7 Binary options tips

Binary options trade has gained popularity, with more and more traders joining in this highly risky yet lucrative engagement. Whereas there are numerous opportunities presented by this type of trading, one should not come in with an expectation of quick gains, it requires a mastering of several techniques and applying strategies which will help one make a gain. Just like any trade there are likelihood of losses. In binary trading, it is never about luck , it is application of sound strategies in order to make the profit from the assets which you are dealing with. Here are seven tips that will help you in investing in binary options, following these strategies will make you a better trade, take risks wisely and maximize on your assets.

Our 7 binary options tips to start trading

1 Tip: Binary options trade is not in any way gambling but it is a form of investment. Here binary options are used as financial instruments which gauge the movement of assets in the market. This is one important distinction that one has to make in order to appreciate this type of trading. In this trade, the pay off can take to outcomes, either a fixed amount of money or loose out after a given period of time. The cash/asset or nothing option means that an investor will get a fixed amount of cash if the assets which have been used in trade expire within the direction which has been stated. This is very different from gambling, a game of chances, here one makes a gain depending on the strategies and techniques in possession, whereas in gambling it is only a matter of chance. You do not need to have prior knowledge on the bet, the fact remains that you can either loose or win on a bet but in binary options trade, a gain will depend on how the market is performing at any particular moment. This means that a thorough understanding of the market trends need to be taken seriously, it is only through such knowledge that one can make the right predictions and win. If you come into binary options trade with a mentality that it is a form of gambling, you are bound to fail as this activity requires a set of strategies , which if applied properly can lead to better gains. It is not a game of chances where you make predictions; here you use assets to make prediction on the movement of their prices, where you need to have studied the assets that you use for trading. If you have the right information, chances of succeeding are very high as opposed to gambling which is a mere a question of luck.

2 Tip: Do not invest without strategies, so study very hard before start to invest in real way. Investing in binary options need a thorough understanding of how the market operates. It needs utilization of sound strategies to make it in the highly lucrative yet risky venture. Before you begin to trade, you need to master the basics, get to understand how the trade is carried and the whole idea behind the concept. Without such an understanding, you are not likely to make it in this trade. You may need someone experienced to guide you through the trading procedures before embarking on the real trade. Alternatively reading literature from some of the binary options traders and brokers can give you a head start in this trade. Any new trader is also required to use dummy account to understand how the trade is carried out; it is only after one has grasped the concept and is ready to start trading using real money. Dummy account are not only a preserve of the new traders, those who have been in trade for sometime can also use them to familiarize them with the new platforms or when comparing two or more binary options brokers. The idea here is to get as much information as possible before one engages in real trading. One can utilize the various platforms presented by various binary options brokers to sharpen his or her skills in the trade.

3 Tip: Set a maximum amount to invest every month and do not go beyond. If you run out of money fixed, stop and waiting for the next month. Money management is the key You need to have targets, set a maximum amount of money which you intend to invest in any particular month and stick to that. This means that you will not tie up your money in one or more assets and then leave your other financial obligations neglected. It also means that you will maximize your trade at any given moment. In case that you have reached your maximum amount of investment, it is advisable that you stop trading and wait for the next trading month. Just like any investment, putting all your eggs in one basket is a risky affair and that is why you need money management skills.

4 Tip: Read the reviews of brokers before opening an account and trying to understand which of them to open an account. There are several binary options in the market, this is a positive thing as it gives the investor a choice. When presented with a choice the investor can select a broker who will give him or her best returns and also experience in trading. Having said that it is also important that the investor get to understand the broker before embarking on account opening. Get a review of the broker so that you can know what you are getting yourself into. This information is freely available in the internet, you will learn what other investors have to say pertaining their experience and the gains they have made through such a particular broker. There are also independent reviews which are carried out by analysts, use them but also compliment it with information from other reliable sources.

5 Tip: Avoid a situation where you want to invest only with an aim to recover the losses obtained. Follow the strategy chosen and see if that does not work, stop. If you are in this trade to recover the losses that you have made, then you can be in for a rude shock. This demonstrates a bad strategy which can lead to more frustration. Follow the right strategy and you will definitely get the required results. However you may have tried a strategy but it has only led you to losses, review it stop and get advice from those who have made it in the trade.

