Binary Options Trading Strategies

Learn to Read Candlesticks Accurately

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The aim of every trader is minimize losses and maximize profit. This is true of forex traders, commodity brokers and stock market investors. Unfortunately, it is not always easy to tell how the market will behave at any point in time. In the stock market, prices rise and fall without warning sometimes. Forex traders and commodity brokers claim currency pairs go up and down at will and commodity prices do not always move in the direction you expect them to move. A perfect formula to predict market behavior is one thing every investor is looking for and this is why you should learn to read candlesticks accurately. Candlestick patterns are recognized by many market experts as an accurate form of technical analysis. The good thing about candlesticks is that they work with the stock market, the forex market and many commodity markets.

The aim of this article is to discuss the different signals from candlesticks, the meanings of signals and how you can use these signals to trade and make profit. This article will also point out cases in which candlesticks give wrong signals or conflicting signals. In cases where the signal cannot be relied on, it is safer to ignore the signal from the candlestick.

To use candlestick charts correctly, you should understand expressions like a “bulls market”, a “bears market” and a “stagnant market”. In the stock market, when prices are rising, this is called a bulls market. On the other hand, when prices are falling, this is called a bears market. A stagnant market is a situation in which the market is neither moving up nor down. This is a dangerous situation for the investor because at such times, the market is unpredictable and may suddenly go up or down without warning.

Now, let us look at some messages from candlesticks and what they mean to the investor. When the candles show a long white body, it means that the market is bullish. At this point, prices are rising and it may be a perfect time to buy blue chip stocks because the upward trend will be sustained for a while. When the candles show a long black body, this means that the market is bearish. Prices are falling so the investor should avoid buying high price stocks but this may be the right time to buy penny stocks. If the candlesticks display a small body, this indicates that the bears and the bulls are battling for supremacy. In this case, the market trend may be losing its previous momentum so the best thing is to wait and see what happens next.

Market experts can also use the length of shadows and the position of candle stick shadows to carry out technical analysis and predict the market. For instance, a long and low shadow means that the market rejected low prices while a tall upper shadow implies that the market discarded higher prices. This is vital information to the investor because it can help him or her determine entry position.

Finally, candlesticks can be used in conjunction with other charting techniques for best results. The information you get from candlesticks are usually correct and this is why you should learn to read candlesticks accurately.

Binary Options Trading Strategies

How to Trade Pullbacks and Rallies

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How to Trade Pullbacks and Rallies

Before attempting to trade in stocks, every trader needs to understand the concept behind pullbacks and rallies. In connection with this, rallies can be defined as prolonged periods of increase in price. This sort of price movement can be experienced either during a bull or bear market, and its magnitude varies with the numbers of buyers and sellers trading within that period. Pullbacks on the other hand, refer to periods in which a fall in price is experienced. While there are many issues that pertain to Forex trading, knowing how to trade pullbacks and rallies is one of the most important aspects.

Maximizing On Pullbacks and Rallies

Some people consider pullbacks and rallies as threats but in reality, these two features can be of immense benefit. As long as you know how to work your way around them, you can earn huge profits with your trades. With regard to this, it is very important to know when to enter a trade –a wrong entry point may get you held up in the beginning instead of the end of a rally of pullback, and as a result, you may not be able to maximize on profits. So how do you ensure that you enter at the right stage?

Unfortunately, the timings and pricing for trades are never definite and due to these changes, making a specific prediction regarding price breaks becomes almost impossible. Nonetheless, taking time to understand the factors that bring about such variations can enable you to make informed decisions, and therefore boost your chances of success. This means you have to learn about the patterns of price movement and get familiarized with its different phases which include the initial break, the pullback, and the second wave. Additionally, making use of a Forex trading chart will allow you to get clearer indications of when a rally or pullback is set to end based on historical market patterns.

Still, if you are a new trader, you have to take part in several trades before you are in a position to make a sound prediction. Also, you have to be ready to deal with situations where traders may decline to sell when the prices are climbing, and also refuse to buy when the prices are going down. Regardless of that however, your main objective should be to look out for the ends of pullbacks and rallies so you are able to make the most returns. Even so, as you continue to discover how to trade pullbacks and rallies, it is significant to note that not all of them provide a good trading opportunity. For that reason, you have to avoid blindly following the actions of other traders. If a stock is moving too fast for example, it may at times be better to wait and move into it only after the exuberance has taken its course.

