simple strategies to make a successful living
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Stock TradingTRANSCRIPT
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Disclaimer
All contents copyrighted © 2014 by Author/Publisher.
All rights reserved worldwide. No part of this document or the related
materials may be reproduced or transmitted in any form, by any means
(electronic, photocopying, recording, or otherwise) without the prior
permission by the author/ publisher.
All ideas, views and thoughts expressed in this book are the author’s own.
References have been provided wherever possible. ‘Simple Strategies to
Make a Successful Living by Trading Binary Options’ is not affiliated,
authorized or endorsed with any of the brands and names mentioned in
here unless specified otherwise.
Examples of people and other organizations that have or have not utilized
binary trading and similar services are mentioned as case studies only. Any
comments which could be deemed as negative or as criticism are
completely unintentional on the author’s part.
All information contained here is meant to be taken as a guideline. Every
business is run in accordance with its own rules and regulations and the
advice contained herein is mentioned in a neutral manner. It is understood
that the reader claims responsibility for their own actions.
The author does not claim nor was any guarantee made regarding any
success through this book. In no event shall the author be liable for any
direct, indirect, incidental, punitive, or consequential damages of any kind
whatsoever with respect to materials and the information contained within.
This eBook is not intended to be a substitute to professional advice.
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Summary
Binary trading is one of the easiest to understand trading options one can
find in the market. With the chance of getting a payoff in two options,
namely, you get a fixed monetary amount or walk away with nothing.
Hence, trading binary options can be a bit like gambling.
It’s all or nothing with this option. While many people tend to stay away
from them, they can bear fruitful results for those willing to take the risk and
trade them. However, to achieve that result, it is necessary to understand
binary options and other market factors and trends which can influence the
outcome.
With the help of this eBook, you can learn to understand:
Binary options and their types
How to use various types of Binary options
What is technical analysis?
How to conduct successful technical analysis?
Use technical analysis with trend analysis to get great results from
your binary options.
This eBook will help you through the world of binary options, starting from
the basics and working your way deeper into the world of binary trading.
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Contents
Disclaimer ................................................................................................... 2
Summary .................................................................................................... 3
Introduction ................................................................................................. 9
Why Choose Binary Options? ................................................................ 10
Understanding Binary Options .................................................................. 12
Different Types of Binary Options .......................................................... 13
High/Low ............................................................................................. 13
Range High Low .................................................................................. 13
One Touch .......................................................................................... 14
Common Terms when Dealing with Binary Options (Dictionary) ............... 16
How to Start Making Money with Binary Options ...................................... 20
Risk Management .................................................................................. 21
Making Room for Market Change .......................................................... 22
Strategies for Money Managing ................................................................ 24
The 30% Strategy .................................................................................. 25
Selling Out before Expiry ....................................................................... 26
Trading Basics: Binary Options ................................................................. 28
Selecting Between Put or Call ................................................................ 28
Strangle & Straddle ................................................................................ 30
10 Rules to Follow to Trade Successfully ................................................. 32
Rule No.1: Use a Trading Plan ............................................................... 32
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Rule No.2: Approach Trading Like a Business ....................................... 32
Rule No.3: Using Technology to Your Benefit ........................................ 33
Rule No.4: Protect Your Capital ............................................................. 33
Rule No.5: Study the Markets ................................................................ 34
Rule No.6: Trading Account = Separate Account ................................... 35
Rule No.7: Basing Your Methodology on Facts ...................................... 36
Rule No.8: Using a Stop Loss ................................................................ 36
Rule No.9: Learning to Stop ................................................................... 37
Rule No.10: Trade with Perspective ....................................................... 38
Bad Binary Trading Habits and How to Break Them ................................. 40
How You Define Success ....................................................................... 40
Changing Your Outlook on Failure ......................................................... 41
Applying Punishment and Reward ......................................................... 42
Developing Your Trading Style ................................................................. 44
Trend or Counter Trend? ....................................................................... 44
Trading Timelines .................................................................................. 45
The Analysis .......................................................................................... 45
Fundamental for Long, Technical for Short ............................................ 47
Binary Options Strategies ......................................................................... 48
Candlesticks........................................................................................... 49
Colored Candlesticks – Two ................................................................ 49
Candlesticks – Four ............................................................................. 49
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Candle Patterns ..................................................................................... 50
Hammer .............................................................................................. 51
Dojis .................................................................................................... 51
Spinning Tops ..................................................................................... 52
The Surrounding Candle ..................................................................... 52
Tweezer .............................................................................................. 53
Mood Candles and patterns ........................................................... 53-58
Focusing on Trend Analysis ...................................................................... 59
Drawing a Trend Line ............................................................................. 60
Trend Line Strategies for Binary Trading ................................................ 61
Tunneling for Binary Trading .................................................................. 61
Support and Resistance Lines ............................................................... 62
Support .................................................................................................. 62
Resistance ............................................................................................. 62
Drawing in the Lines............................................................................... 62
First Strategy for Trading ....................................................................... 63
Identifying the Level of Strengths and Weaknesses ............................... 63
Bollinger Bands ...................................................................................... 64
Interpreting with Bollinger Bands ............................................................ 65
Fibonacci – Lines of Resistance ............................................................. 66
Focusing on Technical Analysis ................................................................ 68
Basics of Technical Analysis .................................................................. 68
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Strengths of Technical Analysis ............................................................. 69
Focusing on the Price .......................................................................... 69
Supply, Demand and the Action of Price ............................................. 70
Support and Resistance ...................................................................... 70
Price History – Pictorial ....................................................................... 70
Assisting with Entry Points .................................................................. 70
The Weak Spots of Technical Analysis .................................................. 71
Bias of the Analyst............................................................................... 71
Open Interpretation ............................................................................. 71
Always Something More ...................................................................... 72
Late Predictions .................................................................................. 72
Remorse of the Trader ........................................................................ 72
Conclusions of the Analysis ................................................................. 74
Charting in Technical Analysis ............................................................... 74
Properties of the Chart ........................................................................ 74
Chart Types in Technical Analysis ......................................................... 75
Line Chart ........................................................................................... 75
Bar Charts ........................................................................................... 77
Candlestick Charts .............................................................................. 78
Point and Figure Chart ........................................................................ 78
Chart Patterns in Technical Analysis ...................................................... 79
Head and Shoulders ............................................................................ 80
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Cup and Handle .................................................................................. 80
Double Tops and Bottoms ................................................................... 80
Triangles ............................................................................................. 81
Flag and Pennant ................................................................................ 82
Wedge ................................................................................................. 82
Gaps ................................................................................................... 83
Triple Tops and Bottoms ..................................................................... 84
Rounding Bottom ................................................................................ 85
Things to Keep in Mind ............................................................................. 87
Big Picture – Positioning in the Market ................................................... 89
Conclusion ................................................................................................ 91
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Introduction
There is something exhilarating about closing a winning trade. It makes you
feel like you are on top of the world. However, in an ironic twist of fate, this
winning high can be the downfall for many traders. The addictive feelings
may make one become more reckless in trading, moving from one trade to
another as soon as possible.
This trade jumping can make one mess up various requirements for entry,
all so one can experience that sweet high once again. It makes you feel like
your dreams are within reach and you can start envisioning quitting your
job, getting a lovely house and buying a luxury yacht with a private dock.
On the other hand, if you end up with a losing trade, it can bring you
crashing down, making you feel melancholic and depressed. All your little
dreams seem to pop like a bubble.
However, one thing which separates successful traders from the rest of the
crowd is the fact they are able to curb these feelings. Whether they win or
lose, they do not let their emotions govern their trading abilities. What they
are really concerned with is their equity keeps growing at a steady pace in
a certain timeframe.
Trading for them is not like gambling. It is a business transaction and
whether they face losses or net a neat profit, they consider it all as pitfalls
and necessary evils which have to be borne to get to the end result.
Starting trading with such an attitude is one of the responsibilities one must
shoulder, regardless of the type of trading they are indulging in. With the
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help of this eBook, you can understand the importance of trading right and
trading profitably with binary options.
Utilized in a profitable manner, they can be doorways to financial stability
and freedom. This eBook also contains plenty of strategies which can help
you when trading binary options and also allows you to make the most of
position sizing as well.
In short, this eBook is chockfull of useful advice but how you use it and the
end results lies largely on your shoulders. Moreover, you will also learn to
practice detachment while trading, avoiding becoming emotionally attached
or invested in the outcome of a particular trade or wager.
With these useful tips, tricks and strategies, you will soon be able to
experience financial security which will actually help to make your dreams
come true.
Why Choose Binary Options?
While there are more exciting options when you are looking to trade, the
main factor which makes binary options ideal for beginners is that not
everyone has the funds required to operate ‘real’ trading accounts with the
help of a broker.
In layman’s terms, an account for binary options can be looked upon as a
poor man’s account for trading. However, it should be used only as a
stepping stone which can help build your account and increase your funds
in order to allow you the freedom to begin trading with a real account.
Binary trading also allows you to take baby steps and any losses you might
incur will not exactly set you back. Once you make your first successful
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trade, it will be easy to make changes which allow you to repeat the same
performance with better results.
However, while the risks involved are small in the beginning, working with
binary trading options also gives you the opportunity to develop, hone and
practice good trading practices that can yield maximum results for you.
With attention to risk control, you can easily achieve that too.
With the help of this eBook, you can start making winning financial trading
decisions as well as follow a basic roadmap which will help you reach the
end result when you only have a limited amount of capital to start out with.
