We’ve talked about how crucial the right broker is when it comes to dependability and your rates of return, but what about all of the little nuances that impact your level of success? By this we mean the assets that are offered, the expiry timeframes offered, and the types of binary options trades themselves that the broker has available for you? These things all play a huge role in your profitability as a binary options trader, and if you ignore them before you start trading then you are doing yourself a large disservice. Making sure that the broker you use has the things that you need is an easy way to give yourself an edge and be more likely to make money trading.
Assets to Play
Not everyone trades the same types of assets. Most binary traders focus on Forex markets, so most binary options brokers carry a heavy selection of currency pairs. But if you prefer to trade something else, or if the pair that you trade is hard to find, then you might have a tough time finding a good broker for you. Still, the time that you spend looking will ultimately translate into money in your pocket. When you are trading an asset that you know well and are better able to predict the movement of, then you stand a far better chance of being profitable.
Remember that a huge selection of assets isn’t necessarily helpful. It doesn’t matter much if the broker you are trading at carries 500 different assets, when you’re only interested in one or two. So more doesn’t necessarily equal better. Having the right ones is what really matters to you. Variety is nice, but ultimately, some people are better at trading certain things than others. Shifting your focus to the ones you have the highest success rate at, and then finding the best rates after that decision has been made, will get you far more in returns than just trading at the first broker you come across.
The expiry is an important part of your success. Why? Because some timeframes are more profitable than others. Most people like to trade 15 minute expiries because of their predictability, but extrapolating out longer, such as day end expiries, or even week end expiries, can be even more profitable. Some brokers carry these, others don’t.
Furthermore, some people like 60 second binaries because they are fast and you can get more trades in per day this way. The rates of return aren’t as high, and the success rate is a little lower, but if you can get 50 trades in per day with them with ease and make a few more dollars, why not trade them? More brokers carry these than ever before, but not all of them do yet. The same goes with year end trades. These can give you a high rate of return, but they aren’t carried universally.
Types of Trades
The so-called exotic trades, such as one touch and boundary trades, are not universally carried, either. Some brokers will carry one or the other, but only a handful carry both. Pairs are also becoming quite popular, as are ladder trades. These all have certain elements of appeal to them, especially when you start looking at the higher yield payouts. If you want to trade exotics, then you need to make sure that the broker you use has the ones you want before you sign up.
Some people don’t figure out what they need to be successful until they’ve been trading for a while, and that’s normal. If this happens to you, you can always switch to a different broker.