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Binary Options Free Bonus

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Binary Options Free Bonus

Binary Options Free Bonus Without Withdrawal Requirements

As a new binary options trader, one of the first steps that you must take is to open an account with a reputable brokerage. The level of involvement that you would like these professional to have in your trading activities, the reputation and history of the company overall and the various perks that are offered to new account holders are all things that will play major roles in your selection. As part of this process, you will have to learn more about the benefits of getting and using a binary options free bonus without withdrawal requirements.

What These Offers Are

These are basically incentives that companies provide in order to lure new traders in.  Their goal is to assist in making these endeavors more profitable for traders, especially for those who lack trading experience and who are just building their market analysis and tracking skills.  In most instances, these entities will be willing to add additional funds to the trader’s start-up account, so that this person will have more capital to work with when entering into the market.  This allows for a more aggressive form of trading and it also helps to cushion people against any losses that they may experience during the formative stages of the learning process.

The way in which these offers are structured, however, can be quite different from one company to the next.  For instance, many of these companies have stringent requirements on how soon the funds that are in a person’s account can be withdrawn.  Thus, although you will have access to additional monies for the purchase of binary options, these are not funds that you will be able to readily withdraw for your own purposes.  This ensures that the offer is mutually beneficial.  Investors get access to more resources for their trading endeavors, while firms are assured of having long-term account holders.

Finding The Right Offer

It is important to have a comprehensive understanding of the restrictions that will be placed on your account when accepting these offers.  For instance, it may be necessary for you to reach a specific turnover requirement before any of your funds can be withdrawn.  This means that any deposit you invest in this account will be rendered virtually untouchable by your acceptance of a signup bonus, until you have fulfilled all of the turnover requirements that the bonus entails.  The best arrangements, however, keep all bonus funds segregated from the trader’s own investment monies.  In this instance, you can continue to deposit into and withdraw from your account at will, even if you have not reached a specific turnover.  The related bonus monies, however, will generally be untouchable aside from using these for trading purposes, until all special requirements have been met.

Getting a binary options free bonus without withdrawal requirements is a great way to boost the value of your endeavors and their profit potential.  Understanding how companies structure these offers, however, is essential for getting optimal value.  In an ideal arrangement, the acceptance of these monies will not impact your ability to withdraw your own investment monies at will.

Binary Options Trading Strategies

Guide to Stock-Picking Strategies for dummies

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Guide to Stock-Picking Strategies for dummies

Stock market investments have turned some people, for example, Warren Buffet, into billionaires. Of course, if your goal is to make money by investing in the stock market, you should learn how to pick winning stocks. With that in mind, here is a guide to stock-picking strategies to get you started:

Avoid Junk Stocks

The Oracle of Omaha has become a billionaire by adopting a value investment approach. While the average stock market investor looks at historic prices of stocks, value investors generally compare current prices to intrinsic value of underlying companies. This means such investors do not make buy/sell decisions based on factors such as sudden price swings associated with a particular stock. Instead, they carry out thorough background checks on companies that they believe are cheap and have sound financial footing.

Low P/E Ratio Companies

Go for companies that have low price-earnings (P/E) ratios and avoid those with high P/E ratios. According to an article published by the, the logic behind this approach is simple: companies that have low P/E ratios tend to earn more profit for every dollar invested. The opposite is true for companies that have high P/E ratios. Results of a study published by the same website show that investors who bought stocks from low P/E companies from 1951 to 1986 had an average return on investment of 19.08% every year. On the other hand, investors who bought stocks from high P/E companies had average return on investment of 14.28% per year.

Buy Small-cap Stocks

Avoid the temptation to buy shares from blue chip companies. Instead, go for small-cap stocks. This is because large corporate behemoths tend to dominate their market niches and therefore are unlikely to grow fast. On the other hand, a startup or midsize company can grow quite fast within a short period. As a result, the share price of such a company is likely to rise faster than that of a blue chip company.

Invest in an Industry You Understand

One enduring lesson from the dotcom bust is avoiding industries that you do not understand very well. For example, if you do not understand the technology behind cloud-computing or artificial intelligence, avoid companies operating in these industry niches. Warren Buffet emerged largely unscathed from the dotcom bust because he avoided stocks floated by fancy dotcom companies. If you follow the same approach, you will avoid the fate that befell many rank and file investors during the dotcom era.

Hunt for Discounts

Another great stock picking strategy is to buy shares at a bargain. This means that you should look for stocks with low price-to-sales (P/S) ratios. A P/S ratio is a measure of how much an investor will pay for every dollar in corporate revenue.

