Binary Options Guide: The Truth About Binary Options
Trading binary options can seem deceptively simple, but leaning too far into that notion can blind people to some of the risks that often accompany this type of trading.
Before I go any further, I want to make it clear I’m not a binary options trader. I trade penny stocks and teach day trading. I’d love to see you join the Trading Challenge — it’s the result of over two decades of trading and a decade of teaching. It’s awesome.
If you’re interested in taking the binary options path, it’s critically important to understand exactly what you’re getting into and set appropriate expectations. And you should get a mentor who trades binary options. Seriously. Preparation is key.
Again, I don’t trade binaries. For the most part I think they’re scams. Can you trade them successfully? There are successful traders in every niche. But most traders lose. That’s the reality of the industry.
It doesn’t matter if you’re trading forex, penny stocks, options, big caps, or … binary options. Most traders lose and most trading teachers don’t want you to know about it. So I’m going to tell you about binary options in this post. But I don’t trade them and I don’t recommend it.
Will trading binary options enable you to buy a villa in the South of France next year? Probably not. Will they allow you to quit your full-time job and finally start on that novel you’ve always wanted to write? Don’t count on it.
Here, we’ll take a look at what binary options trading is all about and you can decide whether it’s right for you. As you read, keep in mind that binary options are getting outlawed in more and more countries. Companies are getting shut down. Or they’re based overseas in places where you can’t sue them. More on that later.
Table of Contents
What Are Binary Options?
Before we dive into specific binary options trading strategies, let’s review exactly what binary options are. According to Investopedia’s definition:
A binary option, or asset-or-nothing option, is a type of option in which the payoff is structured to be either a fixed amount of compensation if the option expiresin the money, or nothing at all if the option expiresout of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell theunderlying asset.
At the core, binary options are based on a yes or no proposition. You must decide whether you believe an underlying asset will be above or below a specific price at a specific time.
Binary trades are ruled by expiry times. These time constraints indicate how long you have to make your predictions regarding whether you believe an underlying asset will be above or below a specific price at a specific time. Once the expiration limit occurs, your predictions determine whether you gained or lost money.
Expiration times vary from binary option to binary option. Some of these minimums are known as short expires, which means the expiration date is actually within mere minutes of the buy-in.
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There are medium and long expiries, as well. For medium expiries, the deadline could be anywhere from two to five hours. Long expiries typically last between two and 24 hours. Many experts believe that longer expiration times can help make predictions easier.
What Are the Underlying Assets of Binary Options?
In order to participate in binary options trading, you must first have ownership of an asset that can be optioned for a fixed amount. The types of assets common in binary options include stocks, indices, commodities, and currencies. Many binary traders chooses to trade with stocks, as this option can allow them to get high returns within a short span of time.
Along with indices and commodities, currencies are another popular binary option vehicle. Since currencies are liquid and often subject to dynamic price fluctuation, many traders choose to analyze their binary options across the complex — and often shifting — global currency market.
A quick aside since we’re talking about forex. Be aware that the forex market is among the most difficult to trade. Why?
Because it’s the biggest and most liquid market in the world. You’re up against the smartest, richest, and often most experienced traders in the world. Personally, I don’t want to compete against that. Plus, the forex markets move so fast on news you don’t have access to, that there’s no edge whatsoever.
And now, a new asset has emerged: cryptocurrency. I don’t trade crypto, either. I’ve traded the random crypto-based stock. But this is a whole niche unto itself and I’m happy with penny stocks. Crypto has its own version of binary options — which is why I’ve included it here.
Led by Bitcoin, this new, digital currency class is intriguing investors around the world who see the digitization of finances as the way of the future.
According to Options Advice, there are two prominent ways you can capitalize on Bitcoin binary options. The first strategy is by trading on what you think the imminent fluctuation of Bitcoin might be, and the second is trading regular options with Bitcoins as your currency.
If you’re interested in taking the cryptocurrency binary options route, I strongly suggest familiarizing yourself as much as possible with the trends dictating the ebbs and flows of the altcoin market.
An entire niche financial industry has been built up around educating consumers and future investors of digital coins and tokens. From resources like Cryptoslate to ICO listing sites like Coinschedule, there are many resources available to help you make the most strategic crypto trading moves possible.
There are also a lot of scams. And strange happenings. Like when a crypto exchange CEO died with the ONLY key to $137 million in crypto. Ouch. More than 100,000 cryptocurrency holders learned a very hard lesson. Back to binary options …
What is a Call and What is a Put?
Two of the most common terms you’ll hear throughout the binary options world are call and put. These two labels represent the market positions of binary options.
You typically choose to call if it looks like the value will rise within the confines of the expiry time.
Options also have a strike price, which is the price at which the security would be bought or sold.
If you choose to call, you’re signifying your confidence that a stock will rise within the time limitations. If the stock valuation moves upward at all, you’ll receive both your initial investment as well as the return.
