LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
LEVEL 10 : SENIOR
REVIEWS 9 | REPLIES 84
I have been seeing a lot of confusion in the industry regarding how much you should deposit with your Binary Options Broker. Most traders get really scared when they need to make their first deposit because they don’t know what to expect. This feeling is totally natural and I can completely understand why they react this way. They read about all the scams and the problems people are having with their brokers. Examples are traders complaining that they can’t get their money withdrawn, not getting what they paid for or losing their deposit. Of course, they will be scared to lose their hard earned cash when they hear stuff like this. As if these reasons are not scary enough on its own, traders still need to worry about their own trading. These factors are why the question “how much should I deposit with my broker” has become such a popular topic.
Let’s get on to the subject. Ok, so you finally became consistently profitable on your demo trading account, and you feel you are ready for the real thing. The next step you should take would be to open a live trading account to put your trading to the test and see how well you can do with all the tricks the market throws at you. Let’s assume you have found a good broker, and you are wondering how much you should deposit. The size of your first deposit will depend on your situation and the trading experience you have acquired. There are two options to choose from: invest the minimum deposit or invest your full amount that you have saved for trading. Now, let’s take a look at what the best option will be.
This is THE most important question you should ask yourself when contemplating how much to deposit. You should only use money that you can afford to lose. Not the money you need for bills, groceries or rent money. ONLY deposit your leftover money and not your entire life savings. Binary Options is not a way that you can make a quick buck to pay your bills. Trying to bet the rent money on a few trades to pay the bills will only cause you to end up with less than what you started with. A big portion of trading involves a person’s psychology. If you are trading with money that you can’t afford to lose, you will experience all kinds of emotional troubles. Not being able to control your emotions while trading, can and will result in you making dumb mistakes that could cause you to wipe out your entire account. So the bottom line is if you don’t have the money to trade then you should rather wait till you have some cash lying around. It will be so much easier on your psychology.
One of the big reasons why people start trading binary options is all the advertisements they see on the internet about people turning small amounts into ridiculous profits. I am not saying that this is not possible, but it will take much longer than what they claim. If you decide you want to make a small deposit and trade with a traditional money management system, it could take you ages to make the type of gains these guys are talking about. Risking 1% – 5% of your account can cause your profit to be minimal. It can become frustrating to see a trade end up as a winner, but you hardly see a difference in your account balance. This frustration can sometimes cause traders to take on more risk than what they should. Do I really need to tell you what happens next? Boom! There goes another account.
These days, you can open a live trading account with as little as $100 – $250 as a deposit. Sure, this does not sound like much to lose, but are we trading to lose money? No, we want to make money. If I wanted to lose my money I would just go to the casino or play the Lotto. The thing about small deposits is it doesn’t leave room for many mistakes, and it will also limit your trading in more than one way. However, if you want to test a broker, you should definitely start with their minimum deposit or a relatively small amount. See how their platform performs when taking trades, test the customer service and most off all check out their withdrawal times. The last thing you want is struggling to withdraw your profits after trading your account for three months. Once you have tested the broker, and you are satisfied, you can then proceed to make a larger deposit. Should you have any doubts surrounding the broker, it will be a good idea to choose another one before making a bigger deposit. Small accounts are also great if you are still not confident enough in your trading skills. It is a perfect way to get your feet wet without suffering a big loss. Trading with a small live account will allow you to get your emotions under control that the demo trading could not provide.
Ok so you have now decided on the perfect broker and how much you will deposit. The next step you should take is to determine what your risk tolerance will be. Some traders think that you lower your risk when you make the minimum deposit. This statement is true and false at the same time. Obviously a trader that makes a deposit of $300 is going to have less to lose compared to a trader who deposits $3000. Now, you might be wondering why I also said that this statement is not true. The problem comes in with money management and the minimum allowed investment per trade with the broker. Let me demonstrate what I am trying to say:
Let’s say you deposit $200 into your binary options account. The broker’s minimum investment per trade is $20. Risking $20 per trade on a $200 account equates to 10% risk of your account. In this scenario, you will only be able to lose 10 times in a row before you wipe out your account.
Let’s assume that you use the same broker as the above example with the same minimum investment per trade ($20). You decide to deposit 10 times the amount of the above account – $2000. If you are still trading with $20 per trade on your $2000 account, you will only be risking 1% of your account compared to 10%. In this example, you will have to lose 100 times in a row for you to wipe out your account.
So who is taking the biggest risk – the trader with the small or large deposit? It is clear that the larger deposit is the safer option if you want to use proper money management to preserve your trading capital. So what we learn from these examples is that we need to consider both the minimum deposit and the minimum investment amount before funding our account.
I have been using a strategy that has been working really well for me the past few months. What I do is, I take my total amount that I want to invest, but I only deposit 20% of that amount. Let’s say you are looking to invest $10 000. In my case, I will only deposit $2000 of that amount. Now, the thing is I don’t risk 1% – 5% of the $2000. I am still risking 1% – 5% of my total investment. For the purpose of this example, let’s say I want to risk 4% of my total investment on a single trade. 4% of $10 000 equals $400. So this means that I will be risking 20% of the $2000 account. Doing this will only allow me to make 5 losing trades in a row, but in reality I am still only risking 4% of the $10 000. If I wiped out my account, I would just deposit the next $2000. This type of money management is only possible with Binary Options because there is no leverage involved as there is in the Spot Forex market.
When you divide your account into portions like this, you will be minimizing your risk exposure. Instead of running the risk of losing $10 000 you will only lose $2000 if things go wrong. Mistakes happen all the time. For instance, you might want to risk $100 but you accidentally enter one extra zero, and now you are risking $1000 instead of just $100. This is only one of many examples of what could go wrong. Use it, don’t use it – do what works best for you.
