Should I trade binary options?
You love to trade. But you are tired of making tradeoffs.
You might use stops, only to give up staying power. You like the protection but it’s painful to see the market turn and your trade end where you thought it would ...after you got stopped out.
Maybe you have traded on margin to gain leverage only to see your risk ratchet up as you give away control of your trades.
Or you work hard to generate several trade ideas for different markets, only then you have to manage multiple platforms and accounts.
Want a way to choose your risk, get protection without being stopped out, and trade a variety of markets in one straightforward way?
Wish you could trade without tradeoffs?
Trading without tradeoffs. That’s what Nadex binary options offers.
If that’s what you are looking for when you trade, then binary options might be made for you.
How risky are binary options?
Traders are always looking for an advantage. When it comes to risk management, it’s a huge one to know the risk and reward upfront.
Helping traders manage risk is a key aspect of binary options trading.
Binary options do involve risk. After all, trading and risk go hand in hand. Risk is what provides trading opportunities.
It’s part of the thrill you get when a trade works out or the lesson you take away from a trade that went against you.
What binary options provide is pinpoint control over risk and the ability to determine the level of risk you take on with each trade.
Binary options trading with Nadex also helps you manage risk with choices on both strike prices and markets.
You have the flexibility to convert your idea to a trading position quickly. Odds are we have the market and the strike price you want.
It’s why we want you to have so many choices when you trade.
When you enter and exit the trade is up to you. You never get a margin call. You know your maximum potential profit and loss before you enter the trade.
If the market moves against you, you remain in the trade with only the loss you expected and no more.
The difference between trading and investment.
Investors can think in years and decades.
A binary options trader might trade contracts that last days, hours, minutes, or even seconds.
That’s right, our five-minute binary options run from start to finish in just 300 seconds.
That’s a sprint for active traders.
The difference between trading and investing is timing and focus.
Investing is based on a long term timeframe. It’s the financial market equivalent of watching grass grow.
Investors think in months and years. When the market turns and there is a short term price movement, they might hold on to their positions and ride it out. They believe in the potential for gains over a longer term and know there will be a few bumps on the way.
For traders, short term price movements are everything.
Do you like pulse quickening trades that take advantage of small but volatile movements that can have potential for a hair-raising roller coaster ride every day, if not every hour?
Trading is designed to take advantage of smaller market movements that happen often, usually created by some short term catalyst of volatility.
It’s the difference between a sprint and a marathon.
Binary options are all about trading.
And they are built for folks looking for the chance to run a lot of shorter sprints in the time it takes to prepare for one long marathon.
But to learn about trading, nothing beats ...well ...trading.
Actual trades speak louder than words.
To learn about trading, you need to have a balanced approach to trading psychology.
A disciplined approach to trading psychology lets you learn from each trade—both profits and losses.
That balance is important. But it can be tough to always achieve.
For traders, sometimes the hardest thing to manage is their own mindset.
As you learn to trade binary options, your mindset and how you approach trading psychology while you plan and make trades is critical.
Mastering trading psychology also takes practice.
Information is flying, tickers are racing, and before you realize you had a trading opportunity, it’s already fleeting and gone.
Traders are afraid of missing out, intimidated by things they don’t understand, and buried in a deluge of information.
Many days, your brain needs a break before you’ve even placed a trade.
You’ll find binary options can offer a more straightforward approach.
At the center of each trade is a simple question, “will this market be above this price at this time?”
Boiling it down like that, and providing access to all your favorite markets to choose from lets you focus on exactly what you want to focus on.
That can be the first step to making your mental approach simpler and more focused.
Managing risk with binary options.
Traders know risk is part of each trade.
It makes trading fun. It keeps us coming back. It’s not that traders want less risk. We find traders simply want pinpoint control over it.
You want more opportunities for those fist pump moments at the end of a trade. And you want less of the desk pounding that follows a frustrating or confusing trade where you aren’t sure what happened.
More fist pumping. Less desk pounding.
This is why we are dead serious about putting you in control of managing risk with binary options.
Binary options allow you to focus on a simple question-“will this market be above this price at this time?”
Then you place a trade that you pay for up front, with a clear view of your maximum risk and reward.
When you are creating a trading plan, you know that transparency helps you manage your risk.
From there, you can’t be stopped out, you can exit when you want or wait until expiration.
That flexibility helps you to keep managing risk on each binary option trade.
What to read next:
- What Are Binary Options?
- Types of Binary Options
- Are Binary Options for Me?
- How to Get Started with Binary Options
- Binary Options Trading Strategies