In Binary Options trading, preparing yourself and your tools is just half of a long or short battle. So what is that other half of the battle? Execution makes the other half. Managing open positions properly is as vital as thinking about a great and strong trade idea. Here are three tips that can help perform trades with success.
1. SYNC YOUR MIND WITH BINARY OPTIONS MARKET
It does not matter if you are a professional fundamental or technical trader, it is impossible to deny the fact that economic changes and reports in the market sentiments influence in price actions. For this reason, it is idea to update yourself in occasions which influences open positions.
Some traders say that the reaction of the marker to news is more vital than the news. However, you will ask yourself how you can take advantage of that reaction if you do not know what the news is about? Never forget to be attentive to probably game changers which can invalidate or deflect from your trade result assumptions.
2. DON’T BE STIFF ABOUT YOUR TRADING PLAN
If you have done your homework well and learned more about binary options then you will surely be aware of the fact that flexibility is ideal for your trading plan. However, being flexible does not necessarily mean that you have to be really spontaneous. This does not also mean that you should never follow your trading plan. This simple means that you are prepared to have adjustments according to factors which have since changed when you did your primary change.
When you are flexible with your trades, it means that you have to check your set up validity as time goes by. You have to put in mind that the longer time you have open trades, the more it is exposed to varied event risks. Ask yourself how long you primarily planned to have open trades? You also need to ask yourself if your set up is valid after some few weeks, days, or hours. You need to evaluate you’re set up validity in a regular manner by checking whether the currency pair market environment is still in line with your preference.
3. UPDATE POSITION SIZES AND YOUR ORDER
It does mean that you have the perfect reward to risk ratio as well as fool proof plan for trading, you cannot tweak your position sizes and order levels when the situation is calling for it. Just put in mind that you need to minimize risks.
If some factors in your plan are not going towards your desired manner, but you still believe that it deserves credit, you may opt to reduce your position sizes. On the contrary, I you believe that price action resulted to be good than what you have assumed, and then you may make some adjustments on your losses, pressing on our advantage, and getting limited profits. It is much better if such probable adjustments for different scenarios can be included in your primary trade plan. However, you still need to be focused well enough in order to do some ideal trading decisions.
Put in mind that you can follow these simple tips when you do your trade so that you will not be wasting your plan and wasting time.
Your date will surely find you geeky when you blabber about trading during your date. If you want to impress her with your knowledge in trading make sure that you are using the right words, stuff that she can comprehend. However, if you are that desperate to help her understand what you do, then you might as well have the right knowledge in your brain. Binary Options trading isn’t that impressive for most women to begin with, but there are some ways that you can do to sweep her off her feet.
Trading is quite complex. Because when you have made a great trading accomplishment, it would be worth it for you to brag about it to your friends or girlfriend. Nonetheless, before running off and telling your girl about your glory, tell yourself not do it! There are many other ways out there that you can do to brag about your achievement rather than telling your girl about your trading adventure. You have to be realistic because by doing so you will probably scare her instead of impressing her. Letting her see your trade screen, blabbering about jargon terms such as leverage, resistance and support, and technical analysis will make think that you are a gambler.
If you are a girl and you are reading this article right now, you might be so lucky to date some cool guys who love trading, but do not talk about it to you because they don’t want you to be involved with it. Most traders actually believe that trading is risky and total waste of money that can be saved or spent on more important stuff. You can save the trouble of having your date or girlfriend be mad or disappointed at you. There are better ways to shout out your victory. Here are some tips that you can put in mind:
TIP #1 – GRASP THE LIFESTYLE OF TRADING
The very first thing that you need to do is to embrace the lifestyle that you have. Put attention to your job and try to work diligently at trading until the time comes when you can let go of it. When you trade for a living, it doesn’t mean that you let go of everything and then suddenly you become a very successful trader. Just like any other activity in the world, trading takes time. Trading needs a tedious trader honing such skill and building such system can take time. Just put in mind that you need to keep your job and be glad about what you have and have a growing account. Of course, as you progress, you can slowly cut back on your hours and have vacations when possible. When you have earned big from trading, you can then treat your girl and if she asks you where you got the money for lavish spending you can then tell her you worked for it.
