Binary Option Alliance

Your Edge To Success

Month: April 2015

Binary Option Basics

The Binary Option Basics every trader should know

develop a binary option strategy

Binary Option Basics consist of the fundamentals or the essentials things any person needs to know or needs to have in order to participate in binary options trading. The most essential requirements of trading binary options is the need for an internet connection and hardware from which to trade from such as a PC or tablet, so if you are reading this on a website then you already have all the necessary hardware needed to begin trading. Any trader or new investor should make an effort to understand the binary option basics in order have the highest chance of trading success while participating on the financial markets

Basically there are two options: Bull or Bear

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Call and Put, Up Or Down, Bull or Bear– These are your options while trading on the binary market. The reason Binary Options is so simple is because there are essentially only two basic options to choose from while trading. Financial Markets rise and fall- in other words they go up and down. How you make money with binary trading is by correctly predicting the direction your chosen asset will go in- Up or Down, Call or Put. You need to predict whether the value of your chosen asset  will increase or decrease by your chosen expiry time.

 Basic Option #2 : Calculating Expiry time

Expiry time

Once you have predicted either Call or Put (up or down) you will then need to choose the expiry time. The expiry time is the time at which the option contract expires. So in order for a call trade to be successful the price of the asset would have to be higher  than when the option was purchased and visa versa for a put option. Choosing an expiry time is one binary option basics that is easily calculated by looking at how the much the market has moved in its last swing (top to bottom) and how long it took to move from the most recent high to its most recent low.  When it comes to the basics of binary trading, choosing the correct expiry time is often a little tricky for beginners so I suggest a little further study into ADR (average daily range) and ATR( average true range) alternatively you can use a reliable signal service to accurately calculate expiry for your trading

How to Develop a Basic Binary Option Strategy

strategy_development

Okay, we have covered the binary option basics of Call and Put options as well as expiry times. Now we are going to dive into how you can develop a simple Binary option strategy that suits your trading style, time allowance and temperament. First thing you should to understand about trading is that you don’t get paid based on how much you trade. You get paid according to how successful your trading strategy is.

In the world of trading quality beats quantity any day so you really only need to focus on the quality of your trades rather than the quantity of your trades. That way you will only need to trade quality trades for 1-2hours a day to make the same money that trading quantity all day would produce.

Basic analysis of the market should be done in 15minutes

market analysis

Keep it simple stupid- Stick to the binary option basics-  It shouldn’t take hours to analyse the market.

Technical analysis of simple price action will tell you which direction the market is heading.  Fundamental analysis using the economic calendar ( news releases, world events)  will tell you if and when you should be trading on a particular market.

As a general rule I do not participate 30minutes before or 30minutes after any major news releases that could affect the asset I am looking to trade in. It is possible to profit from news releases but that requires a particular strategy optimised for highly volatile conditions and is not a basic necessity for trading binary options.

Binary Broker Basics

alliance brokerage-services

Binary Option Brokers are an essential part of trading as they provide the platforms the trades are executed upon. There are many different binary option platforms available on the market today and each one of them offer traders the ability to participate on the financial market. Before you go right ahead and think you are safe with any binary option broker please visit the binary options blacklist and do your research before investing your hard earned capital with an unreliable brokerage.

Choosing a reliable binary broker is one of the basic requirements for new investors looking to participate in binary trading.

Binary Signals Basics

binary_options signals

Signals are trade signals indicating the direction of market.  Ideally they are generated by market analysts that factor in both technical and fundamental aspects of the market in order to predict the direction of an underlying asset. In most cases the signal is placed manually by the trader who is receiving the signals from the signal provider.  As technology has evolved new technologies have been developed by the leaders in the industry. Semi Auto Signals trading is now possible and is a much easier and efficient way to trade binary options profitably using signals.

