Although binary options trading is described by simple, sometimes mockingly called a gamble, it is nevertheless necessary to pay attention what you are doing and plan your trading intelligently. Just like with forex and many other types of trading, binary options, despite its simplicity, offers a number of strategies used by the traders in order to maximize the profit and minimize the loss.
Binary Hedging or Straddle Strategy – this strategy presupposes that everything that goes up must at some point go down. It involves trading the same assets in opposite directions simultaneously. First, the general direction should be chosen, that is, you need to decide whether you want to invest in “call” or “put” options. Then you need to choose an asset you want to trade and invest in accordance with the previously made decision. Finally, when the price of the underlying asset reaches your previously predicted assumption, you make an opposite investment.
Correction Binary Strategy – this strategy is a bit more of a risk, and it is based on the “gap” in the underlying asset’s price. At the beginning or the end of trading hours, it happens that the assets undergo unexpected increases or decreases in price, and this is where this strategy is aimed. The trader should look for important market announcements and aim to follow the asset’s fluctuation in price immediately before or after the groundbreaking event occurs. There is a rule called Correction rule which states that the asset will correct itself after the “gap” and return to its previous. The trader should use the market analysis charts in order to indentify the price gaps, and the trade is to be done in the opposite direction.
Fundamental Analysis – it focuses on studying any factor that can influence the price of particular assets, which can be on a global level or on a company level. Fundamental analysis can be performed by monitoring the financial calendar, but also following the news related to economy and industry, as well as the companies that are related to the assets you trade. It is based on the prediction of the asset’s price according to the market conditions.
Technical analysis – it also involves analyzing the market, but it is based on the historical price of the asset. A chart which shows the change of the asset’s price over time is given, and the trader can predict future direction of this asset by analyzing its change through previous period of time. Technical Analysis combined with Fundamental Analysis is a reliable tool in predicting the asset’s future performance on the market.
Social Trading – this is a new concept of trading which allows you to monitor how other traders do their trading on the market, and analyze their moves or even copy them.
When choosing a trading strategy, keep in mind the type of binary trading you want to perform, since there are several of them (binary options, pair options, 60 second options, available on Porter Finance). Choose the best broker for you, and do not hesitate to try all of the strategies, and even form some of your own.
Getting through the month with your salary is not something that is easy, and few days before next salary are the worse. But you can change that if you are willing to sacrifice few hours of your free time. Depending on how much of that time you are willing to sacrifice will reflect on the amount of extra money you earn. And here are few examples of how your free time can be spent in earning something on the side.
Acting as virtual call agent can bring in a lot of money, but you need a lot of time to invest in it. This job can be your primary source of income if you wish. Well you must be fluent in English language, stuttering is out of the option, and you will be paid to talk to people. If you decide to accept this kind of job go on LiveOps for detailed information and some training. They will set you to work for few companies. Everything you need to say to people that call will be already written, and you will have access to help from supervisors if some questions are asked and you are uncertain what to say. 25 cents per minute is you pay and work hours are up to you ( you can arrange your shifts, and length of shifts with people from LiveOps ).
If you have some experience in trading or casino games you might consider binary options trading. This field of trading is simple in its form because you have 50/50 chance of winning. Just be careful with which site you choose, if you want reliable broker search Banc de Binary strategy online.
If website development was once your hobby and you have some knowledge about it you can earn a lot. You can get paid for making websites, this work can be found on many freelance sites or you can go a step further. When I say step further I mean finding people who would work for you. Young people who need a source of income can create websites for little money, and your job is to find work and distribute it among those people and after that take the difference between what contractor is paying and what you give to your workers.
We are all good at one or two things which we don’t use or we can’t find way to earn through them. Well giving lessons, both online and real-time is a good way to capitalize on those talents. Giving lesson in playing guitar, teaching mathematics or any other school subject online can earn you, if nothing, some pocket change. If you are good in what you teach you can end up earning a lot more.
Facebook graphics or tweeter backgrounds can be created for companies who will pay you to present their page a bit better than it is. IF you are able to do this kind of work then you know how to make your own site. Create it, post your job there, and if you can advertise it.
Trading binary options, even though it is created to be very simple, can actually take e lot of time and effort to be executed successfully. A trader should spent time to learn the basics of trading and get familiar with the market and the different kinds of binary options. There are also a lot of market data to be analyzed and processed in order to be able to make right decision when calling or putting an option. However, many facilitating devices have been developed in order for the traders to save time, effort and nerves when trading binary options. They go from market digests which daily or weekly provide the trader with information and news, to binary options robots which execute the trading on trader’s behalf, without him even have to be in the room at the moment of trade.
There are pros and cons of binary options trading itself, and similarly, there are those who are more into automatic trading and those who prefer doing everything themselves. These are some basic advantages and disadvantages of both.
1.Time – the basic difference between these two methods of trading is time invested into it. For manual binary trading it is necessary to spend at least several hours a day analyzing the market and reading the news that can influence the prices of the assets you trade. On the other hand, all time binary options robots take is for you to find the one you want, sign up and maybe set some parameters for trading. The robot works by receiving the signals and creating financial forecast based on them, and depending on the forecast it decides whether to call or put an option. Advantage of binary option robot is that they can really save time, but if you intend binary options trading to be your first or only way of earning money, it may be better to actually spend some time learning how to trade and analyze the market yourself.