It comes down to the question – how much will the size of your account affect your trading? Will you be able to make millions from a small $200 account? Well, it is highly unlikely but not impossible. The truth is that your chances of making more money are much higher with a bigger deposit like $5000. After all, we know that – money makes money!
Having a small binary options account undoubtedly has its benefits that cannot be denied. If you are only looking to hone your trading skills and don’t expect to make millions from it, then go with such a deposit. Always remember to first test the broker with a small deposit before you make a bigger deposit. Doing this will save you a lot of money and disappointment in the long run.
Everyone knows that trading is a risky business. The only way to achieve success is to preserve your capital and be able to withstand many losses. Having this ability will give you a chance to learn from your losses and your mistakes without wiping out your entire account. So, the moral of the story is – RISK LESS, EARN MORE!
I have said it many times before, and I will say it again – losing is part of trading! Whether you like it or not, you will have losses. There is no trader or system out there that will win 100% of the time. The sooner you realize this, the quicker you can move forward to success.
Before we look at ways how you can regain control of your trading, we must first talk about what constitutes a losing streak. A losing streak is a subjective term amongst traders. Some might say that three trades in a row is a losing streak while others might argue that three losses in a row are not that bad. They could define a losing streak as five or more losses in a row. One thing is for sure; one loss is obviously not a streak, and two losses is only a couple of losses. So technically speaking anything more than three losses in a row could be defined as a losing streak.
What is important is that you should define what a “normal” losing streak is and what is not according to your strategy. You can do this by testing your system over a number of trades. This will help you accumulate different statistical information regarding your trading system and your performance. Look at the worst trading streak that your system had. This is the maximum trades that your strategy lost in a row. You can also determine how often a losing streak like that occurred. This information can tell you what you can expect as “normal” trading losses. This analysis will enable you from panicking when you find yourself having a losing streak. Should you, however, find yourself in abnormal losing streak, you might want to find a solution as soon as possible.
When traders face a losing streak, they face all kinds of psychological challenges including anxiety, anger, panic, confusion. These will inevitably cause you to lose confidence in yourself. You might come to a point where you feel helpless and no longer believe that you can succeed in trading. This is a dangerous and vulnerable place to be at. Let’s have a look at a few ways how you could overcome this helplessness and get back on to your feet.
The last thing you should be doing when you are on a losing streak is to carry on live trading. Some traders might also feel the urge to win everything back which they lost. This will only result in bad trading decisions and lead to bigger losses. Instead, you should take a step back and stop trading live for some time. Purely focus on demo trading for a while and prove to yourself that your strategy works. By doing this, you will not only regain confidence in your trading strategy but also in yourself. Sometimes this is all you need to get your live trading back on track.
Before you can get back to trading, live you need to find answers as to why you are losing. If you want to become a successful trader, you need to become an excellent observer and be able to evaluate yourself. While doing this, you need to separate yourself from the situation and be brutally honest with yourself. While evaluating yourself, there are many aspects surrounding your trading that you can look at. Here are a few factors that you can consider:
Have you been deviating from your money management plan? Perhaps you are overtrading or under trading? Maybe you are not sticking to your strategy or trading plan. Sometimes the problem can even lie with the broker you are trading with. It could also be that the market conditions have changed, and your strategy needs a little bit of tweaking. Another problem could be that your emotions are affecting your trading decisions.
The only way you can regain control of your trading is if you can identify where the problem is coming from and fix it. This might sound easier than it actually is. Sometimes there can be more than one factor that could be affecting you so be very thorough when searching for answers.
Many traders believe that their system is no longer working due to their losing streak that they are experiencing. At times like these, it can be tempting to throw away all their hard work to date in order to search for a different trading system or the “Holy Grail”. Traders need to talk themselves out of this, especially if they have a good trading strategy to begin with. You will spare yourself a lot of time and trouble to tweak your existing system than searching for the “perfect system”. As I said earlier in the introduction – there is no such thing as the “Holy Grail”.
Traders, in general, like to help out each other where ever they can. There are some traders out there that will happily take a look at your charts and trades to give their opinion at no cost whatsoever. These traders can point out what they think you are doing right and the mistakes that you are making. This insight information is highly beneficial because it will allow you to focus on your mistakes, build on your strengths and restore your confidence. If you want to meet other traders, it is a good move to join a trading community such as our forum. Participating in forums can be a huge help to your trading. You might also feel like you want to help other traders when you can see they are struggling with something that you also had a problem with.
The last and final thing that traders can do is to take a full-on break from trading. Sometimes all you need is just to clear your head and not think about trading at all. Do stuff that are completely unrelated to trading. Do a hobby of yours such as fishing, hiking, travel, playing a sport, making crafts or just spend some quality time with your family and friends. Whatever you think will clear your head, give it a try. The chances are good that when you come back to trading you might have developed a perspective to see things differently and find a solution to your problem.
It is a very common phenomenon amongst traders to lose confidence in their trading at some point in time. When that time comes, you need to know what to do to be able to face the problem. If you follow the suggestions I mentioned above, you will be able to get back on your feet and gain control of your trading.
Most traders get lured into Binary Options trading due to the simplicity surrounding it. All you have to do is choose whether the current market price will be higher or lower after a predetermined amount of time. Due to binary options’ simplicity, traders think that they do not need a trading plan. Trading is a business, so you will need to treat it as such to succeed. Every successful business or entrepreneur has a business plan and so should your trading. There is an old saying: “Fail to plan and you plan to fail.” Creating a solid Forex trading plan is one of the most important steps a trader could take in his/her career. If you already have a written trading plan, congratulations! You are in the minority. While it is still no guarantee that you will make money, you have eliminated one of the major problems.
