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The best Binary Options Strategy – (That works fast)
On this site, I will show you my best Binary Options Strategy. It has a hit rate of over 60%. You can easily use it in every timeframe like 60 seconds or higher expiry time. Also, it is possible to use the Martingale strategy to improve your results. It is called the “False Breakout Strategy”. It works on every asset and in every timeframe. Learn to trade profitably in a few moments. Look at the picture below for the first impressions.
If you only trade this style of trading, it is possible to make a lot of money. Just search in the markets for a high/low or support and resistance and wait for a false breakout. In the next chapters, I will provide you more information to win against the market!
The False Breakout Strategy
Why do you need a Binary Options Strategy?
Binary Options Strategies can be different methods to trade the market. First of all, a Binary Options Strategy does not have to be difficult. It is possible to make money with simple ideas and methods. Therefore it is important to use strict rules for trading the market. The most common mistake is not keeping to your own rules! In addition, a good strategy reduces emotional and irrational trading.
Most traders lose their money because they trade without a proven method and strategy. Advanced traders know how the market work and they practice their own methods a lot. You have to learn and get a higher knowledge of the market. From my experience, it is not easy to learn to trade successfully in a short time horizon. In the following article, I will give you strict rules for trading the markets and I will show you how the strategy is working easy and successful.
4 steps to become a professional trader:
- Get knowledge about the financial product and the market
- Learn a profitable Binary Options Strategy
- Practice in the Demo Account
- Start trading with real money if you trade successfully
False Breakout – The Best Binary Options Strategy
False Breakout is an easy way to trade the markets. To trade breakouts do not work very well. I have tested it many times in the past (I will show you the reason why it does not work good below). After a breakout, the market comes back most of the times.
All you have to do: search for a level (high/low or support/resistance) and wait for the market to break the level. If the market comes back you can go short (put) and long (call).
False Breakout: The market breaks a high/low or support/resistance and comes back to the level and stays under/upper the level. Support/resistance are more than one high/low in a row. You can use this method in any timeframe and with any asset/market. It is universal. See the picture below!
Why does this Binary Options Strategy work so well?
For this question, it is important to have more knowledge. At highs and lows are a lot of stop-losses from other traders in the market. Professional traders use this knowledge to get high liquidity for their own positions. They quit or open a trade where high liquidity is. In most cases they will fake this breakout or the market will turn because of closed positions.
There are a lot of traders who will trade such breakouts. Algorithms are programmed and triggered to make lose them money.
The Best Binary Options Broker 2020!
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Free Demo Account!
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- Stop-losses are triggered with a breakout
- A lot of stop-losses means higher liquidity
- This knowledge is used to open or close big positions
- The market will turn around in most cases
- Sometimes it is a short turn around and sometimes the trend will change completely
Which levels are the best for trading?
New and fresh highs and lows are the best levels for this Binary Options Strategy! With several highs in a row, it is more likely that the market will break through this level. Search for big new and fresh highs. For the best results, the level should be created in the current day. See the picture below.
Different levels for your entries
Furthermore, the best levels got the V-Form. I will show you in the picture below. The V-Form is seen clearly by a lot of other traders in the market. They put their stop-losses on these levels. Also, it is possible to trade the V-form as support and resistance. I rather wait for the false breakout of the V-Form. It works with a high hit-rate and you can easily make money with Binary Options.
The best level V-Form
When choose your entry? – For Dummies
Risky traders open a position directly in the opposite of the breakout. In my opinion, there is a better way to get good results. In the picture below I will show your my exact entries. Select the level in the markets. If the market passes the level back, you can open the trade. It is just so simple as it sounds. Sometimes you will need 2-3 trades to make a profit. That is why I double my invest amount if I lose a trade.
Additional information: You can wait for a candle close below/upper the breakout level to get a better confirmation
Which timeframe can I use for the Binary Options Strategy?
You can use any timeframe for this strategy. The time does not matter for your analysis. Only the price of the asset matters. No professional trader cares about the time. You will see that the small timeframes are more difficult to trade because you have to pay more attention to the market. You have to react much faster than in higher timeframes. In conclusion only the price of the asset matters.
Money Management for the best success
Money Management belongs to every Binary Options Strategy. Without the right money management, you will lose everything. Most traders do this mistake. I personally prefer to risk 1 – 5% of my trading account in one Binary Option. So you can lose some trades without destroying your account completely. The money management depends on the trader, too. Some traders are very aggressive and take a lot of money to invest. In the end, you have to decide for yourself how much money you want to risk.