While trading in binary options does differ from futures, currency and stock
options, the main principles of trading remain the same. Therefore, a binary
trading option can be the perfect stepping stone if you are looking to trade
in bigger things in the future.
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Understanding Binary Options
Before you start trading binary options, it is better if you take some time to
understand what they really are. This will help to improve your
understanding of how they work, which in turn will allow you to make
educated decisions when trading with them.
Binary options largely offer a fixed expiration or deadline which has a fixed
amount for a payout. You can look upon it as a bet with only ‘yes’ or ‘no’
options to choose from. The bet you place largely depends upon a pre-
arranged price of a basic market coming above, at or below a certain target
which is also known as a strike barrier, within a predefined time in the
future.
Following financial news on an almost daily basis can greatly benefit you
when trading binary options. Even if you don’t have this habit, it is better to
take the time to cultivate it. Binary options are also a great way to start
trading before you actually start buying and trading in commodities and
stocks.
Largely, binary options allow you to trade with the promise of only two
possible results. Despite its simplistic nature, this mode of trading is largely
like taking or placing a bet on which way the market will be directed to, by
the end of the time limit.
This time limit can make or break you, whether the difference lies in a
month, a week, a day, an hour or even a miniscule minute.
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Different Types of Binary Options
Another thing which can recommend binary options to you apart from the
ease of trading in it is there are only three main types of binary options from
which you can choose.
High/Low
This is the most popular binary trading option and it is also the most
simplest to use as well. To successfully use this option for their benefit, all
a trader has to do is to try and make a correct estimate based on the
market trend.
To do so, all they need to do is pay attention to one detail:
• At expiration, will the market price be lower or higher than the price
which is offered currently?
Pondering the answer to this question can provide you with all the data you
know to make the right decision. Moreover, the details and payout options
for each trade is prearranged and clear for the benefit of the trader.
When trading in High Low binary options, it is even possible to sell your
option at any time, regardless of the fact it is not near its expiry date. The
return will be partial but it can still be beneficial if this option is used wisely.
Range High Low
This binary option is similar in nature to the High Low option. However,
trading in Range High Low options provides the trader a more simplistic
trading process which allows more freedom. Nonetheless, it is still an
uncommon mode of trading binary options, largely owing to there being
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more risk when trading in these options. On the other hand, while the risks
may be higher, the payoff is greater too.
Trading in Range High Low options is based on two main decisions.
• The trader has the freedom to choose the high or the low in the
option. This, in turn, determines the expiration rate and whether it
will end up being lower or higher than the current price of the
options.
• When choosing the range of the high or the low, attention must be
paid. If the rate, at expiration rate, falls within the suggested range,
the trade can be profitable and incur higher returns. If it falls below
the range, the trade will be a loss and will not incur any profits.
Range High Low binary options are also known as In and Out options in the
market owing to the fact you are either opting for a bet inside the given
range or outside the range.
One Touch
This form of binary option is also exceedingly popular, more than the
Range High Low option. The one touch option only has one barrier to it and
the trader is only concerned with predicting whether the price will reach the
predetermined barrier or not.
The One Touch trading option differs from the other trading options in that
the trader is required to agree or disagree with the prediction only. The
price and the direction it will take have already been decided. The trader
will only be concerned with the boundary based on the current rate and
whether the market price will be above or below the boundary.
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Moreover, the One Touch is more feasible and less expensive because it
only has one barrier level. There are also good chances of a higher payout
because it is possible to get a full payout once the price meets the barrier
before the end of the predetermined time period.
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Common Terms when Dealing with Binary Options
(Dictionary)
When you are trading, you will come across various terminologies and
expressions that are part of this side of financial trading. While they are
commonly used by traders, for beginners this language can be rather
confusing and new.
Luckily, they are easy to learn and you should take the time to familiarize
yourself with them before you start trading in binary options.
60-second option – These are options which have an expiration period of
60 seconds only. These are also mainly Call/Put options.
Asset – The capital or other object of value used to determine or start a
contract.
Ask or Bid – The premium paid by traders in order to gain an opening to
buy a position in trading. This also refers to anticipating whether the
underlying market price will go up. It is also the price a trader has to pay if
they have an open position and wish to sell or close it out.
At the money (ATM) – When the price of the options is equal to the market
price. This option neither profits nor causes losses to its value.
Boundary options – Also known as Range or In/Out options - A type of
binary option where the trader has to guess if the asset’s price will be
outside or inside the price boundary which is set by two target prices.
Call/Put options – Also known as High/Low or Up/Down options - The
most common binary option where a trader has to determine whether the
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assets price will be lower or higher at expiry as compared to its price at the
time of purchase.
Commodity – A form of assets consisting of raw materials which come
from different economic sectors, such as energy, metals, and food.
Currency pair – The value of one currency as compared to another
currency. The first currency in the pair is referred to as the base currency
while the second one is referred to as the quote currency.
Contract - The basic unit of a trade for one lot. You will need a new
contract every time you trade an option.
Day trade – Short-term trading that usually opens and closes within the
duration of a day.
Deep-out-of-the-money – Also known as Deep-in-the-money - They are
the outer strike boundary of most price ladders. A way to define the
deepness from the point of view of price is when the spot price shows a
10% probability for out-of-the-money and 90% probability for in-the-money.
Downtrend – When the asset’s price rate is showing a decreasing trend.
Early closure – Also known as Sell - The ability to exit or sell out of an
option before it reaches its expiration.
Expiration – The date and time at which the option expires and on which
the outcome of a trade is largely determined.
Graph – Graphic representation of movement of price of certain assets.
In the money – The term which shows a binary options trade is showing a
profit.
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Indices – An asset which represents the average value of the total stock
price of various corporations.
Investment – The revenue or amount which has been invested in a
specific trading option.
Near-the-money – When the binary option shows it is near the agreed
upon strike price.
Out of the money – When the results of a binary options trade show that it
is going to be a loss.
Payout – The profit amount a trader will receive once the option expires on
its given date of expiration.
Pip – The smallest value which allows a Forex quote to be moved.
Put option – A contract for an option where the trader predicts the price of
an asset will be lower at the time as compared to its price at the time of
purchase.
Risk – The possibility of experiencing financial loss from the investment
made in an option.
ROI - Return of Investment
Rollover – Also known as Extend – The process of prolonging the
expiration date of a trading option in order to increase its chance of expiring
at a profit or in-the-money.
Sell - The ability to exit or sell an option before it reaches expiration.
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Set-and-let - When a trader takes a position and does not trade in the
same market until the expiry and the bet is settled. Traders largely sit and
wait to find out whether they win or lose.
Spread - The difference between a bid and ask. The spread tends to be
narrower in new markets and has to be interpreted in terms of total returns.
Stock – An asset which reflects the share or ownership a trader has of a
particular company.
Strike price – The price of an asset or option at the time of purchase.
Target price – The price of an asset or option that needs to be surpassed
in order for the trade to be considered as in-the-money or profitable.
Touch option – A type of binary option where a trader has to guess if the
asset’s price will be able to reach a specific target price or not.
Uptrend – When the asset’s price rate is showing an increasing trend.
Settlement Value - The value of the option once it expires, which is often
fixed or predetermined.
Underlying Market Price - The actual market price of a contract.
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How to Start Making Money with Binary Options
Regardless of what your broker might inform you, trading in binary options
is by no means something which should be undertaken without considering
the risks it poses. It is by no means a risk-free process so you have to
exercise some degree of caution. Nonetheless, it does not mean you
cannot take measures to minimize the risks involved.
The main way to do that is determining the total value of a certain asset
which is being used by a trader to make money from. In simple words, if
you make a bid which is based on the financial value of an asset and it
turns out to be true, you stand to earn a large payout.
In binary options, all you will be required to do is to make accurate
speculations on whether the price of a certain asset in the market will
increase or decrease. In the beginning it might seem a piece of cake. But
there are certain dimensions and technicalities which should be taken into
consideration before you make a decision.
For example: If you believe the price of a certain asset, namely gold, will
rise, all you have to do is to place a call binary option. For this purpose, all
you need to do is select the asset, in this case gold.
The next step which you have to consider is what trend you think the asset
will follow: rise or fall. The last step is simply determining the amount you
wish to invest in this prediction. If everything works out like you foresaw,
you will end up making a lot of money, including the amount you invested in
it.
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Similarly, if you feel the price for gold will fall, all you have to do is to place
a put binary option. The same two steps will also follow this call, i.e.
choosing the trend for the asset and the amount you want to invest in it.
Then, if your prediction comes true, you will again earn money through it.
The entire process could take mere minutes or hours, depending on the
expiry time you have chosen.
Nonetheless, as an investor and trader, it is better to practice caution every
step of the way since there is the risk of loss and you might lose all your
investment. While trading binary options is one of the most effective
methods for making money online, you need the help of a trustworthy
broker who can increase the percentage of profit you earn with their wide
knowledge in binary option strategies.
You can also find plenty of brokerages online who offer their services on a
wide scale.
Risk Management
Risk management in binary trading is minor at best. Nonetheless, you will
have to consider two different modes of risk management when you are
dealing in binary options.
The main thing to look for here is that a trade in binary options is not
always based on set-and-let decisions. Therefore, opting for risk
management strategy according to it can be risky.
Many binary options are for short time periods, taking mere minutes, hours
and sometimes, days. The shorter the time period is, the less you are able
to manage the risk in the trade, even though the risk is definitely higher.
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In set-and-let scenarios, proper risk management is needed because it is
when you choose a position and then opt to monitor the progress every
minute, hour, day or week over a long period of a month or two.
In such scenarios, the payoff is bigger and the risk lies dormant but even a
difference of a minute or two can mean catastrophic results for you.
