Understand the fund management and importance of binary option
table of contents
Why do we need fund management in binary options
“What is fund management?”, some people may ask me.
In short, fund management means that you understand how much can you possess and invest.
As a set, we usually have to think about “risk management”.
It belongs when you satisfy your profit, and how much you have to be patient through “profits setting” and “loss-cut.”
Unless you are not a rich guy, it is quite risky to invest binary options without understanding how much do you have.
That’s why fund management is essential.
After you are enthusiastic about investing, you run out of money.
It is no more investment because you cannot correct your loss.
Fund management is crucial because you never know how much you get or lose unless you don’t know your budget.
First and foremost, you are better to review what is binary options.
I explain that in “The hottest now: the Binary option.”, let’s access there.
you have to choose a broker where you feel comfortable to manage your fund
If you think the difficulty of fund management, binary options brokers are better than other types of investments.
In Forex, they sometimes request you more margin after you withdraw money from your account because you have to trade with the clearing margin there.
It happens when you lose after radical market changes, and it makes fund managements much tricky.
On the other hands, the amount of investment per trade is fixed in binary options, and they can pay out.
You can understand in-out of the money in your account at a glance.
When you are evident how much you take profits and losses, it is apparently easier compared that you are not sure those.
Some brokers offer “My page” where you can check the past trade.
If you use those, you don’t even need fund management list.
I will explain some good brokers; you can compare them if you are interested in.
■ High-Low Australia
The most notable point is that you can access the trading history.
If you can use them, why don’t you utilize them?
Also, I think that it is also right way if you create an Excel file (As I explain to you how to make).
You do not see the trend because it does not save the trading screens, but still, you can read your treading tendencies.
You cannot use trade history in the quick demo so that you have to check it after you open the account.
If you are interested in, like trading form, you can try the quick demo.
If you record the method and what you did, you can utilize it the next!
Besides you manage your fund, you are better to record how you made your profit or lost to utilize them the next time.
Think a trade by the situation; it is the critical thing.
However, if you record how you traded, you can utilize it in the later trade.
When you can get a profit or lose your money, if you record them for the later trade, you can use them in the similar pattern.
By the nature of trading, of course, there is no market which is the same.
However, you will face the similar market later.
Moreover, you will understand what you are good at and not.
It is inevitable to lose when you trade.
It is essential to manage your fund because you have to make a profit with wins and loses again.
How to make fund management list for binary options with Excel
We have to make fund management list with Excel quickly.
You have to make it explicitly to remember how it was like to use it later quickly.
The merit of the list is that:
・you can search whether there is similar pattern before.
・You can calculate the winning rate with filter, and also see the chart and comment.
The point how to make the excel file easily
You can make fund management list with Excel easily. The picture is just an example, but you have merit as below:
・Put the numbers to be clear
・The date when you trade (You can make different excel file by the date)
・The currency you traded
・How you expected(High or Low)
・The trend when you trade(It is OK with chart picture)
・Whether you were the trend follower or contrarian
・The links of references when you expect the picture
・You can put comments about the decision maker after you finish the trade
At least, you write those items; you can get clear sight them afterward.
And then, you can add what you want to.
If you add too many items, it will make you annoyed afterward so that you have to make that easier. You have to be careful of that.
Why don’t you manage your fund to save your waste once?
If you lose now, you can be a winner without the waste.