On the opposite end of the spectrum, a put signifies your confidence that the valuation of a stock will drop within a certain time limitation. So if you predict that a stock valuation will decline before the expiration date, and the stock does dwindle, you will have succeeded at that trade and will receive your initial investment — as well as the trade — back.
What Are Other Types of Binary Options?
Beyond call and put options, there are other distinguishing factors that separate binary options from one another.
This guide from Binary Tribune delves more specifically into binary options types based on the number of interactions a trader must initiate with the trade. The levels include one-touch, no-touch, double one-touch, double no-touch, and paired options.
Let’s take a look one-touch and no-touch options …
Essentially, a one-touch binary option indicates that in order for you to receive a payout, a trigger (or predefined barrier) must be reached. Traders often choose one-touch if they feel confident that a stock will move in a certain direction at a minimum amount.
The option only has to meet the predefined trigger level once (hence the “one-touch” term). However, as indicated by Binary Tribune, this strategy is often accompanied by some risk.
Beyond simply calling or putting, you also must feel confident that a certain valuation threshold will be crossed. However, with greater risk often comes greater reward.
In contrast, a no-touch binary option essentially depends on a trigger level not being reached.
Rather than hedging your bets that the valuation of a stock will rise above or dip below a specified amount, you’re betting that the trade will not dip above or below an amount.
Because you’re making the trade with the intention that a threshold will not be crossed in either direction, it’s referred to as “no-touch.” Like their one-touch counterparts, these trades come with greater reward — and risk — potential.
I liken one-touch and no-touch calls and puts to something like an electronic stop-loss. The problem is, you don’t have control. You’d better be damned sure you’re right. Which is impossible.
What Are the Pros and Cons of Binary Options?
Now that you understand binary options basics and the different factors between them, you might be wondering whether this type of trading aligns with your goals. Let’s weigh the pros and cons.
We’ll start with the benefits …
Low Barrier to Entry. You don’t need a masters in economics to engage in this kind of trading. For this reason, many first-timers enter the trading arena through buying and selling binary options. Comparatively, binary trading is relatively simple. When compared directly to other types of trading, including quantitative or arbitrage, trading binary options is straightforward.
Fast Returns. Many traders are eager to see fast results and liquidate within a specific time frame. Those who play the long game (investors) are typically most concerned with growing their money steadily over long periods of time. Many opt to invest in index funds, IRAs, or bonds. Trading binary options is fast paced.
Thing is … you can get all the speed you need trading penny stocks. So, while binary options might be a fast game, the reward might not be worth the risk.
High Rewards. Binary options trading is touted by those who promote it as high reward. It’s possible to receive up to a 70% return on their investments if your binary trades reach your expiration dates in the money. This high average return is what makes this type of trading vehicle attractive to many novice and expert traders.
As explained by Investopedia, the risk on binary options is capped off, so while the rewards could yield high returns, you can’t lose more than the cost of a trade.
Low Cost. If you’re just getting started with trading, there’s a good chance you don’t have excess capital lying around to snatch up shares of the fastest-rising stocks on the market. Binary trades offer an alternative to other types of investments that require high-capital buy-ins.
In theory, you can experiment with a binary trade for any amount you’d like, whether it’s $5 or $50. Starting small and working your way up to bigger trade amounts incrementally is a great way to learn the lay of the land.
As you familiarize yourself with expirations, strike prices and — if you’re interested in one- and no-touch options — triggers, it’s best to gamble with an expendable amount that won’t derail your entire financial status. Notice I used the word gamble — just sayin’.
Accessibility. Binary trading platforms make it easy to trade on any day and at any time. When it comes to binary options, traders aren’t necessarily beholden to standard market times and broker availability.
Now, let’s explore some of the disadvantages of binary trading …
Scams. Conduct any Google search on binary trades and one of the first things you’ll likely notice are the abundance of hits warning against binary scams and shady binary brokers.
Remember when I said I’d get back to the part about shady companies? Here goes …
… and I say this to protect and warn you.
Like I said, these companies are often based overseas. Places like Cyprus. (I have nothing against Cyprus. It’s a beautiful country with amazing people.) Anyway, these companies are based in places where you can’t sue them if they screw you.
Then you sign away pretty much your entire life in the forms they make you fill out. Your odds of winning are so low the brokers who do it are pretty much laughing at you. They’re laughing that so many people fall for this crap. It’s like going to the casino.
So, if you come across a binary broker that sounds too good to be true, it’s because he or she most likely is. And if you come across a binary broker who doesn’t let you liquidate your investment, run in the other direction.
Short term. Binary trades have expiration dates that are often fairly short windows of time. Given this, it’s impossible to use binary options as mechanisms for long-term investments. Which, of course, I don’t mind because I day-trade and teach day-trading. But if you’re looking for buy-and-hold investing, binary options aren’t the right solution.
