Indicators are based from technical analysis, that is where they are used. As the name itself suggest, they indicate us based on what the choosen indicator is specified for. There are traders out there who trade based on naked chart, meaning there is only price line with no indicators. That definitely not means they are without use. What indicators can do is they can show us more of a bigger picture on the whole thing based on the history by for example, smoothing the price line.
WHAT YOU WILL LEARN HERE:
- What is indicator?
- Old-school indicators
- Future Indicators
- More examples of indicators, provided from other websites in technical analysis!
You will here about these ones, that is why we will cover them. It is good that you know a little about history aswell. Some of most used and also we can say respected indicators from the old-school guys are still being used in trading. Bollinger Bands was invented by John Bollinger in 80s, we also had Stocchastic indicator which was created in 50s by futures traders and George Lane. The times when people were outisde having a good time, Geral Appel has made MACD. Relative strenght index should also be mentioned who was created by mr. Wilder. So, if you want to more about technical analysis, you definitely should check all that were mentioned here in details. There are also others as you will see and does not man they are any worse then these here.
There are always some new indicators coming out on the market but mostly they are just using old ones with midifications. There are amongst them also some really good ones such as Fibonacci that automaticly draws levels on the chart. Since there is so many indicators, trader must know his strategy bcause based on that he can choose the indicators that will be most helpful for him. You can use an indicator for whatever you wish, for exampl when to exit from trade.
MORE INFO ON INDICATORS
Check on these websites for more technical analysis indicators and their description:
So if you read this article from top to bottom you have realized there is alot of indicators and therefore you can not use all of them at once otherwise it would be a mess when you would look at charts. That is why you need to establish what you want to see from teh chart based on your strategy. You have to find righ combination to determine yourself a success. It will definitely be hard work but it will pay-off at the end if you focus and not give up.
You were already probably searching around the internet for binary options strategies and you asked yourself, is this legit so is it good strategy or is it a scam and they just want to sell me something. There is so much different strategies listed all over the web you can not know waht is right and what wron and i can understand you that is why we are going to try to give you some insight information on how the proper strategy should look like so next time you will judge better.
WHAT YOU WILL LEARN HERE:
- What is binary options strategy?
- How a good strategy should look?
- How bad strategies look?
- Where to find good strategies?
WHAT IS A STRATEGY?
If you see someone who is trading gold and is placing a call option on it and says that is his strategy, well that definitely is not it. Strategy is all that behind, before you press that call button and put a trade on. Basicly you have to know why you did a call on gold right now. If you do not know then that is not a strategy and it is called gambling.
HOW GOOD STRATEGY LOOK?
A good strategy is considered something that gives you a reason to do some trade, which means it already has some conditions that need to be predetermined and fullfilled, only and after that i enter the trade. This are the characteristics of a good strategy explanation:
PICTURE. A picture of a graph with signals on it from the specified strategy simply because picture is worth 1000 words and it is easier to remember.
RULES OF ENTRY. Why you put a trade on, basicly specify all the reasons that needed to be fullfilled to enter the trade. There needs to be determined when you click a call option and why that and on other side, when to click put option.
RULES OF EXIT. When to get out of the trade in the specificed strategy. What to do if the trade will go against me. If you are reading a good strategy, this is a must specified factor. You always have to think about this before entering the trade becuase you have to anticipate the worst that can happen.
MANAGING MONEY. How much of your portfolio should be invested or how many trades can i open. Definitely do not use 50% of your account on single trade because that means you will lose your money fast. Keep yourself some room for mistakes.
HOW BAD STRATEGIES LOOK LIKE?
If you go on google or youtube and search for binary options strategy you will find alot of things that can be dangerous for you and can potentially wash your brains. These are some common things that such sites claim or look:
- Website that is long and has lots of text which looks like it will never end and tells you how much money by trading you can make really fast
- Videos of how someone has made thousands of dollars over night or few minutes
- Usually these claims are made by some never heard super trader who is successful. Could be some pictures with cars, yachts, etc.
- Sayings that you do not need any or very little knowledge for such gains
- Testimonials!!! Do not buy this things, these things are all premade or bought from a website called fiverr
To make this short. There is no shortcuts, you have to learn this in life. Think of it, if this would be true, why would he sell this super formula to you when he could be making money on its own.
WHERE TO FIND GOOD STRATEGY?