6 Tip: It is important that you learn to recognize the main levels of support and resistance. When you recognize these levels you will have obtained valid trading signals, in most occasions the prices revolve around these parameters and therefore one can invest in the right direction.

7 Tip: Before investing real money always use a demo account to test strategies. Do not trust anyone who says that a strategy works; you have to be the one to test it. All the brokers have given their traders a platform where they can test the system or sharpen their skills. Dummy accounts are normally free and one does not use real money, it is only after an investor has acquired the necessary skills that one can graduate to the real accounts where real money or assets are used.

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Strategy of levels for binary options

An excellent trading strategy for binary options with expiration 60 seconds is analysing the channels that form in the candlestick graph in a 1 minute time-frame.

When analysing the graphs the shape of the candles is very important, but with such a short time-frame it’s more important to detect good levels of support and resistance, which detect a channel of movement of the price, rather that look for a trading signal in the shape of the single candle or a in candles’ mini pattern. I mean that detecting some pinbars, hammers or shooting-stars is senseless in such a short time-frame and most of all for such a short investment expiration like the ones of 60 seconds.

Thus, the real important matter is detecting some channels of movement of the price marked by two levels of support and resistance, in case they exist, and be ready to invert when these are touched. In fact, being channels of movement, near those levels can probably occur a rebound providing us with the direction where to invert for the following 60 seconds.

Every day we can detect a lot of situations similar to the ones shown in the above pictures, and for the traders of binary options like me, they are real gifts provided by the markets. The only problem is that such gifts aren’t delivered to our house, we have to find them.

In the above pictures you can see some stages of the couple of currencies EUR/USD on the 28th of June 2015. I underlined the channels in which the price tends to move. They are horizontal channels and so their limits are levels of support and resistance that is important to consider. Every arrow on the graph indicates a clear rebound of the price on the level detected. There are a lot of them in a very short time-frame. Leaving out the first arrows on the pictures, that are needed to detect the formation of the channel, all the following ones are clear signals of entrance in the market.

Every day you can find a lot of configurations similar to the ones shown in the pictures above for every couple of currencies and considering all couples on which you can trade with binary options, you’ll realize how many trading opportunities are available every day.

This strategy for binary options was called “Strategy of levels” by OB60 and it’s ideal for 60 seconds investments just when it’s recommended not to make forex trading, that is during the lateralization of the markets. While doing forex trading, in fact, in the stages of lateralization of the markets, that is stages in which the markets fluctuate with relatively short movements, it would be better not to enter the market, neither long nor short, since the movements of the prices are so limited that you wouldn’t even cover the costs of the broker’s spread. On the opposite, these stages can be widely treated in binary options, as we shown before.

Thanks to indicators like ADX you can obtain further confirmations about the fact that the markets aren’t following any trend in that specific time-frame, and this information can be useful to strengthen our theory.

Obviously, following this “strategy of levels” you’ll tend to close the last operation of every trading session “out of money” if you tend to follow the channel until it disappears, but this means that before reaching that result you obtained several trades closed “in the money”.

Good luck and always act carefully.

This article it’s not an invitation to invest your money in options. It’s just an explanation of how we can invest with this financial instrument. Thus, if you decide to follow our example, you are doing it at your peril

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7 Simple Solutions to Your Trading Problems

I’ve been trading long enough to know the most common mistakes that hold traders back from making money in the market and how to fix them. In today’s lesson, I’m going to give you 7 simple solutions that you can start using right away to slowly start start changing your trading results from bad to good, and then hopefully to ‘great’.

If you’ve been struggling to make money in the markets recently and you feel like you need a “reset” button to clear the frustration and emotion from your brain, today’s lesson is for you. If you’re a struggling trader, you might think you need to drastically change your trading approach or that you need to read some “secret” book about trading that will show you the path to riches. In reality, even if you’re struggling to make money in the market or you’re losing money, you’re probably not that far away from being on the path to success. A professional trader really just thinks differently about trading than you do, and if you combine the correct trading mindset with an effective trading strategy that you’ve mastered, you really have everything you need to start making money in the market. Here are 7 very simple things that will improve your trading IF you do them:

1) Take a week (or two or three) off from trading

Sometimes the best thing to do is to simply clear your mind and get a fresh start. Unfortunately, in trading, it’s REALLY easy to turn into a frustrated, emotional trader who is glued to the screen around the clock trying to make back lost money or trying to make a quick buck. No matter how disciplined you are or how well-prepared you are, that little red “devil” on your shoulder is always competing with the little white “angel”; the angel is telling you to stick to your plan and remain patient while the devil is always telling you to trade when you shouldn’t and jack up your risk.

