Binary trading for beginners
You have to decide whether will you gamble or make decisions based on market behavior. It is worth knowing that binary trading, like gambling, could lead to addiction. Scientists just recently discovered that addiction is not a dependency on a chemical but repeatedly pursuing a reward.
When we trade and make profit, the neurons in our brain squirt out dopamine, which gives us little waves of satisfaction. Many binary gurus on YouTube try to sell the idea you can make profit by simply learning one strategy or buying an auto-trading robot. Well, good luck with that. Yes, we all know price action reflects past economic events, but we actually need to look into the future. In fact, the fundaments are the driving forces behind price, and it would be stupid to ignore them.
Yes, you need a strategy when you trade binary options to keep profiting in the long run. It is true that, with binary options, your risk is limited and you can make profit with only one pip in the right direction. However, it is also true, once you enter the contract, you have limited tools to manage it. When trading forex, you have to deal with leverage and spreads. Binary trading is much more simplified since you are not using leverage and you are interested only in the strike price.
Binary options trading might look easy to you, but profiting in the long run is far from an easy job. You must toss aside the idea of making big money with some magic indicators and auto-trading robots. Humans still have an advantage: If you have the pulse of the markets, chance will be on your side.
You better invest time into learning fundamentals and price action. I read all 12 lessons. In my opinion your site is full of useful information. I've learnt a lot from it. Thanks for your feedback, we are glad you find useful information on the website. We will try to deliver more. Use the same money management as with conservative strategy, but your earnings will increase faster. Now, the below strategy is a very aggressive one that defines the means of sane trading.
This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels and And Fibonacci levels are drawn for every cycle.
This strategy also exploit the full potential of value charts. Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe. Now, we will go after the BIG 5. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now?
Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse. Look at the chart below:. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions.
This strategy will produce around setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam. The 3 strategies explained here work for all currency pairs, commodities, stocks and indices.
However, even with the conservative strategy, a trader can produce excellent results if they trade assets, and take 2 high probability trades per asset per day. Click here to read my next and last post in this mini series. Conservative Long-term Strategy This strategy is for those who are new to this game and want to build up their capital slow and steady. You will then be able to maximize your chance of placing successful trades.
You can then choose your asset and the strategy you wish to employ. It will then be time to wait! Trades can be for as little as thirty seconds or as long as a year; although most traders choose to operate between one and five minutes. It is important to note that every time your prediction is wrong and you lose your investment, the broker gains your funds. In some ways this is like gambling as you are playing against the house.
However, you are not simply relying on luck! Even when you place a successful trade your broker is likely to make some funds from you via charges! The average rate of return is in the mid seventies; this means that you need to place successful trades between fifty five and sixty percent of the time; just to cover your operating costs.
This is why it is essential to research and understand the assets and the market. Most experienced traders will use some kind of binary options signals. This can be as simple as a chart showing the rise and fall of an asset over short and long time periods. From this chart you will be able to see a trend and can trade according to that trend.
More complex signals involve creating boundaries and even moving average prices. This is often too complicated to deal with when first starting trading.
A viable alternative is to subscribe to one of the signaling services.