Binary Option Trading Checklist Before You Start Trading

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
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  • Binomo
    Binomo

    Good choice for experienced traders!

Contents

Binary Option Trading Checklist Before You Start Trading

If you are looking for an easy way of trading, the best choice will be binary options.

It is easy to understand and trade but it’s hard to master.

This site is packaged with plenty of academies for binary options which can be made use by each and every trader to make a difference in their life.

This will help you to understand how exactly to tackle the market information to make money through trading.

It’s essential that as a binary option trader you should know the fundamentals of trading, understand the concept of strategies, learn to use signals and trading techniques, make use of the tools such as trading graphs, charts and so on.

And apart from all these it’s crucial to pick up one or more binary option trading brokers.

Here is the checklist and characteristics that you should be aware of and completed before you start trading binary options:

  • The risk in binary options is fixed upfront.
  • The trader can take a call before investing how much risk can be taken on a particular trade.
  • Trader won’t lose any amount more than what is investment thus the loss on each trade is limited to the extent of its investment.
  • Refund on losses is provided by most of the brokers to uplift the morale and to make sure the enthusiasm of trading remains in the trader.
  • Thus there will always be some amount of money left in the trading account even if the trader losses.
  • Continued losing trade can lead to getting blocked from the broker.
  • If a trader is using fake details to open a trading account, upon investigation broker platform every right to ban the account.
  • This is also to ensure the safety of other traders in the platform.
  • The payout of binary option is fixed and pre-determined at the time of executing the trade.
  • Thus if the predictions go right, trade has calculate his returns.
  • Over leveraging or setting stop losses is not required in binary option trading.
  • Trader need not worry about margin calls.
  • There is no role for pips in binary option trading.
  • Trader has only two things to pick from either put or call.
  • This decision has to be right to make any profits.
  • The underlying asset is not bought.
  • Binary option trading is just about trading on the predictions.
  • Trader need not physically own the asset for trading binary options.
  • There is no risk of losing more than what is indented to, also if lucky the trader will get refund.
  • Binary options are fixed reward for fixed return

These are the main reason why binary options are chosen over Forex trading:

Irrespective of what your trading capital is, you can still invest in binary option and can expect 60%-90% return on the same.

If you are looking for a way to trade without any complications, at present apart from binary option there is no other better option available.

Here predicting correctly is equal to earning money.

If the trader is willing to take risk, plenty money can be earned with couple of days.

The standard return is about 70-85%;

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

However it is essential to keep in mind, if you don’t stay smart, money can be lost in the same speed.

Read about the Basics Of Binary Options Trading for getting the basic knowledge.

To make money through binary options here are few things to be kept in mind:

  • A trader should win minimum 50% of the trades over long term to become profitable.
  • Depending on the exact returns it will be possible to determine what the binary batting-average should be.
  • Large return – 80% returns are perhaps the usual on most of the up or down trades.
  • Large risk – 100%-85% of invested amount on the trade will be at risk subject to where the trader is trading, which asset is chosen and which broker.
  • Fast Trades – Binary option is like a roller coaster.
  • Traders should be smart enough to handle the psychological side of trading binary options.
  • U.S. traders are not accepted by all brokers.

Thus do a thorough investigation on what to trade and with whom before opening trading account.

The reason for this is the U.S. regulation- CFTC.

The basic things to be aware about binary options are:

  • “Up or Down”
  • “Touch or No Touch”
  • “Above or Below”
  • “In the money or Out of the money”

How should your questions be framed to find answers for predictions?

  • Will the oil price go up or down within the next 45 minutes?
  • Is your most preferred stock going up or down?
  • Is Google or Apple’s performance going to shoot up in the next hour?
  • Can Gold reach a particular price within end of the day?
  • Will the USD/EUR pair move upward or downward?

As a trader, you should question yourself as much as possible and the answers for the same should be quick and logically.

If you are looking to make money through betting in binary options, then frankly speaking sustaining in this field will be tough and will also cost a lot of money.

Once you start trading binary options, you would like to forget about Forex.

For the amount of risk taken in Forex trading the return is very low and the features are much more complicated as compared to binary options.

Plus there will be no broker to help you with signals and suggestions.

You cannot expect refund on your loss, what you lose will be gone forever.

Also investment will have to be in Forex trading.

Whether you win the trade with thin or huge margin the return will be the same – pre-determined amount.

And same is the case if you lose the trade too.

By this we mean regardless of the magnitude of the market fluctuation, the payout will be the same.

Also it doesn’t matter how close you were to win the trade, if you lose it 100% – 85% is expected to go from your investment on each trade.

Make sure to keep all these points in mind before you decide to trade anything as binary options!

Trading Concepts: Creating a Trading Plan

Start a business, you need a plan. With no direction or planning for how you’ll make a profit, your business likely doomed. Trading is no different, if you want to succeed, you’ll need to think of trading like you would a business. After all, through your research, skills and ultimately your money you’re making an investment in yourself, which hopefully will produce consistent profits and the lifestyle you desire. This doesn’t happen by accident (at least not often). It happens by creating a plan for your trading, and outlining exactly how you will trade. Creating a solid plan is a key step that all beginning traders should take, as failing to do this will likely result in simply failing.