Some trades use 10% or more of the account balance for trading. For example, if you got 4 losing trades (this happens) in a row, your account balance is minus 40%. In my opinion, it is insane to use this risk. The most professional traders use a risk of 0.5 – 1,5% of their portfolio for one trade. From my experience, you will get hard emotions by losing a huge amount of money in a short time horizon or a few trades.
First of all, it sounds like a hard process to invest only 1% or less of your portfolio, but with a steady and continuous trading strategy, you will earn a lot of money in the future. For example, if you make a profit of 2% every day, the account will grow very high in a few weeks.
Martingale for the False Breakout Binary Options Strategy
For better results, you can use the popular “Martingale Strategy”. If you lose your trade, you can double your investment or use more than 2,3x of the last investment in the next trade. This is very risky, but with a successful strategy, it is a good way to work with. In my opinion, only experienced traders should use “Martingale”.
A martingale can blow up your account in a few trades. I only use it when I feel very safe for the next trade and I recommend that.
- Use sensible money management (I prefer to risk 1-5% per trade)
- Martingale is a good way for experienced Traders (double the trading amount if you lose)
Attention to Market News
Another point of successful trading is the market economic news (picture below). A lot of traders use this economic news to trade the market. In my opinion, it is like gambling, because you do not know the result of the news. In addition, you are to slow to react quickly when the news appears. Orders are triggered in less sen 0,01 seconds. There are automatic trading programs which are faster than you!
In conclusion, it is not a good idea to trade economic news. My advice to you: Stop trading 10 minutes before and after the news. The volatility is very high and in most cases, the market will jump right over your screen. The market does not care about the numbers, because they are priced in already.
I use the economic news of www.investing.com. You will get the right news 0,1 seconds after they are released.
Get started – Use a good Binary Broker for your Strategy
In the table below you will find the best Binary Options Brokers. It is very important to use a broker with good charting software. You have to analyze the candlesticks/chart for the false breakouts. It is useless to trade a successful strategy for a bad broker because maybe they do not pay out your profit. I tested several brokers and recommend them on my website.
You can create a demo account to practice this new method of trading the markets. My recommended brokers offer you a free and unlimited account. The conditions are the same as in the real money mode.
Another relevant point is the trading software for the execution of your trades. You should analyze the chart in the best way you can. Use the candlestick- or line chart. I recommend the candlestick version. The drawing tools are offered by the platform and you can start in a few seconds.
Facts for a good broker:
- Free demo account
- High asset profit
- Flexible trading platform
- Good service and customer support
The brokers below give you the highest yield and the most functional platforms for your trading:
|1. IQ Option||(5 / 5)
|CySEC (EU)||up to 100%+|
High Yield 92%
Conclusion of the Best Binary Options Strategy for beginners
On this site, I have shown you how it exactly works to make a profit with Binary Options. Just use the false breakout strategy. First of all, it is important to practice this strategy. You can use a free demo account to trade with virtual money.
Follow the next steps:
- Find a good level in the market. This can be a big low or high. You can use support and resistance lines, too. These are more highs or lows in a row on the same price. New and fresh highs/lows are working well for this strategy
- Wait for the break of the level. Sometime the market will never break your level. This is no problem because there are enough opportunities in the market every day.
- If the breakout is done and the market comes back to the level you can do a call or put option. (it depends on the breakout direction)
The strategy is very flexible. You can use it with any timeframe, asset or market. You just need a blank chart of candlesticks or line and a horizontal drawing line tool for trade successful trading the markets. On this website, I showed you how the market works on highs and lows. With this knowledge, you know more than 95% of the traders in the world. Good luck and happy trading
Winning Binary Options Trading Strategy: Simple Secret of Making Money From Binary Options Trading
Trading Binary Options is not quite difficult if you have a trading edge. The edge defines what you are looking for in the market that gives you the signal to buy or sell.
In this book you will find one major strategy that is very profitable when combine with a good money management principle to help you make consistent money from the Binary Options Market.
I strongly believe if you can implement the strategy in this eBook, It will help you to trade successfully.