Having a plan is crucial when you want to survive in the trading environment. It is your blueprint to become a consistently profitable trader. The plan gives you instructions on how you should handle each trading situation that you will face. The primary benefit of a trading plan is that you can monitor your results and see what works and what doesn’t. Random trades you take won’t provide you with any valuable feedback, because your winners and losers will be as random as the impulses were to take the trade. Following your plan will allow you to evaluate which strategies work and make the necessary adjustments to improve.
Most people have a misconception that a trading plan has to be long and complicated. Other traders think that they can just spend a few minutes on creating a plan to simply check it off their list. The truth is that you need to invest a good amount of time to create a plan that will be worthwhile. Your trading plan will change as time goes on because of market conditions, your skill as a trader and your portfolio size. When you are creating your trading plan, you should take into account your personal trading style and goals. You should refrain from using someone else’s plan because it does not reflect your trading characteristics.
Before you begin to create your trading plan, you should ask yourself the following questions:
Creating a master trading plan will take time but it will be worth it in the end. The plan should be very detailed and should at least incorporate all of the above points. You will have to adjust your trading plan every now and then, because you will come across things you didn’t consider beforehand. Once you are happy and your plan is profitable you should avoid tinkering with it. The whole idea of the trading plan is to make your trading systematic, so you see what works and what doesn’t. If you keep on making changes to the plan, it won’t have time to show you if it is really working or not. A Trading plan is only as good as the trader’s discipline therefore it is vital that you stick to your plan. What are you waiting for? Start your trading plan today and become one step closer to being that successful trader you have always dreamed of!
Have you recently gone through a rough patch? Maybe you had a long losing streak, or perhaps you blew your trading account. Or have you been sitting in front of the computer for hours or even days without being able to take any trades? At times like these you feel that nothing is going your way. You might get so frustrated that you ask yourself why you are doing all this stuff in the first place. Sometimes you may feel like you hate trading altogether and just want to give up on your dream of becoming a trader.
Believe it or not – everyone goes through times like these. Being a Binary Options trader can be a bumpy road every now and again. If you aspire to become a successful trader you have to be strong and fight through the tough times. You need to remind yourself why you love trading and move forward.
Most websites focus on the bad side of Binary Options. Don’t get me wrong, this is a good thing if you think of all the complaints about scams and frauds that traders encounter on a daily basis. Today, I want to focus on the positive side of being an online trader and what can happen if things go right. Here are a few reasons why you would wish to be a trader:
Do I even have to explain why this is one of the top reasons? Who would not like to sit down and work in their pajamas in the comfort of their own home? There is no need to commute through heavy traffic in the mornings and afternoons to get to and from work. This will save you a lot of time and gas money. Once you worked from home, you will never want to go back to the 9 – 5 grind at a “normal” job.
Being a trader gives you the ability to control your working schedule. Yes, the market sessions will have an effect on your schedule, but there are some aspects of your schedule that you can control. The best schedule will be one which will accommodate both market action and your personal needs.
If you are a morning person, you can wake up early and trade and be done for the rest of the day. If you prefer waking up later, you can trade during the afternoon. Some people are night owls and prefer working in the middle of the night. Being able to work according to your body clock will in return result in improved performance.
You can also schedule your day in such a way that you can take an early lunch, run errands, gym, beach, go to an appointment, and the list goes on and on. The flexibility is unbeatable when it comes to a trading schedule.
There are some things that a high salary simply cannot buy. Most people work from 9 – 5 each day and maybe make it back home by 6. After getting home, they still need to make dinner and do chores before having time to relax. This does not leave them with much time to spend with their family and friends. Having to go to work each day is like missing out on half your life that you could have shared with your family and friends.
Each of us only gets so many years on earth, and there is no way that any of us can ever replace the time that has passed. Being a trader enables you to spend your precious years with the ones you love.
Trading is one of the few jobs that allows you to trade from anywhere in the world. All you need to trade Binary Options is a computer and an internet connection. You can take your computer with you and travel the world if you have the budget for it. Most people are tied to their location, whether they like it or not. Traders, on the other hand, can relocate to a different town without worrying about finding a job at their new location. You can trade from a coffee shop, a yacht, the beach, golf course you name it. As long as you have an internet connection you are good to go.
Trading does not require you to do any physical work. You only need to use mental energy while trading. This is great because you do not have to worry what will happen the day that you are physically unable to perform. Another benefit would be that you can trade no matter what age you are. So you can ultimately trade for the rest of your life if you wish.
Traders learn a lot of things along the way, including world economics. For some reason, when it comes to economics, some people will always think they know more than they actually do. It’s a great feeling when you know better than the person talking nonsense about what is going on in the world’s economics. You can just sit back and smile to what you are hearing or better yet, correct their misconceptions and do it with style.
Think about it for a second, if someone tells you they are an office administrator, filing clerk, sales associate; will you be interested to know more about their job? Well, I know I won’t. On the other hand, if you tell people that you trade for a living, people would love to hear more about what you do. There is definitely some kind of mystique surrounding trading. Traders are part of a tiny elite group of people who can make a living from a high-risk endeavor that requires serious expert skills and knowledge to succeed. I mean trading is so awesome that there are even movies made about it – take “The Wolf of Wall Street” as a recent example.
Having a “normal” job, will in some way, keep you from being who you really want to be. Think about all the ways a 9 – 5 job constraints your life. It is not only the hours you work and who you spend your time with. It is also how you speak, your opinions, the way you dress, how you present yourself, what you post on your social accounts, your interests and so much more. Being a trader, gives you the freedom to be who you want to be which is absolutely priceless.
As you may or may not know, trading can have its ups and downs. You would probably feel more comfortable if you were working an average 9 – 5 job, but would you be happy with it over the long run? How much money could you save each year? Would you be able to live off your pension fund?
