1st Place! Best Binary Broker 2020!
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The Best Binary Option Signal Providers and Services of 2020
Many people earn extra cash through binary options trading. However, without the right tools, inexperienced traders can stand to lose far more than they anticipated. For anyone interested in making the most of binary trading, signals provide an authoritative resource for quality advice.
Traders of all experience levels can better understand the course of the market by paying attention to signals and using signals services.
Though many higher-level binary options broker accounts come with the benefit of an account manager, signal providers may have a more calculated and readily available approach, using software and algorithms to provide actionable insights for brokers.
Signal services do the hard work that would require a person to stare at a computer screen for days. Signal services can detect—and advise on—even the smallest changes in market trends and accurately direct traders toward new assets.
Table of Contents
The Best Binary Options Signals of 2020
Binary Options Pro Signals
Binary Options Pro Signals (BOPS) is a subscription service that offers automated trading alerts sent to you in real-time via email or SMS. BOPS uses sophisticated trading algorithms and advanced indicators to accurately predict short-term market direction. With this provider, you’ll receive up to 18 trading signals per day, which is more than most signal services.
When you subscribe to Binary Options Pro Signals, you’ll instantly start receiving trade alerts based on 14 different assets that BOPS monitors. These assets include stocks, indices, and currencies. The signals will include ASSET, entry price, market direction (call or put), and the expiry time. After receiving the trade alert, all you have to do is login to your preferred broker account and place the trade.
The win rate for these signals is an impressive 71.20%, which is above average for the industry. If you want to test-drive this service, you can take advantage of their free 7-day trial. After the trial period, subscriptions cost $97 per month. If you’re looking for a reliable signal provider and an impressive win rate, you can’t go wrong with Binary Options Pro Signals.
Binary Options Trading Signals (BOTS)
With over 15 years of proven trading experience, Binary Options Trading Signals (BOTS) is one of the top-ranked signals services in binary trading. Specializing in Forex and Nadex options, BOTS is an excellent source of automated trading signals.
Offering a free morning trial, BOTS prides itself on providing a unique strategy based on easy-to-read proprietary charts. The service delivers a quality trading education on the different types of trading markets. It also guides users through the most important ins and outs of binary trading.
Like other signals services, BOTS provides real-time signals to traders looking to place profitable trades. However, unlike less-detailed signals services, BOTS explains the “why” component of their signals. BOTS prioritizes traders’ understanding, answering user questions on risk management, and the importance of discipline in binary options trading. BOTS has built a trading community based on knowledge-sharing and educational resources.
1st Place! Best Binary Broker 2020!
Best Choice for Beginners — Free Education + Free Demo Acc!
Sign-up and Get Big Bonus:
2nd place! Good choice!
Auto Binary Signals
Auto Binary Signals is a binary signals provider that has been around since 2020. Rather than sending trade alerts to your smartphone or by email, the signals are available through their web-based membership area.
This means you have to actually login to your members area in order to see the trading signals, which could be a disadvantage for those looking for real-time alerts.
Auto Binary Signals works by automatically filtering through thousands of potential market opportunities in real time. A signal is only generated when there is an 80% chance or higher of winning a trade. The trade alerts are generated using a sophisticated strategy that uses 5 different indicators. A signal is only generated when all 5 indicators are aligned at the same time.
Rather than having a monthly recurring charge like other signals providers, Auto Binary Signals provides access to their signal software for a one-time payment. This software tracks all major currency pairs, commodities, and a few stocks. Auto Binary Signals provides two different types of option ranges: short-term (1-5 minutes) and long-term (15 minutes to 1 hour).
Overall, this signal provider has its pros and cons. It’s win rate appears to be very high, but the fact that it doesn’t send you alerts to your smartphone or email in real-time can lead to missed trading opportunities.
Signals365 is a signals provider that provides over 100 daily signals across 8 major currency pairs including EUR/USD, GBP/USD, USD/JPY, USD/CHF, EUR/GBP, AUD/USD, NZD/USD, and EUR/JPY. These trading alerts are accessible 24/7 through their web-based platform. Each signal includes data such as Asset, Expiry Time, Entry Time, Strikeprice, and Market Direcition.
Unfortunately, Signals365 does not send binary option signals via SMS or email. They can only be viewed in your members area once you login. According to their website, their signals are generated using proprietary technology that predicts trends and price reversals. Their automated trading strategies have gone through extensive backtesting and optimization over the years.