Winning Binary Options Trading Strategy – Stephen Benjamin
Options Trading Strategy:
Simple Secret of Making Money From Binary Options Trading
All rights reserved. No part of this book may be reproduced in any form whatsoever, electronic or mechanical, including photocopying, recording, or by any informational storage or retrieval system or re-distributed without the express written permission of the author. This book cannot be sold under any circumstance; you have only personal rights to this book.
By using the information in this book you agree that this is general education material and you will not hold anybody responsible for loss or damages resulting from the content provided here by the author
Please note that Binary trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Before undertaking any such transactions you should ensure that you fully understand the risks involved and seek independent advice if necessary. Any opinions, or
What are Binary Options? The Complete Guide
We often get asked: What are binary options? Binary options are one of the popular ways to make money trading financial instruments. They’re quite different from traditional options in terms of who offers them, their liquidity, rewards and risks as well as payouts. Also, they’re more accessible to traders compared to traditional options thanks to online brokers that allow you to trader from anywhere in the world.
Any trader wishing to invest in binary options must understand the risks and potential rewards involved. It’s also important to understand that not every company offering binary options is legit. That’s why we’ve created this site to guide you through some of the top binary options brokers available today.
What are binary options?
Often classified under exotic options, a binary option is a financial option where the returns are either a fixed amount or nothing at all. Usually, the fixed monetary return is $100. Binary options go by different names depending on where you’re trading from. The names include fixed return options (US), all or nothing options and, digital options.
Another way to describe binary options is how they operate. A single transaction dealing with binary options is based on a simple yes or no proposition depending on how the trader speculates a financial instruments price will move. The trader will simply make a purchase (call) or sell (put) depending on how they answer the question:
Will the price of the financial instrument traded be higher or lower than the current price at the expiry period
If the trader speculates that the price will be higher, making a call will be the next step. If however, the trader speculates a drop in price, he or she will place a put. Upon expiry, traders who make correct speculations make profit. However, those who speculated incorrectly will lose their investment.
But what happens if at the expiry period, the price hasn’t changed?
In most cases, you will get your investment back and won’t incur any loss or gain profit. The amount refunded however depends on your broker. Binary options allow traders gain access to different globally traded assets including precious metals, currency pairs, indices, commodities and stocks.
However, rather than actually buying the underlying asset (for example buying Google stocks), you’re trading on the underlying asset’s price movements. This allows you to invest as little as $10 on a single trade.
A detailed example showing how binary options work
You have decided to trade the S&P 500 index which is currently trading at $1430. After consulting the different charts and technical tools, you conclude that the price is going to rise over the next few hours. However, you cannot predict by how much. You therefore decide to place a call (buy).
Since the broker offers several expiry periods that range from 5 minutes to 1 month, you decide to hold the trade position for 10 minutes. That is, if after 10 minutes the price of the S&P 500 index is over $1430, you’ll make a profit. If it’s lower, you’ll lose your investment. Your broker indicates that you’ll earn a 70% on your investment (profit).
Depending on your account management strategy, you decide to invest $100 on the trade (we usually recommend about 2% of your total account value). At expiry time, the price of the S&P 500 index is $1432. An increase of $2. This means that you have made a $70 profit (70% of $100). You account is therefore credited with $170.
Note that the $2 increase in the price of the S&P 500 index is not your profit since you don’t actually own the asset. Your profit is earned on the amount you invested. Therefore, if S&P index price dropped to $1429, you would have lost your $100 investment. On the other hand, if the price at expiry remained at $1430, it’s likely that your broker would simply refund your $100.
This example describes a simple high/low options trade. Today’s brokers often offer other exotic options trades that include one touch and range. Here’s a brief overview about how each one works.
How one touch binary options trades work
Using the example above, one touch trade rules require the S&P 500 price movement must touch a predetermined price level before the expiry period. You are usually provided with two price levels, one above the current price and one below it.
Still using the S&P 500 current price of $1430, your broker might provide a price range between $1400 and $1460. After analysis, you conclude that since the price is rallying, it should hit $1437 before it starts dropping. You also conclude that it will hit $1437 within 150 minutes.
Using the one-touch trade, you simply place your price level at $1437 or lower and an expiry of 150 minutes.
If the price reaches $1437 before the expiry period, you’ll make a profit. If however, it never reaches $1437, you’ll lose your investment.
How range binary options trades work
As the name suggests, range binary options trades allow you to speculate a specific price range within which you expect the underlying assets price to remain within for a specific amount of time. Profits are earned if the price remains within the selected range upon expiry of the trade.
