Binary Options Brokers Guide
Binary Options Trading Strategy Requires Very Little Experience?
Binary options trading is a great way to supplement your regular income with some investments, wagers or bets on the movement of financial asset prices: precious metals, stocks, bonds, indices and currencies (Forex). Every day, international trade involves billions of dollars worth of goods and services. Individuals can make money if they correctly predict the changing prices of the underlying financial assets.
Learn How to Make Money Quickly
Many of the most popular binary trading websites have only been around since 2008 or so. For example, 24 Option was founded in 2010. Thus, one of the primary goals has been to educate the public on binary options trading.
On 24 Option, customers can have a Live Chat with a customer service representative to get the answers they need. They can click on a Guide to learn about Binary Options. There is an Education Center at the bottom of the screen. Beginners can also open a free demo account to practice.
What assets are available for Binary Options Trading?
With binary options trading, people can make assessments based on the most valuable assets in the world. They can trade United States Dollars versus Japanese Yen. They can try to predict the Google stock price in a week. They can even trade the entire Standards & Poor index.
It is difficult to become bored when you have such a wide selection of underlying assets. People who may not be wealthy can actually make important decisions on the price changes of the largest corporations in the world. Option trading can be fun and profitable, allowing customers to trade anytime they want.
How much experience do people need?
Anyone can make money by trading binary options. You dont need a college degree. You dont need to have worked on the trading floor of the New York Stock Exchange to trade binary options. If you can predict asset price movements you can profit.
The most simple binary trade involves predicting the direction of the underlying asset price: increase (call) or decrease (put). A trade involves setting your amount, asset, trade type, price and time period. For example, you could set up this imaginary trade: $100, Gold, Call, $1500 and 60 Seconds. If the asset has reached the price designated by the trader at the end of the time period (also called expiration or expiry), then the trader makes money.
Basic Trading Rules
All investments, such as binary options trading, involve risk. Successful risk management allows you to continue to trade using an adequate capital fund. Your binary options trading money is kind of like a bag of Halloween trick-or-treat candy.
When you go out trick-or-treating, you collect candy. This is your candy stash. If you continue to eat your candy stash, it will be all gone. If you go trick-or-treating again, you will add to your stash.
You dont want your stash to go empty. Some parents will only allow you to eat a certain percentage of your candy as a part of candy management.
Profits Replenish Binary Options Trading Funds Stash
Binary options trading requires you to make a deposit of money into your broker account to create your stash. One way to ensure that you do not deplete your stash too quickly is to use the stop loss. If a trade turns negative, you can stop the losses before they become too bad. Here are other common risk management guidelines:
Only invest 5 to 10 percent of total funds per trade
Review trading dynamics before investing
Create overlapping hedged trades
Binary options robots and advanced software can send you trading signals when certain technical analysis patterns and trends (i. e. Fibonacci Retracement) develop. Traders can visualize asset price movements using colourful charts using their smart phones.
You might want to concentrate on becoming an expert on one particular asset (i. e. United States Dollar and Euro exchange rate) first. Review historical data, national productivity and other reasons for price changes. Expertise in a very specific field can be very profitable (see Bill Gates and software).
1. Trend Strategy
All traders look at market trends to gauge asset price movement. In a volatile market, prices will move very quickly up or down. If there is not much interest in the stock market, then the trend line will be flat.
A good way to profit from a flat trend would be to use the No Touch Option. This is kind of the opposite of the Call/Put Option you will profit by predicting that the asset will NOT reach the designated price before the selected period expires. For example, HSBCs share price might be $40 and the No Touch Option price might be $50, if the price doesnt reach $50 during the specified time, then you profit.
2. Pinocchio Strategy
Pinocchios nose grew when he lied. Likewise, some price moves are fake. Some assets might head in one direction, then do an abrupt about face. If the value is expected to go up, then select a Call Option and if it’s expected to drop, then select a Put Option to profit.
3. Straddle Strategy
Important productivity reports, news items and press releases are published, which might effect a stock price. At times, executives might buy stocks based on rumors.
Buy the Rumor, Sell the News
Positive news should send stock prices higher. The Straddle Strategy involves placing both a Call Option & Put Option on the Rumor & News. Professionals will buy the rumor and sell the news allowing you to make money on both sides.
4. Risk Reversal Strategy
Sometimes, you just want to win. The Risk Reversal Strategy is good for high volatility involving the placement of a Call Option and Put Option simultaneously. Ensure you are in the money.
5. Hedging Strategy
Hedging (also known as pairing) is frequently done by airlines to control their fuel costspanies might place a Call Option and Put Option on Oil to protect themselves against dramatic price changes.
6. Fundamental Analysis
Fundamental analysis uses macro - and micro-economic theories to assist with binary asset pricing. For example, if the Silver price is cheap, then Apple might be able to make more iPhones for less money. You could purchase a Call Option on Apple.
Binary options allows individuals to add supplemental income. There are many educational resources available. Binary options trading requires very little experience and can pay handsome dividends.