Can You Really Make Money with Binary Options?
Short answer: It’s possible, but you MUST know what you’re doing. Like I keep saying. Most traders lose. Doesn’t matter the niche. I would never trade binary options. Ever. Your choice, I’m just tryin’ to keep it real.
If you’re serious about binary trading, start small. By making small trades and working your way up, you give yourself breathing room to assess market trends and develop the necessary skills.
As is the case with many types of trading, history is sometimes the best predictor of the future. Many successful binary options traders experience trading wins and financial growth because they’ve spent time studying and familiarizing themselves with market movements.
Wait. Does this sound familiar? Yep. You guessed it: you can’t cheat your way to success. Doesn’t matter the niche. I don’t trade binary options. I don’t recommend you trade them. But if you decide it’s for you then prepare yourself. Study your ass off.
Learning common candlestick patterns can make it easy to spot recurring trading patterns. If you want to understand candlestick patterns — and you do if you are serious about trading — I recommend you get a copy of the classic “Japanese Candlestick Charting Techniques” by Steve Nison. Doesn’t matter which niche you trade, this book should be on your bookshelf.
Of course, trading patterns are never 100 percent accurate, so don’t fool yourself into thinking of them as absolute stock predictions. However, the more you can learn about patterns and begin to recognize them yourself, the more likely you’ll be comfortable making your own options decisions.
Is it Safe and/or Legal to Trade Binary Options?
Naturally, binary options contain risk. And by now you know my take. I pretty much think they’re scams. But there are differing opinions and some even consider them safe trading routes. I’m not gonna tell you not to trade them. I recommend you don’t. I’ll be interested to hear back from you. When you’re ready to trade the way I teach … apply for the Trading Challenge.
While it’s legal to trade binary options within the United States, they’re only available to trade on Commodity Futures Trading Commission (CFTC) regulated exchanges within the country.
Binary options traded outside the U.S. are structured differently to those traded here. You can learn more in this article on Investopedia: What You Need To Know About Binary Options Outside the U.S.
The Bottom Line
The good: Some traders like binary options because they are traded at fixed costs. You know where you stand.
The bad: Binary investments are too much like flipping a coin, there are too many scams, and your odds of winning are so low you might as well go to the casino.
The bottom line: Educate yourself like crazy. Avoid sketchy brokers. Start small and work your way up. Remain vigilant. Stick with these rules, and someday you might reach your trading goals. Will you do it with binary options? I doubt it. But you might prove me wrong.
Want to Try Binary Options Trading?
At this point, I hope I’ve shed enough light on binary options trading that you don’t do it. But … you might be thinking about giving binary options trading a shot. If you do, study your butt off. Get a mentor. Don’t screw around. The best of the best in every niche work with a mentor.
Trading — any type of trading — can quickly become complicated. Like any other sector of trading, it’s important to seek out an education before you attempt to invest in this way. I can’t help you trade binary options. But I can help you learn to trade penny stocks …
Is the Trading Challenge for You?
As a teacher I want to help my students forge long-term, sustainable careers as traders. The Trading Challenge can help you reach your goals through risk-averse, conservative trading.
Plus, my best students — those who have become millionaires themselves — join me in coaching you.
What do you get?
Wednesday morning live trading webinar. I show you live trades so you can see how it’s done. And it’s not only wins. These are true live trades. Sometimes I lose. But you’ll see how fast I cut losses and why I get out so fast when things turn against me.
Wednesday evening live lesson and Q&A. No matter where I am in the world. This is killer stuff.
Thursday live trading & review with Mark Croock. @thehonestcroock is at it every Thursday. You don’t want to miss this. Mark is one of my best students/teachers. He’s constantly in the challenge chat room alerting students.
Annual Penny Stocking Silver Membership. You need this. Thousands of hours of video lessons and archived webinars. Immerse yourself. This is how to get good fast.
PLUS: Two monthly bonus webinars by my top student Tim Grittani. It won’t take long to understand how Tim went from $1,500 to where he is now when you see how meticulous he is about his trades. Learn from a master.
WAIT! There’s more …
I always wanted to write that. Anyway, there is more, but you have to apply for the Trading Challenge to get it. Simple.
Will you be my next success story?
As you’ve now learned, if you study hard, start small, keep your scam radar on high alert, and stay educated, then becoming a successful trader is possible. But it’s not easy. So don’t even think about doing it if you’re not willing to work hard.
As for binary options …
Look, whatever you decide, it’s about how much time and effort you put into learning. I don’t think binary options are a good way to go. Plain and simple. But there are success stories.
If you’d rather learn what I teach, then apply for the Trading Challenge. But no lazy losers allowed. Seriously. Only join the Trading Challenge if you’re willing to work hard.
Are you a trader? Do you trade binary options? Comment below and let your fellow traders know how it works for you. Even if you are brand new, I love to hear from readers. Comment below!