As you know already, you can find alot of them by searching online and some are good and some are bad and also there are some that are really bad. I can not give you straight answer here and direct you towards websites and strategies to find it simply because even if it is a good strategy it also depends what suits you as a trader. I would say to check here on the website for strategies and in the community.
You need to have some good strategy and focus at the end to be a good trader and especially a serious one. As we said, important to that is also your mind, because it plays a big role in this business. Go do your research and try different strategies and use the one you feel most comfortable with just do not trust someone that is selling you dreams.
You have gained some knowledge about binary options and you are doing it well over month now and you feel excited and motivated enough to go to next step and choose the broker you will deposit moeny with. You have checked on several review websites to make sure you will will not doa bad decision when it comes to choosing of a broker. So you are asking yourself probably what are some of most important things to look at the broker to choose it based on that.
WHAT YOU WILL LEARN HERE?
- What is important to look for when choosing binary options broker?
This is something i would look at my choosen brokers since this will ensure me that money is at safe place, secured by some thir-party. This will assure me that my brokers has rules and risk of scam is almost gone. Ask broker where they are regulated and check with proper authority yourself it this is true.
How you will get in touch with them if they are not available online for discussion. A good broker has responsive sales and support team which is available for you at any time. So defnitely choose some brokers who can give you live support chat service and that they can answer your questions in proper way and not hide things from you or bend the rules.
The broker you want to use must be easy to navigate through the platform and also user friendly because you have more fun when it comes to trading. You need to move quick when the trading comes along. Also check broker who has available mobile application for you since it could save you if you are not infront of computer or you have a day job but you still can monitor what is happening on the market.
SIZE OF PAYOUTS
The percentage payout per trade is something that varies from broker to broker and you have to check you will choose the one who has normal percentage rates not that they offer you 50% payout. So if you find a broker who has conditions that are in your favor then you should go with this opportunity.
PROCESS OF WITHDRAWAL
Make sure you read their terms and ask a representative what conditions apply ti withdrawing your profits. You should know the process and also how long does it take them. This should be clear from both parts and if it takes them longer then 2 weeks, you should start being concerned because this is the average time it takes the brokers to process such requests.
You also need to check one of the most important things that is usually forgotten. You have to know if they have the assets you want to trade avaliable for you. If they do not have them, how will you trade then.
As you see it is not that easy as 1-2-3 to find your perfect broker or two but with some research done from your side and our side, you can find some that will do great job for you. You have to have perfect infrastructure so you will not be bothered when it comes to those trading hours you put in.
I would advise to check our recommended and trusted brokers you can start with, here.
Markets are open 24 hours per day which means that trading is possible at any time around the globe. There is no human who can track everything. We have people who trade profesionally and trade as business and full-time job but there is plenty more of part time traders. To manage time is almost important as risk management. So let us take a look at some important rules.
1. SPECIFY TIME FOR TRADING
You have to setup yourself specific time in your day which will be dedicated to trading binary options. To establish a good time you need to take in considertaion many things. This is something you need to think about for yourself. For example, if you are an european trader, at noon you can trade on asian market aswell on US market. But when you are doing it, be focused and do that only. Specialize yourself for one market and few trading assets. You also have to make sure that you do all important other tasks you had in mind for the day before or after the trading zone and you can consider trading as one of them.
2. TRADING SHOULD BE ON DAILY TO-DO!
After you have set up a trading time that will fit you you also have to stick to it, be consistent is the next rule. Try to always trade beetwen the choosen hours so it is turned into routine. Other tasks or new tasks that came in during day should be taken care of before or after the specified trading hours. Make sure of that and you will be better off. These small things can keep you on the right way because trading is not a hobby.
3. DO SOME SPORTS!
Did you think you will be lazy and trade binary options and get rich. Well you have to keep your mind fresh and active and that means daily exercise. Do what you like to do, go running or swimming or just go to a walk or fitness. This way you will feel more energized and more focuse and relaxed while trading.
4. SPECIALZE YOURSELF!
We all have problems with time, it is just not enough off it. So we have to make sure that we maximize the hours we have. Therefore we can not trade everything and it is better that when we trade, that we trade good. That is why it is better to specialize to assets that are available for trading during your choosen trading hours and definitely focus on them and win.
5. END OF TRADING AND NEXT DAY!
Have your limits, when it comes to losses and profits aswell. You can setup yourself if you win a certain percentage per day you end trading because otherise it can turn around against you and yo ustart losing. Same applies to losing, after certain amount of losses you should stop trading and go out and start again the next day when you are fresh again and focused. You definitely should not try to make up money from yesterdays losses. It does not work like that and can only lead to even more losing trades. Stick to your plan and when your trading hours are over, finish and go to sleep or watch tv so you do not make mistakes.
