Early Retirement with Binary Options

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Binary Options Trading: Is It Worth The Risk?

While a self proclaimed expert in living frugally and saving money..I make no claims to be an investment guru. Currently most of my investments are passivly invested in the Vanguard Lifestrategy 80 Acc ‘fund of funds’ however there are many other alternatives avaliable. I’ve asked a friend of mine to contribute a few articals focused on more indepth alternative investment analysis. Enjoy:

Binary Options Trading: Is It Worth The Risk?

These days almost everyone has a desire to get rich quick. Some choose to do so by taking part in various investment ventures. One of the most popular investments is putting money into the stock market.

Individuals take the time to study companies and can buy and trade stocks on the basis of how much profit they think the company will make. This investment is considered to be predictable and with time can garner a nice return.

However, not all areas of stock investments are as equally lucrative. Certain ventures lead individuals into more debt. Binary options trading could be considered to be one of these investments.

Its promises of low investments and high returns can make even the most practical individuals take a chance on this form of exchange. Lets take a moment to discuss exactly what binary options trading is, as well as its hazards.

What Is Binary Options Trading and How Does It Work

So what exactly is binary options trading? Binary options are mass-market financial instruments which will allow the trader to make use of a flexible approach without having to deal with all of the intricacies of the average trading options. (From: http://www.wikihow.com/Understand-Binary-Options)

Binary options may be used in order to hedge an individual’s portfolio or just for short-term financial gains. These particular options are said to give the individual an opportunity to enjoy all of the high payouts in very short amounts of time. It is this promise that has made binary options gain a significant amount of popularity worldwide.

Binary options contracts are usually available on various assets, which include: stocks, commodities, currencies and indices. When someone decides to trade, they will be expected to place a ‘put’ or ‘call’ option. ‘Put’ options mean that the individual will predict that the price of underlying assets are going to fall from their current prices at the time of their expiry, while ‘call’ options mean that an individual will predict that the prices will rise.

If the trader’s prediction is correct, then they will “finish in the money” and turn a profit. However, if their prediction is incorrect, then they will “finish out of the money” and lose their investment.

On certain occasions, the individual’s trade will “finish at the money” which means that the prices of the underlying assets are exactly the same as their time of expiry and at the time the person opened their trade. If this occurs, then the initial investment will be rewarded back to the trader–nothing loss and nothing gained.

Shady Dealings

At this point, you may assume that there is very little risk involved–a person tries to predict whether a stock will rise or fall and if they are correct, then they double their money. It seems like a relatively simple and lucrative process. However, not everything is as it seems. This form of trading leaves out one crucial element: regulations.

Best Binary Options Brokers: 2020 Ranking
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  • Binomo
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    Good choice for experienced traders!

One of the best parts about investing in the stock market is the system of checks and balances that is set in place by regulatory agencies. When the stock market plummeted in 1929, so did all of the public’s confidence in the United States markets.

Congress decided to hold a hearing in order to identify all of the problems as well as search for plausible solutions. Based on all of their findings, Congress was able to create the Securities Exchange Act, which led to the creation of the SEC, Securities and Exchange Commission. The SEC is a regulatory agency, which is responsible for protecting investors and maintaining fair markets.

Offshore binary options trading companies (which make up around 99% of all binary options companies) are not under the authority of the SEC. (From: http://www.optionsadvice.com/usa-brokers/)

In fact, they are not accountable to any form of regulation. Many companies take advantage of this fact and the unsuspecting investor has no one to report their unfair treatment to. The fact that they are not regulated has left the door open for numerous scams that all turn out in the broker’s favor.

In Conclusion

Though this form of trading is not a complete lost cause, the brokers that are involved can easily take advantage of those who are hoping to make sound investments. Binary options is often referred to as the wild west of trading–anything goes. Without the proper motivation of regulatory agencies, the companies that offer these forms of investment have very little incentive to deal fairly with traders.

3 thoughts on “ Binary Options Trading: Is It Worth The Risk? ”

Interesting article, but too risky for me, even though I like a gamble!

Mike Ashley, owner of Sports Direct and Newcastle FC (and billionaire gambler!) sold a put option in Tesco late 2020 – something similar? He’s gambling that Tesco shares will trade above a certain price during a specific period. If they do, he receives a sum of money. If they don’t he will purchase 23m Tesco shares! Interesting how that one will turn out!

Nice article. I have wanted to dabble with selling put options on good companies for a while now but have never had the courage to actually do it. I already use limit orders for buying and selling so its basically the same thing only I might make a little extra money in the meantime.

I’m staying away from binary options trading because it seems too risky to me.

1 Minute Binary Options Strategy: Increase Your Investment Returns

Dividend Growth Investing – Millionaire Mob – October 18, 2020

Let’s break down what the 1 minute binary options strategy is and how to effectively use it to boost your investment returns.

