Step one of my binary options journey has begun. Firstly, let it be known that I have no knowledge whatsoever in regards to online binary options, real world stock options or the stock market in general. My starting point is pure green.
Before engaging this process, I must admit I was a bit intimidated. I had mental images of cryptic stock symbols and complicated graphs that possibly only a seasoned investor would understand. My experience was the opposite. In the span of a few minutes, I had created a demo account, downloaded the software, set up a call option and was watching the graphs move from point to point towards the expiration line with the same feeling one might have watching a horse race.
Binary Options – The Journey Begins
The process was simple. For my first binary options broker I chose IQOption. They are a reputable broker and they offer a demo account, which is perfect for a market idiot like myself. As well, they offer an ample supply of help and tutorials to get you going. To begin, I went to the IQOption website and clicked on the ‘Free $1000 Demo Account’ button. After filling out the quick registration form, I selected ‘Demo Account’ which sent a confirmation email to the email address that I used in the previous registration process. After clicking on the confirmation link in the email, I was taken to a page with a quick how-to video regarding the trading window and a ‘Trade Now’ link. This link activates the trading window to begin your binary options experience. This is where the fun begins!
When you click on the ‘Trade Now’ button, you immediately launch the interface which shows a market indicator graph that updates in real-time as you watch. You can select a bottom scale time value from 30 days to 2 minutes, so if you want to watch the pulse of the market you’re interested in, select 2 minutes and watch it really come to life! By clicking on the asset name under the IQOption logo (top left), you activate a fly-out menu to select the asset of your choice. On the top left of this menu, you can choose either ‘Turbo’ or ‘Binary’ options. Turbo options are those that expire in less than 5 minutes while Binary Options are those with expiration greater than 15 minutes. You can now drill down to find the asset you wish to take a ride on by selecting the ‘All Assets’ dropdown at the bottom. Here you choose from Commodities, Forex, Indices or Equities and can use the search icon to find the exact asset you’re after.
I decided to go Turbo! Once I selected my asset, I played with the scale at the bottom to see what kind of trends I might see. I looked for a low or high value boundary that I could use as a benchmark and then selected a ‘call’ or ‘put’ option a minute or so later for the opposite direction of my chosen boundary. I selected the time and a dollar amount for the option on the right side menu and clicked on the ‘Call’ option button. At that point, I watched the indicator in hopes that I had chosen wisely. It was pretty exciting! The indicator dot and its behaviours became quite personal and engaging as I watched it heading towards the finish. As fun as it was, my first few actions in the world of binary options left my demo funds a bit depleted. It was obvious that my strategy needed more work. Time to educate and try again later.