Making Room for Market Change
Knowing which direction the market will swing towards is crucial when you
are trading with binary options. As we mentioned earlier, trading for short
time periods requires less management and a set-and-let strategy will not
always work effectively for a trade which is meant for a few days or a few
weeks.
You may also get a feel of the market or garner new information on your
own as time passes which will allow you to take a new position and perfect
your timing in trading. Binary trading definitely relies a lot on effective
timing. When the market criteria for a certain asset are met, you can easily
re-enter trade in a new position as well.
When implemented effectively, this can allow you to minimize the risks you
face in a trade and you can also make several positions if you feel they are
correct during a certain time period on the same trade. Nonetheless, it is
best to remember proper risk management applies largely to binary options
trading that are offered on a long-term basis even if it is an hour, a day or a
week.
While 60-second trading is more popular, particularly online, risk
management strategies cannot be implemented on them nor can any
market change corrections be made on them.
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In the end, they tend to be more of a gamble and if you are just starting out,
it would be better to opt for long-term trading options. The risks are lower
and if things do not look favorable for you, you still have time to alter your
position into a more beneficial position.
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Strategies for Money Managing
As with any other strategy, managing your investment wisely is one of the
biggest components which can guarantee your success. Similarly,
investment management in binary trading can be an important part of your
strategy. In trading, more so, managing your cash assets reasonably is
important.
Binary options are deceptively simple, often offered in the market as simple
versions of FX trading which are targeted for beginners and professionals
alike. Moreover, they are also considered options which not only allow you
to trade in currencies but also allow exchange of other assets, such as
commodities, stocks and indices.
Despite the many differences between FX trading and binary options,
binary option trading requires more discipline and a more strategic
approach towards the whole process. With their penchant for producing
results in a matter of minutes, binary options can be a large threat for the
untrained mind.
Such quick results and quick profits will quickly inspire more excitement
and irrationality, allowing your emotions and excitement to cloud your
judgment. People also experience the same buzz they get from gambling
and they will often be addicted to the high they get from trading.
However, in this scenario, all strategies and careful planning goes out the
window and it is possible for someone to completely ruin themselves in this
manner. Trading options need to be carefully considered and room has
been made to take different considerations into account.
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Moreover, it is better to jump ship when you see your options going in an
unfavorable direction rather than waiting till the last minute to see if your
‘hunch’ will pull you up in the last minute.
The following are some tips and strategies which can help you to develop
and implement your own strategies to trade successfully in binary options
and to manage money properly when trading:
The 30% Strategy
When you are about to start a trade, keep in mind you should never risk all
your available capital. Therefore, to trade safely, only offer up 30% of it.
This will allow you to make a safe start which does not have a negative
impact on your capital if you experience a loss.
Once your binary option nets you a profit, you will have more capital but
that does not mean you start offering more. Once you get the profits, split
them in half. 50% gets set aside for a rainy day and 50% goes back into the
market to invest in some other trade.
This ensures you will always have profits which will remain with you and
help you grow your account. Even when you might experience a loss in
your trade, you won’t face a huge loss and you will still have plenty of
money to reinvest. Moreover, as you increase your amount for investment,
your payouts from winning options will also increase as well.
However, keep in mind that when you use this strategy, you will earn less
than you would if you only invested 50% as compared to 100%.
Nonetheless, the risks involved with small investments are minimal at best
and even if you make a few blunders when you are starting out, you will still
be able to continue trading with the money you set aside.
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Selling Out before Expiry
When dealing in binary trading, you can choose between Option+, a
modern version of binary trading and the traditional binary tradition. While
both are similar in mechanics, the main difference between Option+ and
binary options lies in the fact that Option+ allows you to offer a price to the
broker, at any time of the trade.
If the broker finds the price reasonable, he can buy the option back before
the time period for the trade is up. In contrast with the conventional
methods of binary options trading, you can successfully close a deal before
reaching the official date for expiration.
Apart from being convenient, this type of trading does have its benefits. It
definitely helps you minimize risk. For example: If you make a prediction,
claiming that the price for oil will rise but you realize the market changes
have started to show a downward trend to such a degree that it seems
probable that the price will not rise before the trade expires.
In this scenario, you can opt to sell that option and still get a profit.
Nonetheless, the profit will be smaller than what you could have got if your
prediction would have come true but it is better than facing a total loss
caused by a wrong prediction at the time of expiry.
Here is a more practical example on how you can use an Option+ trading
option to your benefit:
1. Select an asset on Option +.
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2. Choose a put or call option (i.e. predict the fall or rise in the price of the
selected asset) and enter an amount with which you can purchase the
option (such as $200).
After opening the transaction, you monitor the asset and you can see it has
gained the maximum value possible, even though it has not hit the
expiration time. Nonetheless, market trends indicate the market will start
declining after this high.
To avoid a loss, you can ask the broker if he is willing to buy the option
back from you. The broker will offer you a price, let’s say $240, and you
can walk away with a small profit.
For beginners and professionals who want to minimize their risks and seek
easy profits, this trading option is one of the best modes they can turn to.
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Trading Basics: Binary Options
When you are going to start with binary options, it is necessary to be aware
of a few basic methods that will be extremely useful for you. As you go
along, you will learn some strategies but for your basics, the following
strategies will do just fine.
Selecting Between Put or Call
When trading binary options, you will have to juggle various elements. The
main thing to keep in mind is the main options on which it relies on the call
or put option.
Both these options rely on the movement shown by the asset’s price. In
other words, the put option can be considered placing a prediction when
the price is declining. The call option can be placed when you predict or
think the price will increase for that particular asset.
To gain a profit from a trade by choosing either option, the basic asset price
will have to be below or above the predicted strike price at the time of
expiry. Based on whether you choose to put or call, you could either walk
away with a profit or face a loss.
When you want to choose between put and call, you have to take certain
market conditions, like bullish or bearish, into consideration before making
a decision.
Bullish market conditions arise when investors feel certain assets are
favorable, which often increase the value of that asset. Bearish market
conditions arise when investors start selling off certain assets which they
feel will diminish in value. This, in turn, causes the value to decline.
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A good binary option trader will be able to gain a profit from both these
conditions. This is also one of the reasons binary trading is extremely
popular.
Moreover, apart from having the ability to comprehend and read market
conditions, proper technical analysis will also be needed. By studying the
price performance of previous assets, it is possible to gain proper
knowledge regarding binary options which can help one choose between
put and call.
Strong movement trends in price can help to make it an easy choice. In
certain cases, there may not be a distinct trend which can get rather
confusing. In this case, though, the latest movement in price may be
considered a deciding factor.
The time of expiry should also be considered when you are conducting
technical analysis. With short expiry times, the last performance regarding
the price may be enough to give you proper results. On the other hand,
with longer expiry times, it is necessary to acquire a wider picture which
showcases the basic price performance of an asset, before any decision
can be made.
In some cases, the price of the asset may move outside high and low
boundaries but in many cases, it is likely to fluctuate between these two
points. If the strike or target price of the asset lies close to the boundary, it
can be considered the price will not move lower or higher before a reversal
appears.
This factor is another element which should be taking into consideration as
it is also possible to put or call and earn a profit if a reversal can be
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predicted in advance. Sometimes, the basic price of an asset will break out
of the set boundaries predicted for it. These breakout points can also be
quite profitable but they are harder to predict.
The main thing to keep in mind here is that the put or call option should not
be chosen on the basis of guesswork only. To make it easier to study
binary options, there are plenty of tools which can be used to study the
previous performance of various asset prices.
Staying updated with the latest market news is also a good option since it
can often be the best indicator of the present market conditions. When both
forms of analysis are taken into consideration, the decision of having to
choose between put or call for a binary option should be an easy one.
Strangle & Straddle
Strangle is a strategy that is commonly used in binary options trading. In
this strategy, it is possible to place simultaneous put and call options on the
same base price for an asset and share the time period for expiry. Using
this strategy is not illegal and is officially permitted for use in the market.
The ability to simultaneously place call and put on binary options which
have different target prices can be rather profitable in certain situations.
Strangle buying also relies on the ability to make predictions regarding the
changes in the market regarding a certain asset.
When looking to implement the Strangle strategy, it is best to start buying
when the basic of prices of the assets are about to start moving. Moreover,
the movement they show should be remarkable, regardless of the direction
they go in.
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A Straddle strategy is similar to the Strangle strategy we have described
above. The main difference lies in the fact that in the Straddle strategy,
traders can buy options which have the same strike price, while in the
Strangle strategy, traders can only buy options which have the same base
and expiry period.
Compared side by side, both strategies have their own pros and cons. The
price for one Straddle strategy though comes up to few Strangle prices
which means the Strangle strategy is actually cheaper. However, while the
price is cheaper, the total profit one can make through the Strangle is much
less than what one can make by going for the Straddle strategy.
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10 Rules to Follow to Trade Successfully
Many people who are looking to learn to trade successfully in binary trading
can find it rather frustrating when they go online and keep coming across
phrases like “plan your trade” and “minimize your losses”
Most new traders just want to hurry up and set up their charts so they can
start making money. To be successful in any form of trading though, it is
necessary to consider some ground rules.
The following 10 rules can help you trade successfully. Trading with the
help of these rules can greatly increase your chances of success in binary
option markets.
Rule No.1: Use a Trading Plan
A trading plan is like a roadmap that shows a trader can gain entry and exit
as well as the criteria for money management. By following a trading plan,
it is also possible to test out an idea with the help of back testing to
determine whether a trading plan is doable or not.