In order to maximize your win-rate and avoid poor market conditions, Signals365 pauses their signals during major economic events, public holidays, and low trading periods.
Signals365 does not charge for their signals. Instead, their service is free, as long as you sign up to one of their preferred brokers.
Types of Binary Options Signals
Basic signals are easy-to-follow notifications communicated to traders directly and in real-time by SMS or email. Basic signals are the most simplistic form of signals and don’t necessarily provide the in-depth explanations or charts that other signal types may provide.
Basic signals will advise traders on the direction of trades and suggest whether a trader should “put” or “call” on a trade. Because they’re not as complex as some other signal types, basic signals enable traders to make quick decisions that can often return highly profitable results.
Many signals services will entice new users to their service by offering free binary options advice. While it’s a good way for inexperienced traders to test a service or understand how binary options signals operate, free signals are unlikely to provide profitable advice. Like demo accounts, free signals are a risk-free foray into how trading binary options work without trading real funds before you’re ready.
Working closely with an account manager through a broker provides extensive benefits traders may not find working on their own. However, signals software offers real-time notifications and keeps track of signs a human might accidentally miss.
Using MetaTrader4 (MT4), signals software gives real-time updates and algorithmic advice to traders of all skill and experience levels.
There’s no shame in using signals software to stay on top of the best binary options trades of the day; many professionals utilize the software, as well.
Most software currently available can be downloaded directly to your smartphone, tablet, or PC and alerts you of the best trades by text message or email notification.
Factors to Consider When Choosing A Binary Options Signal Provider
Before choosing the best binary options signals service, it’s important to investigate the success rate of the provider. Signals services such as Signals 365 and Auto Binary Trader prioritize transparency and publish their daily results to their website. By publishing the good and the bad results, these signal providers maintain trust in their traders.
It’s typical for signals providers to boast 70% or higher success rates, but there is no way to investigate these claims if the provider is not transparent about their results.
Number of Signals and Frequency
Binary options signals aren’t worth much if traders don’t have access to them. Before choosing a signals service, consider the frequency in which the provider will send signals to you, the hours they operate, and the number of signals they’ll send at any given time.
The signals should be frequent and quick, enabling you to make the best trades before the trade window expires. Fully automated signals services will send frequent signals, but they may lack some of the accuracy of signals providers that combine software with human insight.
Binary options signals providers enable traders to make quick decisions that produce highly profitable results. The frequency and number of signals sent can affect profitability. Traders may want to look for services with higher update rates.
Traders also need to take the cost of binary options signals into account. Similar to brokers, signal providers may offer a variety of tiers to their traders. Before committing to a signals service, traders should compare and contrast what each service provides for the price.
Because all binary options trades come with a degree of risk, traders must also factor in the frequency of signals and the success rate of the signal provider and compare these factors with the cost. If the success rate is too low and the updates are not frequent enough, a higher priced service may not be worth as much to traders.
Before choosing your signal provider, it’s worth looking into whether or not the service offers a trial before you subscribe. Signal service trials may not yield high profits for traders, but will provide insight into how the service operates, how quickly it alerts traders of changes in trends, and how beneficial the advice may be to the trader’s bottom line.
Some signal service providers differ in how they alert traders of important signals. Some binary options signals only deliver signals while a trader is specifically logged on to their app or website. That means the trader could miss important alerts. Other services readily update traders of signals via SMS, email, skype, GroupMe messages, and app-notifications in real-time.
It’s crucial to consider the delivery method of notifications when choosing a binary options signal provider. No matter how good the data is, it doesn’t mean much if traders can’t act quickly on the information.
Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.
Welcome To Our Site!
My name is Robert Wolfe and I’m an online trader with over 7 years of experience trading financial instruments such as binary options, CFDs, forex, and stocks. I created this website to share my knowledge of the industry so you can avoid the same mistakes I’ve made.
Your Starting Guide to Binary Options
Have you ever wondered what the term “binary option” means?
If you’ve looked into online trading and financial investment before, then the answer is probably “yes.”
Usually, the term “binary option” refers to a kind of trading term, where you get a fixed payout by predicting the outcome of a trade from two potential results. It’s a bit like flipping a coin. If you’re right about whether heads or tails will come up, you’ll receive all the money agreed to. If you’re wrong, then you lose the stake you made on the option, and that’s it.
