Binomo is an online platform that has already gathered millions of investors worldwide. It offers several dozen assets to trade and receive additional income. However, trading requires skills and experience. If you are planning or have just started trading on Binomo, this article will give you some proven tips.
How to earn extra income?
There are three ways of trading and earning extra funds on Binomo. The first one is to trade independently. In this case, your results are only your own. You decide how to create and carry out the trading plan.
To reduce the risk of losing capital, it is recommended to practice on the Binomo demo account. Here you can test and work out any strategy, even if you already have a real account.
The second option is to purchase third-party signals. It’s tempting because they offer to open trades without spending hours researching the market. However, remember that while promising profits, signal providers are never responsible for your losses. The quality of ready-made signals is not guaranteed, so the Binomo platform does not approve of their use.
The third and final way is to use the services of fund managers. They do all the work, from researching to managing the account. However, there is a substantial danger: the fund may fall apart, or the manager may turn out to be a scammer. Even if you find a trustable manager, a sizable sum is required to start.
Create your plan
Nothing is more foolish than trading aimlessly. Without a plan, becoming a professional trader and earning extra income is impossible.
When planning, start by gathering information about the market conditions necessary to start trading, like:
- Your preferred financial instrument.
- The sum invested in a single trade.
- Time duration of the trade.
- Plan for managing capital.
One of the most important trading tips for newbies on Binomo is to work on your capital management strategy. When compiling it, you should consider the following:
- The number of funds you hope to earn each day.
- The number of trades you want to do each day.
- The sum you plan to gain from each trade.
- The number of funds you’ll need to invest to meet a daily profit target.
- The greatest probable and bearable loss before the end of trading for that day.
After considering all the above points, you are ready to start trading on Binomo.
Additional tips for trading on Binomo
Regardless of which trading strategy you choose, the following tips will help you learn how to trade on Binomo:
- Use the demo account to test out any strategies. This will help you avoid losses, especially if your tactic is risky.
- Make only a few trades per day. Perhaps you believe that the more trades, the greater the profit. However, this is not always the case. In actuality, it increases risk exposure. If you make the wrong forecast, one mistake could cost you your entire investment. If you are unsure of its correctness, opening another trade with the opposite outcome is not recommended because there is no guarantee that the second forecast will be correct and bring you additional income.
- Be patient. Sometimes you may find that the current market conditions are unsuitable for your strategy. In such instances, you must wait. You also cannot go to another market just because there are poor entry conditions in the current one.
- Know your targets. A trader who wants to get a thousand USD daily has a different strategy than one who only wants to earn ten USD daily. Start with loss-minimizing approaches and not chase those that aim to generate significant profits in a short time.
- Set limits. In the hopes of getting a significant profit, you may decide to invest a lot of funds – even 100% of the account balance – in a single trade, but this is a fatal mistake. A maximum of 5% of the account balance should be invested in each trade.
- Select a time frame that is more than one minute. The longer you study charts, the more accurately you can analyze them. Assessing longer time durations also gives you a better understanding of the nature of the market and asset.
Conclusion
We hope this article assists you in learning how to trade on Binomo. However, it is crucial to understand that following the trading tips discussed will not ultimately reduce the risk of losing your investment. Learn and practice on a demo account for as long as possible.