When trading, it is necessary to stick to the plan since it helps curb any
spontaneous urges. Trading outside of a trading plan destroys the accuracy
of the plan and also makes for poor trading practices.
Rule No.2: Approach Trading Like a Business
Approaching trading like it is a business can help impart professionalism
and temper your decisions with restraint and reasonable decisions. Never
consider trading a hobby or a job. As a hobby, trading can become
expensive, particularly because there is no proper commitment to learning.
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As a job, trading can become frustrating since there is no regular payout,
like you would get from a regular paycheck.
Trading as a business is the perfect approach since it faces many
expenses, taxes, losses, uncertainty, risks and stress. As a trader, you can
look at yourself like the owner of a small business. The main goal for you is
to strategize and conduct market research which can help you maximize
the potential of your business.
Rule No.3: Using Technology to Your Benefit
Trading is a delicate business and you need to take all the advantages
afforded by proper knowledge and use of technology to end on top. With
the help of charting platforms, it is possible for traders to gain an insight
into the various markets and make calculated decisions after viewing and
analyzing the pros and cons.
Back testing an idea prior to taking any risks cannot only save a trading
account but also allow you to make more profitable decisions, sidestepping
all the frustration and stress as well. With the help of smart phones and
high-speed internet, it is possible to get market updates at any time. Using
your technology to your advantage can help you get a more rewarding
position in trading and it can be fun too.
Rule No.4: Protect Your Capital
Saving money when trading in order to continue trading can be a time-
consuming task which requires a lot of effort on your part. Moreover, if you
faced a loss, it can be rather difficult getting the funds again to have
another go at it.
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Therefore, it is important you take necessary precautions in order to
safeguard your capital. This doesn’t mean that you try to avoid facing any
losses in your trades. Losses are a part of every business. Nonetheless, it
would be better if you implemented strategies like the 15% strategy.
By making sure that a certain portion of your capital is protected, you can
ensure that you don’t have to close up shop should you ever experience a
loss. Protecting your capital also entails that you do not take any
unnecessary risks.
This means approaching trading with a very rational mindset and doing
everything in your power to preserve your assets and your trading
business.
Rule No.5: Study the Markets
Studying the markets has got to become an important part of your life. Look
at it as a new course of education. For many new traders, it is important to
be able to focus on learning more and more about the market each day.
Many trading and market concepts are based on certain prerequisite
sources and concepts which makes them extremely vital for any new
investor or trader to know. With the help of these concepts, it is possible
understand the markets that one is dealing with.
Moreover, markets are in a constant state of change; therefore, it is
important to consider the fact that the process of understanding markets,
as well as all their details, can be a continuous, almost lifelong procedure.
Research also enables one to learn facts such as the ability to comprehend
what an economic report means. Observation and focusing on market
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trends also makes it possible to learn and gain instinct and get a feel for the
market as well.
Simple things in the world around us like politics, global events, different
economies and even sudden changes in weather can create an impact on
trading markets.
Since the environment of the market is always fluctuating, it is the traders
who understand past trends and can connect them with current market
practices who are the ones, truly prepared to face the risks of the future.
Rule No.6: Trading Account = Separate Account
As we mentioned in Rule No. 4, building up funding for a trading account
can be a long process. Therefore, before you can begin trading with the
help of real cash, it is necessary to make sure that all the money in your
trading account is actually expendable. If not, you should continue saving
until it is.
Any money which is inside a trading account should not be considered as
money which is meant to pay for mortgage or for the tuition of your kids.
That money belongs in the different accounts. Any money in a trading
account should be for trading purposes only. Traders who think of this
money as a loan or something that they will turn into a mortgage payment
are not going about it the right way.
A strong trader is one who is mentally prepared to deal with the loss of
money in their trading account. The process of losing is already rather
stressful and if you add the extra guilt of losing capital that was intended for
some other use, the experience can be heart rending. Therefore, a smart
trader never undertakes such risks.
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Keep your trading account separate and your personal account separate.
Rule No.7: Basing Your Methodology on Facts
Before you begin trading, it is better to take the time to develop a strong
methodology for trading which can help earn you lots of profits. It is also
necessary that you base your trading decisions on facts and numbers
instead of emotions and hopes and dreams.
Doing so makes it easier not only to make wrong decisions but it also
makes you an easy target for trading scams that claim that trading is "so
easy it's like printing money". Nonetheless, cold hard facts should be the
backbone behind an amazing trading plan.
Traders who take their time and are open minded about learning, patiently,
typically have a much easier time learning facts and understanding the
market through the help of online resources and other banks of information.
Consider the need to study the market in this light: If you had to start a new
career, you would have to study at a college or university for at least two or
three years before you could be considered as qualified enough to even
apply for a position in it.
Similarly, trading requires lots of learning and the rules which govern
trading and figuring out the demands of trading can take almost the same
amount of time as any research and study for any other field.
Rule No.8: Using a Stop Loss
Stop loss is term which refers to an amount that is decided by the trader. It
is the amount which a trader is willing to risk losing any trade which he
makes.
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Naturally, one should not stake 100% of their capital in a trade but even if
they are investing about 20%, there will still a stop loss amount of 10% or
15%. Any trade that causes a loss higher than this predetermined amount
should not be undertaken.
The stop loss is a useful way to limit the exposure faced by a trader in any
trade. A stop loss also takes out a certain amount of emotion that might be
unconsciously instilled in trading decisions, since once a trader is aware
that he will only lose a certain amount on a trade, it’s less like gambling.
Never choose to ignore a stop loss, even if doing so results in producing a
profit with a winning trade. It is bad trading practice and can easily cause
you to overlook many of the rules you set for yourself.
Leaving a trade at a stop loss is good trading since it allows you to follow
the rules you set according to your trading plan. While it is preferred that all
trades should close with a profit, it is not always a realistic expectation.
With a stop loss, you have a buffer which provides protection, ensuring that
all losses and risks are minimal and according to your limitations.
Rule No.9: Learning to Stop
Often times, in trading, there will come a time when it is necessary to stop
trading. There are two main reasons for doing so. Either there is a fault in
the trading plan OR there is a fault in the trader.
A poor trading plan is one which shows losses at a greater extent than was
previously anticipated, even while testing. Many markets change and other
unforeseen factors can render a poor trading plan insufficient to cope with
them. When this happens, it is better to reevaluate and start making
changes to it.
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If it is possible, starting from scratch with a new trading plan can be a better
idea. A trading plan which is performing unsuccessfully is a problem which
should be solved immediately. It should not be looked at as the end of your
trading business.
On the other hand, a poor trader is one who is incapable of following their
own trading plan. Poor trading habits, stress and other factors can also
contribute to make their skills weak.
A trader who does not feel that they can handle the responsibilities of
trading can take a break to resolve those personal problems, which are
affecting their skills. Once they have worked out their difficulties, it is
possible to resume trading once again.
Rule No.10: Trade with Perspective
When trading, it is necessary to focus on the big picture instead of looking
at each trade individually. Therefore, a trade which caused a loss should
not leave you stunned. It should be considered as a natural part of trading.
Similarly, making a profit in one trade is not a mark of success. It is just a
stepping stone which is helping to pave the way towards a profitable
trading history. The overall, cumulative profits of your trading accounts are
the ones which make a difference.
Once you start accept your losses and wins as a natural part of the trading
business, it is also possible to tone down the effect of your emotions on the
performance of a trade.
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Having realistic, achievable trade expectations is also essential in keeping
your trading practices in perspective. If you have a small trading account,
you cannot expect to garner huge returns from your trading.
For example: Getting a return of 10% on an account which has $10,000 is
different as compared to getting a return of 10% on an account which has
$1,000,000. Therefore, it is better to work well with what you have.
With the help of these rules, you can establish good trading practices which
can imbibe you with patience and discipline you need to improve your
chances of success in an already competitive arena.
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Bad Binary Trading Habits and How to Break Them
When trading, it is necessary to have a solid trading plan. One of the worst
habits that a trader can have is neglecting guidelines and trading
impulsively. A trader who makes the effort to use and develop a trading
plan is more successful as compared to his counterpart, Mr. Impulsive.
Nonetheless, even with the presence of a trading plan, it is possible to
develop bad habits which can hinder your progress in trading. A trader with
bad habits can make impulsive decisions even if their trading plan is on a
chart, taped right next to them.
The main way to break bad binary habits is by focusing how one views their
successes and failures. Moreover, applying rewards and punishments can
also break bad habits and clear the way for good trading practices.
How You Define Success
One of the first things that a trader must consider is how they rate their
success. It should be measured according to their trading plan and should
not focus on how much money was made or lost.
Therefore, if you make an undisciplined trade but end up making money
from it, you should still consider it as a failure because it was not part of
your trading plan. If you chose to congratulate yourself on its success, you
will only teach yourself that it is okay. The end result is what counts.
In that light, if you manage to have a good trade, that also matches your
trading plan perfectly, yet you end up losing money, consider that trade as
a success. This is so because it makes you more likely to follow your
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trading plan. If you berate yourself over the loss, you are only punishing
yourself for following your plan.
If you faced a loss, it is possible to analyze that trade and figure out ways
which could make your trade profitable. But every time you make a profit
through poor trading decisions and don’t stop yourself from doing that
again, it will be become harder to break your bad habits.
This will also make it easier for you to indulge in reckless trading practices
that push your trading plan to the back seat. This will slowly begin to cause
your trading to spiral out of control and it will be harder to adhere to all the
rules you set to safeguard your capital. You will create a lot of unnecessary
risk that could seriously harm your trading potential.