Basic Scams in Binary Options

scams

The binary options bonus scam- Many legitimate binary option broker will offer traders a trading bonus upon deposit, for example: upon the deposit of $500 a broker may offer a 100% bonus so the trader has more capital to start trading with. The downside to this is what is written in the fine print: A trader must rollover (trade) the amount of the bonus 10x (or whatever the amount is) before a withdrawal can be made. The bonus is not a scam as it is certainly an advantage for high frequency traders that turn over a high volume of trades. The “Bonus” is a tactic brokers use to lock in the funds of inexperienced and new traders should be aware of the Ts and C’s before accepting a bonus.

Basically, Thats It!

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That just about wraps it up for the basics of binary options folks, There is so much information out there when it comes to binary options as it is a rapidly growing industry but all in all it’s one of the most simplistic forms of investing and it is a very profitable industry with some of the highest payouts of the investing world. Binary Options have been kept in the dark as a lot of misconceptions cloud peoples perceptions of what binary options are due to the number of unscrupulous scams being offered by commission driven vendors but let this not blind you to the financial abundance lifestyle that is achievable through trading.

The Successful Edge

They call us gamblers. They say we depend on luck.

They claim that no one can beat the market, and we’re wasting our time.

This isn’t a real job, we should give up our hobby, they say.

But if they only knew… that we are the masters of risk,

the essence of entrepreneurial spirit, the liquidity of the economy.

We live by our wits, eating what we hunt, adapting to the ever-changing jungle landscape
that is the market.

We trade the currency you circulate when you shop.

We trade the companies you work for each day.

We trade the gold on the watch on your wrist.

While you wilt at the sight of failure and loss.

We relish adversity.

We are not afraid to take losses, to talk about our losses
to rebound from our losses. Those are our defining moments!

Discipline and self-awareness are our companions. We are what you’ve always wanted to be.

And we’re coming out of the shadows.

We are traders.

Please Like, Share and comment on this post if you enjoyed. Thank you and Happy Trading

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Oil Millionaire App Review

The Oil Millionaire app Scam Review

oil millionaire app

 

The Oil Millionaire app is automated trading software owned by Donald Olsson. The Oil App was built to trade oil exclusively using binary options on auto pilot for insane profits. Donald Olsson the Oil tycoon behind the creation of the App, claims to have 10 professional traders monitoring the back end of the software to ensure all trades are winners.

oil millionaire app owner

I had to chuckle a little when I saw the oil millionaire app because it’s a different approach to a few of the other similar scams out there on the market at the moment but the thing that really pisses me off about this offer is that Donald Olsson or whoever is behind the oil app is presenting it as a RISK FREE investment opportunity which is complete bull crap.oil millionaire app risk free

With every investment there is at least some level of risk, especially while trading on the financial market. Risk Management is an integral part in trading binary options with success.  To call the Oil Millionaire App risk free is purely a marketing tactic employed to disarm any concerns fence sitting depositors would have. The Oil App is in-fact about as risky as they get.

oil millionaire app auto pilot

 

You see the reason why there are so many of these Scam offers is because the Binary Options market is a rapidly growing industry and this is attracting a whole new breed of vendors. The money hungry online marketer is infiltrating the binary options software market with bad products, bogus offers and even worse intentions. The Binary Options market has been no stranger to difficulties. For many years, binary trading has been under a dark shadow due to the deceptive nature of some of the unregulated binary options brokers. This danger is now amplified by vendors who are willing to say and do anything in order to get commissions by referring traders to sign up with these brokers.

Okay, so what if in fact this is legitimate and I’m just being too sceptical?

Yes, the Oil Millionaire App is pretty cool, I like the idea of a Rich Oil Tycoon sharing his wealth amongst a lucky few but that is just not happening people. In my experience as a trader, I can tell you that any “system” that claims it has a 100% hit rate is a scam all packaged up ready to go. Just take a look at some of the trade results offered by the Oil millionaire app below and you will see what I am talking about.

oil millionaire app results1

oil millionaire app results

The Binary options traders of today need to understand that there are a multitude of unscrupulous vendors in this market and 90% of them are all using the exact same marketing methods as the Oil App and offering bogus offers. A quick way to recognise a scam like the Oil Millionaire app is if you come across a binary options software or product that’s claiming that you’ll be a millionaire in a month and don’t have to do any work, think twice about it and don’t reward the scam vendors with commissions they don’t deserve.

