Once I have touched on this topic, but decided to write a separate article within Learning Binary options.
The concept of money-management It is a set of rules for managing personal capital (ie your deposit). It is necessary first of all to control the possible risks to reduce them to a minimum and to get the most profit. In particular, this article is useful for beginners binary options in dealing with the following issues:
- The size of the initial deposit;
- The minimum and maximum transaction for trading;
- The size of the expected profit.
Terms MONEY-MANAGEMENT
1) Determination of acceptable value of the initial deposit. You have to decide how much you are willing to invest in binary options trading (of course, this should not be your last money). From the value of the deposit will depend on the maximum amount of the transaction and, accordingly, the amount of profit from the invested amount.
2) The maximum amount per transaction. It should adhere to the following rules. You should invest in no more than one option 3-5% of the deposit. Otherwise, it would be risky and aggressive trading.
3) The amount of concurrent transactions. You should not risk more than 15% of the deposit at a time. This means that you can open 3 5% of the transaction or transactions in 5 3% of the deposit amount. Even if the day would be not very successful, vyshi risks and losses will recover quickly and not very tangible.
4) Anticipated profit. Once you have decided on the size of the deposit, to calculate the maximum size of the transaction, you will be able to learn and expected profit. Let's look at a specific example:
Your deposit - 1000 $ (or 300 $)
Maximum transaction - 50 $ (or 15 $)
The profit for each option - 40 $ (or 12 $)
5) Maintain statistics trading. If you only train, learn and choose the suitable strategy, lead the so-called "blog trader." You mark yourself which of the strategies and techniques brings you the most profit and reduces the risks of trading. So you can quickly determine the right direction for your business earnings in the Internet on the binary options.
These simple rules should help you to choose a broker binary options. I can personally recommend uTrader . The minimum deposit is 200 $, and the minimum amount of the transaction - 5 $, it is only 4% of the value of the deposit. Thus, you can perfectly apply all the rules of money-management! Or choose IQ OptionWhere minimum transaction total 1$ !!!