Creating a plan leaves your emotions out of trading. When you watching your trade turn into a big loss or a big gain your mind can spin, causing you to deviate from the original strategy you had in mind, if you had one. The trading plan takes care of this. It gives you methodical instruction on exactly how to handle each trading situation should arise. It also tells you how to handle multiple trades. As a trader you may want to make more than one trade, but because you are anxious about your other trade you decide to skip out on a good opportunity. Alternatively, you may take on too many trades, exposing yourself to too much risk. A solid trading plan not only tells you how and why you are making trades, but also how you will handle a number of trades (if you so choose).

Probably the main benefit is that when you follow a plan you see what works and what doesn’t, and can monitor your results. Random trades, where you just buy and sell for any reason that strikes you, provide no useable feedback, because yours wins and losses will be as random as the impulses that generated the trade. Only by following a plan can you see if the strategies you are using actually work, or not, so you can make calibrated adjustments to improve.

Before You Begin

In order to create an effective trading plan, you need to consider several things thing before you begin:

  • What style of trading best suits my personality? If you are someone who is low-key and prefers little drama, then you will likely want a trading style that is more in line with swing trading or investing. If you like action, then align your trading style with a more active style of trading such as short-term/day trading.
  • Are you going to trade binary options, stocks, forex, futures, or a combination? Each has advantages and disadvantages; pick your markets(s) so you can create a plan for that market(s).
  • What are your objectives? Why are you trading? Simple saying you want to make more money isn’t clear enough. Define what you want to make, and why–buy a car, buy a house, pay for kids school, etc. Your trading plan is the plan to get there, based on your resources, trading style and how often you trade. How often you trade will likely be determined by the entry and exit rules for your trades.

There are many excellent trading strategies out there, or you can create your own. Some basic entry methods are covered in my recent article Capitalizing on Lower Highs and Higher Lows in Price. Once you find a strategy you like, use this section of your plan to outline exactly how you will enter trades based on the strategy.

Your entry rules outline what market criteria must be in place for you take a trade. Here are some questions to ask yourself to get started. Does an indicator need to reach a certain level to take a trade? Does the price need to break an important level? Do entry signals need to occur on a specific chart, such as a 5 minute, 15 minute, or hourly chart. Do all trade signals get traded, or will you use a filter to screen some trades out? Do you enter exactly when a criteria is hit, or do you wait for a price bar to close before entering?

Think about your strategy, and then formulate exactly how you will enter those trades. If you use multiple strategies, this process must be done for each individual strategy.

How to get out of a trade is arguably more important than how you get in, since your exit is where you make or lose money. Therefore, your exit rules must stipulate exactly how you get out of both winning and losing trades based on your strategy.

If you are trading binary options, your profits and losses are fixed and therefore this section may be quite brief, since your broker essentially exits your trades for you. If you trade other assets, this section can get quite extensive.

You’ll need to determine where you will place a stop-loss order–an order which will close your trade and limit the amount you can lose. Where the stop-loss is placed must be determined before any trades are made, because without it, you don’t know how much you are risking on the trade. Once the trade is in motion, you may choose to implement a trailing stop. A trailing stop moves with your trade, reducing your risk or potentially locking in a certain profit once the trade moves in a profitable direction.

You’ll also need to outline if any profit targets will be used. Profit targets are pre-established price level or percentage-return levels at which you close your position (or part of it) to realize a profit.

You may choose another exit method, such as exiting simply when the criteria that got you into the trade disappears. If you entered because a trend was in place; when the trend breaks that could be your exit.

Outline your method for exiting profitable and losing trades, in fine detail, for any scenarios that may arise.

Money or risk management is the most important aspect of the plan. A basic rule for money management is that you shouldn’t risk more than 1% of your trading capital on a single trade. This is why you must determine your stop-level in the Exit Rules section. Once you set a stop-level, you know what your risk is.

Once you know your risk, you can determine how many contracts or lots you can buy. Managing your position size is crucial, as buying too much can create additional risk, while buying too little may make it difficult to reach your objectives.

In this section also consider whether you can take on multiple trades, or only one at a time. If you take on multiple trades, can they be correlated? If two assets are highly correlated, and you buy both of them, you are essentially taking the same trade, and doubling your position size. Consider these factors, and outline exactly how you will manage your money, risk and positions in order to reach your objectives.

Creating a trading plan will take time, but is well worth the effort. It should be very detailed, and at absolute minimum contain the sections discussed above. As you trade, things you didn’t consider will occur, and you’ll need to go back and tweak your plan. Once your plan is profitable though, avoid tinkering with it. The point of the plan is make your trading systematic, so you see what works and what doesn’t. If you constantly change the plan it won’t have time to show you if it is really working or not. Take the time to make a plan, because lack of planning leads to trading failure.

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Best Binary Options Strategy For Beginner & Experienced Traders – Binoption

Traders are constantly in need of a working binary options strategy for their trading.

Without a trading strategy, no trader can achieve success in trading.