Best Binary Options Trading Strategies That Work : Complete Guide
I am sure you have heard or read that you could make a ton of money trading in binary options. That’s true. Unfortunately, it is not as easy as some reviewers or affiliates of binary options brokers would want to put it. Some even make you believe that you can just stumble upon binary options and start making profits right away. Nothing can be further from the truth. Those who get involved naively, most likely end up losing their hard-earned money. Many of these binary options broker adverts just want to get you on their platform and get you to deposit your money.
So, what does it really take to make profits from binary options trading? First, we believe that binary options trading is a legit form of trade and you can make money from it. In order to make money, you have to know your trade. The same goes for binary options trading. We always advocate for trading with a strategy. Trading with a strategy means you are in control of your investment, and significantly reduces the risk of losing it. On the other hand, trading without a strategy is more like gambling. In as much as there is an aspect of luck in binary options trading, winning is more of a strategy than luck. You will certainly lose your money if you treat it like gambling.
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Many people are always wondering about how to master binary options trading. It is estimated that less than 5% of the people who get involved in binary options trading make a profit. A majority, if not all, of those who lose, probably get into binary options trading with no clear strategy. You’ve probably read somewhere that anyone can trade in binary options. While that is true, it does not mean anyone can profit. I have no prior experience with financial and stock markets, you should probably take time to learn a thing or two before staking your money. Those who put in the work, and adopt a robust strategy most likely than not end up in profits. 5% of millions of people around the world is still a large number of people. So, yes there are a lot of people making money from binary options trading.
So, what are the strategies that you can employ to ensure you end up on the profits ends? There are several tries and tested binary stock options strategies that are commonly used by binary options traders. These are actually binary options strategy that works. You need to understand how these strategies work, for you to be to employ them effectively. We seek to educate and put you in a better position to trade in binary options successfully. We are going to look at various strategies that you can employ in binary options trading. It is important to mention that whatever we publish here should not be taken as a blueprint to making money on any platform. We seek to help you understand the concept behind the strategies. The actual actions to be taken depend on the financial market charts. We are going to divide the strategies into three categories.
Money Management Strategies
Analysis and improvement strategies
The strategies are employed in the above order if you are starting as a newbie. You need to have a money management strategy to ensure you don’t run out of trading funds. Trading strategies are the actual strategies of engagement with the financial markets. Analysis and improvement strategies ensure the trading strategy you have adopted is sustainable and it keeps winning trades for you.
Tag along and let’s show you how to how to build a trading strategy on the binary options.
1) Money Management Strategies
Money management is a necessary strategy for anyone trading in binary options. It is the top binary options strategy. It is a basic but very essential strategy. It is employed together with one, or a couple of the other strategies. Money management strategy helps you leverage your money to make the most of a binary options trading winning strategy while keeping the risks to a minimum. The money management strategy is employed in two ways.
(i) Risk Management
As a new trader, you will obviously have no confidence in your strategy and skills. You are basically in an experimentation phase. Unfortunately, experimentation is the only way to test where the trading strategy you have adopted works. You may have to do so with real money on some binary options broker platforms. As such, your main focus in this phase is not only to learn, but also to reduce the rate at which your balance is depleting. You will most likely lose more trade than you are winning.
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The Kelly System is a risk management system that is renowned among trading and gambling circles. The general rule of the system is that you should never stake more than 5% of your remaining balance. The underlying argument is that, in the experimentation phase, you would rather stake small amounts since you are more likely to lose most of the trades
Another way of exercising risk management is placing a call and put options in concurrent trades. Let’s say you are working with a 1-minute binary options trading strategy, and you have placed a call option. At the 30-second mark, you realize it’s not going the way you had predicted. 30 seconds is still a long duration is short term binary options trading. To minimize the risk of losing, you could place a put option for 30-minutes. There are two scenarios here. You could win one trade and loose the other, or win both trades. The probability of losing both trades in such a scenario is almost zero. Let’s say your broker offers 90% profit on both trades and your stake was $10.
If you win one trade and lose the other. You will get a payout of $190 on the trade won, and lose $100 on the trade lost. You had staked a total of $200. It means in total you have lost $10. You would have lost $100, had you left the first trade to complete and be wrong.
If you happen to win both trades. You get a payout of $190 on both trades. You will end up with $180 in profits.
In the scenario above, you would have risked a small amount to win a big amount. That’s the whole essence of risk management. The goal is to control the depletion of your remaining balance as you seek a working strategy. You do not want to lose all your initial deposit when you probably have no other money to deposit.
Compounding still concerns itself with the remaining deposit in your account but is employed when you have found a winning formula. When you find the binary options winning strategies that you are confident in, you employ the compounding strategy to take maximum advantage of the winning trades of are making. The concept of compounding is quite simple. The amount staked keeps going up as you continue winning. It means the winnings will keep going up too. Compounding is more like the Kelly system but in the reverse direction. Businessmen call it plowing back the profits.
