Binary Options Money Management
In this binary options money management article, I will teach you how you minimize the risk of your investments and thus ensures that you do not go broke. Effective money management strategy also ensures that you never lose more than you can afford. I will also tell a little more detail how to use binary option robot to help you to manage your cash-flows and why technical aids are really effective way to keep your money management on the right track.
Binary options money management | Most important factors to keep your investment cash flow in balance
Invest only money that you can afford to lose. Although the intention is to win money, there is never 100% certain profits in investing. Therefore, never invest in binary options money that is intended for compulsory expenditure such as rent, food or other daily expenses.
Always start with a small variance/ small risk strategy if possible. For example, when you are using the real robot (best binary option robot ), you have the option to choose the risk level according your own preferences. If you are novice investor, I strongly suggest to start with the lowest level. While in investing rate of return and risk always go hand in hand, it still makes more sense to start from the bottom rather than trying to directly jump to the top.
Always start with a smaller bet what you can afford. This may seem very similar to the first advice, but it is actually quite different. When in the first instruction you were advised to avoid too large bets, here you are encouraged to start investing in stakes that are too small. Binary options are not gambling, you should not look for the thrill with large bets, but to learn to invest profitably, and then increase the bets according to that you have no emotional bond with the money at any stage. Invest to earn money, do not only do it to bring the excitement for your daily life. For some, investing with play money can be the best option, but myself I do not like it that much because there is always certain difference when you have real money in play, even if the the stakes are small.
Always go for the most cost-effective optionpare the different options and always take advantage of the best offer. This is particularly important, when you are choosing binary option broker sites. It is extremely important that you make an account into more than one broker so you can always take advantage of the best bonuses and invest through a broker which will give you the best return for the investment. The easiest way is to open the account through the robot on many broker sites at once, but you can also do this independently opening investment accounts for each site. You should also take care that you have at least couple hundred dollars deposited at each site so that you are able take advantage of every opportunity that arises quickly. For beginner it is enough to have five different broker accounts. Good trustworthy broker sites to start with are for example IQ Option. Banc de Binary. Bloombex Options. Goptions. Cherry Trade. Option 888 and Interactive Option .
Do not withdraw money from your investment account unless you have to. If youve followed the first four points, then you should not have ever a situation where it is mandatory to withdraw from your investments account to cover the other daily costs. Re-invest the money you have won, after each investment your skill-set will grow and you are constantly making better investments than in the past. You should, therefore, be able to raise the stakes and increase value of your investment portfolio at even quicker pace. This gives the so-called compound interest effect that makes your wealth grow even faster pace. This is one of the most effective ways to get rich and gain a major fortune, so do not spoil it by withdrawing money from your investment account too early.
Investments always have ups and downs. You should concentrate on more are you doing right things, than how much you are winning or losing
Set aside each month a certain amount from your main income to your binary options investments. Calculate how much you can put to the binary options from each paycheck. After this, make sure that you invest this amount every month. In this way, you have clear plan and boundaries, investing is not just random thing you do whenever you feel like it.
Invest with borrowed money only when you are sure that the expected return is better than what the loan payment costs will be . Some investment advisers forbid entirely investing with borrowed money. Im not that steep. Investing with borrowed money can be a really good way to make profit as long as you know for sure what you are doing. You should certainly not to invest with loaned money without a good plan and the assurance that the expected rate of return will beat the average loan payment costs.
Make an investment plan and set yourself concrete goals. The plan should include clear concrete objectives, the exact amounts that you will be able to invest, the best potential investments, as well as the things that you need to learn how to improve your skills. You can always add new objectives as the old ones materialize. You should strive to stay at the plan and not change it unless you have a really good reason. If you know more experienced investors than yourself, you can also ask them to evaluate your plan before you put it into practice.
Keep track of your victories and your failures. Analyze afterwards what went wrong in the loss-making investments, and why profitable investments proved to be right. Best binary options money management advice is that you should always keep improving as a investor. If you did a losing investment you should analyze afterwards why it went wrong. Was it due to outside factors, or was it just bad investment overall. Think what you are able to correct immediately, and is there something which is almost impossible to fix. Even if an investment went wrong, it does not necessarily mean that it was bad investment, it is very possible that you had only bad luck. Also, profitable investments should be analyzed afterwards, think about why did you profit from it, did you do something better than everyone else or was it just pure luck. Also consider whether you can reproduce the winning investment, and if you can, think how you can get an even greater return.
Dont ever chase losses. Lastly but not least, dont ever chase your losses. Lost investments are sunk costs which no longer have any relevance for future investments. You can not get back lost money by raising the stakes, or by setting more bad investments. Your target should be to develop yourself as an investor not to earn certain amount of money. When you are developing your skills and your results start to improve, you notice that almost imperceptibly you are already an experienced investor that makes a good productive investments time after time.
Binary option robot is one of the best free technical tools. Every investor should take advantage of it.
Binary options money management and the robot
Binary option robot can help you to manage your investments in many way. I uses on of a kind signals system which reduce risk and improve profits in a way which is impossible for human investor. Also the following features of the robot will help you manage your investments more efficiently.
Automated stop-loss: Never lose more than you are suppose to. Experienced investors say that you should cut your losses and let the winnings ride. That is exactly what automated stop-loss does for you. This basically means that there is no upper limit for winnings, but you can lose only certain amount.
The possibility to set your own level of risk. You can start investing easily from lower risk level, and as you want higher returns, and you are ready to take bigger risks, you can raise the level of risk whenever you want.
You can set maximum trade amount and maximum number of daily trades with one click. The robot is able to operate fully independently, but you can also easily set daily limits within which you want it to work. In this way, your investment will remain fully in your control
In addition to those characteristics, the robot has a myriad of other features that I have come across only in investment banks options trading software that cost tens of thousands of dollars. I recommend trying out the robot personally, it is almost invaluable assistance for every binary options investor. Now with our exclusive offer, you can get this excellent software completely free. Do not let this unique opportunity slip past, but redeem your robot by clicking the button below and start effective money management with this automated trading software.
References and Further Reading