Financial freedom is one of the main reasons why everybody wants to become a trader. Yes, it might take you some time to get where you want to be, but you will eventually make far more money than any 9 – 5 job could ever pay you. With trading, you don’t have to hope for a raise or a more senior position. There is absolutely no ceiling to what you can make as a trader. You earn according to the effort and time you put in. Remember – time is money and money makes money.
There is no doubt that it is an awesome feeling to be the best version of yourself that you could possibly be. Once you have achieved everything you wanted and are at the place you want to be at in life, you may realize that you want to start helping others. Trading gives you the financial resources needed to make a difference in other people’s lives. Most people like to donate their money to charity, sponsorships, and housing projects or help small time entrepreneurs build their businesses. You could even teach people how to trade for themselves or start a business to offer people jobs. In the end, it is up to you how you would like to give back to other people and the community.
Hopefully, these reasons will inspire both new and old traders alike. There really aren’t many jobs that come close to the freedom and flexibility that trading offers. Trading can not only be lucrative, but it can also grant you many advantages in life that go far beyond the money aspect. Print out this list and read it the next time you start doubting why you are trading.
While some Binary Options traders are making good money, other traders can’t seem to make a dime trading. Beginners usually make up most part of the traders that lose. That is because newbies don’t have enough knowledge and experience on their side. They tend to make a lot of wrong decisions as they go along. That is why I have decided to put together a list of tips and tricks to help both new and old traders alike. These tips and tricks should assist you in making the right choices when you are trading Binary Options.
Before you start trading, it is of utmost importance to first educate yourself. Learn everything you can about the markets and Binary Options trading. Do as much research, reading, watching videos, testing, asking questions as you possibly can. By doing this, you will save yourself lots of headaches and be prepared for the task that lays ahead.
Finding a strategy that suits you can be one of the hardest things to do. You will test hundreds of different systems and strategies and still not find the perfect strategy for you. When you finally find a strategy that you like, it is important to stick with it and learn all the ins and outs of it. Test it in different market conditions and various expiry times to see which works best for the strategy. If you are still confused as to what strategy to use, I would suggest that you have a look at our Strategy Articles for a few basic trading strategies that work really well.
Trading economic news releases is tricky, especially if you have little or no experience trading them. The best thing that you can do is to stop trading before, during and after news releases. The great thing about Binary Options is that we do not need the market to move lots of pips to make money as you do when trading the Spot Forex market. Due to this reason, there is really no need for us to trade during any news releases. We have developed a remarkable indicator which will warn you when news releases are being released. If you want more information regarding this indicator and news releases, check out our News Calendar article.
Most people want everything to happen NOW. The truth is good things come to those who wait. Why do I say you need to use longer expiry times? The markets have a lot of “noise” which you can see on the smaller timeframes. How many times has your trade gone in the right direction just to come back and cause you to lose the trade? Shortly after your trade expired the market went back in to your original trade direction. It happens all the time and it can be very frustrating for a lot of traders. Trading with longer expiry times will cancel out this market “noise”. Don’t get me wrong, I am not saying to never use short expiry times. Short expiries do have their time and place but for the most part you should focus on expiries ranging from 10-minutes to 1-hour.
Choosing the right Binary Options broker is an essential part of any trader’s success. There are new brokers that appear every day. It is up to you to do your homework to find a legitimate, professional, reputable and trustworthy broker. There are many factors you should consider when choosing a broker, such as customer support, withdrawal times, tradable assets, binary options types, payout percentages, regulation and much more. At the end of the day the broker should fulfill all your needs. Browse through our Broker Review section to help you in your journey to find the right broker.
Demo trading is a must for any individual who is serious about making a success of their trading. When choosing a broker you should also ensure that they offer a demo account. A demo account will help you in two ways. Firstly, demo trading allows you to get accustomed with the broker’s trading platform. You will quickly know whether you like their platform or not. The second way a demo account will help you is that you can practice your trading strategy. If your broker does not have a demo account, you can also test your strategy by using our Trading Simulator. You just need to add the indicator to your Metatrader4 and trade as if you were trading with a regular Binary Options broker demo account. If you would like to know more, check out the Trading Simulator article.
When you are finally ready for the “real” thing, you need to fund your live trading account. Most brokers offer a minimum deposit of $200. While this is very generous of the broker, the chances of succeeding with such a small account are slim. Yes, you can make some profits from this but the problem comes in with the broker’s minimum trade size. Most brokers will offer a minimum trade size of $20. With a $200 account and trading with $20 per trade you will be risking 10% of your account. Traditional money management systems will advise you to only trade with 1% – 5% of your account. I recommend traders to at least start with a $500 account to make it worth their while and to follow a sound money management system. I wrote an article called “How Much Should You DEPOSIT?” Have a read through it if you want to know more regarding deposits.
It is a well-known fact that trading psychology is the most difficult factor to overcome as a trader. Traders can take years to overcome the fear of trading with live money. It is important to have a clear head when you are making trading decisions. Should you feel emotional, it is advised that you stay away from trading until you have calmed down and pulled yourself together. Emotions and psychology is one of the biggest reasons why most traders fail at trading so make sure you have it under control.
Many traders, especially new traders tend to isolate themselves from others. This is mainly due to all the hours they spend looking at charts and learning new things. It is important that you manage your time in such a way that you still make time for your family and friends. You can never get back the time you lost which you could have spent with them. Spending time with friends and family will also give you a chance to relax and let everything sink in which you have learned. A cool thing about the internet is that you can meet traders around the world who share the same passion as you. Having traders as friends can be a great motivation for your success.