To clearly understand how compounding works, let’s explore a hypothetical situation. Assuming you have $2000 and you are working medium duration trades; say one week. You place five one-week trades and stake 10% of the deposit on each of the trade. Recall the compounding is employed when you have found a winning strategy. You can therefore disregard, the rules of the Kelly System. You will have staked a total of $1000. Assuming you win all the trades at the end of the week and your broker pays 90% profit. You will close the week with a balance of $2900.
One the second week, you keep the same strategy. You will have staked $290 on each trade. The total amount staked will be 1450. If you again win all the trades, you will have a new balance of $4205. The trend will go on as long as you are winning your trades.
The cue to use compounding is when finding a working strategy. Therefore, we need to look at the other strategies you can employ together with the money management strategies to ensure you turn in profits. Money management is a fundamental skill for any binary options trader. As a trader, you have to know how to leverage your money two get more profits. At the same time, you have to know how to protect yourself from losing it all.
2) Trading Strategies
The trading strategies are a structure of how you will be placing your trades. As mentioned above, doing thing haphazardly with no clear plan will have you losing your money thick and fast. Trading strategies help you have a clear picture of what your trades look like. Trading strategies are basically based on two aspects. The instrument or asset you are going to trade with, and the duration of the trade.
These can be stocks, indices, cryptocurrencies, currency pairs, or commodities. You choose to trade in one or a couple of the assets you are comfortable with. If you are a beginner, stocks are always a good place to start. Information about stocks is more readily available as compared to that of the other instruments. If you have one particular instrument whose financial market you understand well, that’s where you want to start.
There isn’t much one the assets, you go with the one you understand best. If you don’t understand any, check all of them and find one that’s easy for you to understand. The back in trading strategies stops with the trade duration.
Trading strategies are classified into three categories as far as the trade duration is concerned. They are;
Conservative Long-Term Strategy
Let’s explore them one after another.
Conservative Long-Term Strategy
This strategy, as the name suggests, involves conservative trades. The target for this strategy is 1-2 almost sure trades per day. The concept is to wait for sure signals and employ money management to capitalize. You then keep the trend going and grow your capital. It is the best binary options trading strategy for beginners. The strategy will allow you to grow your capital slowly but sure. The idea is to ensure you do not burn yourself out before you even start trading. As a beginner, you may not have enough experience to interpret the charts correctly. You have to wait for the right moment to strike.
For instance, let’s take the case presented in the chart below. It is a perfect case to use the ZigZag’s two last points. You then draw a Fibonacci in between them guided by the trend.
You draw your Fibo line from point one to point two for a descending trend and vice versa for a rising trend. Therefore, the target is 161.8 projection level.
A fully valid signal should have a retracement of between 50-88.6. The higher the retracement climbs, the stronger the signal gets. In the instance depicted by the photo above, the retracement occurs close to the number 2 on the top left corner.
To give yourself the best chance, you need to be patient until all the 3 factors coincide. Follow the following rules when making your judgments.
Wait until the Fibonacci projection reaches level 161.8
Wait until the value of the chart is 8 or more
The expiry times should be between 5 and 20 minutes
You the employ money management strategies to minimize risks, or scale up your profits. Notice the duration involved here is a bit long (not very long because you can engage in trades running for months). As mentioned in the beginning, you only need 1 or 2 trades in a day. If you win the first, I’d suggest you don’t try another. This strategy will allow you to avoid losing your capital as you experiment and learn.
You probably already guessed how this one goes. It’s just an upgrade of trade aggressiveness from that exhibited in the conservative strategy above. The durations are shorter and make more trades per day. You kick it up a notch higher when you start getting comfortable with your predictions. Strategies help you get rid of emotions while trading.
A lot of the aspects of the semi-conservative strategy are quite similar to those of the conservative strategy above. There are a few differences though.
You can trade at either, 161. 8 or 127.
The price needs to be in the red zone
Place 4-6 trades in a day. We suggest you don’t go all the way to six when you have won three trades.
You should not trade for more than 6 minutes with level 127. Normally, level 127 is a consolidation level where buyers all sellers are drawn to the trend to increase liquidity. The price usually continues in the direction of the trend for the next three candles. A 5 min binary options trading strategy is your best bet here.
Remember to employ money management strategies. If you get it right, your capital should grow a bit faster than in the conservative strategies.
This is a high risk, high returns strategy. We suggest you have a clear understanding of what you are doing before trying this. It is prudent that you be patient and grow your capital with the semi-conservative strategy, to a point where you are trading with profits.
If you carefully look at the photo below, you will notice it has 9 price cycles.