One vital thing you have to understand when embracing your trading lifestyle, you have to learn more about trading and consider markets as part of your life. While doing so, make sure that you also grow as a person. Girls will surely love it when you learn great stuff about yourself and grow with this learning. When you share your insights with your girlfriend, she can be proud of you. Remember, never brag about the money involved in trading. Just tell her that you have become more adventurous and reached a better perspective. Trading is a long term venture, and it is something that can help you learn new things through time. The moment you learn something good about it, then you can share it and brag about it.
TIP #2 – GIFTS ARE COSTLY
Buy her gifts! Women love presents from men. Who doesn’t? So if you have earned big time from trading just buy your date a gift and don’t brag about trading to her. You do not have to tell her about your lucky trading ventures. Just tell her that you had a great day! A small thoughtful gift can do the trick
Another impressive gesture would be building your business from your trade earnings. A majority of traders dream of trading for a living but what many do not realize is that they have to trade like it is a business. Make sure to grow it to the extent where it can sustain your life and not ruin it.
TIP #3 – CONFIDENCE MATTERS
Confidence is always the best way to impress anyone. This is the first ingredient for leaving a good first impression to anyone. Learning how to trade and building your own business and becoming successful are some other key ingredients towards trading success. Think of your date will react when you tell them an honest story of your success.
This article was more for fun, to relax you from all the financial terms and seriousness but at the end it has some valid points and if you find anything that could work for you, why not give it a try. Of course, do not stop learning and taking action.
There are many binary options website out there that offers strategies for your trading needs. However, because of the number of websites that lure you to trusting them, it can be hard to decide which one you should trust. If you are trading USD and EUR currencies we have this great strategy than can help you be successful with your trading ordeals. USD and EUR are the most commonly traded pairs in the foreign exchange market. This is why there are some strategies that you have to rely upon. Trading both currencies is a smart move because these are very liquid and is less risky to sudden unstable movements. Another reason most traders chose both currencies is that it almost trades 2/7 and typically has good prices as compared to other currency pairs.
HOW DOES IT WORK?
The EUR/USD simple strategy for binary options was specially created for using low/high and touch or no touch kinds of binary options. It makes use of PSAR and MACD for signals. Novice traders can surely appreciate BO.net. Trades, as well as Analysis, depend on thirty minute charts. This means that is quite a short strategy. Its momentum indicator here is the MACD and the PSAR is for trend determination. PSAR and MACR are set to standards which are 9,12,26 for MACD and 0.20 and 0.02 for PSAR.
This strategy makes use of 2 signals specifically bearish and bullish signals. For bullish signals, you need to wait for PSAR to be below the price action and the MACD has to be bullish. This shows that the trend is bullish and that it has a bullish momentum. The opposite is correct for the bearish signal to transpire. PSAR begins above the price action and the MACD crosses over from a bullish signal to a bearish signal. To enter a trade, you need to have either signal. We suggest a touch or no touch for its trade when there is a strike in price that is below the resistance level for bulls or for bears – an above support. Because this is what resistance and support can offer a barrier towards trade. If this is the case then it is recommendable to take the no touch position.
WHY THE EUR/USD STRATEGY IS NOT SO GOOD?
This strategy may not be so good because it advices your to use the touch or no touch options which is a kind of trading that typically comes with great returns, but also comes with great risks. The fact that it only comes with one touch for pay out makes the required levels quite far from what you will most likely expect on asset movement. Moreover, if you choose the no touch due to support and resistance and some factors, then you are taking risks that the movement will just go as far as the line. It also sucks because longer term trends are not that important here.
WHY THE EUR/USD STRATEGY IS GOOD?
