How to Become a Profitable Binary Option Trader

Trading binary options is simple, right? All you need to do is just deposit, choose an option, click “Low” or “High,” invest money, and lastly, submit your trade? There are many advertisements and websites telling you that becoming profitably binary option traders is as simple as ABCD. While the steps that you take to input your trades in the binary option broker’s site may certainly be quick and simple, being capable to click your ways through the trading interface doesn’t mean that you’ll become a lucrative trader. Profitable trader depends on having a great systematic method for making constant trades. They also depend on being capable to manage your wealth responsibly and intelligently, and having the obedience to follow through. Below are the steps to become a profitable trader—one who depends on skills and eventually wins.

Learn all you can on binary option and its trading.

All excellent journeys in life depend on having a perfect road map, and here, binary option is no exception. Absolutely you should have a solid working knowledge of markets along with how to trade to do well.

Select a good broker

If you’ve a great trading technique and everything in place for great success, however you forgot to select a reliable broker who offers you with the trading features that you require to reach your objectives, you won’t be capable to become profitable. Therefore, do lots of research, and be very selective as per your criteria.

Find a trading technique

You’ll have to find out a method to win. There always will be a part of likelihood involved in trading, thus and part of risk. You may never eliminate that fully, but you may learn to control the risk and decrease your possibilities of losing any trade by looking for pattern in the markets, and turning up with testable methods for exiting and entering binary option trades that let you avoid losing trades.

Never stop learning and testing

Even after you begin trading profitably with actual money; never stop finding new things about this market and working out on perfecting your methods. In addition, you will promptly find that market isn’t a static body, it’s a growing ecosystem, and your trading technique and you will need to be flexible to grow with it.

Write your trading strategy and turn up with realistic aims

Trading binary options can be an extremely complex action, and it pays off often to write your trading strategy. This includes every details of your own trading system, a comprehensive checklist for entering the trades (so that you don’t skip steps on mistakes), and also the other aspects of options trading such as your schedule, your mindset, etc. This is a great place to record the trading objectives, which should be meaningful and realistic. You also must consider keeping a thorough trading journal in order that you can easily track your past growth and make any desired changes accordingly, which will assist you profit a lot more in future.

 

What is Hedging?

“Hedging your bets” is a common term in binary options, used or heard by most of us. We use it in everyday life, even when we aren’t talking about binary option trading. When you observe someone equivocating on any point, and then trying to cover his bases, that person is hedging his own bets. And that’s what hedging exactly means in trading. This means you’re trying to cover your bases and guard yourself against losses in the best possible way. When you hedge, generally you’re trying to find out a way to earn profit regardless of what the market is doing, even though it ends up in doing the opposite of what it was expected to do.

Great Hedging Ideas for The Binary Options Traders

Nowadays, there are levels of hedging; along with them comes different tactics that you can utilize to hedge in diverse kinds of trading. For example of degrees, consider hedging your entries vs. hedging your trades actually. Double touch option having a trigger point which is set below and above the present price will be an instance of hedge where you’re giving yourself an opportunity to win whether market goes upward or downward, but you’re in one trade only. If you would have been trading Forex, anticipating a breakout in any direction, you could have set an entry below or above the current rate level, and simply got rid of the surplus entry when the right one triggers. In this situation also, you are in an individual trade, but you hedged on entry still.

Another method you can hedge easily is by being in two different trades at a time. If you’re trading Forex, you for example can open two different positions from single entry point, both buy and sell. If those two positions are of same size, when both are open, then you’ve a profit of zero. This might sound worthless, but think that you could do a better trade in direction you’ve more confidence, and a small trade the opposite direction. As the confidence grows, you may close the small position. However, if things go bad and both the positions are open still, the smaller profit position would return some money at least.

Overall, with binary option, you can’t open two contradictory positions on one asset for one trade. You need to pick up a direction, Low or High. However, you can hedge by opening second position in opposite direction on any related asset that you expect to perform less or more in the same way like the first one.

A few traders may also choose to trade both Forex and binary option. This offers you with yet another hedging opportunity. Say for example you opt for “High” on binary options for a specific currency pair; however, you wish to hedge and just open a small bearish position. And if you’re a Forex trader too, you can open a small bearish position on Forex platform simultaneously when you enter in your bullish binary option trade. This offers you a little protection if your binary option trades fail.

The Pinocchio Strategy of Binary Options Trading is In Play

Pinocchio Strategy has gained a great name because when one looks at the candlestick chart when trading binary option, he/she will find a single candlestick with small gap between opening and closing prices, but a big line representing that during the indicated time period, either the low or the high was a tremendous outlier. This binary options strategy is quite trustworthy, but before you utilize it, you should know how to apply it properly and what drawbacks to look for.

Application Is the Key

This binary options strategy is pretty simple to identify, which makes it an extremely popular one. It’s a visual indicator; however, it relies greatly on price motion and trader psychology, offering it double whammy when efficiency is considered. Thanks to the reality that the lengthy wick, this signal signifies that traders aren’t confident in reversal that’s occurring, but instead expect the old trends to continue. Oftentimes, such type of things becomes self-fulfilling predictions, letting it to be tremendously efficient when you relate it to a bigger trading plan.

The best method to approach utilizing this binary options strategy is to watch a few diverse assets at once. After you find out that an asset tends to be in an established trend—it could either be an upward or a downward direction—then you wish to begin looking for the signs of reversal. It should only be in the starting stages. If it’s going to occur at this point, the “Pinocchio” candlestick must emerge. When it emerges, you must execute the option in direction of the earlier confirmed trend. And if it is going down, then Pinocchio candlestick must be a highpoint. After this occurs, execute the put option. In case, it is going up, Pinocchio candlestick must have the wick going downwards. When you see it, execute the call option.

