By Darrell Martin
Binary option trading is appealing. It is easy to understand. When trading with a CFTC regulated US-based exchange, such as Nadex, the risk is capped and known before any trade is entered. Nadex caters to retail traders, which are individuals who trade for their own account and not for another company or organization. However, in order to be a successful binary trader, you must first invest time and money into yourself. You must invest in your education.
Although very little capital is required to open an account at Nadex, trading live before you have invested in your education can be a costly option. It is important to learn all you can while trading in your practice or demo account. Nadex offers a demo platform, along with $25,000 practice money, where you can learn before you try trading live.
Make all your mistakes in your demo account. This is especially important to new traders. However, if you are a veteran trader learning a new strategy or system, it is wise to utilize your demo account until you can work out all the kinks.
Master the strategy in your demo account. Take the bad trades and the losing trades in your demo account. This is the ideal place to work through and fix the system or strategy until you have mastered it. Once you are consistently profitable in your demo account, then switch over to your live account.
Open a live account with as little as $250. Be sure you are trading with risk capital only. The money you use for trading should be dispensable. You are causing undue stress and emotion in your trading if you are trading with mortgage, rent or grocery money. The stress of trading with risk capital will impact your trading decisions and success.
Invest the necessary time to become an educated trader. It’s like any profession or hobby. Take the time to learn before you just jump in. The time spent learning will reward you later when you are a successful binary trader.