Whether it be forex, crypto, stocks, indices, or any other asset, you need a strategy that suits your trading style and brings you consistent profits.

The common misconception among non-traders is that trading is a game of luck. The reality is far from the truth.

Trading is a very complex activity. There is a lot of reasoning behind every action that is performed.

A trader carefully selects his trading asset, analyzes its market, performs technical analysis, and then performs the trade.

Even after all this, the chances of winning are pretty slim. You cannot out predict the market.

Binary Options are based on a yes/no proposition.

Earning a payout depends on accurately predicting the outcome of the market beforehand.

If you guess wrongly, you will lose your investment.

Therefore, it is extremely important you trade with caution.

A trading strategy is the backbone of any successful trade.

Our strategy section contains various articles that will cover all aspects of binary options strategy.

You will learn how to utilize different strategies and when to use which one.

Best Strategy List For Binary Options Trading:

Using Moving Average To Form A Successful Binomo Strategy

8 Best IQ Option Trading Tips To Perform Successful Strategy (Infographic)

Pick Your Trading Strategy Now For Your Trading!

Best IQ Option Strategy- IQ Option Tips For Winning Trades

How to Evaluate Your Binary Options Trade: Things To Mind

6 Styles Of Trading Strategies: Find The Best One For You

60 Seconds Binary Options Strategy: Know the Advantages

Ways to find Binary Options Strategies Without Losing Money

Technical Analysis versus Fundamental Analysis Of Binary Options

Be an Expert in Binary Options in Your Own Style

DoubleUp Strategy For Binary Option Trading – How It Works

Binary Options Training Programs in Detail

Best Two Binary Options Strategies for Trading

Use of Binary Options Strategies over Forex Trading

Executing Your First Trade – Binary Options Trading Checklist

Need For Solid Trading Strategy For Binary Options

Reasons For Rising Demand On Binary Options Trades

Survival Tips for Binary Options Traders: Crucial Period of Trading

Binary Options Terminologies For The Investor In You

Binary Options Types In The Current Market And Their Strategies

Things To Consider Before Opting For A Binary Options Account

Some Characteristics Of Reliable Trading Broker

Binary Options Trading Assets: 4 Pillars Of Binary Options

Binary Options Management Strategies To Become Successful

Benefits Of Binary Options Trading That Attracts Trades

What Are Candlestick Charts And How To Use Them For Trading Binary Options?

Binary Option Trading Checklist Before You Start Trading

Identifying Consolidation Area: Call Put Strategy

“An Old Gambler’s Tool” – The Curious Case Of Martingale Strategy

The Basic Bull Call Spread Strategy In Binary Options Trading

What Is The Breakout Strategy for Binary Options?

6 Facts For Binary Options Trading Formulas And Strategies

In Binary Options How Does Trading Techniques Actually Work?

What Is Trading Strategy For Binary Options?

A trading strategy is basically a well-thought out plan that is designed in order to profit from the trading market.

A strategy is formed on the basis of both fundamental and technical analysis.

Fundamental analysis involves analyzing the factors that affect the asset’s market value such as economic and financial conditions, interest rates, company earnings, competitors, and much more.

After analyzing these factors, the asset price will be estimated.

The analyst then compares this estimated price with the current market value and determine if the asset is undervalued or overvalued.

If it is overvalued, the recommendation would be to sell it, and buy if is undervalued.

Technical analysis is the process of analyzing the market through trends and and information collected from trading such as volume and price movement over a certain period of time.

Using indicators and graphical tools, trends are recognized and future price movement is predicted.

When forming a trading strategy, you need to combination of both.

In our strategy guides, we guide you step-by-step, to do exactly that.

The Need For Successful Binary Options Strategy

Though many new comers are of the opinion that there is no need for trading strategies for making money through binary options , this article will help you to understand the real reasoning for the need.

These binary options strategy collectively will help you in understanding and analyzing whether you made profit at the end of each month.

In order to know this, firstly every trader should be aware of what they are doing.

Basically as a trader you should be aware of where the results of your trades are arising from.

Trading without strategies is driven by emotions and will be random.

After certain point of time, you would have either made some money or not.

But there will be no certainty thus you will be unable to be understand what helped you to make or lose money.

This lack of information will be a block for improvement.

This can also result in try different trading styles on a regular basis and will be unable to settle with some style that will surely help you to make some money.

In order to make trading fruitful, learn how to trade binary options.

As you will have clear picture of the amount of money you make and the source for the same, there will be less chance of failure or struggle.

In this way, you can concentrate on those styles of trading that are your strength and can eliminate the chances of you failing.

It is essential to keep in mind, no one is a master in trading binary options nor are they born with the skill of trading.

All these are learnt through information and experience.

However, following some binary options strategy are a tool that will help you to improve your trading overtime.

It can be said that- ‘Only with the help of knowing what you are doing to your trades, you will be able to judge or predict the result of your initiatives”.

To summarize, you will need a working binary options strategy for the following reasons:

  • Profitable trading
  • Focus on trading without distractions
  • Measure and improve performance
  • Eliminate emotions from trading
  • Prevent over trading
  • Enrich your trading knowledge
  • Reduce risks in trading
Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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