This is why; you need to push away from undisciplined trades regardless of
the fact that they may look more profitable. Moreover, even if jumping in
and out of the market worked out once, it should not be considered to work
every single time. Earning on a bad trade basis is the worst habit a trader
can have. Trading like this also destroys the traders’ capacity to judge well.
By trading in this manner, a trader can develop a warped perspective of the
risks they face in a trade. A bad position will not be evident to them until it
suddenly wipes out their account which could come as a huge shock.
Changing Your Outlook on Failure
As a trader, you must remember not to get hung up about the times when
your trading plan did not work out to your benefit. Instead, focus on all the
times that it did work. Moreover, do not look at undisciplined trades as an
exciting experience, remember that it hurt you and your options and
consider them to be the main failures in your trading journey.
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By remembering these moments, you will not be tempted to abandon your
trading plan anytime soon. Stick to it and it will reward you. This will also
help you realize that in the long run, dismissing your trading plan can have
disastrous results.
Even if you do face a loss with a trading plan, remember that it is always
possible to adjust it but it is extremely difficult to get rid of risky trading if it
becomes an ingrained habit.
Applying Punishment and Reward
Once you can comprehend that you alone are responsible for your
successes and failures, you will be able to apply a reward and punishment
process which can help you curb bad habits and stick to good ones.
The main thing that you have to change is how you respond to trade. Stick
to rationality, stick to a trading plan. Taking risks is allowable but only if it
comes within your trading plan.
The next steps you can incorporate are external punishments and rewards.
Treat yourself to dinner or pamper yourself on a bad trade day for still
following your trading plan. If you ever fall of the tracks, you can withhold
these treats as not sticking to your plan.
The punishments for not following your trading plan should only be
withholding something that you want. Do not become extremely negative or
self-damaging in the process.
The words ‘success’ and ‘failure’ here generally mean success in following
your trading plan. It has nothing to with the profits or the losses that come
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from a trade. The rewards earned through your success should encourage
you to carry on establishing good trading practices.
It is possible to break your bad habits but only if you are truly honest with
yourself. Do not lie to yourself and think that if you got lucky once or twice,
your luck will hold out. Trading has no room for luck.
Always try to stick to facts and craft a trading plan. Define your success as
following your trading plan and reward yourself whether the trading plan
produced a profit or a loss for you.
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Developing Your Trading Style
Before you start trading, ask yourself a question. ‘Do you prefer fishing or
downhill skiing?’ While it is a simple question, the answer to it might
actually have an impact on your success in trading greater than a
successful trading strategy.
The FX market has many routes leading to success. However, to take
advantage of them you need to understand your weaknesses and pinpoint
your strengths first. As a trader, you may come across many tidbits which
claim that there is a ‘proper way to trade’ but the truth of the matter is, there
really isn’t one proper way.
Like most things in life, even markets experience change and they are also
inconsistent. Moreover, having a trading technique which matches your
style rather than the markets style can be extremely beneficial for you
instead of bending yourself to suit someone’s idea of what a ‘proper trader’
should be.
Trend or Counter Trend?
Remember the question we asked earlier about fishing and downhill skiing?
The question is actually about trading in trend and counter-trend. Fishers
are capable of trending, while skiers are largely counter trend.
This is deduced by the fact that fishing is something which needs a lot of
methodology and time as well as infinite amount of patience. Like fishers,
trend traders, will cast their trading line many times in order to get a bite.
Downhill skiers can be considered as the ones who are looking for a quick
thrill which has a specific goal namely, the end of the line. This is also the
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same psychological drive which is similar to traders who are faders. They
are on the lookout for fast profits as quickly as possible.
While it isn’t always the proper way to predict which trend you showcase,
choosing one option shows that you have an inherent style which just
needs the proper tools to bring it out to your benefit.
Trading Timelines
The identification of trends can make you consider some more important
questions such as ‘When trading, do you prefer short-term or long-term
time frames?’
This question also ties in with the trends. Traders who are trend based are
usually willing to work on timelines which are longer. They have the
patience of the fisherman and they will not mind baiting their hook and
letting their line dangle until it gets a bite.
Traders who are counter trend based will be more likely to work as faders.
They will look for shorter time periods to trade in and for quick profits as
well.
Unfortunately, many of the trends which develop in the FX market can take
up to months or even weeks. The shortest time frames are only when one
is trading in the currency market. The market has changes on an hourly
basis and the average risk/reward from their targets have total of 30 points,
at least.
The Analysis
Once you decide on the perfect frame which suits you, the next question to
ask yourself is, ‘what type of analysis can help me make proper selections
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in trade?’ Even then you will be faced with two choices that belong to two
different groups, namely:
Group A: The Fundamentalists: They keep an ear to the ground and rely
on economic reports, news, press releases and other commentaries from
various monetary.
Group B: The Technicians: They rely on careful market and technical
analysis and rely on various tools to help gauge their profits, losses and
other market changes.
There is a never ending debate between the two groups. The
fundamentalist scorn at the attempts made by technicians to predict future
prices by relying on the hints and trends visible in the present charts while
the technicians consider that the data that fundamentalists rely upon is
contradictory at best and rather inconclusive.
In this fiery debate, who is right? The truth is, neither party. Trading based
on technical data or fundamental data is like boxing yourself into a corner.
The best option is the perfect use of both this data. When used together,
the data is coherent, reasonable and can provide insightful data into the
market.
Fundamentalists are ill prepared for sudden changes that the market might
make with regard to the price action that is shown in the charts. On the
other hand, technicians are also ill prepared for when a sudden piece of
economic news can create changes in the market. Both occasions cause a
loss for one group or the other.
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Fundamental for Long, Technical for Short
Despite their weaknesses and pitfalls, it is generally considered that if one
is looking to trade on a long term basis, it is better to incorporate a
fundamental approach. On the other hand, for short term trading, the
technical approach is more profitable.
Whether you consider yourself to long-term trader with a fundamentalist
trading style or a short-term trader with a technician trading style, the FX
market is flexible enough to easily suit your style.
Although the two groups will continue to bicker between each other, the
one thing that you must comprehend that your success in trading largely
depends upon the style that suits you best and can is easy to work with.
Choosing someone else’s trading style and trying to switch it around to
match you is not likely to make you succeed, regardless of how sound your
approach may be.
Only you can know what exactly your trading style is and out of all we have
discussed, the first question that you should actually ask yourself should be
"What kind of a trader am I?"
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Binary Options Strategies
For all new traders it is important to learn how to make decisions that are
actually multidimensional in order to succeed. To do that, it is important to
recognize the patterns displayed successfully in order to base your
decision on it.
When you look at the market you have to try to establish the pattern and
the direction that basic market is heading towards. Is it going sideways,
down or up? Is there an increasing momentum working on the price? Is it
reaching the extremes? Are the levels of volatility high or low? Is testing
showing support or resistance?
Before you choose to make a trade, it is wiser if you ask yourself these
questions, particularly when you are hoping to get a profit from that trade.
When you have had a little experience in trading, you will begin to
understand how trading markets behave. This will in turn allow you to apply
various strategies to gain the best profits from it.
While it is neither necessary nor possible to know all the strategies that you
can apply in trading, it is definitely important to know a few basic strategies
and learn how you can use them to your benefit.
These strategies usually apply to various markets and their unique
scenarios. The more strategies you know, the more you can apply them in
the right market and gain more benefit than an average trader who is just
starting out too.
The following are a few of those market situations and the strategies which
you can use to your benefit:
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Candlesticks
The term candlesticks in trading generally refer to the activity of price. The
expression ‘candlesticks’ originally comes from Japan where it applied to
trading in rice. It is almost a hundred years old.
Colored Candlesticks – Two
The most common feature about candlesticks is the difference in color. The
color scheme it shows can often be an indicator of the activity it is
experiencing. The two common color schemes found in candlesticks are is
black & white and red & green.
Usually the white and green portions of the candles represent bullish
activity. Bullish activity is an indicator that the price has increased. The
black and red portions of the candles represent the bearish activity. Bearish
activity is an indicator that the price has decreased.
In more simple terms:
• A bullish candle has a close price right above the opening price.
• A bearish candle has a close price right below the opening price.
Sometimes, there are moments when the market experiences little to no
changes. This represents a certain amount of hesitation and indecision in
the market.
Candlesticks – Four
Candlesticks consist of four parts and their formal names are used
regularly so you should try to learn them by heart.
• The Wicks are at both ends and indicate the highest and the
lowest points reached.
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• The body is made up of two parts. The top and the bottoms. These
are known as the Open and Close prices.
These four parts are in the DNA of any price action. A candlestick is
capable of representing price activity for any time given frame.
Even when a trader picks their own time period, the candle is used to
represents that time frame. For example: 100 candles for a time period of
10 minutes will be shown as 100 x 10min or show 1000 minutes of the
price activity.
Candle Patterns
Based on the market’s activity and the price movement, it is possible for
candles to form different patterns based on their color and their actual
placement. To carefully read and use these patterns to your advantage,
you need to understand them. Out of these various patterns, the following
are the easiest and the most common candle patterns to be found:
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Hammer
Hammer candle patterns are called hammers because the pattern
resembles a hammer. It is largely recognizable by the fact that it has a long
wick.
It is also normal for the wick to be twice the size of the body as well so it is
a distinct pattern which cannot be missed. The hammer also usually
appears to indicate a reversal in the market.
Dojis
Dojis are important candle patterns because they can help determine when
the market is beginning to show indecision or hesitation. Looking more like
stick figures or letters, a doji does not have a typical candle body owing to
the fact that the price for opening and closing is almost always the same or
remains the same in most scenarios.