The reason that binary options have their name is that there are no extra possibilities that might happen. Either you win, or you lose – it’s that simple.
What are the Benefits of Binary Options?
The most obvious benefit of binary options investments is that it’s incredibly simple. There’s a basic YES or NO proposition to consider – and that’s all. Binary options are also very flexible. They allow you to trade in a range of markets, including Forex, commodities and indices, and a variety of market conditions.
With binary options, you’ll also be able to choose between a short-term or long-term investment window, with durations that last anywhere between 10 seconds and a whole year. While your losses are limited by the initial stake that you place into the trade, you can earn huge payouts, up to tens of thousands of dollars.
Which Are The Best Brokers?
There are lots of brokers on the market which offer binary options trading. They differ in: regulation, safety, trading tools, trading assets, support, fees and other factors. Among option brokers with the best reputation we have selected the top 2 choices to make it easier for you to make a decision.
Highly sophisticated platform:
– easy to use
– perfect for beginners
– demo account for training purposes
– lots of different financial instruments
– Great research tools
– Forex, Metals
– Oil, Commodities
– Indices, Stocks
– ETF’s, Gold
+ Mobile App
+ Web Trader
– Credit Card
– Wire Transfer
– Skrill, Qiwi
– Allows Hedging
– Offers MT4
– Offers social trading
Offers mobile trading apps
– Allows scalping
– Accepts credit cards
+ Mobile App
+ Web Trader
– Credit /debit cards
– Bank transfers
Our Top Choices in Overview
IQ Option (Best Binary Options Trading Company)
- USD $10 Account Minimum
- Average fees of 1.2 pips (EUR/USD)
- Best For Binary Options Trading
IQ Option has a long trading services history. The company started operating in 2020. Having their main quarters in Limassol, Cyprus, they are authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) only. IQOPTION LTD is registered at St. Vincent and Grenadines, this entity is not regulated.
IQ Option index brand has been recently updated to make sure the UAE clients get the same advanced tools and platforms, internationally available to other customers. They provide an improved in-house advantage platform different from the most known Metatrader 4/5 platform.
Those powerful tools are available without any risk – you can open a demo account with no limitations. $10,000 in virtual currency is also provided for you to practice with and is not limited in any way.
IQ Options has won many awards due to the quality of their services. IF you are looking for a solid platform you don’t have to look any further.
Olymp Trade (Best trading techology – beginners and advanced traders)
- Allows hedging
- Offers MT4
- Offers social trading
- Scalping allowed
- Offers trading app
Olymp Trade is an online digital options broker from St. Vincent, operating since 2020. Since 2020, they are a member of the International Financial Commission. By becoming a Finacom member it is under Finacom supervisory. Finacom is a third party regulator guaranteeing security against fraudulent brokers. This gives Olymp Trade the trustworthiness needed to become an authority broker as you have to meet strict rules in order to be approved by this regulator.
All in all, it is a trustworthy platform as it is regulated by FinaCom and comes with a Verify My Trade audit. It also has a lot of interactive learning material. The interface is user-friendly, the design is clean and very intuitive. The broker has a lot of awards, and many positive reviews from traders, on the platform. Overall we would recommend it, especially if you are a trading beginner.
What Are Binary Options?
Binary options are a financial asset that can be traded on any instrument and in (almost) any market. Binary options are considered “all or nothing” trades because the total profit or loss is known before the trade is ever made. Their straightforward nature means that there are no complicated calculations that need to be done.
When you’re adequately informed through news announcements, global trends, or quarterly reviews, you may be able to make an accurate determination about the direction a price may go. Making binary options trade based on this information could generate significant profit for you.
Another significant benefit to binary options is that you can choose from many different kinds of derivatives. Commodities, stocks, and cryptocurrencies are just some of the areas that can be traded using binary options. Examples include aluminum and corn for commodities; Apple and Google for stocks; the dollar and the Euro in Forex; and Ethereum and Litecoin in cryptocurrency. All of these can be traded with binary options.
Knowing how and where binary options came to be can be very helpful when you start trading binary options. This is especially true when beginners are attempting to shift to full-time trading. Binary options (also known as “digital” options) came about many decades ago. In the beginning, only large brokerages had access to binary options. After the 2008 recession, the US Securities and Exchange Commission began allowing binary options to be traded through an exchange.
More than a decade later, binary options are now accessible to the entire world, the demand for binary options trading is continuously increasing and, since the investments on binary trades are so small, demand is likely to only increase.