Timing is essential in this. If you’re looking at 5 minutes chart, your option must have expiry of not less than five minutes, but not more than fifteen minutes. If you’re looking at one minute chart, your trade must range between sixty seconds and five minutes. No matter what timeframe you’re trading, you must carry out the trade as fast after Pinocchio candlestick as possible for you.

Drawbacks Do Happen

The biggest problem with this approach is that it does not materialize frequently. When the pattern occurs, it is quite trustworthy as long wick signifies trader indecisiveness, but it is not a pattern which pops up every day. That’s the reason why you must monitor different assets over different timeframes to try and capitalize on your possibilities of success.

Another drawback of this is the reality that it is easy to become satisfied with it. Lots of traders are attracted to risk a lot on this due to its high chance of success. Its odds of success are slightly better than the other patterns or signals, but it can fail still. You should ensure not to risk a lot, but stick to your usual 1-2% risk per trade.

How To Locate A Trusted Binary Option Broker?

With so much information circulating around the web, it can be intimidating to tell about the weed from good plants and that’s why any new binary option trader should choose their broker elegantly. A simple online search on the binary option broker scams will get you an amazing number of results. The below mentioned tips will assist you to find reliable binary option broker.

Distinguishing The Facts From Fiction

Thinking that you’ll be searching forums and looking out for recommendations and reviews from clients, it is imperative to be capable to mark the facts. It’s a fact that lots of traders fail, without making any profit.

Taking time to read reviews and posts is a great idea; but, it is imperative to check whether the reviews are posted in great faith or intentionally intended to get to a broker, as an expression of irritation from failed traders.

 Look for High Quality Customer Services

You want to ensure that you’re trading on the platform where administrators tend to be very focused on customer concern. Sometimes traders fail due to bad communication with their brokers. With great customer services, you can get a high quality of training, which lets you to take better business decision with more confidence.

The key here is communication, so it is valuable finding out whether the broker replies to emails in a timely manner and if they solve customer issues rapidly. Choose the broker who has a reputation for offering exceptional customer services, ensuring that communication is apparent with traders.

Check the Reputation of Broker

Certainly, every broker will talk highly of their services. They are in market to make wealth and get more clients. Therefore how will you find that what they inform you is true or not?

Firstly, you can find roughly the traders doing their business with that specific broker. Although well-established and big firms can offer standard services, it isn’t essentially true that you will feel more contented with them. A broker’s reputation does not come from whatever they say; but, it comes from business and customer ratings. It’s your liability to find what the other traders are speaking about broker. Another imperative aspect of a trustworthy broker is that they have the business registration and license needed to do business.

Check Professional Reviews and Business Listings

There are specialists in the markets who take time to dig in different binary option platforms and decide whether they’re scam or legit. They publish reports that are based on a range of information like customer ratings, professionalism of broker, tools they use, etc.

Finding A Trusted Binary Options Broker

The above mentioned tips can help you in detecting the scams and finding reputed binary trading brokers, but it’s imperative to keep in mind that the best service for you will actually depend on the level of your needs and experience. Take time to read on as much as possible for you to be confident about your selection of broker – without ever falling into the traps of analysis paralysis as well as choosing no-one!

Efficient Strategies For 60 Second Binary Options Trading

In the quick trading environment of modern financial markets, lucrative trading opportunities may last for an instant only. To maximize these small trading windows the proper trading tools are needed. That is why the opening to trade binary option in 60 second was developed.

The 60 seconds binary option let you trade fast and frequently throughout the day, exiting and entering from many profitable trades during the trading session potentially. To trade 60 second options you should be appropriately prepared and should have efficient binary options strategy in place. Have a look at the finest ways to trade 60 second binary options profitably.

Have A Good Plan

It’s critical that you’ve a plan going in your 60 seconds trade. The 1 minute window of 60 second trades doesn’t allow time to reorganize your plan or its implementation. You need to exactly know what you’re going to do prior to you enter in the trade.

Strike Prices

It’s important to know to set the strike prices and the total quantity of trading size. These variables tend to be the most imperative parts of establishing any 60 seconds trade. Testing the platform will assist you understand how capable it is. In 60 second trades even moderately small changes to rate movements can upset a binary options strategy.

Understand The Platform

Make sure that you’re comfortable with the trading platform when executing a 60 second trade. That is why it’s so useful to select a platform that includes demo account option. This will let you familiarize yourself with user interface in order that you know exactly how to implement the trade, and know in which direction market is moving.

Money Management

With the 60 second binary options, it’s important to practice appropriate money management. It refers to what percentage of the trading account you dedicate to a trade. It’s suggested that with 60 seconds trades, you put not more than 2 to 5 percent of your account in a single trade.

Momentum Trading

It’s where you trade financial assets that are strongly moving in high volumes in one direction. When trading 60 seconds options, it’s the best practice generally to trade with overall direction of market. Trading against market can be extremely risky and difficult.

1 -2 – 3 Approach

It’s a short term binary options strategy which can be highly efficient for trading 60 second binary options. With this, you’re looking for the three trading indicators including high point, low point and point three which doesn’t go as higher at first point. The third point should be lower than first point so the conditions for trades are met successfully.

Sushi Roll Strategy

Next kind of trade suited to 60 seconds trading is the “Sushi Roll”. In this, you’re looking for the period where first five bars – called inside bars – are included within range of second five bars. Whenever you see the “Sushi Roll” model in downward trend, it’s an indicator which a reversal might be about to take place. It means that you should purchase “call” binary option. In case the pattern arises during upward trend, look to enter in a “put” option.