Binary Option Alliance

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Category: Binary Option Basics

Why binary trading favors new traders

When forex trading was first introduced to the masses, it was widely considered the “newbie’s discipline”. Trading the forex market was considered accessible to everyone because it had less constraints. You could open an account for a few hundred bucks, and you could trade it using fairly easy to read charts, from home, whereas stock trading required you to have at least a few thousands of dollars and sometimes trade from the exchange itself.
In comes binary. Binary trading is now the “new” forex trading. New traders favor binary trading over anything else for many reasons, and they are right to do so. Let’s see a few of those reasons here.

  • Binary trading is extremely easy. You don’t have to bother with risk management, stop losses, counting trade size, converting in lots, and all that. You pick an amount you’re willing to risk, pick a side and press a button. Everything is done, there is nothing else to do.

 

  • You can literally start trading with a 10$. Some brokers allow you to deposit ridiculously small amounts to trade. They have made trading accessible to virtually anyone by doing so, and that’s why new traders like to join binary brokers over forex brokes. They can deposit a few bucks and start trading in a matter of minutes.

 

  • You know what you’re in for. If you’re risking, say, 10$ on a trade, you know exactly what you’re going to lose if you lose (10$) and what you’re going to win if you win (a percentage of 10$ set when you placed the trade). There is no slippage, no extra cost, no commissions.

 

  • It’s fun. A least it’s a lot more fun than trading forex on weird charts. Binary trading almost looks like a game, but a game that can make you a lot of money.priceactiontraining

 

Binary Options Trading Advice

The best binary options trading advice you’ll ever get

The recent enormous growth of the binary options market has attracted many new customers from all walks of life. The idea behind the heavy marketing displayed by binary brokers is that everyone can get rich from trading fast paced options.
Obviously this is the message almost each and every broker wants you to hear, but in the binary business it has been ever more hammered in the mind of potential customers since you get to start with so little money (from $10 sometimes) and don’t need any specific program or set of skills.
Since it’s so easy to access, many have been lured into thinking that binary options trading is extremely easy and a great way to make some extra bucks with little to no risk. Of course, risk is inherant with everyform of trading and binary options is no different. Trading on the financial markets is one of the most lucrative oportunities available today and binary options makes it accesable to the masses but before you go out and deposit with a broker, make sure you go in with a plan before you become another statistic.

The best advice you’ll ever get

Here is the advice, write it down, hang it on a wall, tattoo it on your arm (no, please don’t do that): You should treat binary option trading like a business. Every trade should be analyzed and managed as if your life were depending on it.
Binary trading is not super easy. You won’t get rich over night. You won’t make thousands of dollars from a $10 account in 2 weeks. You won’t win every single trade.
Trading, whatever the form (binary, forex, stocks, etc.) is a business. You need to go in with a plan and follow it to a T.
Before jumping head first into the binary trading world, sit down and write a decent plan. In this plan should be the following:
– How much money can I safely invest?
– How much money do I want to earn per month (be reasonable)?
– How much money can I risk per trade?
– Which strategy will I use, and why?
– How will I test the validity and profitability of that strategy before investing any money?
Once you have answers to these questions, you’ll be ready and far ahead of anyone who jumps into binary trading with big dreams but no plan at all.

A simple binary options strategy that works

Binary trading, in principle, is a pretty simple way of trading. It’s easily understandable, doesn’t require much knowledge to place a few trades and is extremely easy to access. Anyone can make an account within a few minutes, deposit a few bucks and start trading.
Obviously the trouble comes when it’s time to actually make some money! That’s where real traders will have an edge versus the recreational “let’s deposit and see what happens” types of traders.
Building a working and profitable binary options strategy can be a drag. The way most traders do it is by opening an MT4 charts or Freestockcharts.com (any broker) and fashion a strategy that relies on a few indicators plotted on these charts.
In this article, we’re going to save you the trouble of finding out what works and lay a sample out for you.