In conclusion, investing in the stock market can potentially turn you into a wealthy person, especially if you adhere to this guide to stock-picking strategies. Some of the strategies that you can use to achieve this goal include buying small-cap stocks, avoiding junk stocks, and buying stocks at a discount. This guide to stock picking strategies can help you build a steady source of retirement income.

Binary Options Trading Strategies

10 Minute Binary Options Strategy for the Novice Trader

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Binary Options Strategy for the Novice Trader

Using moving averages is one of the simplest yet effective strategies for the newbie binary options trader. The simple moving average is the most basic of the moving averages used for trading, and is calculated by taking the average closing price of an asset over a given period of time. There are several ways to make money trading with moving averages; the crossover between a shorter-term average and a longer-term moving average being a popular one.  Moving average crossovers are very often associated with the creation of new directional trends. As such, they provide traders with the optimum chance to activate binary options that will finish ‘in-the-money’. Such strategies perform better than many other complex systems that are more dependent on capturing large price movements in order to incorporate the impacts of noise and spreads. For our strategy, we use two simple moving averages, set at 3 and 10 periods respectively.

Strategy Set-up

To set-up this strategy, we need access to a charting solution like MetaTrader 4 (MT4). Since this is a 10-minute trading strategy, we need to fix the time-frame for the asset we are following to 10-minutes. This strategy is most effective on currency pairs, especially during the New York trading session. Using this strategy, different currency pairs will act differently.  The benefit of using a moving average crossover system for binary options is that instead of looking for sustained market moves, a trader is only looking for a small move in either direction to exploit the payout in a binary trade.

Applying the Strategy

The 3-period simple moving average line is our signal line. Whenever this simple moving average crosses the 10-period simple moving average line, we place a trade in the direction of the crossover. The idea behind this strategy is to use the crossover between the short-term average and the longer-term average to identify shifts in momentum.A buy signal is triggered by the short-term average crossing above the long-term average, while a sell signal is generated when the short-term average crosses below the long-term average. This trading strategy has an expiry time consisting of 5-10 minutes. As you can see from the chart below, the moving average cross-over system is a very simple strategy to follow and you do not have to second guess the signals.


10 Minute Binary Options Strategy for the Novice Trader

10 Minute Binary Options Strategy for the Novice Trader

Note how buy signals are established when the shorter-term 3-period SMA crosses above the 10-period SMA, while sell signals are indicated when the 3-period SMA crosses below the 10-period SMA. Out of a total of 9 trades, 7 were winners, resulting in a 77% in-the-money.

This simple strategy is a great starting point for new traders. Moving average crossovers are one of the pillars of technical analysis, and something every trader needs to know. By properly applying this strategy, it is possible for the novice trader to achieve consistent results on a day to day basis.

Binary Options Trading Strategies

How to use Binary Options to Maximize Your Earnings During a False Breakout

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The forex market is the largest market in the world by far based on trading volume.  These days though, forex traders have been moving into binary options.  They are doing so because it is easier to make large profits in a short period of time with binary options.  In fact, many short term forex traders consider binary options to be one of their top tools for making profits.  While profits are certainly high, the more attractive feature for many traders is the fact that the profits and losses are fixed when the trade is placed.  Statistics indicate that up to 70% of all binary options trades end in the money, and this is a good indication that many are making serious profits with binary options.  In fact, they are very attractive for scalpers, swing traders, and day traders.

These short term forex traders use technical analysis to look at price patterns and determine which direction price will take.  A strong trend or several matching patterns can give a very strong indication that a trade will be profitable.  In some cases though there are not enough buyers attracted to these patterns and we get a false breakout.  Trader expectations are unmet and price pulls back to prior levels before profits can be realized.  While this can be frustrating, with binary options you can maximize your earnings during a false breakout.

As an example, many times meetings of central banks to set monetary policy can create strong movements within the markets.  In some cases these strong moves occur initially, but as traders have more time to understand what is really being said by a central bank price reverses violently.  If a trader was only using the forex markets during this time it is possible he could quickly see profits evaporate and end up breaking even of possibly even suffering a loss.  However, if he is willing to place a binary option in the opposite direction of the anticipated breakout he can actually profit from this false breakout as he makes 70-80% on the binary option while breaking even on the forex position.  If price does breakout and continue in the direction of the forex trade, any profits made there will offset the loss that would occur on the binary when it finishes out of the money.

Binary options give a trader a way to hedge possible risk events in the forex markets, but they are far more than that.  They also give a trader the opportunity to make solid profits from moves that are too small to normally generate profits for a forex trader.  While a forex trade might need a minimum move of 5 pips to become just marginally profitable, the same trade could see 70% returns on a move of just 1 pip.  This gives forex traders a way to benefit from even the smallest moves in currencies.