Now, replace the zigzag indicator parameters with 2,1,1. Notice you can count over 41 short-term cycles. Yes, this is a short-term strategy with the potential to increase your money fast, but it has high risks. Every price cycle is a Fibonacci sequence with a high low retracement projection reverse. Take a look at the image below.
The Fibonacci line, drawn in light blue, is drawn from point 1 to point 2. The 1 and 2 points represent high and low respectively. All you need is to wait for the retracement, which can occur either as a wick, or a full candle. Notice the white box marked 3 and the green candle underneath it.
Be keen on the trend and get ready for a signal when the retracement candle is accompanied by a red candle in the same direction as the trend.
The adjacent red candle closes underneath the open of the green retracement candle, though it does not go to the value chart level 6. It does not go to the regression channels inner band either. Take this as the first breakout candle. It is marked by a blue rectangle. Enter PUT for 10 seconds before this candle closes. Note that the next candle will be bearish, with a probability of 90%. The PUT action is marked with 3 PUT on the chart.
The next candle will close under the 100 Fibonacci level, although it does not reach the 127 level. This means it terminated under the low point of the current trend. Enter another PUT 10 seconds before the candle shuts, since it will be accompanied by a bearish candle or even 2-3 bearish candles. These candles have to reach the Fibonacci level 161.8. The action is marked with 1PUT on the chart.
The final bearish candle will hit the Fibonacci level 161.8 and value chart level-8. It will also hit the outline of the red zone. You should now place a CALL
Every price cycle within 3 points has an average of 3ITM trade setups during normal volatility trading circumstances. It is important that you trust your gut too. It is best to ignore a signal and wait for the next one if you feel something is off about it. An experienced trader will be able to strike a balance between being confident and fearful. Too much of either is detrimental. This is arguably the best binary options trading strategy if you can get it right. It is a binary option a powerful short-term trading strategy.
You can learn this steps and rules by heart. Unfortunately, they still do not guarantee winning trades by themselves. That’s where analysis and improvement strategies come in. They come in to improve and boost the trading strategies. If you can successfully combine both trading and analysis strategies to comes up with a robust personal strategy, you will certainly make profits trading in binary options. Let’s dive in an take a look at analysis and improvement strategies.
3) Analysis and Improvement Strategies
Having looked at the money management and trading strategies, let’s explore the analysis and improvement strategies. Up to this point, you will notice that there is still a part where luck is left to take the mantle. You still got to sit back and hope all goes well. The analysis and improvement strategies come to reduce that feeling of worry and uncertainty. Note, not eliminate but significantly reduce. There are three categories of analysis strategies. They are;
Overall Performance Strategy
Technical Analysis strategy
(i) Overall Performance Strategy
The Overall performance strategy concerns itself with the well-being of the company or commodity behind the instrument you choose. As mentioned earlier, it is important for you to be informed about the asset you choose to work with. Whether you are working with stocks, currencies or commodities, you need to know how the physical trade and business happens. These factors culminate in the performance assets performance on the money markets.
This is a great strategy for beginners too. You can conveniently combine it with the conservative long-term trading strategy. Let’s assume you are working with Amazon stocks as the asset. You need to keep up with the general performance of the company. Everything that happens to the company as a far as its operations are concerned will be reflected in the assets trend in the financial markets.
For instance, during the festive season, you expect more sales on Amazon than any other time. You could speculate that the stocks of Amazon will be up in that period. Such generalized speculations are best suited for long-term trades that go up to months long. If you can get access to the financial books of the company, you will be in a better position to speculate on the behavior of the asset in the short term. This strategy should be used as a support strategy, especially for long-term trades. It may be looked at as the binary options news trading strategy too. It may not be of much use if you are an aggressive trader.
(ii) Technical Analysis Strategy
The technical analysis strategy involves analyzing the financial market charts for patterns and using indicators to speculate. The strategy needs you to keep a keen eye for price fluctuations and be able to recall these patterns in the future. Technical analysis can be practiced in two ways. They are;
The patterns of the asset you are trading with on the financial chart is arguably one of the most versatile strategies. It can be employed with any of the trading strategies discussed above. Pattern traders spend time documenting the patterns of price movements. If they notice a similar pattern in the future, they can refer to their documentation and predict the movement of the asset. Pattern trading needs you to be very keen as it can be misleading. Pattern trading is a great strategy for newbies too. They can use it as part of their trading strategies. This is where you can employ a 30 min binary options trading strategy.
Indicator trading is arguably one of the easiest strategies of trading. You act on the prompts of various indicators developed by industry professionals. Indicators such as MACD, ADX, CCI, and stochastics are used to provide trade signals. However, the indicators are do not work for you. They only prompt you of the possibility of a profitable trade. These indicators are developed using the same strategies as discussed above. You can use them as a reference point after deciding on a certain trade based on your strategy or test their prompts with your strategy.
