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

The No. 1 Thing to look For in a Chart

The No. 1 Thing to Look For in a Chart

What is the most important thing you should be looking for when you look at a chart of a market?  What is the No. 1 thing to look for in a chart? Did you say what the market is going to do next? If you did then you are wrong. Very wrong. That should be pretty obvious. A chart is a diagram of data on the price of the security in the past. The chart contains no data in relation to the future. None at all. How could it? So if you look at a chart expecting to see something … Continue reading

When Regulation Drives Product Development

  To many, the Binary Options sector appears to remain an unregulated free-for-all. However, the truth is much more complex and there is increasing evidence that the sector has entered a more mature phase when regulation drives product development. The free eBook , which you can download from this site by , shows that there have been a huge amount of changes over the past couple of years. In summary, there are three categories of offerings available in terms of the regulation. Unregulated OTC Brokers The first category comprises the offerings provided by unregulated brokers. These are all offering what … Continue reading

Regulation of Binary Options Brokers

Broker Regulation eBook

A Big Decision You Must Make So you have decided you want to trade Binary Options. You have also decided what funds to allocate and that you are going to learn how to trade. Now you have an important decision to make that could affect your trading performance and more. You must decide which broker you are going to deal with. Put another way, you must decide which broker you trust sufficiently that you are ready to put money into an account they will create. Importantly, you must trust the broker before you begin to decide who is likely to … 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

How to Eliminate Trading Risk

  I’m quite regularly asked which broker I would recommend or which signals provider is best. Somewhat less often I’m asked more specific questions such as which currency pair is best to trade or what time period is best. I will seldom, if ever, provide straight answers to these types of questions. It’s not that I’m being unhelpful – quite the opposite. The most helpful answer I can give to these questions is that the trader must make these decisions for themselves. I can just provide some advice about how to go about making this decision. An impartial, objective eBook … Continue reading

What are They Thinking?

binary options strategy

  As the Binary Options market has grown and brokers have become more competitive, the number offering various educational materials has started to grow also. Some of these are quite good, but almost all the services provided fall far short of what is provided freely by brokers and other operators in more mainstream established sectors. This has been led by US stock brokers, but the services provided by Forex or Spread Betting operators are now of a quality that was unthinkable a decade ago. Almost all that a private trader needs to get going is available for free as an … Continue reading

Don’t Forget How to Trade

Can you forget how to trade? Well if you view trading as simply pressing the Call or Put button on the broker’s platform then you are not likely to forget how to do that. And even if you do there is plenty of assistance on brokers’ site to remind you how simple it is. The problem of course is that placing the trade is only a tiny part of trading and by far the simplest among the many stages. I’ve written before about the various stages of trading here. You’ll soon realise that it is very easy to forget large … Continue reading