What are binary options?
A binary option is a financial exotic option in which the payout is either some fixed monetary amount or nothing at all.
The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option.
One of the leading binary options trading platforms of our generation is the Olymp Trade platform.
And what is Olymp Trade you ask?
Olymp Trade is a leading fixed-time trading (binary options) broker that offers its clients an intuitive and easy-to-use trading platform.
Olymp Trade also believes in responsible trading, which is why I have put together a list of 9 rules that all traders should adhere to if they want to see their money grow.
By following these rules, you can trade responsibly and avoid any potential financial losses. So, what are these rules? Let’s take a look!
1). Learn How to Trade Before You Start Earning as a Trader.
Olymp Trade or any other Forex broker for that matter offers extensive educational materials that can help you understand the basics of trading and learn new strategies.
When you are just starting out as a trader, use these resources to your advantage and make sure that you are fully knowledgeable about the market before you start placing trades.
And if after trying to learn by yourself you still find it difficult to trade profitably, then consider joining Olymp Trade Webinars or seminars organized by other professional traders.
Also, try to be open to working with mentors and taking courses for beginner traders.
Once you have acquired the skills and are confident enough to start trading, only then should you consider opening a live trading account.
Until then, you can trade on Olymp Trade Demo accounts to test your strategies and get a feel for how the platform works.
2). Demo Accounts Are As Good As Live Accounts.
A demo account is a training account offered by brokers to clients.
Having a demo account is an opportunity for beginner traders to trade on a real trading platform without risking any of their own money.
And if you ask me, an Olymp Trade Demo account is just as good as a live account and can help you hone your skills and strategies before you start investing your own money.
When you are first starting to trade on Olymp Trade or any other platform, don’t ignore the demo account process.
Take advantage of it. Place as many traders with the demo account. Fail as many times as possible with the demo account. And win as many times with the demo account as you can.
And only when you feel comfortable with the platform and the strategies you have developed on it, should you start trading with real money.
3). Trade With the Money You Can Afford to Lose.
I know this sounds like an invitation to lose money but come on. Who else will tell you that trading is a risky engagement if not me?
Anyways, what I mean is that you should never trade with money that you cannot afford to lose.
Before you start trading with Olymp Trade or any other broker, make sure that the money you are using to fund your account is not needed for other purposes such as paying bills or buying groceries.
This way, even if you do lose money while trading, it will not put a strain on your finances.
4). Use Money Management Strategies to Conserve Your Capital.
Have I already mentioned that trading is a risky affair? Yes, you can lose everything trading but you don’t have to.
With proper money management strategies in place, you can minimize your losses and protect your capital.
Some of the money management strategies you can use include stop-loss orders and take-profit orders.
Stop-loss orders automatically sell your position when it reaches a certain loss threshold while take-profit orders automatically sell your position when it reaches a certain profit threshold.
You can also use risk-reward ratios to place your trades or martingale if you are trading on the Olymp Trade FTT platform.
Can you make your own money management strategies?
Sure! Just make sure that they are in line with your trading goals and objectives.
And always remember, the goal of any money management strategy is to protect your capital and minimize your losses.
If you can do that, then you are on the right track.
5). Set Realistic Goals.
Answer this question honestly. What’s your current account balance? How much do you hope to make it?
For most traders in Olymp Trade, their account balances stand at $50 or less. And with that balance, you would hear a trader say that they want to make $1,000,000 in 7 days.
Is this really possible?
The answer is no. And anyone who tells you that it is possible is either lying or doesn’t know what they are talking about.
So, what’s a realistic goal for an experienced trader, an intermediate trader, or a beginning trader?
For most people, a realistic goal would be to double their account balance within the next 12 months.
And if you can do that, then you are doing great.
But if you are a beginner trader with a $50 account balance, then a realistic goal would be to make $100 in the next 12 months in Forex. And/or $1,000 in options trading.
That’s considering that Options trading has higher payouts. Plus, you can scalp.
6). Learn About Trading Psychology.
Trading isn’t just about creating a trading account, making a deposit, and starting to trade with some day trading, swing trading, or position trading strategies.
It is as much about having the right mind when approaching the market as it is about taking calculated risks.
In order to become a successful trader, you must first understand your own psychology.
You need to know your triggers, what makes you emotional, what calms you down, and how to stay level-headed when trading.
All these are very important if you want to be a successful Olymp Trade trader.
But where do you start?
The best place to start would be to read one of the many books that have been written on trading psychology.
Or you can take an online course. Olymp Trade has a free online video on trading psychology that I highly recommend.
Even after you have mastered the principles of trading psychology, you must continue practicing what you have learned.
For example, you can take a break after every trade to reflect on your emotions and see if you were able to control them.
If not, then you need to work on that.
8). Write Down a Trading journal.
What is a trading journal you ask?
A trading journal is simply a record of all your trades.
You can write down the date, time, entry price, exit price, and the reason why you took the trade.
A trading journal will help you in many ways.
First, it will help you to track your progress as a trader.
You can see how well you are doing and if you are making any progress.
Second, it will help you to review your trades and see what you did right and what you did wrong.
You can then adjust your trading strategies accordingly.
And lastly, a trading journal will help to keep your emotions in check.
When you see your trades in black and white, it is easier to be objective about them.
So, if you don’t have a trading journal, start one today.
You will be glad you did.
9). Protect Your Olymp Trade Account.
Trading isn’t just about making money and avoiding losses but also about protecting what you have already made.
You can do this by diversifying your Olymp Trade account.
Diversification is simply investing in different asset classes.
For example, you can trade Forex, stocks, options, and commodities all at the same time.
This way, if one market crashes, you will still have other markets to trade.
Another way to protect your Olymp Trade account is by following all the security guidelines set by your broker.
For example, in Olymp Trade some of the basic security guidelines are:
- Do not use the same password for your Olymp Trade account and other accounts.
- Do not share your Olymp Trade login details with anyone.
- Always log out of your Olymp Trade account when you are done trading.
- Enable Two-Factor Authentication (if available).
- Verify your account when ready.
- Don’t give out your password to other traders. Even if they want to trade for you.
By following these simple security measures, you can help to protect your Olymp Trade account from being hacked.
There you have it.
These are the Olymp Trade rules that I follow to trade responsibly.
I hope that by following these rules, you will be able to make better and more responsible trades too.
Olymp Trade representatives will never ask you for your password.
If someone calls you and asks for your password, it is a scam.
Olymp Trade only uses official channels to communicate with its traders.
These are the Olymp Trade website, the Olymp Trade trading platform, and Olymp Trade support.
If you get an email or call from someone claiming to be from Olymp Trade, do not give out any personal information.
No, you cannot withdraw your earnings from the Olymp Trade demo account.
Olymp Trade demo account is for educational purposes only.
You can use the Olymp Trade demo account to practice trading and test out different strategies.
Once you are ready to start trading with real money, you will need to make a minimum deposit of $10 to activate a live Olymp Trade account.
There is no guarantee that you will make money by using Telegram signals for Olymp Trade.
Telegram signals are simply suggestions on what trades to take.
It is up to you to decide whether or not to follow the signals.
Remember, trading is a risky activity and you can always lose your investment.
No, it is not responsible for you to give your mentor your Olymp Trade account details.
Mentors and humans and as much as they may want to help, they will soon mess you up.
Once they have access to your account, they can trade on your behalf and take all your money or blow your account altogether.
Yes, you can replenish your Olymp Trade demo account if you run out of money.
Just click on the arrow/refresh button next to your demo account balance and your account will be replenished back to $10,000.