Binary options brokers normally have these indicators on their platforms. Once the indicator is never enough for you to act on. You need three or more indicators showing the same signal to have better chances of winning a trade. Normally, it quite difficult to have the indicators showing similar signals at similar times. As mentioned, these analysis strategies are supposed to be a support system for your trading strategies. Acting on the prompts of the indicators alone is always a bad idea.
(iii) Trend-based strategy
The Trend-based strategy is a highly technical strategy. It is an advanced binary options trading strategy. It is actually the most analytical of the three categories. The strategy involves keeping in tabs with the trends of the financial market charts. The strategy is almost similar to the trading strategies, only that it is a generalized strategy. The trends-based strategy is very versatile. You can use it with any of the trading strategies. The trends-based strategy is employed using particular analysis software. One of the most popular analysis software of the Trend Channels. The software allows you to draw trend lines over the peak prices of the asset you are working with, which then form the basis of your analysis.
The Trends channels allow you to draw lines of best fit over the most peak points both above and below the chart. These trend lines give you a better picture of the area you are working with at that particular time. The strategy is best suited for aggressive traders. The markets no matter how volatile, do not change abruptly. The trends lines can either form parallel, converging or diverging patterns. The most ideal situation is when they are parallel. It makes it easy to trade.
The concept is simple. You expect the chart to touch one line and turn back towards the other line. All you got to do is master the time it takes from one line to the other. Let’s take that the chart is moving towards the upper line. You wait until it touches and starts moving towards the other line. Place a Put option at that point and select a duration that is not more than two thirds twice the duration taken to move from one end to the other. The assumption is the chart will take the same amount of time to go and come back, you can, therefore, estimate where it will be by the time the trade ends. A 60 min reversal binary options strategy with the trading channel is very common.
Timing is an important skill while employing the Trend-based strategy. You need to be able to match the trade duration and the point at which you place your option. Give the chart some time to confirm the trends lines too. Keep on the lookout for a new line of fit for the peak positions on either side. The trends-based strategy is certainly one of the best binary options strategy.
Evidently, there is a lot you need to do if you have any hopes of becoming a binary options trader. Unlike other binary options trading strategy reviews, we do not sell a notion that it easy to profit trading in binary options. We assert that it is possible, and remain adamant that you should have a strategy up your sleeve. Just to recap what we have been through. You need to practice the money management strategy at all times. Choose your trading strategy depending on how experienced and comfortable you are with the binary options strategy. Finally, choose an appropriate support analysis strategy. We have outlined the 3 binary options trading strategies for beginners.
These combinations mean that different traders have different strategies. The discussed strategies are more like frameworks, of coming up with a strategy. In reiteration, the above information is not a blueprint for making profits on any binary options platform. However, if well implemented we do not see you wouldn’t have a reason to smile. You are the master of your own trading strategy. You have to learn the various guidelines by heart so that you can apply them when the circumstances call for it. After some time, you will find yourself with a robust and winning formula. There are many binary options trading strategy forums that you can visit in a bid to sharpen your skills. You will get useful binary options trading tips and strategies.
Binary Options Strategy – How to make money
Binary options trading is new and attractive way of making money on the Internet. It is defined as fast and simple trades with market assets such as gold, silver or Google stocks.
Simple binary options platform
In order to be profitable with binary trading you just need to predict if the price of selected asset will rise or decline in the next few minutes or even seconds. The accuracy of prediction can be increased using our strategies.
Our trading strategies
Traders can make thousands of dollars crowns with very low risk in just a few hours. You will find the latest and best binary options strategies trade on our website.
Are you ready to make your computer your only employer and make a living by trading from the comfort of your home?
Our binary options trading systems are categorized by the expiration date.
To pull off our strategies, you will need the services of a forex rates program, and we suggest that you use the well known MT4 platform. You should try out a number of indicators so you can find the one that can offer you the best strength parameters. Once you have tested MT4 and found a broker, you need to follow some basic rules and strategies. Watch out for the strength and performance of your chosen currencies during middle of the US and UK market sessions. Once you have identified the currency pair, cryptocurrency or an asset you wish to trade, you need to can now start a trade. If your pair is GBP and Euro with GBP as the strongest, then you can call for a ‘PUT’ trade for EUR/GBP, and choose long expiry time. One of the most accurate binary options strategy is this one: Binary Options Strategy that Works.
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Binary Options Strategy – The Zig-Zag Indicator
There’s this common thinking that binary options trading is only best for the experienced traders around. Keep in mind that it’s one activity that’s open for everyone, at any skill level. In fact, you can even find specific trading strategies that can work for beginners. The idea here is to predict the movement of the prices, and take advantage of the movements. To take advantage of the best binary options strategy for beginners, we recommend to have a look at this one: A trading strategy for beginners.
Strategy for trading binary options
Binary option trade strategies are usually based on use of indicators. People often do not know how these work, therefore you can find the indicators description on our website.
