Some people, mostly related one way or another to a broker, will tell you that digital options are easy, that you don’t need much to start off. I guess that if I was in this business, I would say the same. But I’m not. And as a dummy learning binary options, I can tell you that it’s not easy. If you have zero knowledge about trading, the best is to start with a binary options demo account.
Binary options demo: learn for free
With a binary options demo account, you have access to the exact same platform that you might use to trade for real money. The charts, the studies, the currency pairs, the news calendar, the indicators if any. Everything is similar, except that you don’t have to make any deposit to trade digital options (at least you shouldn’t, unless the broker is scammy). Your account is filled with fake money. You can start placing put or call options and see how it goes.
When you choose your platform, just make sure that the trial period is not limited. Also be careful if the broker asks you to provide your credit card number, or other information like a telephone number. Unfortunately, many scam brokers will use that information to pressure you to risk your money on the live binary option platform. While it’s you and only you who should take that decision, of course. Therefore avoid to provide your phone number (being harassed by email is one thing, by phone is another).
Some brokers also offer a so-called binary options trial account, but they force you to make an initial deposit in order to enjoy it. This is not really the spirit, but it is up to you. With Spectre.ai all the security requirements are checked :
- Your digital options trial account is not limited in time
- No deposit is required (even for trading live, actually)
- They don’t ask for your phone number
- They have no marketing agent to harass you, or push you to trade more than you want
I made profits the first day, should I trade real money?
Don’t take short terms result for granted. You might have experienced the beginner’s luck, or simply you got lucky. When you trade binary options you go through positive and negative cycles. I went through them and I’m still experiencing them, so I can guarantee you that. Not to mention that trading with fake money or real money is completely different. For the moment my win rate on the trial platform is 54 %, on the live platform it is 40%. You might wonder why I trade for real money while I’m learning. It’s because I want to have the pressure of a financial stake. I trade with Spectre, the minimum trade starts at one dollar, so you can enjoy the best of both world :
- Trade with real money
- No risk of substantial losses
Binary options trial: when to switch to real money?
Let’s say that you really start to like digital options and you want to make it as a potentially profitable hobby, when should you switch to real money? There is no definitive answer. I decided to make the step very early in the learning curve, I explained why. But this is not that all necessary, it is really up to you. I guess it would depend on your risk profile, and what you are ready to lose. Some people will tell you that binary options is gambling. I kind of agree with that, you feel similar emotions as with casino games or sports betting.
In casino games pure luck is at stake in most games. The same way you can make money by betting on football if you know very well the sport and the statistics, it is also possible to make money with binary options. Even more. But it will take time, unless you’re a natural.