Last, but not least, you need to enjoy what you are doing. When you enjoy something, you tend to pay more attention. If you enjoy trading, you will be naturally inclined towards it and make better decisions that will increase your chances of success.
There are loads more tips and tricks when it comes to trading; these are just a few of the most important ones I could think of. Follow the ones as mentioned above and take responsibility for your success or failure – at the end of the day your success will depend on nobody else but you. Don’t think about the now, think about the future.
Alright, guys so now that we have covered the Basic Candlestick Patterns in the previous article, we can move on to Chart Patterns. Chart Patterns play a huge role in technical analysis. The patterns are great to identify possible breakout points in the market. The patterns that we are going to discuss can indicate whether the price will continue in the same direction or if the market will reverse. Remember, that it doesn’t necessarily mean that this or that will happen for sure when a certain pattern forms. We make use of these patterns to identify possible opportunities and high probability trades.
A double top will indicate a potential reversal point at the end of an extended move up. The market will hit a solid resistance level that it could not break through. Prices will come down and then the buyers will give it another go to break the level. When you see that prices are being rejected again, you now have a Double Top in the making. This is a classic sign of bullish exhaustion. After you have identified this pattern, you can start looking for selling opportunities. The easiest way to spot Double Tops is to look for an “M” shape on the charts.
Double Top Pattern
The Double Bottom is exactly the same as the Double Top. It is also a trend reversal formation, but the difference is that it will appear in a downtrend and not an uptrend. A Double Bottom will form when the bears are exhausted. The first and second bottom will both form a valley or a “V” shape. If you are looking to spot Double Bottoms you should look for a “W” shape to form. You need to start looking for buying opportunities when you recognize this pattern.
Double Bottom Pattern
This is yet another bullish exhaustion pattern. As the name suggests, the chart pattern consists of a shoulder (peak), followed by a head (higher peak), and then another shoulder (lower peak). The neckline is drawn by connecting the two points on the other side of the Head and Shoulders. The angle of this neckline can be up or down. The signal will be stronger when the angle of this neckline is down. After a Head and Shoulders pattern has appeared you should be looking to sell.
Head and Shoulders Pattern
The name speaks for itself. This pattern is exactly the same as the above Head and Shoulders pattern, except this time it is just upside down. The head will now just be lower than the two shoulders. You will have a stronger signal if the slope of the neckline you have drawn is pointing up. When you identified an Inverse Head and Shoulders, you should start looking for buying opportunities.
Inverted Head and Shoulders Pattern
The Ascending Triangle pattern appears when prices have hit a resistance level that the buyers are struggling to break through. The buyers are still managing to make higher lows. Due to this compression of price, a breakout is bound to happen if they keep on putting pressure on this level. The question is which direction will it break out? Will the buyers be able to break the resistance level or will sellers decide to take over and bring prices down? In most cases, the buyers will win this battle and prices will break through the resistance level. However, there is always a chance that prices can reverse. The point I am trying to make is that you should be ready for movement in either direction.
Ascending Triangle Pattern
A Descending Triangle appears when price is making lower highs, but sellers are struggling to get through a support level. Most of the time the price will break out to the downside, but there is always a chance of it going in the other direction. Big hedge funds like to play games at critical points like these so be wide awake when you are trading these breakouts.
Descending Triangle Pattern
A Rectangle pattern is formed when price is stuck between a support and resistance level. Neither buyers nor sellers have enough power to break through one of these levels. This happens when there is a period of consolidation or indecision in the market. The price can touch these levels numerous times before finally breaking out. Price will generally start trending in the direction of the breakout. You can either trade the support and resistance levels formed by the rectangle, or you can wait until the market has broken out of the box.
A Bearish Rectangle is created in a downtrend. The consolidation in price will usually happen because sellers are taking profits. During this time, sellers will have a chance to catch their breath and place new sell orders.
Bearish Rectangle Pattern
Bullish Rectangles are seen in an uptrend. Price will consolidate before it breaks out and carries on with the original trend. Remember that the market could also reverse so make sure you find a way to trade these setups that work for you. If I traded this particular pattern, I would wait for price to break out of the rectangle and then I will take a buy on the pullback.
Bullish Rectangle Pattern
Flags are great to trade with the momentum of the trend. A Bullish Flag will develop in an uptrend when the price makes a small countertrend channel. This pullback within the uptrend will create, what is known as the “flag”. The pattern will be complete when the price breaks out of this channel. When this happens, you will have a perfect opportunity to buy.
Bullish Flag Pattern
Bearish Flags are exactly the same as the Bullish Flags. They will occur in downtrends. After the bears have taken some time to rest during the consolidation, they will continue down with the trend. Look for selling opportunities after the channel has broken.
Bearish Flag Pattern
Wow, we have just gone through a whole lot of different chart patterns. It will take a good amount of time to be able to spot these patterns during live market conditions. If I were you, I would go back on my charts to see if I can spot a few of each. Look at what happened after the patterns formed and how you would have traded them. It’s tough to tell whether the market will break out or reverse. If you want to increase your odds of success, wait until the pattern has completed. Trade the pullback after the breakout or reversal with the use of Candlestick Patterns and price action. Never take a trade blindly, always look for some kind of confluence or confirmation.
Many Binary Options traders want to hand over their trading tasks for someone else to do while they sit back and watch the money come in. Why do all the hard work when you can just hand it over to someone else to do for you? If only it were that easy! Think about it for a second, if it was really that simple, wouldn’t everybody just sign up with a signal service or autotrader and become a millionaire? Signal services and autotraders does have its time and place, but neither one of them can be a substitute for your own hard work. Successful Binary Options traders have realized that they have to do certain things for themselves to be where they are.