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Spinning Tops
Spinning tops are similar to the doji candle patterns. Apart from having
rather small bodies, they are also used as indicators of market hesitation or
indecision.
The Engulfing Candle
The engulfing candle often has a pattern which shows a small candle that
has a huge body, usually of an opposite color. The name Engulfing is
appropriate because the large body does seem to be engulfing it. This
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pattern is a good indicator, usually pointing towards a change in the mood
of the market.
Tweezer
Tweezer candles often showcase strong support and resistance in the
market. When the tweezer pattern is towards the bottom of a candle, the
market has failed to reduce or push the price lower than it is. When the
tweezer pattern is towards the top of a candle, the market has failed to
push the price higher than it is.
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Mood Candles
While candlesticks are a great indicator of the current market mood, it
should be noted that their accuracy in predicting the market’s emotion is
significantly impacted by the timeframe related to that particular
candlestick. Owing to this factor, it can be considered that one-minute
candles are less accurate in prediction as compared to one-hour candles.
In binary options, it is preferable to use four-hour candles and one-day
candles to truly gauge an accurate picture of the market mood. You should
also pay attention to the timeframe which is doable for you and which you
prefer using. It would not be feasible to study four-hour candles for market
moods when you are actually trading in 60 seconds or by the hour.
Bullish Reversal Patterns
Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Engulfing
Hammer/ Dragonfly Doji
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Harami Harami Cross Homing Pigeon
Inverted Hammer/ Gravestone Doji
Kicking
Ladder Bottom
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Stick Sandwich
Three Inside Up
Three Outside Up
Three Stars In The South
Tri Star
Unique Three River Bottom
Doji Star
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Mat Hold
Rising Three Methods
Separating Lines
Side By Side White Lines
Three White Soldiers
Upside Gap Three Methods
Three Line Strike
Upside Tasuki Gap
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Bearish Reversal Patterns
Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Engulfing
Evening Doji Star
Evening Star
Hanging Man/ Dragonfly Doji
Harami
Harami Cross
Identical Three Crows
Kicking
Meeting Lines
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Shooting Star/ Gravestone Doji
Three Inside Down
Three Outside Down
Tri Star
Two Crows
Upside Gap Two Crows
Doji Star
Downside Gap Three Methods
Downside Tasuki Gap
Falling Three Methods
In Neck
On Neck
Separating Lines
Side By Side White Lines
Three Black Crows
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Three Line Strike
Thrusting
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Focusing on Trend Analysis
Proper trend analysis can be an extremely powerful tool. It gives you the
ability to make accurate forecasts of the future changes and movements in
the market. However, bear in mind that trend analysis depends on certain
factors, such as trend lines, which cannot be considered true indicators of
the market owing to the fact that they do no lag. In fact, trend lines should
actually be considered road maps. Nonetheless, they play a major role
when one is conducting trend analysis.
Drawing a Trend Line
Trend lines are among the most basic tools for traders in all trading
markets. They are also considered by many to be the most effective tools
for a binary option trader. Binary traders who can learn to use trend lines
for making the diagnosis of the market patterns are also more likely to rely
less on other technical indicators which are commonly used.
An uptrend indicates the prices are getting higher lows and higher highs. A
downtrend indicates the prices are getting lower highs and lower lows.
When you are just starting out in trading, it is possible you may be unaware
how to draw a trend line which may cause you to misjudge the action of the
price. If you want to draw a trend line showcasing an uptrend or a Bullish
trend:
1. Look for the lowest low.
2. After that, look for a higher low, coming after the lowest low.
3. Now simply connect the dots and keep moving.
Similarly, if you wish to draw a trend line showcasing a down trend or a
Bearish trend, all you have to do is to follow the opposite. That is:
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1. Look for the most recent high.
2. After that, look for the next lower high.
3. And simply connect the dots and keep moving.
Trend Line Strategies for Binary Trading
Even when you are handling trend lines, it is necessary to have a strategy
in order to trade successfully. Among the other aspects which can help you
develop a successful strategy, the following two points should always be
considered:
Support Line – This line is usually near lower price extremes. It does not
allow the price to fall below the mark and greatly supports the uptrend.
Resistance Line – This line is usually near the upper price extremes. It
does not allow a price break above itself, successfully providing resistance.
Remember a simple rule: As the trend becomes stronger, it will retain its
direction. Another indicator which shows the reliability of the trend is by
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looking at the number of times the price has tested the support and
resistance lines and come back. The stronger the trend, the less likely it is
that the price will break through it.
Tunneling for Binary Trading
The tunneling strategy is meant for simple use and is highly effective. This
strategy is largely based on the intersection of moving averages. It can also
be used on all types of binary trading options. When considering the
tunneling approach, pay attention to certain indicators, such as the EMA -
Exponential Moving Average, the WMA - Weighted Moving Average and
the RSI indicator. All three aspects can be combined to manipulate the
binary trend lines for your benefit.
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Support and Resistance Lines
When you are trying to read a chart of the market, the best way to do that is
by trying to look for support and resistance lines. As discussed previously,
these two lines can be the best and most effective way to understand the
mood and emotion of the market and the direction they are taking.
Support
Support shows the point at which the price has stopped falling in the
market is at a temporary rest.
Resistance
Resistance shows the point at which the price has stopped rising in the
market and has taken a temporary break.
Drawing in the Lines
When you want to draw a line showcasing resistance or support, you need
to take note of two points: the most recent low and the most recent high.
From that point, all you have to do is to draw two lines, one under the
recent low and one above the recent high. Nonetheless, it is better to wait a
bit and let the market test the lines and make the zone of support more
evident for you.
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First Strategy for Trading
Now that you know where the support and resistance lines are, you can
look to them to develop your first trading strategy.
If you want to buy, buying near a support area can be the best option for
you. Similarly, if you want to sell, a resistance area can offer you better
chances of making a sale. This works because a strong support makes it
more probable for a low market price and if there is a strong resistance, it is
more probable for a high market price.
By trading near these two areas, you can develop a highly effective trading
strategy that is perfect for when you are just starting out since it can help
minimize risk.
Identifying the Level of Strengths and Weaknesses
The more frequently the resistance and support lines interact with each
other, the stronger is the possibility for a trader to make a profit. A minimum
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of three touches is necessary in order to confirm a great entry point. If the
timeframe is longer, the indicator is better. When you move on towards
more advanced, trading patterns you will to take the price action into
consideration as well as other patterns like Bollinger Bands.
Bollinger Bands
Devised by John Bollinger, Bollinger Bands are a map of the price volatility.
The Bollinger Bands has three parts in their charts. The first part is
indicated by a curved line in the middle called the Moving Average line. The
second part is indicated by a lower band and the third part is indicated by
an upper band.
The lower and upper Bollinger Bands create a statistical curve which is
used on the price. In fact, the upper and lower bands represent a bell curve
around a moving average. Bollinger Bands are used as indicators in
several markets. The bands allow a trader to verify whether the price is in
resistance or whether it is in support. Prices which are close to Bollinger
Bands can pause or reverse its direction.
The strike price for a binary option may also be within this band. You need
to be aware of where the binary strike price is in relation to the band in
order to successfully estimate the degree of resistance or support it might
face in the future.
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Interpreting with Bollinger Bands
Learning to interpret or read Bollinger Bands is fairly easy and you can rely
on a three-step process to complete it:
1. Pay attention to the shape of the band. These bands can be wide or
narrow. If the band is narrow it showcases indecision in the market
regarding the direction it should take. The bands also become narrow
when the range between support and resistance decreases.
2. Pay attention to the direction taken by the bands. The bands can
choose to go in three directions: tilted down, sideways or tilted up.
Sideways bands are in a state of a rest and will resume going up or
down. If a band is tilted up, it shows an upward trend. When the
bands are tilted down, it shows a downward trend.
3. Pay attention to the location of the price. The price, in the form of
candles or bars, is commonly found at the right of the band. If several
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candles are located on the lower or upper band, it can show that the
market is undecided regarding the direction it should take.
Fibonacci – Lines of Resistance
The Fibonacci ratios are among the most important pattern tools in binary
trading and you need to apply them to all your price patterns. On the
Fibonacci lines, Stops, Limits, Puts and Calls are located close. The
Fibonacci lines are extremely useful in helping determine where the
resistance and support lines or areas will be.
When trading binary option for long time periods, such as weekly, daily and
four-hour, you can apply them to your price charts more effectively. When
markets change or react, they usually move in a pattern called Fibonacci
ratios. An easy way you can apply Fibonacci lines in binary option trading is
by:
Locating the Fibonacci line on your chosen daily or weekly chart.
Determine the price in relation to the key Fibonacci ratios when
applying the Fibonacci lines.
Determine which Fibonacci line is near your chosen binary option
strike price.
The connection between binary strike prices and the Fibonacci lines are
important as they help verify which strike price is the best one for use.
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Focusing on Technical Analysis
In plain and simple terms, technical analysis deals with the future
movements of the financial price in the market. By studying past movement
patterns, traders try to determine its future moving patterns. However,
much like any forecasting technique, the predictions cannot be considered
absolute since various factors can affect the outcome.
Therefore, technical analysis should be considered as a tool which can be
used to anticipate a certain movement only. It is applicable to a wide array
of charts including the ones for futures, stocks, indices, commodities and
any other trade where supply and demand are the influencing forces on the
price.
Moreover, the price refers to various combinations that are given for a
chosen security in a given time period which can be on an intraday, daily,
weekly or even a monthly price data basis.