1 Minute Binary Options Strategy: Increase Your Investment Returns

As forex trading advance, you will realize that there are many innovations to help traders get profits from the market. 1 minute- binary option is one of the best examples. 1-minute binary options’ trading has become quite popular over the last few years, and a lot of trading brokers are now offering this trade to their clients. I’ve been more of an income-based investor, which is why I like to sell weekly put options for income.

Trading in binary options for income is one of the most popular trends in the financial markets today. Both experienced, and novice traders now include them in their investment portfolios. I’ve considered myself more of an investor rather than a trader.

Just like any other business or trading platform, if you want to make money consistently, you must employ an excellent strategy. Anyone can trade with little time and skills since the main requirement is the ability to predict the direction that the asset price will take. If you like trading forex, here are several forex trading books to consider.

The price can either go up or drop. It is binary. Successful binary options traders often achieve great success by utilizing simple methods and strategies. If you want to be a binary options trader, make sure you pick a very reliable broker.

Binary options offer the investors an excellent way to trade in the direction of an underlying asset or the overall market because of their all-or-nothing features. Besides their straight-forward risk/reward profiles and defined risk, they can also be used for shorter-term strategies due to their seconds, minutes, hourly, daily or even weekly contract expirations.

Did you know that there are brokerages that will simply give you free stock just for signing up? That’s a great no-risk way to start investing.

So, what is 1-minute binary options strategy?

A 1 minute binary options strategy is a strategy for trading binary options with an expiry of one minute or 60 seconds. The trading offers one of the most successful strategies of trading available.

There is a possibility of making up a 85% profit on an investment in just a minute in binary options trading. This is why so many traders now consider trading binary options over the traditional forms of trading.

While sixty-second binary options trading also carries the risk of losing up to 100% of the investment in just a single minute, and there are several trading strategies which are used profitably by traders to make very high returns.

I’ve been a big fan of options for reducing risk and boosting returns. I have a predetermined set of criteria for finding the best stocks for writing covered calls to reduce risk. However, with trading I like to find a few stocks to constantly trade alongside my portfolio.

I tend to follow some of the investing gurus into various stocks.

How to use the 1-minute binary option strategy

If you have no idea about how to trade a 1-minute binary option, then you’ll be involved in a sheer gamble. You should first understand the concept behind the strategy, and follow the money management rules to fetch enough profits.

It is important to trade for a few months till you know the price movement and the other indicators. Let’s take a look at the 1-minute binary options strategies available.

Here are a few smart investment techniques to turnaround your investment portfolio if your portfolio is in a rut.

Basic 1-minute binary options strategies using time-tested methods

The 1-minute binary options trade swings very rapidly and having a trading strategy is crucial to ensure continued trading success. It’s important to keep things simple when trading using such short timeframes to avoid an ‘analysis paralysis’ that happens when trading with multiple indicators and to spot short-term opportunities.

Common 1 Minute Binary Options Trading Strategies

There are plenty of different common 1 minute binary option trading strategies to consider. Each one is different and not all are for everyone. I suggest choosing 1 or 2 different strategies that suit your trading style the best. I love using FINVIZ to identify new trade opportunities. Here is how I use FINVIZ futures to understand market trends.

This will help you stay within your investment strategy to boost your overall returns. I don’t mind pairing some of these strategies occasionally with my dividend growth portfolio. Here are some of the common 1 minute strategies to consider.

SuperSignal Binary Trading Strategy

The SuperSignal strategy for binary trading is one of the best low timeframe strategies. If all indicators were employed and money management rules followed, it can be profitable. When using the strategy, look out for the random occurrence of false signals and open trades at your own will.

GOD Strategy binary option trade

Another strategy is the GOD strategy which is one of the most successful strategies for binary options with one minute or 60 seconds expiration time. It’s based on three indicators, and its signals are relatively accurate. Signals are generated very often and on average, you can get one signal every 15 minutes.

Applying candlesticks to the 60-second binary options trades

Following the rise of the Japanese rice traders in the 1500’s, the use of candlestick analysis became one of the most time-tested methods. Candlestick charts give traders a visual indication of the strength of prices in the market. In addition, the candlestick can indicate future price changes as well as the existence of support and resistance.

When traders apply candlesticks to short-term trading charts, binary options traders can observe trends and the individual price bars. This should symbolize a near-term movement higher or lower.

One of the most vital strategies for sixty seconds binary options traders is the ‘engulfing’ candlestick, where a dominant candlestick engulfs the candle before, either bullish or bearish, to indicate that market sentiment is firm to the upside or downside.

Adding volume indicators to 1-minute binary options trading

Another great strategy involves the addition of volume indicators to a 1-minute binary options trading. These will demonstrate the level of trading activity in an underlying asset.

Ideally, 60-second traders are seeking for a switch in market sentiment to approve the price movement either higher or lower over the next one minute to ensure that their binary options expire in the money. A suitable way to interpret market sentiment is to watch for rising volume following a reversal signal. You then need to apply candlestick analysis to this. When an engulfing candlestick in the opposite direction to the short-term trend happens at a recent high or low, a reversal movement is also very likely to happen.