What Types Of Binary Options Are There?
There are many different binary options types that can be treated. Four of the more frequently treated are listed below.
This option answers the question, “Will the future price be above or below the current price at a specific point in time?” This type of binary is, by far, the most common.
- In/Out (Range or Boundary)
With this type of option, a range of prices is determined based on whether or not the price will finish inside those boundaries or outside of them.
When you set this type of binary options, your position indicates whether the price will “touch” a specific level between the start of the trade and the end. The trade is considered complete as soon as the “touch” happens.
The “ladder” type of binary options is similar to up/down trades with the crucial difference that the future prices are predetermined.
When Do Binary Options End?
One critical component of binary options trading is knowing when the trade will end. This is known as the “expiry time.” The expiry time is the point that determines whether or not you have made or lost money. These times frames can vary from 30 seconds to a year, but the unique variable is that they will end at a predetermined time.
While 30-second expiry times to technically exist, the majority of day traders use the 5 to 30-minute expiry timeframe. This increases the potential for profits while still limiting the risk of loss. Also, by shortening the expiry time of your binary options trades, you can complete more trades within a single day. This, in turn, increases your potential for profit.
The Legality Of Option Trading
Even though it’s occasionally debated on national television, binary options are legal. While some companies use binary options to operate scams, the majority of companies follow the laws and regulations correctly.
Frauds And Scams
Government regulators are actively looking for brokers who promise “quick cash” as this is a sign of a scam. The reputation of binary options was damaged by such dishonest marketing, but it is hoped that the problem will be resolved quickly.
Even though binary options are legal, it is wise to avoid “quick money” promises, telemarketers that claim to be brokers or any claim that connects “free” with “binary options.”
You should always be aware of and knowledgeable about the dangers of fraud and carefully vet any broker you come in contact with.
CFD Trading Vs. Binary Options
Many people wonder whether or not binary options and CFD trading are the same thing. While they are similar in many ways, CFD’s have potentially unlimited risk. For example, if the price goes up, the change in value must be paid by the seller. Alternatively, if the price goes down, the seller gets paid.
Binary options work differently because your risk is limited. If you put in a call option at 10%, it doesn’t matter if the price sinks by 99% you will only lose 10%. Conversely, if the price goes up by 99%, you will only earn 10%. Both the risk the potential for profit are limited. Both options are considered as day trading.
If you want to find the most suitable online trading platforms for options trading then check the article here.
What Speaks For and What Factor Against Binary Options?
Below is a short list of benefits to binary options trading.
- Low Financial Risk
- Trade Control
- Profit Potential
There are four significant variables to remember when considering trading in binary options.
Those factors are your risk tolerance, capital requirements, trading style, and the benefits and risks of binary options.
Despite the long list of benefits to binary options, there are several risks.
- Reduced Trading Odds
- Limited Trading Tools
- Price Of Losing
- Risk Management
What Are The Steps To Becoming A Binary Options Trader?
The pathway to becoming a binary options trader is just as simple as binary options themselves.
Step 1 – Find A Broker
Finding your broker is probably one of the most difficult, and most important, decisions that you will make in day trading. So how do you determine which broker is right for you? We would definitely recommend to go with IQ Option UAE if you are from the UAE
If you’re going to day trade binary options with high-frequency, you’re going to spend a lot of money on commissions. The key here is broker transparency. This lets you know in advance how much each trade will cost and how much you need to make on each trade in order to pay the fees for each trade.
Most brokers require a minimum deposit of approximately $50 in order to begin options trading. When first starting out as a binary options trader, it may be worthwhile to find brokers who offer low minimum deposits.
Focusing on a specific asset type – though not required in options trading – can be beneficial for beginning traders. Finding a broker who specializes in your asset of interest may accelerate your success in that asset class.
You should always verify that your broker is registered and compliant with the proper regulatory bodies in your region.
Trading binary options is done through some kind of platform. You will also spend many hours per day on that platform, so you should make sure that you like it, it provides the data you need, and it’s easy for you to use. Without the proper platform, it’s almost impossible to make profitable trade decisions. Before paying for a trading platform, do your due diligence by comparing and contrasting platforms and checking reviews from other traders.
For day traders, maximizing your time directly correlates to your profit. Because of this, errors or problems in systems or support can cause significant losses. Be sure to verify that your broker offers 24/7 customer support in the format that you prefer (live chat, phone support, email, etc.)