This strategy is quite good because you can use 2 approved indicators with good entry points. These indicators also suggest what kind of binary option you may trade. A likable and commonly used indicator here is the MACD making it a very useful tool. As mentioned before, it is considered as a momentum and confirming indicator. If you have less experience on PSAR, you will come to like it if you use this strategy. It can be used in binary through forex or futures trading and offer great signals. When you use this together with MACD, you can surely improve your binary options. The strategy comes with well defined signals lacks some extra support for long term trends. With this being said, every buy signal needs the two indicators for confirmation thus doing away fake signals.
If you want to trade short term binary options, this can be a great strategy. But it can leave you with some stipulations. The thing that you can change would be the kind of option from the referred touch or no touch to a high or low style position.
When it comes to making money from binary options there are two vital elements that you need. These elements are your trading skills and BOB. Yes, that’s right BOB. What is it? It’s simply a way cooler term for Binary Options Broker. The trading element is very complicated since it comes with tedious practice and training. However, trading is not the focus here. In this article let’s set aside trading and assume that you have already mastered it and put the spotlight on BOB. Just remember two things with BOB – if it’s bad you’ll have lower or lesser success rates; if it’s good then you’ll have that smile on your face.
Just as trading is tricky, selecting a good binary options broker can also be a very difficult task. Comparing one broker to another can be the key towards searching for that ideal trading guide.
Here are some ways that can help you compare brokers:
1. SUPPORT AND ACCESS
Language – accessibility means that you can easily access what you need. Language is of course a vital part of trading. Yes, English may be the most popular spoken language but there are other markets out there that do not trade using the language. Thus, make sure that your BOB speaks the same language as you do.
Customer Support – Binary options has rapidly risen in popularity. More and more people want to taste it quick moves and easy profits. However, hopeful traders do not know where to start so they really need someone to guide them. Novice traders need someone to talk to and someone to teach them about the ins and outs of the trade. This is why many traders compare brokers based on the support that they give and the knowledge that they possess. Traders also compare their brokers based on Live Chat operators and Account managers. The use of customer support is to extend withdrawals and deposits or technical problems that may arise.
Platform – The reality is that you will always need a user friendly platform when it comes to trading. However, some easy to use platforms may not be too good for advanced traders. Depending on the type of trader that you are, you need to know what kind of platform you need. For example, if you require some complicated tools and special orders, you will most likely use a platform that focuses more on such aspects than convenience of use.
2. YOUR MONEY
Refund and returns – Everyone who trades obviously wants higher pay outs. Who wouldn’t need and eighty percent ITM trade rather than a sixty five percent? Refunds presented for Out of the Money trades can provide more money management technique. This way you can also compare brokers.
Promotions and Bonuses – a lot of trades like to hunt for huge bonuses and it is a key aspect that they properly check on their BOB. Nonetheless, a huge bonus isn’t always the good way to do in trading because it has some strings attached and sometimes need you to trade in specific volume before you may withdraw. Some brokers even offer exciting promos but typically on limited time offers.
Minimum Deposit – there are trades out there who just want to a have a taste of the industry. They are not even that convinced about binary options trading and they just make smaller deposits. Nobody actually wants to gamble on a thousand dollars just to test the market. A lot simply cannot afford to hand over huge investments and end up with only a few for trading. It actually depends on the depth of your pocket and your gusto as a trader.
Deposits and Withdrawals – withdrawing cash can often be a horrible procedure. Some brokers even make it more daunting for you. Every trader should deeply consider this aspect. After all, it can be very hurtful to see an increase in your account but you cannot easily withdraw it in the end. In another note, you also look for a more convenient manner to deposit cash and not just withdrawing. PayPal can be very convenient and it is actually a favored wire transfer.
Fees – Typically, BOBs ask for fees when you want to withdraw you cash and these fees differ from one broker to another. As a trader, you naturally want these fees to be low and this is one reason why should opt to compare traders. Nonetheless, brokers may have different kinds of fees not just for withdrawals. This is why it is ideal for you to clearly read the Terms and conditions. Lower fees are always better.