Binary Options

A Dummies Guide to Trading Binary Options

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A Dummies Guide to Trading Binary Options

Ok, I don’t want you to think that you are a dummy, because I don’t believe that for one second.  No one who looks into trading can be classified as a dummy.  So if you like you can consider this as just a guide to trading binary options, one that should get you off to a good start with this exciting and popular trading method.

Before beginning the guide to trading binary options though, let me say that the key to successful trading always lies with persistence and patience in your trading.  You will encounter ups and downs, profits and losses, but if you can stick with it and keep improving your trading you will eventually join the ranks of experienced and successful traders.

When you do encounter losses, never look on them as some type of failure.  Instead use them as a learning tool, and improve your trading on the back of each loss.  Soon you’ll find that these losses come less frequently, and all your persistence will begin to pay off.

Now that you have the very basic characteristics necessary for success in trading, on to the guide to trading binary options.

  1. Begin at the beginning, by learning all you can about binary options, about your trading platform, and about the markets that underlying the assets you will trade.  Consider this as the foundation of your trading knowledge, and know that every trader began at this point before they could become successful.
  2. Don’t just jump into trading immediately.  Instead, find a broker who offers a demo platform and use this to test various strategies to see how they perform.  Once you find a strategy that appears to be profitable, keep testing it to see if you can make paper profits in demo for one month.  If you can get to this point with a strategy you can be fairly certain that you will have success once you start trading with real money.  Too many traders have seen account after account blown out because they fail to follow this one simple suggestion.
  3. Start using money management from the first day you start trading, even with your demo account.  Proper money management is critical to success and it’s what will keep you in the trading game when the inevitable streak of bad trades hits you.
  4. Don’t fund your account with all your available money right away.  Instead, start with 25% of what you can afford.  As you begin to see success, add another 25%, and then finally add the final 50%.  If you aren’t successful right from the start this will ensure that you still have some cash left to start over.
  5. If you ever come to a point where you’ve lost 50% of your account, or if you have an entire unprofitable month, stop trading real money and revisit your demo trading account.  Find and fix the problem that is causing the losses before you return to trading real money.

Most importantly, stay consistent with your trading and your strategy.  You’ll never reach your goals if a few bad trades chase you out of the markets.  You’ll need to get through the bad periods to reach the point where you can consistently profit from day to day.

Binary Options

Binary Options Signals – Is it a Scam or Will I be a Millionaire?

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Binary Options Signals – Is it a Scam or Will I be a Millionaire?

Binary options signals are a heated discussion topic in some trading circles.  Some swear by them, claiming they are the best way to create wealth with binary options, while others say they are a complete scam.  As with most things the truth is somewhere in between, and below we take a look at the advantages and disadvantages of binary options signals.

Binary Options Signals Advantages

-          Emotions are taken out of your trading, which avoids problems with over trading or an inability to pull the trigger on a trade.

-          Continues to trade for you 24/7 with no missed opportunities.  This is true whether you are running binary options signals on your own, or if you receive them from a signal service.

-          Can generate more consistent winning trades than manual trading.

-          You can program money management right into the signals, and relieve yourself of the need to remain disciplined when you really want to trade more than your money management calls for.

-          Binary options signals can identify market patterns that are complex and would be almost impossible for a human to see.

-          When automated a signal can be triggered and traded within milliseconds, ensuring no trade will ever be missed.

-          The ability to use strategies that might require dozens of simultaneous trades.  While these strategies are often very profitable, they are only possible when automated trading signals are used.


Binary Options Signals Disadvantages

-          There is little flexibility when using binary options signals.  You are often constrained to a single asset, and some signal services require you to use a specific broker.

-          Your trading is totally dependent on technical data and signals.  This can limit you in that fundamental analysis when combined with technical analysis is often superior in generating winning trades.

-          When using signals you will find that they often enter the market at predictable levels, opening you up to the possibility of your trades being hunted by others.  This can be very common with institutional investors, who are well known to take advantage of such trades.

-          Actual performance could vary wildly from what the historical performance suggests.  Oftentimes the historical data comes from back testing, and the results are not able to be replicated in actual market conditions.

-          Unusual market conditions can break the trade signals, leading to large losses in a short period of time.

-          When signals are provided by a signal service the trader may not have time to act on them if he isn’t able to trade immediately.  This is not as much of a problem with automated signals, but slippage can still be a factor that needs to be considered.