Top Tips for Binary Options Trading

Tips and Tricks for Binary Options Trading

Binary options trading is fast becoming a very popular method of investment. Unlike forex trading, binary trading offers less risk, but still offers a good return on investment. There are plenty of assets and currencies to choose from and this sort of investment offers methods easy enough for anyone to learn. There is no need to understand the whole stock market to make binary options work for you.

However, before you even think about trading binary options, its important that you  do your research. It is vital to develop a strategy that suits your trading style and temperament so are always  trading with as little risk as possible. Here are some tips to help you develop and learn the perfect strategy for your binary options trading.

Make Practical Use of the Demo Accounts

Practice pinned on noticeboard

Many Binary option brokers and companies will offer demo accounts. These are dummy accounts where you trade using monopoly money so you are not risking  any real money. Trading with a demo account is a great way to fine tune your trading strategy and its also a great way to learning about the markets and seeing how good you are at predicting  whether the price of the assets will go  assets will go up or down.  Trading with a demo account allows traders the chance to make all the mistakes, and take some of the bigger risks before hitting wall street with with their strategy.

The downside of course with trading on a dummy account is that you are not getting any real money in return. But the practice will give you the chance to develop the most profitable binary options strategy for yourself.

Listen to the Experts

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There are many people out there who have been trading on the financial markets a long time. Professional traders  will know what they are talking about and often have a lot of insight into how the market is behaving. It is quite often well worth listening to the professionals as while they want to make the money themselves, many professionals will remember what it was like when they first started trading and will want to help others get a head start.

There are great benefits to talking to the experts and asking them about their strategies. Most professional binary option traders are happy to help out their fellow traders so question them, find out why they place the calls or puts when they do, and why they choose specific time frames because  building a successful strategy is quite often much easier when its built of the backbone off an already successful strategy. Talking to the experts is a chance to find out  why specific assets are more favourable than others so you can in turn, tweak and modify your strategy accordingly.

Set a Limit

know-limit options

Setting yourself a limit  is especially important when you’re learning.  When you start out and everything is new and shiny it’s really easy to get swept up in emotions and keep trading when you’re losing. Emotionless trading is what you want to achieve so You want to develop the perfect strategy,  a proven TESTED strategy that you have confidence in so its eliminates the fear of loss. The problem that most people encounter is that they need more time to learn, constantly putting your money down on failing investments is not teaching you anything. 

It’s really important to set yourself a limit. Your limit could be on the number of trades you make or the amount that you lose. This is a much better way than to not have a limit, lose on your whole income and become a another statistic.  Trading binary options can be very addicting because of the high payouts so be sure not to adopt a gambling mindset. Set your limit and then stick to it.

Do Your Research

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Learn all you can about the different types of assets that you want to trade in.  For example, I am based in Australia so I like to trade the Aussie dollar, I have studied the way the market behaves against the US Dollar for some time now and it is now my most profitable asset to trade as I know how much the market is likely to move on a  daily basis(ADR-Average daily range).

Not all Brokerages and platforms  will offer you a wide range of assets to trade from , it as always an advantage to invest with a company that offers a wide range of assets for you to trade. There are over 200 assets available with Boss Capital, my preferred brokerage platform.

Not all Programs/Services/software will offer you a wide range of options so you will want to research the different pieces of trading software on offer aswell. Make sure you know all about what they offer, which assets they trade and how well they perform before signing up or downloading them onto your computer.