3. TRADING PLAN
Tools and Options – when you select your BOD you have to consider the options and tools that they provide. You may need features such as Up and Down option or boundary in and out options. You may also need No Touch or One Touch and Sixty seconds options. Tools like Roll Over and Close now may be provided by one broker but not in another.
Expiry times – Some trader do not use 60 second options while others never opt for monthly expiry times. This typically depends on what kind of trader you are and what are the times that give you more comfort. Hence, if you have a strategy that is only made for sixty second options and your broker does not offer this kind of expiry time then you have to look for another broker.
Amount of Trade – a vital part in selecting a broker is the trade amount. This is directly linked to the amount that you really want to invest. If you want to start with smaller trades then look for BOB that offers lesser position sizes.
Assets – different strategies work in different asset categories. Many traders only focus on few assets. As a matter of fact, this can be a deal breaker. Many traders will end right at the beginning when brokers do not provide the right assets they prefer to trade.
4. EDUCATION AND TRAINING
It is called gambling or financial suicide when you trade without educating and training yourself first. This is why when you badly want to trade you have to choose a binary options broker that can teach you the basics of the risky industry. If you are a novice, see to it that the broker offers a free demo account for you to practice on.
5. WATCH OUT FOR SCAMS
Even in the Binary Options industry, there are scammers everywhere. The best way for you to protect yourself against these posers is to choose a regulated broker. This may be a brilliant idea but looking for a regulated broker may be quite hard to find. But the good news is it is not impossible to find one. All you need to do is to intently research about your target brokers and then compare and contrast.
As you can see, you always have to make your own due diligence and it is the only right thing to do since you also learn about the industry as a whole this way. I would advise that you also check our recommended brokers that you can start with, here.
Your choices affect you in any way you do. All of your choices have an impact in your life. Big choices can mostly affect you for a longer period. Of course, choosing milk chocolate over dark chocolate may not have a huge impact in your life than choosing a three bedroom house in the city than choosing a three bedroom house in the countryside. Decisions like these have stand alone impacts which mean that a single decision can have major consequences. However, there is another kind of decision – smaller decisions which can lead to the outcomes. For example, gambling which is not good for your overall financial life. But gambling in general is made up of hundreds of smaller decisions take for years. Every time you make your bet and make that risky move, you made a decision. Nonetheless, that decision can only affect you when it is a part of a whole. A single small bet cannot generally affect your funds as much as a serial gambler does.
No, this is not an article about gambling or buying houses. But as this article progresses and talks about binary options trading decision you may keep the concepts in mind. Remember that in trading a single loss will not actually affect so much on your binary options account. Think about fifty loses? Yes, this will surely wipe your life out. No matter how much you do not care about bad trade, you have to put in mind that it is part of a bigger whole which will then destroy your trading account. This is why it is vital that you consider every trade the vitality it needs and often times make complex decisions.
HOW COMPLEX CAN IT GET?
When you lose something, your emotions will be triggered. You do not have to fight these emotions because your DNA dictates it. Thus, you have no choice but to learn how to control it. When you lose a hundred bucks to the market, you will most likely have the urge to get it back. This is what you call a vengeful combination because you want to prove to yourself that you are right. The idea of greed, financial concern and vengeance can make you a certified gambler. The distinction between a gambler and a trader is that the former will capitulate on those feelings and then will tend to lure towards making another trade or dice one more time. Thus, if you trade based on a prearranged plan, you are making Binary Options to a business. On the other hand, when you trade based on your emotions without even controlling then, then you are simply a gambler who fits in a casino and not on the trade market.