Using the example above, the range would be between $1430 and $1437 within 150 minutes. If the price drops below $1430 or rises above $1437, you’ll lose your investment.
As you might have noticed, exotic binary option trades come with high risk and reward potential compared to high/low trades. While classic high/low trades offer returns between 50% and 85%, exotic trades can offer returns of up to 500%.
A higher return makes it easy to make enough profit to cover losses you might incur on other trades. However, you’re advised to be careful when entering trades that offer unrealistically high returns since potential of incurring loss is usually higher than that of making a profit.
Trading binary options from different regions in the world
If you’ve been shopping around for a reliable binary options broker, you might notice that some brokers will reject traders from specific regions. The reason for this is that binary options brokers need to be licensed and regulated to offer their services to citizens of specific countries. Many binary options brokers have actually been charged and fined by regulators from different countries. For example, the US Securities and Exchange Commission (SEC) charged and fined a Cyprus based broker for selling binary options to US citizens illegally in 2020. The same firm was also fined by its regulator CySEC.
Choosing a binary options broker, therefore, requires that you first consider your home country and the local laws that regulate binary options trading. Some countries have actually banned binary options. It also requires that you consider whether the broker is licensed and regulated by the financial authorities within your country. Regulation ensures that your funds are insured and thus protecting you against investing your money with scam businesses.
Comparing binary options trading in the US and non-US countries
Binary options trading in the US is heavily regulated. Brokers that are allowed to offer binary options to US citizens must be licensed and regulated by either the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). As such few brokers from outside the US offer their services to American citizens.
Binary options trading outside the US is also heavily regulated. However, there still exist brokers that offer their services without having a license or being fully regulated. Some of the well known regulating bodies include Cyprus Securities and Exchange Commission (CySEC) and, Australian Securities and Investment Commission (ASIC). Countries such as
Israel and Canada prohibit binary options trading.
In the US, binary options are typically offered byexchanges. These simply provide a platform where a willing buyer and seller meet to trade options. Exchanges earn money by charging a small fee on every trade entered. One of the popular exchanges operating in the US is Nadex. It’s regulated by the CFTC.
Outside the US, binary options are usually offered by individual brokers. Brokers earn money by calculating a percentage difference between what they pay out on winning trades and what they deduct on losing trades. Some brokers will also charge fees and commissions on trades and individual trader accounts.
The price of binary options for both brokers and exchanges in all regions of the world are quoted between 1 and 100. This price fluctuates throughout the trade period. The price fluctuations are what make it possible to earn profit or loss on a trade.
Also, traders will always know the profit or loss potential of every trade regardless of the broker they’re investing with. The profit and loss are capped at $100 and the invested amount respectively.
Many exchanges and brokers from all over the world also offer special tools that allow traders to minimize losses or close in profits. These include stops and ability to exit a trade before the expiry period. In some instances, the broker might deduct a small fee for exiting a trade before it
Advantages of binary options trading
One of the main advantages of binary options trading is that you’ll know the potential profit or loss. Every trade usually has two potential outcomes. If the trade is successful, you’ll earn a fixed profit. If the trade isn’t successful, you’ll lose your investment. This makes it easy to identify trades where the profit potential is higher than loss potential.
Another advantage is that many brokers won’t charge any commissions or fees on trades entered. This allows you to keep as much of your earnings as possible. However, brokers vary so it’s important that you choose a broker that doesn’t impose fees or commissions on your trades. Some brokers will even cover the transaction fees that you might be charged by a payment
processor when depositing or withdrawing funds from your account.
Trading binary options is also quite simple. All you need to do is analyze a particular financial instruments price movements and speculate whether the price is going to rise or drop over a specific time span.
As a binary options trader, you can invest as little as $1 on a trade that involves an instrument that’s worth much more than this amount. There are no liquidity concerns since you don’t actually own the underlying asset.
Many binary options brokers are offering a wide range of useful tools and features that make it easy to keep track of the financial markets, manage your account and try out different trading strategies. These usually come at no additional cost and, are available on their platform.
Finally, binary options trading gives you access to different assets classes available in financial markets across the globe. As long as you have access to your trading account, you will be able to access any market that’s open.
Disadvantages of binary options trading
One of the main disadvantages of binary options trading is that a single loss might require several winning trades to cover. Several losing trades can essentially drain your entire trading account. It’s therefore important that you use a proven trading strategy and carefully analyze a specific instrument’s price movements before entering a trade. And easy way to try out your trading strategy is through a demo account where you don’t have to risk your own money.