-          Automated trading signals are still open to errors in programming as well as hardware failures.  In addition, data transmission errors can also cause unintended losses when trading with binary options signals.

Binary Options

How To Hedge Your Forex Positions Using Binary Options

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How To Hedge Your Forex Positions Using Binary Options

You can make money trading currencies in the forex market, but it is also possible to lose money.  As with any type of trading it is always wise to look for ways to reduce risk, and one way to do this when speculating in forex is to hedge your forex positions using binary options.  A binary option is a derivative that pays $100 when the option expires in the money, and $0 if the option expires out of the money.  These are American style binary options, and they are available on all the popular currency pairs such as EUR/USD, USD/JPY, GBP/USD, and USD/CAS, as well as others.

To show you how to hedge your forex positions using binary options I will give you a basic example.  Suppose you are long the USD/JPY on a daily basis.  You have placed your position at 101.50 and have a 25 pip stop loss in place.  You are expecting an uptrend in the pair to continue, with a profit target of 75 pips.

In this case, if the pair declines to 101.25 your stop loss will be triggered and you will have lost roughly $250 on a standard lot.  Naturally you have confidence that your analysis is correct and the pair will continue to trend upwards, but it never hurts to have some insurance in place.  The stop loss is one form of insurance, but you can also use a forex binary option to hedge your position and get even more protection.

So, you will hedge your forex positions using binary options.  Assume it is now 10:00 in the morning.  Your stop loss would be triggered if the price of the USD/JPY drops to 101.25.  You decide to buy 4 USD/JPY binary option contracts with an expiry of 24 hours that pay out if the price ends below the current price of 101.50, and for these you pay $25 each or $100 total.  If the price does decrease you will make $300 in profit, which would offset the potential loss of $250 if your stop loss is triggered.  Of course if the price increases your options expire out of the money, and you are out $100, which can be considered the cost of your insurance.  We can also assume that the price of the pair would have gone up by at least 10 pips, offsetting your insurance premium.  No matter what the market does, you are pretty much at a breakeven point +/- 10 pips from the current price of the pair.  If price goes down you gain $50 net and if price goes up you gain as long as it increases by more than 10 pips, which is what you are expecting anyway.

This strategy can be used to hedge nearly any forex position, and give you excellent protection in case the market unexpectedly moves against you.  All it takes is a small bit of calculation, and a binary options account to place the binary option hedges.

Binary Options Trading Strategies

Don’t Miss a Trading Opportunity

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trading opportunity

How is it possible to ensure that you don’t miss a trading opportunity?  Well I can think of several ways, and below I’ll go into more details about each so you too can add them to your trading strategies and ensure that you never miss a trading opportunity.  You work too hard to learn the markets to miss out on profitable opportunities, so heed this advice.

Trading Robots

Trading robots have been around for as long as we’ve had computers capable of processing large amounts of data.  These robots take instructions in the form of programming and turn them into trades on binary options or other financial markets.  They can work 24/7 without any help from a human, and can even place rapid arbitrage type trades within milliseconds, accomplishing something no person could do.  If you wanted to you could have a robot created to trade nearly any situation, and it would do so whether you were awake, asleep, on vacation, or at your workstation.  If you don’t want to miss a specific kind of trading opportunity a trading robot is the way to go.

Mobile Trading Apps

The addition of mobile trading apps have made it possible to be sure you don’t miss a trading opportunity.  With a mobile trading app installed on your smart phone or tablet you are just seconds away from placing a trade, no matter where you are and no matter what you’re doing.  Simply install the app and you will have access to the same trading platform as you have on your home workstation.  Now simply add in some alerts from your favorite financial news sites and you are ready to trade at a moment’s notice on all the breaking news.  This is one of the best ways in the 21st century to be sure you don’t miss a trading opportunity.

Never Sleep

If you don’t go to sleep you can monitor the markets 24/7 and never miss a trading opportunity.  Ok, this isn’t realistic, but I thought I would throw it in just for fun.


If you are only trading one type of asset you are certain to miss many trading opportunities.  Instead you need to increase your knowledge of the markets so that you are comfortable trading all kinds of assets.  In this way you will never miss a trading opportunity when it happens in a market you don’t normally trade, because you will be able to trade them all.  As we well know, all the markets are tied together and opportunities in one market will inevitably create opportunities in related markets.  Diversify your knowledge and you don’t have to miss a trading opportunity.

These are just a few methods you can use so that you don’t miss a trading opportunity.  Use your imagination and creativity and I’m sure you can come up with more.  However, with binary options you don’t have to worry about missing opportunities so much since your profits on each winning trade will be so large.