Basics of Technical Analysis
The basics of technical analysis revolve around the Dow Theory which is
used as the basis for modern day technical analysis. In the theory, the
three most relevant points are as follows:
Price Discounts Everything – Technical analysts believe that the
current price reflected in the market showcases many market trends
and other hidden aspects, such as the total sum of all participants,
including traders, buy-side analysts, sell-side analysts, investors,
portfolio managers, market strategist, technical analysts, fundamental
analysts, etc. Technical analysis uses this information to interpret the
present and future market trends.
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Price Movements Are Not Totally Random – Movement of price is
based on trend. However, there are periods when price does not
move in accordance with a trend. Luckily, it is possible to apply
technical analysis to various timeframes in order to spot short-term
and long-term price trends for the present and future.
“What” Is More Important than “Why” - When conducting technical
analysis, one should only be concerned with two major things:
1. What is the current price?
2. What is the history of price movement?
The objective of most technical analysis is to predict the direction price will
take in the future. By focusing on price only, the technical analysis can take
a more direct approach.
Technicians believe it is best to concentrate on what and ignore the why
while the fundamentalists focus more on the why. However, when all one
needs to know is the value of an asset and what someone is willing to pay
for that, it becomes easier to ignore the why.
Strengths of Technical Analysis
While technical analysis is not without its faults, the following are its
strengths which recommend it for the use of everyone:
Focusing on the Price
Since the main goal is to predict the price in the future, it is natural to focus
mainly on current price movements. Price movements usually precede
basic market developments. By focusing on the action of the price, one is
able to focus on the future price automatically. Even to keep pace or to
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predict changes in the market, focusing on the price can provide certain
hints which allow one to be better prepared for those sudden changes.
Supply, Demand and the Action of Price
The action, the present, and the future price can be greatly influenced by
the supply and demand of a certain commodity in the market. Moreover, it
is also possible to predict whether the price will decrease or increase in
action. In the most basic reading, high prices can be considered an
indication of an increase in the demand for that commodity. Similarly, a
decrease in the price can be looked at as an increase in the supply of the
commodity.
Support and Resistance
Simple analysis can help identify the levels of support and resistance in the
market. These are normally marked by periods where the prices usually
show movement, only within a certain range for an extended period, and
can easily predict that supply and demand are deadlocked.
When prices are out of the defined trading range, it shows that either
demand or supply is rising. If the prices start to move above trading ranges,
upper band, demand is in the lead. If the prices move below trading ranges,
lower band, supply is in the lead.
Price History – Pictorial
Pictorial price history is present in the form of a price chart which can offer
one plenty of valuable insight and information. The price chart is a pictorial
account of the movement of price during a certain period of time. It is far
easier to read as compared to trying to read a table of numbers. Price
charts make it easy to identify and find out more about the following:
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Reactions in price, before and after certain events.
Volatility of price in the past and present.
History of trading levels.
Strength of a stock as compared to the market.
Assisting with Entry Points
Technical analysis can help traders find out a proper entry point to enter
certain markets since proper timing can make a huge impact on market
performance. Technical analysis can help identify support and resistance
levels along with the breakouts. Finding a breakout situated above a
resistance level or choosing to buy near support levels can improve the
returns one can get.
The Weak Spots of Technical Analysis
While it has its strengths, technical analysis does not come without a set of
flaws and it is necessary to be aware of them:
Bias of the Analyst
Technical analysis is subjective and it is possible for the personal biases of
the analysts to be reflected in the findings of the analysis. It is important for
the analyst to be aware of these biases and discount them when analyzing
a chart.
For example: If the analyst happens to be largely a bull in the market, then
it is possible for a bullish bias to overshadow the findings of the analysis.
On the other hand, if the analyst happens to largely be a bear in the
market, it is possible for a bearish bias to appear in the findings of the
analysis.
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Open Interpretation
The findings or results one gets from a technical analysis are often open to
the interpretation of the analyst. Even though there are some standards, it
is possible for two technicians to look at the same chart and yet read two
different meanings or see different patterns based on what they think it
means.
While this is frustrating and can make one wary of trusting the findings of a
technical analysis, it should be noted that technical analysis is treated more
like an art than a science. It’s like one of those trick questions where the
cup is either half-empty or half-full.
Always Something More
Even when a trend has been identified, there will always be another level of
“importance” nearby. With an open interpretation approach, it is possible for
one to always find another level, to always look for another level and never
really be completely satisfied with the results.
Late Predictions
Another flaw in technical analysis is that the traders run the risk of being
too late. By the time a trend has been identified with the help of technical
analysis, it is possible for a large part of the move to have taken place
already.
Remorse of the Trader
Not all the signals and patterns of technical analysis work. While you will
have various rules and indicators and patterns which match, it is still not
possible the pattern will not change because it is subject to change and is
influenced by other factors, like momentum and volume. On this basis,
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what works for a particular trader may not suit another even though most
principles in technical analyses are universal.
Conclusions of the Analysis
Even though there are some principles and rules which can be applied to
technical analysis on a universal level, it is best to treat technical analysis
more like a form of art than a science. Even as a science, it is largely
subject to open interpretation.
Nonetheless, it is flexible in approach and each trader should develop and
use one which suits their style and answers to their needs. Developing a
style can take time, dedication and effort but the rewards are worth it.
Charting in Technical Analysis
In technical analysis, the charts are easy and look like many charts which
are common in any business setting. However, there are a few factors one
should pay attention to:
Properties of the Chart
There are various points you should be aware of when observing a chart,
since they can affect the information it shows. The main points which
should be studied are the timescale, price scale and the price point
properties used to create the chart.
The Timescale
The timescale consists of the various dates which are located towards the
bottom of the chart, showing a variance ranging from decades to mere
seconds. The timescales which are frequently used are:
Intraday
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Daily
Weekly
Monthly
Quarterly
Annually
Intraday charts note the movement of price within a single day. This
means, their timescale can range from 60 seconds, five minutes or it could
also cover the whole day, from the opening bell to the closing bell.
Moreover, shorter timeframes also have more detailed charts. Each point of
data represents the closing price at that time or showcases the open, high,
low and close points depending on the chart.
Daily charts note the movement of price on the chart for a full day's trading.
Again, if the data represents the closing price at that time or showcases the
open, high, low and close points depends on the chart.
Weekly, monthly, quarterly and annually charts are used for long-term
trends to study the movement of price of a particular stock. Each point of
data will indicate what happened in that specified time period.
The Price Scale and Properties of Price Points
The price scale is located on the chart towards the right-hand side. It shows
the current price of the stock and draws comparisons to its data points in
the past. This seems like a simplistic concept, the price scale moves from
lower to higher prices as the scale moves from the bottom to the top.
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Chart Types in Technical Analysis
In technical analysis, there are four types of charts which are mainly used
by traders. The charts vary based on the information the traders are looking
for and their individual skill levels. These four chart types are:
1. Line chart
2. Bar chart
3. Candlestick chart
4. Point and figure chart.
Line Chart
The most basic chart out of the four mentioned above, this chart only
showcases the closing prices given over a set time period. The lines are
created by joining the closing prices.
Line charts are not meant to provide visual information about individual
points of the trading range, such as the high, low and opening prices.
Nonetheless, since the closing price is considered the most important price,
it is the only value widely used in line charts.
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Bar Charts
The bar chart is a chart which is an upgrade of the line chart owing to the
fact it has more information regarding each data point. The chart has a
series of vertical lines which represent the data points. The vertical line is
used to represent the high and low of that trading period, as well as the
closing price.
The open and close are on the vertical line and are represented as a
horizontal dash. The opening price on a bar chart is showcased by a dash
on the left side of the vertical bar. The close is showcased as a dash on the
right.
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Candlestick Charts
The candlestick chart is similar to the bar chart, but the main difference lies
largely in how it is constructed. The candlestick chart also has a vertical
line which shows the trading range for a certain time period.
A wide bar on the vertical line highlights the difference between the open
and close. Like bar charts, these candlestick charts rely on colors to
highlight important events in certain trading periods.
However, a huge problem of the candlestick chart color configuration is that
different sites use different colors according to their standards. Therefore, it
is best to take the time to understand the color configuration used by the
chart site you are working with for your candlestick chart.
There are largely two colors to show up and one for days when price falls.
When the price is up and closes above, the candlestick can be clear or
white. If the stock is down, the candlestick can be black or red.
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Point and Figure Chart
Point and figure charts are completely unique as they do not plot price
against time like the other charts do. Instead, this chart focuses on the
price and the changes it has taken in direction. This is done by plotting two
columns. A column of X’s represents the increase in prices and a column of
O’s represents the fall in price.
Point and Figure charts are focused on the action of the price and not time.
If no significant price moves occur, then nothing changes on the chart.
Many technicians claim this different approach makes it easier to find
patterns and trends in Point and Figure charts as compared to other charts
because it largely filters out all the unnecessary data.
Charts are the most basic parts of technical analysis, therefore it is
necessary to understand what is shown on a chart and the information they
can provide.
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Chart Patterns in Technical Analysis
A chart pattern is a formation that is used as a trading signal, or a sign of
price movements in the future. Traders use them to identify current trends
and reversals.
While there are general components to a chart pattern, there is no pattern
which can predict with 100% certainty the direction of a security. There are
two major types of patterns within technical analysis:
Reversal: A reversal pattern shows a trend will reverse when it completes
a pattern
Continuation: A continuation pattern shows a trend will continue even
after the pattern is complete.
Both these patterns can appear in charts regardless of the timeframe.
