. Most binary and FX brokers offer free demo accounts. If you prefer to test in a live platform, consider using the smallest allowed investment amount for binaries, and micro lots for Forex.
It is possible to start trading well before you reach the advanced level, but do have a money management plan in place that goes along with your current level. When you’re new to FX or binary options, you’ll want to keep your investment amounts on the lower side. As you learn more and feel more comfortable, you can then make changes to your plans and start to increase your amounts. The bottom line is that options and Forex education resources are everywhere, so grab your notebook and pen and get started. There’s never been a better time to trade for profit!