Strategies that work in binary trading

The best binary trading strategies are momentum based. This simply means that you should be looking for strong short momentum outbursts in the market and trade these off the binary market.
The way to spot a momentum trade is to have simple indicators and/or lines plotted on your charts. The purists will tell you to only rely on support or resistance breaks (and they are right), but that might be too difficult for you if you’re a beginner.
What you could do instead is plot an 18 EMA (exponential moving average) for instance. Each time a candle breaks the EMA and closes on the other side, you place a momentum (ie: short term) trade on your binary platform.
What were aiming to do is take advantage of the people doing the exact same thing in the “real” market, and basically take advantage of all the big positions the big players place when this happens, which pushes the market further. You capitalize on that strong market move, manage your risk and then move on to the next trade.

Trend Trading Binary Options

Going with the Trend

Trend trading– As far as “tricks” in trading go, trading by following trends has to be the oldest one in the book. Following the trend is THE go-to advice experienced traders will give to anyone wanting to start trading.
Although it is good sense to do so, some traders still get confused about the way it should actually be applied. In this article we’ll go over what trading with the trend is, and how to spot trends easily.

What does Trading with the Trend mean?

Trading with the trend means exactly what you think it means: it’s spotting a trend (a long term direction in the market) and following it.
Basically you want to spot whether the market is going up or down, and place your entries according to that direction.
The general idea is that usually long term trends tend to last… well, a long time. Therefore if you were to jump into long trends at the start, you could potentially ride them until the end and make a boatload of money.
It also means you can add to your position gradually every step of the way. This obviously depends on the type of strategy you’re using, but it should be your goal to always place your trades in favor of the dominant trend in order to put the probability of winning the trade in your favour.

How to Spot the Trend?

how to spot a trend in binary options

Obviously the first issue for new traders is to actually spot the current trend. Markets can go 3 different ways: up, down or sideways. Even though there are only 3 solutions, things can get confusing so let’s define how we look for trends once and for all.
First step is to open your charts, and zoom out. You don’t want to be seeing big candles or bars. Zoom out until you can see quite a bit of data on your charts.
Now sit back, and look: where is the market heading? Think like a 5 year old. If you were to ask to a 5 year old, “Where is the market going?”, what would he say? If you have a 5 year old, ask them! Its quite easy to spot when you don’t over think it.

How to Trade the Trends in Binary Options

Trading and following the trends is probably the single best way to make money in the markets. It has always been the strategy that big investors use, and this since the very early days of market trading.
Trend trading in the traditional markets (forex, stocks, etc.) is fairly straight forward. All you need to do is spot the current trend, build a strategy that allows you to jump in it at profitable points, and apply your rules the best way you can.
In binary trading though, it can become a bit more difficult. In this article we’ll see why it’s more difficult to trade the trends in binary options.

Trend Trading in Binary Options

binary-options-trend trading

The difficult part of trading the trends with binary options is that you’re locked into a trade for a certain amount of time, with what seems to be no power.
Let’s say you were to place a long term trade in the regular forex market, following the current up trend. It would be easy for you to regularly check up on your trade and adjust your risk. You could for instance move your stop loss up, close some part of your trade to limit your risk, or even just close the trade if you feel like you’ve taken all you could get.
In binary trading, you simply can’t do that, hedging your trade if the trend goes against you is the a good way to minimize risk, You can also manage your trade for a double profit setup, but that is more suited to a non trending market situation. Once your trade has been placed, you have to wait for the expiry to kick in, however, with some platforms you have the ability to sell off your position before your expiry, at a small loss if the trade goes against you or for a profit if the trade is going your way, which is essentially  the same stop loss system regular forex traders use without all the complications.
You definitely can make money following the trend in binary, you just have to adapt to the market conditions and manage your trades accordingly.

Trend trading clock

Finding the current trend is one thing, figuring out which expiry you should take is another. Try to think in absolutes: where is the market likely to reverse or slow down, and how fast is the market moving? (volatility) If the market is moving in quick successions of high numbers of pips, you might be better off placing a short term expiry on your binary trade, If the market is moving very little and is not showing many signs of being volatile then its wiser to extent your expiry times.
There are a plethora of ways to use the trend in order to trade binary options profitably. It is one of the simplest and most reliable chart patterns and can and should be integrated in all strategies while trading. If you have any questions about using the trend to trade binary options or would like to share your story of trend trading please do so in the comments section.

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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