Smartphones and iPads have come a long way in recent years, and many brokers now offer valuable mobile apps for enhancing day trading. Be sure to check with your brokerage about compatibility and the tools that would best support you in your trading.
One technique that brokerages use to attract customers is through creating an offer around their services. Examples of this would be online courses or certain trading situations that are “fee-free.” Be sure to evaluate their offer to see what extras are beneficial for your specific situation.
However, be wary when the offer seems “too perfect.” This is also a technique that scammers use to attract victims.
- Demo Accounts
After filtering through the hundreds of different brokerages that offer options trading services and arriving at a list of 2-3 that you like. Now is when the decision becomes more difficult. Since there’s no such thing as a “perfect broker,” the better brokerages have set up “demo accounts” where you can “play” with different assets and options.
Since demo accounts are updated using live data but do NOT use real money, they are an excellent place to practice trading. This gives you experience with trading, but it also helps you learn the systems that the brokerages use.
Using this technique, you can improve your trading skill while saving for the initial deposit of capital you will need when you open your trading account.
Our recommendation for trading binary options is IQ Option platform. You can read our detailed review, insights and trading experience here.
Step 2 – Which Market And Which Instrument?
Since binaries can be traded on pretty much anything from Forex, stocks, wheat, or Google, you can trade in pretty much anything. However, it is wise to begin with an asset class you are already familiar with in order to shorten the learning curve.
Step 3 – When To End The Trade?
Profitable binary options trading balances the number of daily trades with the movement in price. Day traders usually focus on shorter trades with expiry times from 30 seconds to 6 hours. Even though a higher trading volume potentially means higher profits, it’s advisable to trade based on accurate data, not just the number of trades possible.
Step 4 – What Size Should Your Trade Be?
The more you bet, the more you could make. In contrast, the more you bet, the more you could lose. Careful risk management will help you make enough disciplined trades to make a profit without risking everything in a single trade.
Step 5 – What Option Should You Choose?
After going through the previous steps, you should have a list of options to choose from. That may, in fact, be very large. This is a dangerous situation for a beginning day trader as the temptation is to focus on the trades that have the most substantial returns. However, it’s almost always better to focus on the trades that are relatively safe as these virtually guarantee that you will get a return. Remember, the goal isn’t just to win, it’s to win over and over again.
Step 6 – Confirm The Trade
This is the final step, and after all of the previous steps, you should feel very confident about your choice. The only thing you need to do now is wait for the trade to expire. After that, you just collect your payout and repeat the process.
Strategies for binary options are more straightforward than trades for other asset types, so the strategies for them are less complicated. However, you must have a strategy.
One primary reason why you must have a strategy is that it helps limit emotional decision making when trading. One of the most subtle emotions, overconfidence, always leads to errors in the long term. The time tested way to limit emotional decision making is to follow a strategy.
A second primary reason a strategy is essential to professional trading is that it allows you to repeat your successes. Without a strategy in place, you never know if your profitable trades were because of intelligent decision making or just luck.
Building A Strategy
Two critical parts of your binary options strategy are creating your signal and money management.
Step 1 – What Is A Signal, And How Do You Create One?
A “signal” is the direction that a price will go. Knowing the signal allows you to make a prediction about that price movement. Technical analysis and the news are the two main ways of creating a signal.
It is possible to predict price movements in advance if you are able to identify patterns using financial charts. Using appropriate charts and identifying the data patterns in those charts is the first step in building your strategy.
Since those patterns form the foundation of your strategy, you should triple check that your brokerage has the right tools available for your research.
But remember, this research does not have to be as nuanced as other forms of market analysis. Common indicators such as price actions, trends, mirrors, support and resistance levels, and MACD indicators are all useful in options trading.
If technical analysis is not your strong point, you can also base your decisions on the news. One benefit of this approach is that the information is easy to understand. Techniques for using the news as your data source are to look at the release of company financial reports or global news that affects an entire market.
One negative of depending on the news for your information is that key details for your particular strategy can be left out of the report, leaving you with insufficient data to make your trading decision.
By staying up to date on market changes, you should be able to make your trades before most traders. A few useful new sources for trading information are:
(Insert your own list here)
Step 2 – Trade Amount
It is always a good idea to keep things simple when beginning to trade. A straightforward strategy is to set a fixed amount to trade for each day. This provides you predictable income and helps you know when you’re “done” for the day.
