How to Manage Binary Account Efficiently

How to Manage Binary Account Efficiently

Submitted by adil on Mon, 12/29/2014 - 12:57

When it comes to the ways of doing business, there are as many proponents of doing the business in a passive way as there are people who support the aggressive way of conducting business. Both of these approaches have their pros and cons and both of them are equally favorable and unfavorable depending upon the situation in which they are applied. Thus, when it comes to an online business like binary trading, at a holistic level, the story is somewhat the same

Types of Management in Binary Trading:

In binary trading options also, there is the passive way of managing the account and conducting bids, and there is the aggressive way of doing the business. Both these are suitable for particular investors with a specific mindset and the effectiveness of both the methods depends upon the time they are applied in an account. The lines below a give a brief overview of both these systems and how they can be effectively managed.

Passive Way of Binary Account Management:

The name is indicative of the way account is managed under this option. This type of account management is suitable for the investors who are new to the binary option system and are looking to develop an understanding of the ebbs and flows of the market.

The major tenet of this type of account management which differentiates it from the rest of the account management is the maximum trade limit. An investor under this type of account management can trade in a maximum of 15% of the total capital. It means that the investor can either invest in one transaction of 15% of total capital’s worth, or the investor can make 3 transaction of 5%. In addition to the maximum investment limit, a trader can also not make any further trade, until and unless one or all of the previous trades have expired. Therefore, if a trader is new to the market and is trying to understand the way it works, then passive account management is the way to go, the only thing it requires from the trader is patience.

Aggressive Way of Binary Account Management:

On contrary to the passive way of binary account management, the aggressive way is for the expert traders who are aware of the way market behaves. This way of managing the binary account actually doubles the level of investments that a trader can make in a trade. This means that a trader can invest 30% of the capital per trade, whether it is in the form of a single trade of 30% worth or three different trades of 10% worth of the total capital each.

 Although the traders can overtrade from the given limit, however, that is never advised. Therefore, if an investor is expert and knows what he or she is doing, then aggressive way of account management is the way to making big profit on the trades.

Conclusion:

In a nutshell, if you are new to binary trading, then passive method of account management is advised because it comes with minimal risk. However, if you are expert in the trade and have done your homework about the trading system, then aggressive management is the risky way of making greater profit.