Sometimes the best thing to do is to take a break from trading for one or two weeks. By that I mean, completely removing yourself from anything market-related for that one or two week period. When you come back to the market you will feel refreshed, focused and a lot more likely to stay disciplined and patient. Taking a break from trading will let the “dust” settle in your mind and will give you a fresh start and a chance to regroup and trade how you know you should rather than how the little “red devil” is telling you to.

2) Sit down, figure out your dollar risk per trade, and stick to it

Many traders are confused about how much they should be risking per trade. I know, because I get emails about this almost every day. There are really two very simple ways to determine how much you should risk per trade:

1. Risk an amount that you could lose 20 trades in a row on and still have enough money in your account to continue trading.

2. Risk an amount that TRULY allows you to set and forget” your trades and sleep WELL at night.

The bigger the position you have relative to your account size, the less likely you will be to stay calm and let the trade play out. There’s a positive correlation between the size of your position and the amount of emotion you feel for a trade; meaning, the more money you have at risk per trade the more emotion you will feel during a trade. This is why, after a certain dollar risk amount relative to your account size, you will probably start losing money overall. You have to keep your dollar risk per trade at a level that allows you to think clearly and rationally and not become clouded by emotion and fear. This might take some “trial and error” to figure out in the beginning, but you will soon know how much money you are comfortable with potentially losing per trade. Once you figure that out, all you have to do is not deviate from that dollar risk amount. This is a much more realistic and effective way to determine your risk per trade than using a pip or percent measurement, and it’s why I wrote an article on why you should measure your risk in dollars, not pips or percentages.

3) Don’t increase your risk per trade until you’ve doubled your account

Many traders make the huge mistake of increasing risk per trade after a winning trade or even after every winning trade. This is a very dangerous thing to do. One or two trades doesn’t matter and doesn’t really reflect your ability or inability to trade, if you don’t understand why then read here; one fact about trading you need to know. However, doubling or tripling your trading account on the same dollar risk per trade says something about your ability to trade the market. The point is this; it’s illogical to think you’re going to exponentially increase your risk per trade forever and for no reason other than you “won the last trade”. If you maintain your risk per trade at a constant dollar amount until you’ve doubled your account or more, it will instill discipline and patience in you and you’ll avoid becoming emotional about trades because you won’t have over-leveraged. This is really one of the easiest things you can do to improve your trading.

Remember; a few trades doesn’t really mean anything, so you should not increase or decrease your risk amount based only on a small handful of trade outcomes. If you double or triple your account over time via following a proven trading method and remaining disciplined, that is a solid indication that you know what you’re doing and gives you a logic-based reason to increase your dollar risk per trade.

4) Stop reading economic news

One of the biggest things that causes many traders to struggle and lose money in the market is that they simply try to analyze too many variables. Reading economic news each day is something that many traders do, and it typically only causes them to second-guess themselves and (or) enter trades they otherwise wouldn’t.

The other big reason not to waste time reading economic news or focusing on fundamental analysis is that it’s all reflected in a market’s price action anyways. So, if you just learn to read the raw dynamics on a price chart you don’t need to read anything else. Yet, many traders make trading significantly more complicated than it needs to be by trying to analyze every economic report under the sun. Cutting these variables out from your daily trading routine is another very simple way to improve your trading by reducing the number of variables you’re trying to analyze and make use of.

5) Take everything off of your charts

Similar to the above point about analyzing too many economic or fundamental variables, many traders analyze too many technical variables. If your charts look like a piece of modern abstract art because you have 10 different multi-colored indicators on them, the simplest thing to do is to just remove all that junk.