Most traders don’t want to be responsible when they lose. That is why they choose to give the responsibility to a third party. Some traders make use of trading alerts without them having a clue how the system works. Others will turn to trading signal services or autotraders so they don’t have to come up with their own trades. Traders tend to give their responsibility to others so that they can blame them when they lose and not themselves.
Traders should realize that they can’t expect to be successful if they want other people to make trading decisions for them. If you are serious about becoming a profitable trader, you need to make your own trading decisions.
How often have you seen a trading strategy that has been tested by a couple of traders over hundreds and thousands of trades? They all claim that it has been working for them but when you go ahead and try it out, you can’t seem to make any money. You see, it doesn’t mean when a trading strategy works for one trader that it will work the same for the next trader. Why? People are different; we all have unique personalities and psychological traits. Another factor that will play a factor is that you might be trading the strategy in a different time than the period that the strategy was originally tested. These factors will have a huge effect on the results.
So what should you do? Test different trading strategies for yourself. Don’t let other’s results influence your decision making. Stick with what works for you.
This is normally a debatable point. Yes, it is true, others can review your trading performance. It is actually advisable to find someone who could evaluate your performance from another point of view.
But, at the end of the day you will need to evaluate your own performance so that you can develop self-awareness. The key when evaluating your own performance is by being 100% honest with yourself. Self-evaluation will help you point out your weaknesses and all the mistakes you are making. This will enable you to build on your strengths and correct the mistakes you are making. The biggest reason why someone else can’t substitute your own self-assessment is because they are not you. You are the only one who knows about your trading journey and why you make the decisions that you do.
The best thing to do is to find a balance between the two. Don’t solely rely on someone else evaluating your performance. Have a friend, family member or trading mentor have a look at your performance and be brutally honest when you evaluate yourself.
Many trading coaches turn lots of traders into professional traders, but plenty of their students also fail. This is not necessarily because the trading coach is bad at teaching. Have you heard the saying – “you can lead the horse to the water, but you can’t tell him to drink”? This is exactly why some traders fail or succeed. Your trading coach could give you all the tools and knowledge you need to be successful, but they can’t force you to give it your all.
It is up to the trader to motivate themselves and put in the effort and time needed to study, test and trade what their trading coach has taught them. You should set realistic goals that you must achieve to make progress.
As a Binary Options trader, you are responsible for your own success or failure. Relying on someone else for your success, means giving away your responsibility. Traders believe that trading will be less intimidating when they give away their responsibility to others. While this statement might be true, you are ultimately taking your success out of your own hands and placing it out of reach. This is a setup for disaster in the long run. You should take responsibility for all the choices you make, should it be taking a trade or joining a service. In the end, your success will depend on the choices you make.
If you are fully motivated to make it in the trading game, you have to do all the above mentioned trading tasks on your own. Make peace with the fact that you are going to lose some trades. Losing is part of the game. Find a trading strategy that works for you, get motivated, make your own trading decisions, evaluate your performance and take responsibility for your failure or success.
MetaTrader 4 – the most popular Forex trading platform – A BOLD statement made by MetaQuotes Software Corp. For long time MT4 was the most popular, most widely used Forex trading charting software. Since the original launch in 2005 changes have been implemented allowing users to use it for other forms of financial trading such as Commodities and Indices. Not to mention recently, MetaTrader 5 was introduces into the market as an optional alternative, with some new features, functions and a slightly more professional high quality look. It is worth mentioning that indicators and EA would need to be changed code wise if you decided to migrate over to MT5, arguably the only downside keeping MT4 users from making the move.
Both versions of MetaTrader comes with an endless range of free indicators and tools. Adding your own or even custom coding strategies can be done with some simple research and MQL4/4 knowledge. This is the main reason that this is and will always be the most popular charting platform. With that being said it comes to no surprise why Binary Options traders use this platform as well for all their trading needs. Binary Options brokers, companies, services and product providers have seen this opportunity in the industry and jumped to provide traders with the best of both worlds.
What MetaQuotes Software Corp. Have To Say
Millions of traders with a wide range of needs choose MetaTrader 4 to trade in the market. The platform offers ample of opportunities to traders of all skill levels: advanced technical analysis, flexible trading system, algorithmic trading and Expert Advisors, as well as mobile trading applications.
The MetaTrader 5 forex trading platform offers numerous impressive analytical features: 82 various tools including graphic objects and technical indicators allow traders to analyze stock and currency prices. There are 21 timeframes available for each market security and the possibility to open up to 100 charts at a time. MetaTrader 5 Trading Platform with its rich analytical arsenal is now available to traders.
About MetaTrader Tools & Indicators
MetaTrader comes packed with different Tools and Indicators – all 100% free! Sounds to good to be true? Well it is true. I am sure you are thinking the exact same thing as I am. Why is this all free? Going into the exact tactics behind these free features is for a separate article. Let’s have a look at some of the more popular mentioned accessories.
-Support & Resistance Lines
(For More Info On These Indicators Visit DailyForex)
Metatrader Strategy Tester – Back Testing & Optimization
MetaTrader comes pack with a feature called the “Strategy Tester”. What exactly does it do? It gives you the ability to optimize and test your favorite EA, Indicator or even custom coded indicator based on historical data. So in simple terms it allows you to test the accuracy and profitability based on previous market data. It is worth mentioning that it is not always 100% accurate compared to if you would have tested it live in real time, especially if your indicator or EA is repainting or “lagging”.
You can find the Strategy Tester by going to View > Strategy Tester(CTRL + R). This is where it can either be fairly simple or slightly complicated. There is a nice visual interface that should be self explanatory. Fill in all of the necessary information and parameters based on your test. There are tons of YouTube Videos showing you step by step how to go about doing this if you are more of a visual learner.
Are You On The Go? MetaTrader Has You Covered!