Trading based on indicators may not be always a good idea. It is recommended to employ also technical analysis. This Binary options website contains lots of useful resources for technical analysis.
Easy binary options strategy
Thank you for visiting our website about binary options strategies that can work for beginners. For a start, you should know that binary options is never a ‘get rich quick scheme’. On the contrary, investing and participating in binary options trading requires patience and time, and can be a test of one’s commitment and skills. But the good news is that it can be a source of decent income on a regular basis and if done right, you can even quit your day job and concentrate on trading. But without the right set of strategies, any investing decisions will end up badly. If you want to be successful in this field, we suggest that you read our guide below and with every single strategy itself. There are surely some easy binary options strategy. One of the easiest ones is the Moving Average Strategy.
Binary options brokers
Not all strategies work with every broker on the market. There’s many, many types of binary options, such as high/low options, touch/no touch trading, boundary and so on. Every broker offers different types of trading, just as it is with expiration times.
Some brokers offer expiration times as short as 30 seconds. Other start with 5 minutes. That’s a reason why not every strategy can be traded with certain brokers. Underneath every strategy on this website, you will find a recommended broker the strategy works with. Good luck!
Binary option trade risk
Binary option trade is not a simple matter! Even if you have the best available strategy some things may go wrong. Therefore do not risk more money than you can afford to lose! However we will always recommend only the best and proven strategies.
Every strategy needs to be tested on a demo account first. It is very wise to use a binary demo account to try, whether the strategy works or not. If it doesn’t work for you, try a different one. There’s many options of getting a demo account, but not all demo accounts are the same. Check our option brokers comparsion table to find a broker who offers free demo practice account.
10 Tips To Get Success Of Binary Options Trader
There are a lot of tools, tips and tricks that can turn you into a better binary options trader. One of these tools is a good pack of binary options trading signals. In spite of the usefulness of binary options trading signals, there are a lot of small tips that can help you become a better trader without the need to use fancy indicators – throughout this article we will go over 8 binary options trading tips.
Know about the Binary Options Market and Get the Right Tools
One of the things that you must bear in mind is that binary options trading is, like any other kind of trading model, something you must study and delve into to – the binary options market requires proper study.
You must understand how the economy works as a whole in order to better predict what will happen to a certain asset–in order to bet accordingly and get your profits to roll into your account.
Another thing to consider is that there are a lot of tools that can help you succeed–and knowing what they are and how to properly use them can make or break a profitable trader.
We discussed binary options signals in the first paragraph, but there are a whole lot more to discover.
Choose the Right Binary Options Broker
In order to launch yourself on a successful journey that includes trading binary options, you have to get a trustworthy partner–a legitimate, reputable, professional and honest binary options broker. Summing up–the binary options broker that’s able to fulfill your needs.
We will recommend a certain binary options broker by the end of this article, but the rule of thumb is – if it looks too good to be true, then it probably is (and you should stay away from it).
Always read the binary brokers’ terms and services.
Trading Requires Practice
One of things you must know about binary options’ trading is that it requires practice and practice, when it comes to investments, requires money.
So, bear in mind that you should have a small fund that you can lose in order to learn and get better. Be sure to avoid investing with money you can’t lose, as on your first trades you’ll likely to kiss your money goodbye.
Design a Binary Options Trading Plan and Research Assets
Traders can’t jump in and out of binary options’ orders by impulse or ruled by emotions–they should build and design a trading plan from the ground up and research every single asset they think about investing with in order to maximize profits and minimize losses.
Proper preparation is needed, and you shouldn’t be caught off guard–do your homework!
Don’t Choose “Interacting” Assets
There are assets that affect how each other perform. For instance, the USD and EUR affect each other inversely–this means that when the USD rises, then the EUR goes down and vice-versa.
So, you should avoid investing on the USD going up and place a similar bet on the EUR going up too–you’re probably going to win one bet and lose another, which will cause you to get a loss overall.
Make Use of Practice Accounts
Most brokers provide their users with practice accounts, accounts that have “play money” and allow users to invest using that money in order for them to learn trading and to get better at it.
The practice accounts are there for a reason, and you should use them to their fullest–this can save you quite a lot of expenses.
Risk and Money Management is Vital
If you’re going to get serious on binary options’ trading then you’ll have to dominate your e-wallet and become a pro at risk management.
Try to research on this subject and get informed–you’ll thank us later.
Hourly Binary Options Trading: Something to Consider
Finally, if you want to really feel the difference overnight, you should consider getting in hourly binary options trading–as profits can grow pretty quickly. Beware though, losses can add up quickly too.
Consider these tips and try to apply some of them as soon as possible–and don’t forget to practice trading often!
If you want to start walking down the path towards binary options’ trading success, consider checking Call and Put out, they are professional, trustworthy and have a stellar customer support team – the margins are also quite attractive, and you’ll see that they have a lot of tools available to help you improve.
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