What are binary options?
You are probably wondering this right now or you are here wanting more information because you have found one of the many trading platforms out there that offer binary options as an option for trading with.
Put simple this type of option is binary in nature because it can only go 2 ways and depending on what you choose you can be in-the-money or out-of-the-money at it's time of expiry.
You are probably wondering this right now or you are here wanting more information because you have found one of the many trading platforms out there that offer binary options as an option for trading with.
Put simple this type of option is binary in nature because it can only go 2 ways and depending on what you choose you can be in-the-money or out-of-the-money at it's time of expiry.
-- DISCLAIMER --
Binary Options can and will be risky and aren't recommended for eveyrone. You will have to be prepared to lose sometimes. If you watch your charts right and know the signals you can succeed.
Materials you'll need
- Pen
- Paper pad
- Web browser (recommend Mozilla Firefox)
- Streaming charts (if you haven't got access to streaming charts we recommend www.bestfreecharts.com)
- A binary options trading site (depends on what length of expiry you want to trade at)
- Confidence!
- When the paper trading is done and you have the confidence you will need a minimum of $100 US
- Classical Music (optional)
- Paper pad
- Web browser (recommend Mozilla Firefox)
- Streaming charts (if you haven't got access to streaming charts we recommend www.bestfreecharts.com)
- A binary options trading site (depends on what length of expiry you want to trade at)
- Confidence!
- When the paper trading is done and you have the confidence you will need a minimum of $100 US
- Classical Music (optional)
Step 1: Sign up to a binary options trading platform.
I highly suggest you read carefully through all of the Terms and Conditions provided by the platform and that if you do not agree with something stated contact their support team and have your question answered. If you still do not agree with their Terms then find another platform or continue no further with trading binary options.
If you would like to start simple with as low as $100 and trade with Hourly and End-of-day options expiries we have provided information and a review of EZ Trader:
HERE
Step 2: Get your charts ready!
There are many videos on youtube that show you how to read charts and different kinds of setups you can use to read trends.
Some indicators I would recommend are:
- EMA (Exponential Moving Average) \
| Wikipedia: Moving Average
- SMA (Simple Moving Average) /
If you put the two above indicators together they have a very good tell of what the trend is in the short and long term.
- RSI (Relative Strength Index) Wikipedia: Relative Strength Index
This will have a tell of where the trend could possibly go next.
Here is a great lens on how-to read charts!
Some indicators I would recommend are:
- EMA (Exponential Moving Average) \
| Wikipedia: Moving Average
- SMA (Simple Moving Average) /
If you put the two above indicators together they have a very good tell of what the trend is in the short and long term.
- RSI (Relative Strength Index) Wikipedia: Relative Strength Index
This will have a tell of where the trend could possibly go next.
Here is a great lens on how-to read charts!
Step 3: Pick a stock.
It could be a favorite company of yours such as Amazon (Nasdaq: AMZN) or Google (Nasdaq: GOOG) or maybe a curreny on the FOREX (Foreigh Exchange) Market such as GBP/USD.
Watch this stock on your charts and start to look for a strike price (the point at which you will make a Call (UP) or Put (DOWN) move).
Write this strike price down and what your decision is (Call or Put) and draw an up or down arrow.
Wait until the expiry time to see if you are in-the-money or out-of-the-money.
Sometimes your option will expire identical, meaning that your strike price is the same as the one at the option's expiry. In this case you will just get your initial investment back with no gains or losses.
It is recommended that you paper trade until you are confident enough to start trading with real money. Always be honest with yourself in your paper trades.
Watch this stock on your charts and start to look for a strike price (the point at which you will make a Call (UP) or Put (DOWN) move).
Write this strike price down and what your decision is (Call or Put) and draw an up or down arrow.
Wait until the expiry time to see if you are in-the-money or out-of-the-money.
Sometimes your option will expire identical, meaning that your strike price is the same as the one at the option's expiry. In this case you will just get your initial investment back with no gains or losses.
It is recommended that you paper trade until you are confident enough to start trading with real money. Always be honest with yourself in your paper trades.
Step 4: Start trading with real money.
Once you are confident enough you may start trading with real money. All you have to do is deposit your money in the trade platform account and provide the necessary information required by them.
It is recommended that you start with a very little amount so that you do not lose confidence with an unsuccessful trade. Do not make multiple trades on the same option until you are confident enough with the outcome.
Tip: If you are unsure about a certain trend or trade and don't want to lose money on it then do a paper trade on it instead to see how it does.
It is recommended that you start with a very little amount so that you do not lose confidence with an unsuccessful trade. Do not make multiple trades on the same option until you are confident enough with the outcome.
Tip: If you are unsure about a certain trend or trade and don't want to lose money on it then do a paper trade on it instead to see how it does.
Illustrated on a YouTube video
This video explains very well in short what Binary Options are and how people can make money with them. You can trade with much less than is stated in the video.
Interview with Rory Mackay on SUMMIT TV
An interview with Rory Mackay on SUMMIT TV with regards to Binary options trade and Justrade.com
curated content from YouTube
Recommended materials you can get on Amazon
I haven't read any books about trading Binary Options but if you would like to read some I would recommend starting with this one.
I found all of my information I needed on Binary Options through searching with google but if you would prefer to read and learn about them off screen that is ok too.
I found the other books I have listed very informative about giving to the right mindset and being confident about wealth.
I found all of my information I needed on Binary Options through searching with google but if you would prefer to read and learn about them off screen that is ok too.
I found the other books I have listed very informative about giving to the right mindset and being confident about wealth.
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by victorytrader
Helping people make trades and deals confidently! Become wealthy in every walk of life. (more)