What is the Martingale Strategy?
The idea behind the Martingale Strategy is to quickly win back what you have lost. This is done by trading simply trading more than you usually would after a loss. For example, a person who loses on a $500 trade would bet more money on the next bet (around $1000) in order to quickly recuperate the lost money.
Obviously, if you make a series of losing bets, this strategy could go very wrong, very fast. This strategy is best used in conjunction with mistakes or accidents in estimation to predictions. If however, you are still in the learning phase, it’s more likely that it was an error in the strategy that needs to be fixed. If this is the case, you should focus on identifying and correcting the error as quickly as possible so that you can go on to predictably generating income.
What Is The Percentage Strategy?
Many binary options traders recommend a system based on percentages. This means that you identify a specific percentage of your total funds that you are willing to risk and then make a bet for that amount. For example, if you have $20,000 available to trade, a 1.5% risk rate would mean that your trades would be at most $300.
You would then adjust your trade amount based on your risk assessment. If, for example, your risk rate was 10%, you could make larger trades, and therefore more substantial profits (or more substantial losses). Maintaining a low percentage helps prevent you from trading more than you can afford.
What Is The “Straddle Strategy?”
In simple terms, the straddle strategy is when you place a bet on both the increase and decrease in value of an asset. This is best to use during periods of high volatility because the price change can occur rapidly; thus, you can profit on both the increase in price and the decrease in price at the same time. As this strategy is based on rapid movements over short periods, it works best in 60 seconds to five minutes intervals. However, it can apply to periods of up to one day.
Should You Use Algorithmic Trading And Bots?
One of the benefits of using a strategy is that it can be automated after that strategy is producing a consistent profit. Different software services provide “bots,” which rely on algorithms and signals that you can program beforehand.
All of the analysis and trading is done for you by the bots. This is beneficial because the bots can do more trading than you can since they are directly integrated into the trading systems. This increases your potential for profit.
The “quality-of-life” improvement provided by these bots is so significant it is worth researching and discussing your brokers offering regarding the availability and use of algorithmic trading. Some brokerages have a bot that you are allowed to use. Other brokerages give you tools so that you can build your own bot and program it according to your preferred entry points and moving averages.
However, algorithmic trading with binary options can be risky because if there is a mistake in the program that you have given to the bot, then that mistake will be in repeated rapidly and you can lose a lot of money in a short period of time.
How Is Timing Important?
The timing of your trades can dramatically affect the strategy you choose and the success you have. Some strategies performed well with expiry times of five minutes while other strategies are more successful with 15 minute or 60 minutes time frames. All strategies and all time frames can produce a significant profit. However, combining the right strategy with the right timeframe will significantly increase your potential for profit.
Success in binary options trading depends on finding a strategy that complements your style of trading. In order to do this well, carefully choose the instrument you’ll be trading. You should then use a trusted system to manage your money. The next step is to use patterns and charts in order to identify signals and other indicators about when the trade should occur and in what direction. All of these things together for your strategy.
As always, when you start something new, it’s good to get some practice in first. Demo trading accounts were invented for precisely this purpose.
To succeed at trading, you should start learning now and never stop. Each day, the markets change, and this means you need to change with them. In order to help you with that, we have provided a short list of resources below that you can use as you immerse yourself in the world of binary options trading.
Each day, a new webinar, video tutorial, or video course becomes available. These tutorials can be beneficial as they walk you through the process of making your trades. This is particularly useful when you have first started with a new piece of software or a new brokerage.
Books & Ebooks
While many internet influencers exclaim that “books are dead” and that “nobody reads anymore,” the reality is that more books and ebooks are sold today than ever before. Financial literature like Joe Duarte’s book “trading binary for dummies” or other more technical manuals give invaluable insights into the world of binary options day trading. By reading the books written by experts, you are able to learn in days or weeks what took them decades to master.
Forums & Facebook Groups
One often overlooked the benefit of social media is how beginners are able to contact and communicate with experts in their market that they would otherwise be inaccessible. This means that if you’re in the right forum or the right Facebook group, you might be able to get online feedback from experience traders about situations that are specific to your life and your trades. While not the same as having a true “mentor,” this is support can be an invaluable as it accelerates your ability to profitably participate in binary options trading.
PDFs & Instruction Guides
Similar to the video tutorials, instruction guides and PDFs provide you with a breakdown of steps that is clear and easy-to-follow. These PDFs instruction manuals are almost always completely free and downloadable, so you get instant access.
