The Growth of Binary Options

Growth of Binary Options

  The growth of Binary Options in terms of their popularity in recent years has occurred, for the most part, against a pretty consistent background of the performance of the main stock markets. I don’t normally comment on the big picture background, much less engage in any sort of prediction about where the markets are headed, but there are a few points worth noting. After crashing by over 50% from their 2007 highs, the main indexes – the DOW30, S&P500, Nasdaq, FTSE100, etc. – began a long term recovery in March 2009. Few at the time would have seen how … Continue reading

The No.1 Trading Tactic You Need to Know

Trading Strategy and Tactics

  There’s a certain excitement associated with starting to trade. You are acting to make a desire come true. You get an account and put on your first few trades. Some win, some lose. You accept the losses. After all you are just starting. The most important thing is that you are making it happen. But, after a little while the excitement has gone and the fact that you are losing is what really matters. You need to learn more about how to do it right. You start to ask questions and look for answers. You learn a bit and … Continue reading

Free Money? No Thanks!

  There’s a famous experiment, that has been repeated many times in slightly differing formats, that involves someone trying to give free money to random strangers. Sometimes they offer them the notes and try to convince them that there is no catch. Sometimes they just leave the money in clear view with a sign saying it is free. The outcomes of these experiments are always the same. The vast majority of people do not take the money. Usually they try to ignore whoever is conducting the experiment – as you might expect if someone was asking them for money. If … Continue reading

What is Your Trading Edge?

Trading edge

If we ignore costs, the trading of Binary Options is basically a zero sum game. In other words, for every winner there is a loser of equivalent $ amount. But, there are costs in the form of what the broker earns. Therefore, it must be the case that the average trader is not breaking even. So, you must be achieving above average. A trading edge is a skill or insight or process that means you are better than the traders with whom you interact when you trade. If you have something that gives you an edge then you have a … Continue reading

Death by Piranha Bites

Death by Piranha Bites

  OK, so, the headline is a bit dramatic. But I’m not the first person to do that and, as you will see below, there is a relevant point behind it. There are two ways to blow up your account. You can lose a large portion through placing too much risk on each trade. Even if you have a trading plan with, let’s say, a 75% success rate – highly unlikely – it is still statistically likely that you will encounter times when you lose 5 trades in a row. If you put 10% of your fund at risk per … Continue reading

12 Truths For New Traders

  So you are a new trader? Successful or not, there are some guiding principles that hold true in every market. Here are the 12 truths for new traders that I consider it vital to accept if you are to be successful. 1. Trading is about following a routine that works. If you are to be successful trading you must develop a routine. Consistent results are the key to success. If you trade according to a consistent routine then you greatly improve your chances of success. A routine involves repetition of a series of actions and repetitive application of rules … Continue reading