Many of you are probably still using an RSI or a MACD or something, in combination with what you’re learning from my site. Honestly, the sooner you cut yourself off from those indicators the sooner you’ll see a positive change in your trading results. Almost every trader that I know, myself included, has gone through a process of looking for the “holy-grail” trading system to gradually using less and less indictors until they finally realize that the natural price action of the market provides them with all the analytical tools they need to develop a high-probability trading method. The faster you ditch unnecessary indicators the faster you’ll start to realize that simplicity is a big part of trading success and you’ll wonder why you ever tried trading with indicators before.

6) Get off the intra-day charts

Intra-day charts (any chart below the daily chart time frame) are often the killer of many trader’s accounts. Most traders tend to over-trade primarily because they are too fixated on intra-day charts. I’m sure you have probably caught yourself sitting there staring at the 30 minute or 1 hour chart like it was your key to instant-wealth, mesmerized by its every move; this is exactly what causes many traders to trade too much. As humans, we are really good at picking out meaningless patterns in things, and especially in the markets. The more you sit there looking at the intra-day charts tick by tick, the greater your chances become of talking yourself into a trade that doesn’t really agree with your trading plan or trading strategy. Ignoring the intra-day charts is a very simple solution to getting back on the right trading path, at least until a time when you are consistently profitable on the daily charts.

7) When in doubt, stay out

Finally, perhaps the simplest solution for most of your struggles in the market is to simply not enter a trade if you have even a tiny bit of doubt about it. Professional traders know when they should enter a trade and they know when they shouldn’t, that might be thee biggest difference between a pro and an amateur trader. The easiest way to make sure you don’t lose money in the market is to simply not enter a trade. The majority of people who keep losing money in the market do so because they don’t really have a trading strategy that is effective and that they’ve mastered. They continue to look at the market with no real plan and no real strategy, entering trades on a whim; they are over-trading. If you are not 100% confident in your trading strategy and your ability to trade it, yet you still enter trades, you are probably over-trading. A professional trader doesn’t over-trade because they have mastered their trading strategy to the point where they no longer have any doubt. Also, if there are no trade setups that qualify according to their trading strategy, then they are fine with not trading; they have the discipline to not trade. Having the discipline to simply do nothing in the market is perhaps one of the toughest things that you will face. You have to remind yourself that not trading also means you will not lose any money, and you should never lose money due to trading just because you “felt like it”. You should make a deal with yourself that you will only put your hard-earned money at risk when your trading strategy is telling you to. I personally know when one of my price action trading setups is present in the market, and I know when and how to trade it…because I’ve mastered them. Thus, when I scan through my charts each day it is something that is devoid of doubt….I KNOW what I’m looking for, and if there’s no setup present then I simply don’t trade, and I’m happy to not trade if there’s no reason to. That’s the point you need to get to.

 If you enjoyed this trading lesson, check out my Avenger  Trading Course for further education. -

Avenger Trader Review

About Avenger Trader

Avenger Trader, found online at AvengerTrader.com, is a new investment software that claims to make people completely financially independent, with almost no effort of their own - you just let the software work for you. 

How Does It Work?

This software has been developed to work with binary options trading. Binary options trading is a type of investment program where you decide whether a specific investment option will rise in value, or Call, or fall in value, or Put.

The Avenger Trader software has been designed to work with a specific trading company and will tell you what choice to make for your investment, Call or Put. They claim that making the investments chosen by the software will earn you an average of $2,000 per week, just by following their instructions.   

Cost/Price Plans

Though the video presentation repeats frequently that this software is completely, it has only been designed to work with the investment company of their choice, and this investment company requires a deposit of at least $250 to open an account. However, Avenger Trader tells its users that in order to be the most successful, they should deposit a minimum of $500 into their account.

Refund Policy

Since this software is technically free, there is no refund that can be offered for this product. The money you deposit into your account is likely non-refundable and users may not be able to withdraw it either, until they reach a certain withdrawal amount. Users will need to check the regulations of the investment company or speak with a representative.

Customer Service Contact Info

Unfortunately this company does not provide any contact information at this time. It might be most beneficial for users to locate the contact information of the third party investment company to which they are being directed by Avenger Trader.

Reputation

Unfortunately there is not any user or customer claim that is a scam product.

If you join Avenger Trader now. Visit their official website to join AvengerTrader.com.