Copy Trading/Social Trading
Copied trading or social trading is an area of social media where experienced traders post their results and information from their trades for others to follow. You can then analyze their strategies and model their success. Many of social trading networks are paid, so be sure to evaluate them carefully by checking the reviews.+
Newsletters & Blogs
Similar to staying up to date with the major news outlets, company newsletters, and blogs from individuals who are “in the know,” can help you to stay aware of new developments that can cause your markets to change.
Each of these recommendations is important for successful binary options trading. Maximize on these free resources before you pay for more advanced material.
One of the best practices of many successful traders is to keep a trading journal. By keeping a record of all of your trading results, you are gathering data that you can utilize to answer the question of “Why?”
“Why was that trade successful?”
“Why was that trade unsuccessful?”
Since very few beginning traders are able to afford a mentor, which in cost upwards of $50,000 a year, your best teacher is your past. If you have accurate data, you can answer his questions. In addition, having this record helped you to answer questions from your government tax authority in the case of an audit.
Having the right strategy is only one part of successful binary options trading. Another Central component is your ability to control your emotions. Overreacting emotionally can cause you to make expensive mistakes. For example, becoming overconfident can cause you to make trades that are larger than you can afford. In contrast, becoming fearful can cause you to make trades that are too small and therefore limit your profitability.
This is why we have a strategy. If your strategy is based on technical analysis and accurate calculations, you will make money. However, if you start basing your decisions on your emotional response, your future success as a daytrader is doubtful.
Binary Options – Making your first trade
This article gives the reader insights into binary options trading and most importantly offers tips for binary options traders. (Binary Options How to trade)
Know your risks
Understanding and managing risk is one of the main principles of trading successfully. Generally, traders should not risk more than 1% of their equity into a trade. The trades that they do enter should ideally give a reward that is at least 50% or more of their risked capital. Of course, the higher the rewards are the better the chances of success. For example at 1:3 risk reward would mean that you can risk losing one out of three trades and still keep a profit.
Most traders tend to risk the entire equity into one single binary option trade which can be disastrous. This is nothing but greed at play which often comes alongside emotions. If a trader can be disciplined enough to risk their equity in small amounts, the risks can be better managed.
If you have deposited an initial amount of $500, then make sure to not risk more than $25 per option. This simple strategy therefore gives you a chance to make 20 trades. Now if you have a good strategy with a 1:2 risk reward (or 1:3) it gives you enough room to take at least 10 losing trades and yet still be able to retain your equity.
Know your options
In the article Type of binary options, we covered the different types of binary options trading. ( Different type of binary options) Understanding how each of those type of options work is important. Also the fact each of the type of options offer different returns if the options expire in-the-money, it is essential for a trader to have a firm understanding of which type of binary options to trade under the changing market conditions. For example, a short term binary option expiry works best during or ahead of news releases, if a trader is very sure that the news will be bullish. Likewise, a long term trader could opt for a weekly expiry contract for a High/Low option if they believe that a trend for an instrument is changing.
Select the right expiry time
One of the advantages a forex trader has over a binary options trader is that they can keep a trade open for as long as it takes for price to reach its objective. This is not the case with an options trader because each of the binary options comes with a specific expiry time. It is important to choose the expiry time because for a binary options trader, it is essential that the options contract must expire in the money by the time the binary option expires. ( ? read more about Expire Time)
The importance of using the right option expiry time cannot be stressed more. For example, your analysis might be right however if you select an expiry time that is too far away or too close it could result in a losing options trade. Tie your analysis to the options: Regardless of the strategy or analysis that you employ, always make sure to think in terms of the expiry time. This can be done by using the right time frame. For example a 15 minute chart analysis is ideal for an option expiry from 15 up to 30 minutes and in some cases even a 60 minute expiring contract depending on the prevailing market conditions. Quite often though, traders tend to lose track of the time frame and end up choosing the wrong option expiry time.
Putting it together
Combining the above factors, a trader will be able to make more profitable trades in binary options as long as they stick to the discipline and do not let emotions such as greed or fear take over in their trading. Binary options, although simple as they are in fact behave the same way as any financial markets such as forex or equity. The only difference being that the options come with an expiry time. Understanding how the markets are behaving within the perspective of the type of option being traded and the expiry time can help a trader to risk their investment on more profitable trades.
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