It is also worth mentioning that MetaTrader is very transparent, supporting multiple different operating systems such as Windows, Mac OS & Linux. Have a smartphone or tablet? iPhone/iPad and Android version as also supported and available for download so you can trade on the the go… Still have doubts? What about the benefits and Integration with Binary Options Trading?
Enter Your Trades Manually Based On Your Chart Analysis
Using the above indicators and tools one can do asset analysis, price movement predictions and get an overall idea of where the market is heading. It will require time and effort from your side. To some it might come naturally, while some might need to put in some hours to build up screen time and experience before they feel comfortable entering positions based on their own predictions and analysis. It can also take a few seconds to switch from MetaTrader to your broker webpage. As we all know, a short delay can be the difference between a winning and losing trade. This opened up the door to a great demand for quicker, faster and more convenient ways of executing trades manually or on complete autopilot. The solution?
…ON CHART TRADE EXECUTIONS & THIRD PARTY SOFTWARE SOLUTIONS WERE BORN!
Clmforex (Core Liquidity Markets) – This Allows Binary Options Traders To Traders Directly From Their MetaTrader Platform!
THE ADVANTAGES OF TRADING BINARY OPTIONS WITH CORE LIQUIDITY MARKETS:
-Defined Risk – You cannot lose more than the amount you risk per trade.
-Low Collateral Required – Trade as little as 1 (AUD, EUR, GBP, USD) per trade.
-Trading Opportunities – With shorter-term expirations multiple trading opportunities exist every day.
-Functionality of MT4 – Clients can trade Forex, Binary Options, Metals and CFDs utilizing custom indicators.
-Opportunities in Volatile and Flat Markets – Substantial profit potential with small or large moves in the market.
-Simplicity – Simply choose your currency pair (or commodity, index, CFD), investment amount, expiration and either Up or Down.
Trade4.me – A Third Party Systems That Builds A Bridge Between Your Favorite Metatrader Platform And Binary Options Brokers!
THE ADVANTAGES OF TRADING BINARY OPTIONS WITH TRADE4ME:
-Multiple Brokers – You have the ability to link your favorite broker.
-MetaTrader Of Your Choice – You are not limited to us a specific MetaTrader broker.
-Automation – Integrate your favorite or custom made EA/Indicator.
-No Fess – You don’t have to pay to use the MetaTrader Trade4me API.
-Flexibility – The sky is the limit regarding your trading needs.
-Copy/Follow Function – You have the ability to copy/follow professional traders.
The owner of Trade4.me has recently announced that Version 2.0 will be available to the public end August – mid September. In his statements he promises quicker trade executions, more “awesome” features and easier integration. Maybe we will see more compatible brokers? Will their service stay free? I am sure just like us, you cannot wait to see the new and improved Trade4.me
Metatrader and Binary Options Summary
Although there are only limited options to MetaTrader brokers and third party software combining Binary Options Trading in a simple easy to use interface, I can guarantee that soon the market will be flooded with options. At this current point in time Clmforex (Core Liquidity Markets) & Trade4.me are the best available choices that should meet your expectations. If not, well you have no option but to wait. In the meantime you should make use of these 2 amazing services that took a huge leap in expanding the industry.
As you may or may not know there are many trustworthy Binary Options brokers in the industry, but there are also quite a few scam brokers in between. None of us want to get scammed. Thus, we need to do everything in our power to ensure that we end up with a broker who we can trust. Should we for some reason end up with a broker who we think are scamming us we need to take action. Before we get into the steps you should take, let’s first look at ways how Binary Options brokers could scam you:
–Expiry Times – This is one of the most common tactics that brokers use to scam you. They will manipulate their expiry times. Say you are in a winning trade. The trade is meant to expire at a particular time but for some reason the clock keeps on running. When the trade finally expires you find that your trade turned out to be a loser that should have been a winner had it expired at the right time. When you take up this problem with the broker, they will claim it’s a site error and refer to their terms and conditions that state that they are not responsible for this. There is no doubt in my mind that this is a tactic used by the broker to scam you.
–Spreads – Brokers that incorporate spreads into their prices can be really frustrating for traders. They will add or minus a few pips from the actual market price. This is a huge disadvantage when trading short expiry times. Say the broker has a spread of three pips added to the market price; you will need your trade to go more than three pips in your favor to win the trade. This makes it extremely hard to win. You can take all the screenshots of the spreads you want. When you show it to them, they will again just point you towards their terms and conditions. My opinion is that if it were not a way to scam traders, they would have fixed the issue at the first problem they encountered.
–Withdrawals – Scammy brokers will give you the runaround when you are trying to make a withdrawal. They will ask you to send in paperwork even though you already submitted everything that they asked for in the beginning. Some brokers will just ignore your withdrawal request altogether, and others will plainly refuse to pay out your money for some or other excuse they came up with.
Now that we know how brokers could scam you, it’s time to move on to what you can do when you are involved in such a scam. I strongly advise traders to resolve the issue on their own. If they fail to do so, it is time to take action against the broker. Let’s have a look at a few steps that you can follow if you have a dispute with your broker:
Traders should always do their homework before they join a broker. Maybe you made a mistake and rushed in without doing research before signing up with the broker. If this is the case, now is the time to do so. Look around to see whether you are the first one to raise this complaint or if there have been others before you with the same problem.
If you find that you are the first one to have this problem, there could simply just be a misunderstanding. However, if you find that there are other traders before you with the same problem, there is definitely something else wrong. Look for ways how other traders solved this issue and follow the same steps as they did. If you fail to solve the problem like this, move on to the next step.
Before you plan on raising a complaint with a broker, it is always a good idea to check if you are not the cause of the problem. If you find that you were the cause of the problem, you can quickly resolve it yourself without having to wait for who knows how long until someone else can do it for you.