Many brokers operating outside the US are unregulated. Investing your money with such brokers doesn’t guarantee that your money is insured. We always advise that you carefully research a broker before opening an account with them.
Binary options trading is an easy way to earn a fixed return by speculating on a financial instruments price movements. It’s one of the best
ways to start trading financial instruments without having to invest a huge amount. There are many brokers and exchanges to choose from both in the US and in other countries. Regulators across the globe have made efforts to control protect traders from scam brokers by licensing and keeping an eye on legit brokers. However, the number of unregulated brokers operating outside the US remains high.
Trading in binary options has several advantages that include low capital requirements to get started and, easy access to global financial markets. As with any other market that involves trading financial instruments, binary options trading involves some risks. A single losing trade might require several winning trades to recover. Even so, many traders are making money in this market by adopting proven trading strategies and using available broker provided tools.
If you want to start trading binary options, it’s important that you first have a good understanding about how financial markets work and take time to find a reputable broker.
Successful Options Traders Understand The Secret To Success: Liquidity
Professional Options Traders use numerous methods to evaluate the worthiness of a prospective trade. A laundry list of tools is evaluated in anticipation of establishing a trade which will provide an excellent rate of return on investment. The list of factors to review might include: fundamental analysis, charting, Implied and Historical Volatility and a multitude of other Option Valuation techniques. All of those factors are important however, if one is trading options in an illiquid market, the likelihood of making money in the long-run is greatly diminished.
As a former market-maker on the floor of various exchanges, I am acutely aware of how significant a portion of profit or loss can be attached to the simple analysis of the bid/ask spread. The bid/ask spread, is also known as liquidity, edge or vig. When markets are liquid, the costs of implementing positions enable traders to establish positions without significant cost. Whether you are Selling Options for Income or establishing more complicated positions, without liquid markets, the long term success of the trader is compromised.
Whenever you are establishing a position you should calculate the cost of initiating the position as a percentage of the underlying options they are trading. For example, if a Call has a Bid of 1.00 and an offer of 1.01 then it would have a market that was 1% wide. This is a way of measuring liquidity. The Table below shows the liquidity percentage for numerous options contracts for Stocks and ETFs with May expiration. The wider the spread, the more difficult it is to make money. For example, if an option has a Bid of 1.00 and an offer of 1.15 then it has a 15% spread. Depending on the Delta (the movement of the Option Value compared to the movement of the underlying contract) of the Options, you have to have a significant move in your favor to make money. If you Buy the Option on the Offer at 1.15 and are going to Sell it on the Bid in order to liquidate, then in order to make a profit on a .50 Delta Option the underlying would have to move in your favor more than 30 Cents. Establishing a position in this environment, where you are constantly giving up such an edge, will prove disastrous.
As you can see from the Chart below, it is relatively simple to calculate the liquidity percentage, but it is an essential part of the analysis for any trader. In addition, liquidity should only be evaluated for the out-of-the money portion of the Option. If one uses the in-the-money portion, it places too much value on the portion of the option that relates to the underlying contract instead of focusing on the bid/ask spread of the “time value” portion of the option. Also, keep in mind the Delta of the Option that you are trading. The smaller the Delta, the more difficult it is to compensate for the liquidity costs. The Option only moves at the Delta’s percentage of the underlying. Therefore, an Option with a Delta of .25 will only gain 25 cents for every one dollar move in the underlying. Whenever analyzing an Options Trade evaluating Liquidity Costs should move to the top of your list. Instead of establishing positions in illiquid options, you can look for trading proxies by using other instruments that provide a high correlation to the underlying contract you intended to trade, but with significantly greater liquidity.
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Examining the fundamentals, charts and a multitude of Options Greeks and Trading Strategies is a necessary requirement for all Options Traders, but without the liquidity test, your success as an Options Trader will be short lived. Options Markets are unforgiving, but with the aforementioned due diligence, profitable trades are more likely.
OPTIONS TRADING INVOLVES SIGNIFICANT RISK AND IS NOT SUITABLE FOR EVERY INVESTOR. THE INFORMATION IS OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT IS IN NO WAY GUARANTEED. PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS.
The Best Binary Options Broker 2020!
Perfect For Beginners!
Free Demo Account!
Free Trading Education!