The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!
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 expires in the money, or nothing at all if the option expires out 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 the underlying 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.
The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!
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!
Binary Options Course For Beginners
Binary options trading is an excellent financial tool for both beginners and advanced traders alike.
In this binary options course: binary options basics, binary options alternatives, binary option brokers, binary option trading strategies and more..
A binary option is a financial opportunity that offers investors a fixed price and a fixed return. Binary options are also known as fixed options or digital options and are traded only on the internet.
About the Binary Option Course
Binary options combine the analytical aspects of day trading with the lucrative features of traditional options trading so traders can maximize their profits while minimally investing in time and/or capital.
Forex, commodites, indices and stock shares can be traded with the binary options system. In this course you will learn how to trade call options and put options and what the benefits are.
Quite simply, a binary option is a financial tool that allows you to predict if the market price of an asset will rise or fall within a certain time period. The period of expiry can range from one minute to a number of days, depending on your choice.
This course contains not only >40 minutes of video, also some interesting links and documents are enclosed. You are a trained binary options trader in as little as 45 minutes. Are you ready to make profit?
- Beginner stock traders
- Professional stock traders
- Traditional options traders
- Forex traders / Currency traders
- What are Binary Options?
- A Trading Demo
- Reasons to trade binary options
- Advantages of binary options trading
- Expiry times
- What assets can be traded?
- The Three Step System
- Choosing a Broker
- How to be successful
- The Difference with Traditional Options
- Fundamental Analysis
- Technical Analysis
- Trend Analysis
- A Broker’s Review: CherryTrade (USA traders accepted)
- A Broker’s Review: Redwood Options (USA Traders Accepted)
- A Broker’s Review: GOptions (USA Traders Accepted)
- A Broker’s Review: Boss Capital (USA Traders Accepted)
- A Broker’s Review: Grand Option
- A Broker’s Review: Option Time
- A Broker’s Review: Interactive Option
- A Broker’s Review: 24Option
- A Broker’s Review: 67Option
- Binary Options Quiz
- Get Your Free eBook
- Contact me
- Risk Warning
- 4,0 рейтинг преподавателя
- 558 отзывов
- 11 748 студентов
- 2 курса
Thank you for your interest in reading this little biography about me.
My day job is instructor at an vocational school is the Netherlands. I have been working here for five years now and train students to be an entrepreneur. I have workes as an assistent shopmanager in a computer store for about 8 years and learned a lot about dealing with the different types of people entering a store daily. I can perfectly determine how to treat a person and almost read him/her like a book. This can come in handy when working at a school which is what I do now.
My job at school is to manage a study centre, give technical support to students and co-workers, and much more. I am more like the center of gravity for our department and assist wherever I can.
Not only am I interested in trading the financial market, hence the binary options course I offer on Udemy, I am also interested in SEO, internet marketing, sales letters writing, WordPress, cars, and more.
I have been blogging about forex and binary options for a while. My website is frequently visited by both novice and professional traders. Binary options and forex have my interest for being relative easy to trade and make a little profit from it.
I signed up with Udemy to spread the word about trading. Domain name investing and trading is a way of trading I recently dived into. But also the speed and high returns on binary options trading is a topic I keep in touch with on a daily basis.
Trading stocks or whatever you would like to trade does not have to be a fulltime job. In fact, I think it can easily be done in your free time.
A course is a living thing. It has to modified and updated every now and then. If you have any remarks or comments, please feel free to send me an e-mail or leave me a message here on the Udemy platform.
I strongly believe that nothing would ever be perfect, but if we never give feedback, nothing would ever come close to being perfect as well.
It is important to know
The binary options market is a relatively new tool for making money, which is why it scares beginner traders. A large number of indicators, complex charts and a lot of dishonest brokers make studying binary options very difficult.
Many try their hand at binary options trading, but forget one main thing – without theory and understanding how it works, trading success cannot be achieved, despite the fact that it is very easy at first glance.