We mentioned about trading based on a plan. This plan has to be laid out prior to starting trading because this is when you free your mind from emotions. This is when your brain’s analytical part can triumph. When your emotions kick in, it will be hard for you to think properly. Without a doubt, you have to have a plan. However, what makes it hard is following your plan and trusting it to help you manage risks and manage your money as well. A simple trading plan is knowing when you will stop trading even when you are on a winning spree. For example, you may have decided that you will stop trading on that day after you will have three losses or three wins. By doing so you are limiting your risks and you know that the worst thing that may happen is losing three trades in a day. Stopping trading is quite tough and after losing thrice you will most likely feel angrier than before. Thereby, you have slimmer chances of success.
The same thing applies to winning trades. After you have made three in the money trades, you will most likely become over confident and this is when you mistakes begin pouring in. you do not pay enough attention to analysis or to your strategies and make rushed decisions towards making more profit because you believe it to be more fun and efficient. This actually makes you a gambler because this is what gamblers do. If you have a job and trading is just your hobby then you have to stop when you have finally reached your trading goal. Or if you consider trading as your job, you still need to stop when you have reached your daily quota or your goal.
As you see, at the end of the day it is you who will have to make your own luck. You can just make better decisions if you learn yourself aboutall possible outcomes and therefore minimize your risks.
Smart traders always keep their trades well documented. If you are a novice trader you can do what most traders do – have a checklist and a trading journal. If you want to go for the market then you need an ultimate plan or a solid trading plan. Your plan should include the strategy or strategies you’ll use. It must also have some money management tactics as well as position size, and trading rules and guidelines. However in the trading industry, no two days are similar to each other. No matter how you prepare for your trading day there are always changes that you have to face and these changes surely affects your plans.
Most traders do not blindly follow their own strategies while fitting it to varied market conditions. If you are a trend trader you may only want to execute your strategies in markets that are trending. Thereby, you need to have a checklist that can help you focus in a trending market. With a checklist you can have a clear view of the trend’s direction and what you can expect from it in a day. What will you put in your checklist and what are the things that you need to consider? Here are checklist items that you can use for your trading opportunities:
1. KNOW LONG AND SHORT TERM TRADES
Long term trends are trends that go over a one day session. This means that you need to be more patient towards observing the trend. Short terms trends are at least thirty minutes to one hour. Most of the time, traders like trades wherein momentum shifts happen in shorter period and then align in long term. When doing so you might want to ask yourself the question – what is the general expectation and what are your instant expectations? You may take have trades based on quick expectations. However, if it is more than your immediate expectation then you can quickly bail once you see that there is a hint of trouble. When you trade with a general expectation then you are more geared towards giving more space for your trade.
2. KNOW THE PATTERN
It is ideal to put some notes about the market pattern on your checklist. You might be deceived about market patterns because they may be just a bigger range or wedge pattern. When you see any patterns you may draw lines along lows and highs on your chart so that you can isolate them. You have to pay close attention to these details.
3. SUPPORT AND RESISTANCE
Every trader must know more about support and resistance. There are parts that have influenced strong price shifts on both directions. What you need to be careful about are strong bounces off levels.
4. WEAK AND STRONG MOVES
You have to “Moves” on your checklist. When you see that very sharp moves are going upward and al weaker moves are going down the best thing for you to do is to trade on the longer side until there are changes.
This is one reminder that you need to include in your checklist. When the days is slow then your profit expectations may also be slow especially when the day is volatile. With regards to your targets on price action you may trade on what the market wants to give you.
6. HAS THE STRATEGY WORKED BEFORE
You can also put questions in your checklist. Would it have already worked? If there are already signals occurring prior to your trading you have to ask if it would probably have worked before? When the market is in a disrespectful state to your strategy you have to wait until it calms down. This most likely means that you are lacking one trade and that it is better than imposing a strategy on a non-compliant market.
7. REPEATING TENDENCIES
Repeating tendencies need to be understood in real time. However, sometimes price movements may be repeating. For example, prices move higher and then stalls and then make some attempts to move higher prior to breaking out. On the next time, process may move higher and then a similar thing may happen again. By looking for such tendencies you have a few more confidence to trading but do not have expectations that this will last longer. This can be repeated for two to 4 times and then disappears.