On a 60-seconds chart, if an engulfing candlestick is followed by an extra candle showing volume increase in the direction of the reversal. Then, a 60-second momentum trade in this direction will have a high probability of success.

Both patterns and volume offer binary options trade setups

There are many additional candlestick patterns which can assist traders in trading in 60-seconds binary options successfully. Many of which can be back-tested by viewing past or historical charts to ensure that they create the required immediate momentum and to ensure that 60-second binary options close in the money.

The engulfing candlestick strategy is one of the most reliable trading signals for short-term reversal momentum and can be said to be one of the most effective single-bar patterns for binary options traders.

Will you start trading 1-minute binary options?

For binary options traders looking to increase the probability of success, expand the expiry time of the binary options. Also, look for similar chances on 5-minute charts to ensure you continue to find high-probability binary trades. We all know that forecasting or predicting the future is the key to success. If you are new to this, try taking a course on trading to hone your craft and binary option trading strategy.

Conclusion on 1 Minute Binary Options Strategy

If you want to diversify your portfolio, you can consider trading the 1-minute binary options. While choosing a 1-minute binary trading strategy, bear in mind that the asset’s volatility can determine whether the trading session will be profitable or not.

You should also ensure that you never enter more than one trade every 5 minutes. This can lead to losses and excessive trading. Try picking a few stocks that you like. I screen for stocks and monitor only a select few to trade. I end up getting to ‘know’ the stocks.

When you are seeking one-minute expiry, you should try to analyze small patterns instead of considering the whole picture. The most successful traders in the world started by building their own trading strategy. Create a canvas of trading that suits your style. Then, refine and improve.

What do you think about the 1 minute binary options strategy? Let us know in the comments below. We’d love to hear from you.

See Also:

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Binary Early Retirement Is Nonsense

What seems to be an issue with some folks when it comes to financial freedom and early retirement is it’s either this or that. You’re either financially free and retired or not. Basically, If you choose to do any kind of paid work or activity then you are no longer retired or financially free. Give me a break, what a crock! Binary early retirement is nonsense. Having financial freedom means having choices without financial worry when using our common sense. Yet people just can’t shed outdated notions about early retirement and the financial freedom that allows for it. Especially those binary early retirement loving critics who haven’t experienced it for themselves. That said, let me say I do see why they think what they think and I hear their criticism. Simply, there are long entrenched traditions regarding retirement. However, let me explain where I am coming from.

Why Binary Early Retirement Is Nonsense

After nearly 10 years of early retirement through financial freedom that has included a stepped down position, a highly paid encore career, a lucrative retirement side hustle, a fun little short-term retirement gig, and this early retirement focused website, I speak from REAL experience. I claim and truly believe I’ve been retired and financially free through it all. All the way back to day one in 2009 when I ditched my long career. I live it and I have enjoyed the hell out of it. I’ve even increased my wealth at my pleasure, on my terms, and at our corporate world’s expense ( yes, I have a particular attitude toward the corporate world ). A total win-win!

I use the terms “highly paid, lucrative, and increased wealth” above to get the attention of any financially focused binary early retirement believers.

But the reason I can honestly say that I was still retired and financially free the entire time I was getting paid working is I had the financial freedom to accept worthy opportunities I was interested in doing without regard to pay. I also had the financial freedom to quit doing them as soon as my interest ended, regardless of what they paid, and I certainly did.

Financially free early retirees still have all the energy and drive that got them there. If they choose to work pursuing their interests and passions they can still consider themselves retired and financially free.

They can then add any earned income to their portfolio, donate it to charity, or use it to help support a cause or hobby they want to continue pursuing. That’s the freedom lifestyle earned through executing a successful spending, debt elimination, and investment strategy.

It’s the absence of NEEDING to work that defines retirement, not the absence of working

That’s not just some catchy concept, it defines retirement perfectly. Reject the outdated and rigid notion that we work until we can afford to retire and then never work for pay again. Why be financially free and then put limits on our freedom?

Everyone’s vision of financial freedom and early retirement is different

What’s common among them is that they have enough of a portfolio and/or passive income to be able to pull off their desired version of FIRE . A version which may or may not include any paid work.

If doing any paid work in early retirement turns you off then don’t do it. I’ve freely chosen not to be in the paid work game since the summer of 2020. But, if the right opportunity presents itself I wouldn’t binary label myself retired and not pursue it. That’s the beauty of financial freedom.

There’s no call for trolling or shaming anyone who engages in a paid activity in their early retirement. Nor any other dictates of binary early retirement where it’s this way to be considered early retired or you’re not. Don’t let others negative opinions who unproductively criticize dissuade you from your own early retirement vision. Take away ideas from financially free early retirement stories and live your own vision.

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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