A trading strategy is the only way to make money trading binary options. Many different earning options have already been created and described; most of the methods perfectly help the trader to navigate this issue.
It is on the basis of the strategy that the trader plans on which indicators to navigate, what signals and beacons he will use. On our site, you will find a number of working strategies for binary options and free signals for binary options.
These are great tools to learn how to make money on binary options. Remember, if you are an absolute beginner, we recommend that you start with a demo account and free signals, study one strategy after another and choose for yourself one strategy that is ideal for you.
We publish several strategies for you:
Signals for binary options are the basis of a trading strategy and successful trading. This is part of your personal, unique trading strategy.
Beginner traders step by step study the theory, using signals, learn strategies for binary options, practice, building up the necessary amount of skills. All these actions are formed into a unique trading strategy of the trader.
To generate profit, signals for binary options are used by beginners and successful traders, since the signals allow you to make a forecast on the price change.
Heat maps show how accurate the signal is and having a complete picture of the analysis before your eyes in one window with the broker, the trader can make an accurate forecast of the transaction.
On our site, you will find the necessary materials for the novice trader. It is important to remember that the beginning of trading is the study of theory, and only then practice and search for ideal tools.
In the continuation of this article, we recommend reading about what trading signals are:
Binary options trading: 5 stages of development of a successful trader
Financial analysts have identified 5 steps that a binary options trading trader goes through in professional development. In this article, ForTrader.ru magazine will try to reveal an objective situation for you regarding your professional status.
Financial analysts have identified five steps that a trader engaged in trade takes in the professional development binary options. Of course, the steps are rather arbitrary and differ, by and large, only in the psychological component. Nevertheless, having correctly assessed his current level, the binary options trader will know what he needs to strive for for professional growth. In this article, ForTrader.org magazine will try to reveal an objective situation for you regarding your working status.
Stage 1 binary options trading – unconscious incompetence
The first step is the beginner level traders binary options. Its main characteristic is the unconscious incompetence of the trader. It is at the first stage that the trader begins to understand that trading binary options is a profitable business that brings a certain profit. Along with this, he has absolutely no idea how to achieve stable profitability, so he is working hard to acquire the necessary knowledge.
Stage 2 – conscious incompetence
The second stage is already characterized by conscious incompetence. A trader reaches this level after he has been trading in the financial markets for some time, and he has an understanding that his level of knowledge is insufficient. At this level, the trader begins an active search for information to achieve a positive trading result. As a rule, most of the information is outdated or simply unnecessary.
Stage 3 – the binary options trader’s insight
It is at this level that the binary options trader receives insight, which is also insight. He begins to realize that, in fact, the process of trading binary options is not as complicated as it seemed to him at first. Simply put, the trader’s eyes open and he “ceases to produce entities beyond what is necessary.” At this stage, the trader, as a rule, already builds his own binary options trading strategy, his transactions gradually become profitable.
Stage 4 – conscious competence
The fourth stage is characterized by conscious competence and is more serious professionally than the previous one. At this level, ForTrader.org recalls, a binary options trader only makes informed transactions. He is able to conduct a clear analysis of all the consequences that open to him transactions with binary options.
5th stage – unconscious competence
And finally, the stage, which is characterized by unconscious competence. Binary options trading at this level occurs, figuratively speaking, “on the machine”. Analysis of the current situation takes a few seconds. Decisions to enter into a binary options transaction are made almost intuitively, based on accumulated experience and past transactions. A trader who has reached this level is characterized by absolute calm and complete confidence in their actions. The memory of his first inexperienced steps in binary options trading makes him condescending smile. His transactions bring tangible profits, which is a clear confirmation of his rightness in his choice and confidence in trading activities.
As you can see for yourself, the path of a binary options trader is not easy, however, like the path of any trader, it’s very interesting. Having made your efforts and reaching the fifth, highest step, you will remember with a smile (and with a profit in your pocket) your fear of trading binary options.
The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!