Head and Shoulders
This is among the most reliable and popular chart patterns in technical
analysis and is a reversal chart pattern. It shows a security is likely to move
against the previous trend. This pattern has two versions. One forms on the
high end of an upward movement and shows an upward trend is going to
end. One forms on the bottom. Even though it is the lesser known
occurrence, it signals a downtrend in reversal.
Both these patterns are similar and have four main parts: two shoulders, a
head and a neckline. Each head and shoulder is made up of a high and a
low. The head and shoulders chart pattern largely shows the presence of
weakening in certain trends.
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Cup and Handle
A cup and handle chart is a continuation pattern which is bullish in nature. It
shows when there is a pause in the upward trend the trend will continue its
ascent once the pattern has been confirmed.
The handle follows the cup pattern and is largely formed by a downward
and sideways movement which appears in the price of a security. Once the
price pushes through the lines of resistance lines of the handle, the upward
trend continues. This pattern is usually for longer time periods, ranging
from a few months to more than a year.
Double Tops and Bottoms
This chart pattern shows when a trend reversal is appearing. It is also
considered the most reliable indicator and is used widely. This pattern
forms after a trend has been sustained and shows that the trend is about to
reverse.
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The pattern is created by price movement tests which support or resist the
levels and are unable to break it twice. This pattern is used to signal long-
term reversals in trends.
Triangles
Triangles are also among the well-known chart patterns of technical
analysis. There are three types of triangles and are known as the
symmetrical, ascending and descending triangles. These chart patterns
can appear and last from a few weeks to a few months.
The symmetrical triangle has a pattern wherein two trend lines turn towards
each other. This pattern shows a breakout to the downside or upside of a
trend in that direction.
In the ascending triangle, the upper trend line is flat, and the bottom trend
line slopes upwards. This is a bullish pattern which shows an upside
breakout. In the descending triangle, the lower trend line is flat and the
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upper trend line descends. This is a bearish pattern which shows a
downside breakout.
Flag and Pennant
These two short-term chart patterns are continuation patterns which are
formed when there is a sharp price movement followed by a generally
sideways price movement.
This pattern is then completed upon another sharp price movement in the
same direction as the move which started the trend. The patterns are
generally thought to last from one to three weeks.
The main difference between the pennant and the flag can be seen in the
middle section of their patterns. In a pennant, the middle section has
converging trend lines, similar to the ones in a symmetrical triangle.
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The flag shows a channel with no convergence among the trend lines. In
both cases, the trend continues when the price has moved above the upper
trend line.
Wedge
The wedge pattern can be a reversal or a continuation pattern. It resembles
the pattern of a symmetrical triangle except that the wedge slants in a
downward or upward direction. The other difference lies in the fact that
wedges form for long periods, usually around three or six months.
Since wedges are continuation and reversal patterns, they can be rather
confusing to read. Luckily, a falling wedge is bullish and a rising wedge is
bearish. If the price rises above the upper trend line, it forms a continuation
pattern, while if it moves below the lower trend line, it forms a reversal
pattern.
Gaps
Gaps are used to signify when something important occurs, like better-
than-expected earnings. There are three main types of gaps:
Breakaway – This gap forms at the start of a trend
Runaway – This gap forms during the middle of a trend
Exhaustion – This gap forms near the end of a trend.
A gap shows an empty space in a chart, usually to mark one experienced
between a trading period and the next trading period. This happens
because the prices have a large difference
Gap price movements are generally shown on bar charts and candlestick
charts but are omitted from point and figure or basic line charts.
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Triple Tops and Bottoms
Triple tops and triple bottoms are reversal chart patterns. They are not as
common as head and shoulders and double tops and bottoms, but they
work in a similar manner.
The pattern is created by price movement tests which support or resist the
levels and are unable to break it thrice. This pattern is used to signal long-
term reversals in trends.
When triple tops and bottoms are forming, there can be a lot of confusion in
identifying them because of their similarity to other patterns. Since it also
relies on support/resistance, it could look like look like double top or bottom
which can make traders move too soon.
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Rounding Bottom
A rounding bottom, also known as a saucer bottom, is a long-term reversal
pattern. It signals a move from a downward to an upward trend. This
pattern can last from several months to several years.
A rounding bottom pattern looks like the cup and handle pattern but it lacks
the handle. Its long-term nature and lack of any confirmation trigger, like
the handle in the cup and handle pattern, make it a rather tough pattern to
trade on.
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Things to Keep in Mind
The success of a financial enterprise is largely based on how well one
follows and implements their business plans. Many failed attempts can be
attributed to the absence or lack of a proper plan. While people often forget
all their business savvy skills when they enter the field of binary trading, it is
better to keep your wits about you and eliminate all personal and emotional
interests in trading.
The best thing to do is to craft a business or trading plan which not only
allows you to follow your current goals but also makes room for future goals
and any unexpected market changes. A trading plan helps you decide how
to implement trading strategies while also outlining certain rules and
restrictions which make it easier to trade safely and wisely.
Trading impulsively and on a ‘luck’ basis can allow your emotions spill into
your business and financial endeavors in binary trading which can be
dangerous or harmful for you. Impulsive or undisciplined trading habits can
make it easier to make trading decisions which can ruin you.
Moreover, they also pave the way towards a gambling addiction since
many people love the adrenaline rush they get from trading when the odds
are against them. Once this happens, all reasonable thought processes go
flying out the window and it is possible to start making thrilling, frivolous
trades which slowly turn into reckless, compulsive trading, ruining both your
trading account and your life.
When making a trading plan, remember to:
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Define its Objectives – These should be the basis for your motivation to
trade, giving you a tangible end goal. All you have to do is consider what
you hope to achieve with the help of your trading account. Keep the
expectations realistic and achievable so that you will stay motivated and
not get disheartened if you face any setbacks.
Think on a Long Term Basis – Don’t stress over day to day results. Think
of your trading account as something meant for a long-term basis so try to
opt for trading options based on weekly or monthly targets. Day to day
trading options only provide small payoffs which may look significant at that
time but they are nothing compared to the profits gained by meticulously
planned, long-term trading options.
Keep Track – Keep track of all the market changes or other changes in
your trading routine so that you do not get completely thrown or bowled
over when things take a sour note. Therefore, keep a notebook of all
withdrawals, deposits and profits you incur. This will also allow you to see if
your trading plan is yielding solid returns for you or not. You can then tweak
your plan or strategize more comfortably based on your findings.
Once you have made your trading plan, remember to stick to it. Do not
jump over it or opt for impulsive trading since it can lead to you developing
more negative qualities. It is best if you develop the habit of reviewing your
plans before you start setting up or searching for a trade. This will ensure
you will be more secure emotionally and mentally should you face a loss or
gain a profit. This will also help instill the importance of treating trading
options like a business.
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Apart from the trading options plan, remember to keep up with the technical
research and fundamental research as well. It is important to be aware of
market happenings as they allow you to prepare trading strategies
according to them. Moreover, before any change happens, there are
certain warning signs which, if picked up early enough, can be considered
as guidelines to upcoming market changes.
Big Picture – Positioning in the Market
Trading options are the most viable mode of trading which allows one to
take advantage of major trends for long-term purposes, like oil, currency
and gold. Thinking on a long-term basis will also allow you to focus more
on establishing a solid position in the binary trading market and working out
the best sell and buy strategies which can help you gain a solid footing in
the market.
Even if you experience a momentary setback, don’t look at it as a complete
loss. Consider it a setback, get over it or work your way around it and focus
on the big picture. This is particularly important for people who want to use
binary options as a basic stepping stone before they move on towards
trading in other markets.
Therefore, consider binary options trading as a primary challenge which
helps develop mental and emotional maturity. You can learn to govern your
emotions and work in a calculated manner which bears results for you.
Moreover, trading requires a lot of research and analysis and binary
options are no different. The research involved in binary options for
strategizing, developing a trading plan and keeping track of market
changes can help you later on as well.
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All in all, binary trading options should be considered as something which
allows you to build on a long-term basis. This also means you should
consider trading on a monthly or weekly basis. Avoid the day to day and
60-second trades because they do not give you enough room for
prediction, research or strategizing.
Moreover, the nature of these short-term trading options makes them prone
to sudden changes which make trading these options akin to gambling. The
exhilaration of picking a trade which pays off in 60 seconds without proper
strategies or research can also encourage one to indulge in undisciplined
trading.
Once that habit develops, it is extremely difficult to break it. Another thing to
keep in mind is if you already suffer from gambling or betting addiction,
trading binary options will not be a good idea. Nonetheless, if you take the
time to understand and strategize, binary options can be extremely easy
and rewarding and you may find yourself coming back to them again and
again, even when you have moved on to trading in other items.
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Conclusion
While binary trading does happen to be among the easiest in the trade
markets, it still has certain hidden tips and tricks that can greatly assist
anyone who is just starting out.
Moreover, sometimes, things might look too tough or too difficult and you
may be unable to make a successful trade but remember to keep your
emotions out of the mix. Think smart and think with a clear head and you
will soon be on your way trading successfully.
However, while the risks involved are small in the beginning, working with
binary trading options also gives you the opportunity to develop, hone and
practice good trading practices which can yield maximum results for you.
With attention to risk control, you can easily achieve this too.
With this eBook, you can start making winning financial trading decisions
as well as follow a basic roadmap which will help you reach the end result
when you only have a limited amount of capital to start out with.
We hope you learnt many of the strategies and patterns which make up a
huge part of binary trading. Moreover, with the help of this eBook, you can
develop proper trading habits which can assist you when you want to move
on from trading binary options to trading other assets.
We wish you all the best.
Good Luck!