This is a binary options how to guide for social traders. I’m not here to insult your intelligence with a simple 1-2-3 this is how you trade binary options like you can find on every broker on the internet. This is a serious look at how to get the best social trading experience whether you are looking to copy trade or learn to trade on your own.
The Geek’s How To Guide For Binary Options
1) The first thing you need to know is the differences in types of social trading and how they can work together. It’s OK, you don’t have to chose one kind over another now, just understand that copy trading means copying another persons trade and that social trading can including copying but also means education, community and support. The hurdle presented by the brokers is that they are throwing these two words around interchangeably, causing confusion among traders. The bottom line is that most social trading features are really just copy trading.
2) After you have a good understanding of the differences between copy and social trading it is time to start getting to know some of the different sources that are available. Most brokers have some form of copying or signals available, a few have advanced copy trading platforms and even fewer embrace the full scope of the social aspect to trading. One place you can start is with reviews of the top platforms, brokers, businesses and services. Always do thorough research when checking out a platform. The top copy trading platforms, in my opinion, are the iFollow platform from SpotOption, CopyOP from AnyOption and the Binary Replicator from CTOption. These allow for copying from leader boards with the ability to manage your trading and filter traders by asset. They also support live trading so you can make your own trades.
3)After choosing a platform the next step is to choose a trader or traders to follow. This can be done a number of ways but should always be done according to a plan. All social trading tools are different but will have at least rudimentary information about the traders such as win% and most recent trade. Learning as much as possible about each trader and their style is key to success. In most cases you won’t get much more than a streaming list of trades that you can use as signals. When choosing traders focus on strategy so that you can keep track of what you are doing, and make improvements when necessary, even if you just want to copy. If you don’t you could easily lose your wad before you figure out what is working for you and what is not.
A simple plan might be to follow only the trades of one trader, or only trades made on a certain asset, or only trades made by traders with a certain win% or greater. More sophisticated traders can incorporate their own charts and analysis into the mix and use it to confirm any signals or trades that are listed. The top copy trading platforms allow you to follow multiple traders and filter leader boards by asset so you can get solid account diversification.
4) Social trading is all about education. There are a wide variety of educational materials on the internet including articles, videos and full trading courses designed to help you read the market and trade with long term success. Signals can also be a part of an educational program when used correctly. This means knowing where the signal comes from, the analysis behind it and its appropriate use in a trading strategy. Something easy for new traders to forget is that indicators and systems can give both bullish and bearish signals at any time, in any market; knowing which ones to follow is the trick to successful trading. The best signals for social traders are based on standard indicators, have transparent and easy to read signals and use a rules based approach to trading. Investoo.com has a variety of signal generating indicators based on MACD, PSAR and other well known trading tools that have been adapted for binary options. The tools are supported by an extensive video library, trading courses and live trade room so are a reliable source of signals and education.
5) Social is social, you just can’t get around it. Social trading means having and being part of a community. This could be as simple as reading newsletters or advisory services, or being part of a signal/trading group, or as complex as becoming a guru yourself. The point is it takes people, information and the exchange of ideas to make social trading social and not just trading. One place to find community is in a binary options forum. Forums provide access to traders of all levels to discussions on strategy, systems, account management, brokers, regulation and market analysis. Forums are also great places to find assistance in the forum of advice, suggestions, mentors and signals.