Investing time in research will really help you develop a strategy and become a the most profitable binary options trader you can be. There are many golden nuggets when it comes to investing and the more you learn about the markets the more nuggets you uncover, for example you may find that there are seasonal options for specific assets, like religious events affecting the price of sugar because of a nationwide fast such as the Ramadan-  So you see it’s  important to stay on top of the news as this affects the assets and currencies.

Strategies take time to develop. When you Start out you need to take time to research binary options trading and trial your skills with demo accounts. You can learn more about a winning double profit binary options strategy here.  Once you are ready to invest your put your money, set your limit and always listen to the experts. They do know what they’re talking about.

If you have any tips or tricks to add from your own trading experience, please you are encouraged to leave a comment below.

Risk Management for Binary Options

Managing Risk is Important With Binary Optionsstrong-risk-management binary chain

Learning proper risk management plays a very important part in becoming a successful Binary Option Trader. Risk Management, which is similar to the insurance policy protecting the value your car, house, or any valuable asset to you, is an important element to any financial investment. When it comes to binary options, the risk potential that you face is limited in that you don’t lose more than your initial investment. In addition, if your trade expires out of the money, you can still receive a small percentage of your beginning investment back to your trading account with some platforms. Managing risk correctly while trading options can make the difference between profiting in your trading career and clearing all of your capital completely.

For every trader, it is very important to have a good understanding of how much risk you’re exposing yourself to if you desire to be successful in binary options. The purpose of this article is to look at the importance of effective risk management, how to control your losses and what strategies to use when managing your risk while trading binary options.

Why Managing Risk is so Important

risk_management binary options
Risk management is one of the main elements to profiting in the world of investing. Binary options traders have the knowledge of how much risk and profit potential they have before they place a trade. However, this doesn’t eliminate the risks involved with trading. Learning and applying effective risk management strategies is the how you eliminate risks while trading on the financial markets.

As a trader, you have to have know that you have the ability to lose all of your money without being cautious. risk management options
This is an easy concept to grasp, where most people struggle is when it comes to the actual application of it. Most Brokers place a lot of emphasis on the benefits of binary options while ignoring all the downfalls, which causes a lot of traders to believe that placing large risky trades with big money aims are the way to go.

What to do about Risk Management

It’s very easy for those that have a demo account to practice risk management, I do have to mention that trading on a demo account is often quite different to REAL trading, You see, after emotions and real money come into play, the game changes completely. Emotions can cause weird and wonderful thoughts to occur which affect the decision making process.

no fear trading optionsImagine placing trades with full confidence, without the fear of loss because you have a system that works. This is why managing risk with binary options is so important, so when the market moves against you, you are calm cool and collected because you have a system in place that works. My “System” is called The Successful Edge and it’s not really a system it’s a methodology taught to me over the years by a 30 year trading veteran.

Risk Management: Loss Control

One of my recommended ways to manage risk is by taking control of your losses from each trading position. First you need to understand that losing in binary options is completely normal. Don’t Panic!  All professional traders lose every now and then. Winning each trade every time is just not realistic.

Binary option platforms do not utilize the stop loss feature you have with forex and stock trading platforms. Instead, you can cover your lost trades by hedging your trade or by covering your loosing trade with a trade whose profit will cover the lost investment plus an addition to your total capital. To learn more about how to implement one of these strategies please see the Double Profit Tutorial

Bottom Line- Risk Management in a Nutshell

 

If you don’t manage risk correctly you are living on the edge of disaster.  Managing your risk profit loss binaryrisk in binary options is all about maintaining control of your trades, so until you are confident with your risk management procedure I suggest managing only a few trades at a time. The more trades you have open, the more risk you will be exposed to. Makes sense doesn’t it? Less trades lowers risk. The more control you have on risk exposure, the more flexible you can be when the occasion arises. As a trader, you should have the ability to act when an opportunity in the market arises. Directing your attention to managing risks correctly will enable you to continue trading even when things don’t go as planned. Managing your risk while trading Binary Options is very important as it can be the difference between being a professional binary options trader or another chart statistic.