At the end you should always think about the next day. What can happen, go through some of your news channels, events that can happen and could affect your trades and opportunities that could rise.
We all make mistakes, we are not robots. Even if are not aware, we make small mistakes on daily basis. Trading in general aswell in binary options is also dealing with mistakes since no one is perfect 100% trader. Read these common mistakes that people tend to do when it comes to trading binary options.
1. OPENING TOO MUCH ACCOUNTS!
You do not need to open account on every binary options platform you see. It is better to focus and find one that will be reliable and will have everything you want. This way you will not be confused and lose time with logging in and such things. You have to minimize the work for yourself. But if it is a must, just do not go with more then 2 or 3 at once.
2. HOW MUCH IS ENOUGH TO START WITH?
You are asking how much to deposit for the first time. You have to keep in mind what is your plan and that you will have enough foor for errors in your trading account, otherwise you will be out of one soon. Also, it is not good to go all in and deposit few thousand dollars when you do not know fundamental things and also you need to get to know the broker and how trustable it is. Also please do not fall for free trainings and one-on-one sessions if you depost more money. You are better off learning from our website. But knowledge is important and a must.
3. BONUS OFFERS!
Free money while depositing certain amount is definitely appealing but you ahve to know what that means for you in real world. It sounds very good but ask your broker or account manager what does it mean for you if you accept this bonus. Sometimes it is better to not accept bonus because they want ridicilious amount of trading volume.
4. DO NOT START RIGHT AWAY!
What i mean is that when you have fully functional account do not get over excited and opening trades left and right. Focus! the time has come to slowly and with discipline build the account. Take your time and do soome demo trading to accumulate to platform. Research and act accordingly.
5. BROKERS THAT WANT YOU!
Check from different sources what are good brokers, do not settle with first one you see. You have to check if they are regulated, it is jsut better so you are safe when you go to sleep. Also do not trust broker on everything, he is there to make money from business.
If you will get any premium accounts offers or VIP accounts, you should check if they are reliable broker by withdrawing some money and how long does it take them and such things. It should not take them more then 2 weeks.
One if most important parts when it comes to trading is risk management. One thing is certain and that is, you will lose some trades. It has nothing to do with how good you are or bad(although good traders will have less losses), you will lose your trade eventually. I would not recommend doing trades that are too risky, it does not take alot to lose money. One of most important things when it comes to risk management is size of positions.
WHAT YOU WILL LEARN HERE:
- What is binary options risk management?
- Why managing risk is that important?
- Example of risk management in binary options
- 3 TOP tips for risk management
WHAT IS BINARY OPTIONS RISK MANAGING?
It may sounds easy but it is far from that to use such system. Why? Only because it takes alot with power of will and self control to make yourself an effective risk management plan. If you want to be successful trader, you will need to make one for yourself. You just have to stick to rules, no matter what.
WHY MANAGING RISK IS IMPORTANT?
This one is easy you will see! It is because you will otherwise be without money in your account, it will be gone fast. Which means, if you have no money in the account anymore, you can not profit anymore and make the account bigger in size. It is hard but it is also better to stay in the game then not being able to trade.
RISK MANAGEMENT EXAMPLE
First you need to have in mind how much you are willing to risk. Secondly, you need to check how much you have in the account.
Let us say you have $1.500 and you want to risk only 3% of that.
1.500 (This is our account size) * 0,03 (percentage value of your risk/100 ) = $45
Your risk ratio per trade is then 45$ and that is the max amount you are willing to lose per trade.
3 TOP RISK MANAGEMENT TIPS
- You have to get the knowledge. Do not fall for saying such as trading is easy and anyone can do it. But it is managable if you dedicate yourself to it. That is why you need good plan for risk managing.
- Do not invest more then you can afford to lose is also important tip to have in mind. You do not want to lose everything and not being able to trade at all as we said. You have to customize your account trading in such way that you will be able to survive thorugh losing streak.
- Follow people who are having expirience in trading or join our community.
To conclude everything. You need to be very focused on your trading plan and start slowly and build up. Trade with what you are comfortable and do your research and it is better if you think at the worst scenario so you prepare yourself. It is a thin line beetwen profits in binary options niche then losing the money.