2. Emotions – another big difference is emotional involvement of the trader. When executing the trade manually, it can sometimes have a negative impact on the trade. If the trader is stressed, tired, nervous or under influence of any strong emotions, it can affect his judgment and therefore negatively influence the decision making. With binary robots, there is no emotional involvement, since the robot is concentrated solely on the data provided and no human interference is necessary to execute the trade.
3. Accuracy – this is a wide topic to discuss, since the accuracy of a human trader cannot actually be calculated. However, it can largely increase and it depends on the education and involvement of the trader in binary trading. When it comes to robots, their accuracy is calculated based on the number of successful trades they have executed, and even with the best binary options robots it does not go over 85%.
Whether to use automatized trading or not is not an easy question to answer. It depends on the preferences, on how much you are willing to invest and lose, and how seriously you plan to be engaged in binary trading. Ask yourself what your goals and preferences are, and then decide what should be your preferred method of trade.
If you did your job at learning about forex trading, then it is right time to talk which currency pairs you should look for, and why. I don’t suggest that you follow everything I write, or anyone else too, but do read this article and you might learn something new and lean toward some currency pairs you never thought about before.
This is educational article, therefore I will feed you information I deem necessary for every forex trader to have knowledge of, you may be familiar with some things, but bear with me, I believe there are things worth saying ,and thing that are worth repeating too.
Before we continue, I want you to understand that currency pairs are divided in groups, and each of these groups is an article for itself, but to shorten the number of words needed I will go through all of them here. Now these groups are: major currencies ( the majors ), Commodity currencies, crosses and exotics.
Majors are called as they are called due to two things, first they all include dollar and they are the most traded currency pairs on the forex market. These pairs can be recognized even without the knowledge about them, being majors because their movement is in most cases same. When price of one major pair goes up, then few other major pairs will have their price go in the same direction by the same percentage as their pair. Then there are pairs, in which USD is on different place than it is in the case of first currency pair. In this case price will go in contrary way by the same percentage. If you are not aware of this you may end up losing in a trade, because you invested in another, because of this negative correlation.
This negative correlation can be avoided or covered if you want to venture in the world of binary options trading, where some of the top binary options brokers offer forex currency pairs for trading and Binary Option Cashback.
Commodity currencies are, said in simple words, currencies from countries whose main source of income is in export of raw materials. Some currencies are considered both majors and commodity currencies, Canadian dollar and gold are just two examples of those currencies.
Crosses are currency pairs, which don’t contain dollar within. There are many crosses to choose from, but because they are not traded as much as majors their liquidity is low. Some of them are worth to trade, pairs like GBP/JPY and EUR/JPY, only because price movement range is wide and a lot money can be earned ( and lost as well ) in single trades.
Exotics are tricky pairs to trade, and if you are a beginner then avoid them completely. Their liquidity is low, even lower than crosses, and they have very wide spread. Spread is the price you pay to enter the market, majors price is around one pip, while exotics price can go up to 10 or sometimes 20 pips. To explain in words everyone understands, the greater pip spread you have to pay, with bigger loss you are starting the trade.
Trading binary options has become one of the most attractive ways for earning money. It was acknowledged as a trading method in 2008, and yet, it is much simpler than other methods of trading available on the Internet, such as forex. There are many binary options brokers – websites that offer trading platforms, together with market news, binary signals, trading robots and much more. Many of these brokers also offer demo account, which is an extremely useful options for many types of traders. It can be used by those who encounter binary trading for the first time, since it can help them understand the concept much better than simply reading about it. On the other hand, it can also be useful for more experienced traders, because not all brokers have the same platforms, and using a demo account can be a good way of familiarizing with the platform of a broker you plan to trade with.
What is so good about demo accounts is that you do not have to invest real money in order to trade. Every amount of money you enter in the “deposit” field will be fictional, which means that even if the trade fails, you will not use anything. To put it simply, it is like a math mock test in school – even if you do every task wrong, you will still not get an F. However, in order to be able to create demo account, you will be required to register with the broker and place the first deposit, which means that you need to pay some money after all. Many brokers offer an example of their platform on their website’s first page or on even on YouTube, but this is only a way of getting to see how it looks like.
24Option is one of the most widely used binary brokers, regulated with CySEC and trusted by millions of traders, that fact impugns rumors about 24Option scam. They offer many favorable features and one of them is demo account. The principle is the same like with most other brokers – after registering and placing the first deposit, you will have your account verified within a few minutes, and then you will get an access to the demo trading platform. The deposit needed for this is $250 minimum, which is a standard for most brokers, and considering the amounts of money deposited, won and lost on binary options platforms, it is not a very large sum. Demo trading platform is the same as the real thing, which means that you will be able to choose the amount of money you want to trade with, the assets, expiry period and different kinds of options this broker offers. This can give you a great insight into all the features of 24Option trading platform without losing any money. In the end, if you do not find the platform satisfying, you will be able to withdraw your deposit.
Using demo trading accounts is highly advisable if you want to increase success of your trading, since the better you know the platform and the options available, the better you will be able to form a strategy and you will feel more comfortable when you start trading with real money.