One thing I want to talk about a bit is hedging in binary options. Even really good traders will only average a winning percentage of 70-80% in binary options, so betting to much of your money on one trade could bankrupt your account even if your winning the majority of your trades. Let me show you an example:
Say your starting out and your real winning percentage over your first week of trading is 60%. Lets also say your starting amount is $500. A good general rule is betting anywhere from 1-5% and when first trading, betting the lowest amount possible. Lets say you go with 2% of the initial $500 per bet ($10). Your odds of losing all of your money with a 60% winning percentage is very low. If you bet 20% of your money, however, your odds are much higher of loosing all the money in your account even if you are good at trading binary options.
High risk doesn't always equal high reward. If you stick to betting a percent of your account each trade, your amount you trade will change but your risk won't change. If your account grows from $500 to $1000 and your betting 2% each time, the amount you will trade will change from $10 to $20 but the risk you are taking each trade is the same. Some traders also choose to lower there percent they bet each trade as their amount of money in their account goes up so to avoid losing too much money in a bad loosing streak.
In summary, hedge anywhere from 1-5% of your account on each trade so even a unlucky loosing streak won't bankrupt your account.
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