Start by reading through the broker’s terms and conditions. Maybe you need to send in some documents in order complete the withdrawal. Perhaps you accepted a bonus and have not traded the required volume to be able to withdraw yet. Is your withdrawal amount too big for a particular withdrawal method?
Sometimes you can figure out the problem by doing this and other times the problem lies deeper. If so, you should continue to the next step.
The problem could be due to miss-communication. Maybe the broker sent you an email, and it landed in your spam folder. Perhaps you emailed your broker, and they misread your email or missed your email in between the thousands of emails they get. Go through your spam folder to see if there is an email from the broker or send them another email. Find out whether the problem is lying with you or them.
Should you find yourself unable to solve the problem on your own, you need to make contact with the broker. Before you do so, give them a reasonable amount of time to address the issue. If the problem is still not resolved after a week, it is time to give customer service a call and speak to them directly.
At this point, you are understandably angry and at this stage it is all too easy to fall into a destructive, accusing pattern. When dealing with customer service you should refrain from attacking them as this will only put them on the defensive side. Instead, be polite and calmly explain to them what your problem is. Tell them all the steps that you have taken and that you could not sort out the problem yourself. Being kind and polite to customer service will make them want to help you.
Hopefully, the problem will be resolved at this stage. Give them a few days’ time. If the issue still is not fixed, you can move on to a more drastic step.
Now it is time to kick it up a notch. You have tried everything you could do and have waited long enough. You have given the broker more than enough chances to comply. Now you can finally feel free to express your frustration and anger. The broker will more than likely try to refer to their terms and conditions, but it doesn’t really matter. Tell them if the problem is not fixed within a certain timeframe you will have no choice but report them to the authorities and take public action against them.
Hopefully, you will get your money at this stage. If they still refuse to do so, you have no choice but to move on to the last and final step.
The broker has made their choice. Now it is time for you to report them to the applicable authorities. Regulated brokers should be reported to their regulatory agency. Some of the top regulatory agencies are CySEC, ASiC, GSC, and FSA. Unregulated brokers can also be reported to the authority that granted them the license to do business.
After reporting them, you can share your experience with the broker online. Post to different forums and review sites. You can start with our website’s Broker Review section.
Following the above steps will not guarantee that you will get your money back. What it will do is draw business away from the broker and save other traders the misfortune that you have suffered. It will give legitimate and trustworthy brokers the business that deserves it more. Be safe out there!
Like any other calling, trading takes years of practice to achieve the ultimate level. While specialists and legal advisors have experienced advanced education to get their license to practice, traders are obliged to get information on their own. If you are in it for the quick buck, think again. The test is intense however the accomplishments are remunerating. There are 6 different stages in trading that all traders need to go through to be a successful trader, so let’s take a look at them.
This is the first stage where all beginners start at. You may have grabbed a book on technical analysis some place, knew about a trader making millions, or got lucky in a stock speculation. All things considered, how hard could it be? The cash sounds appealing and the opportunity to be free sounds alluring.
I don’t intend to smash anyone’s fantasy, but the individuals who succeed in trading are in the minority! Give or take 90-95% of traders don’t succeed. In the first stage, traders are optimistic. You immediately open a live account and start trading. In all actuality, you have no idea what you are doing. You will buy just to see the market go the opposite direction or you will short just as the market starts to rally. The majority of your trades you take are done on emotions. You buy simply in light of the fact that the markets feel strong with no logical reason. You are in the unconscious incompetence stage. You have no idea how the mechanics and psychology of trading works. What’s more terrible? You are not yet aware that you don’t have the foggiest idea. Most traders will blow their account at this stage.
In this stage, you have lost enough cash to acknowledge what you are doing is totally off-base. You begin to understand that you don’t have any clue what is going on.
You will then read as many technical analysis trading books and articles as you can. You will study and memorize every technical pattern known to man. You will read about all the indicators you can find like ADX, moving averages, Fibonacci lines, pivot points, MACD, Bollinger Bands, channels, to name a few. You will plot them on your charts and invest hours searching for an indicator that works. You will be extra confident now on the grounds that you think you have discovered the holy grail of indicators. Yet, despite everything you keep on losing cash on a regular basis. You realize that your indicators are lagging and that all the other new traders are most likely looking at the same thing. You know that you were a sucker to believe in indicators.
You begin to understand the measure of work required and the tremendous learning curve to go through in order to understand the markets. Traders, at this point, may find it overwhelming and quit. Traders with a stronger mindset will push through and gain even more knowledge than what they had. You need to be hungry for success and should have developed a strong passion for the markets in order to clear this stage. This is where you will search for mentor programs, chat rooms and seminars to join.
You understand the necessary components that are needed to develop as a trader. You will ask thousands of questions and bug each professional trader you meet. You will read hundreds of articles a day that are related to trading. You will begin paper trading, develop trading systems and create risk parameters for every trade you take. You will go on a hunt for self-understanding to master your psychology problems. You will imagine each probability on a trade before you take it. This is the genuine learning stage. You are making a decent attempt to develop your edge in trading.
This is the stage in which you figure out that you need to specialize in specific markets and trading strategies. Without you realizing it, you have at long last discovered your style. You adhere to your system and you improve on it. You understand that you require an edge whether it’s supply and demand trading or being a Fibonacci master. The vital thing is that you are gradually transforming yourself into a specialized trader. You test your systems and they appear to work. You gain a tremendous amount of market knowledge.
You ponder back on yourself and you can’t help but laugh at your stupidity. In spite of the fact that you have not made enough money to call yourself successful, you are proud of your journey and achievements. You understand that the Holy Grail is not about indicators or some price pattern. You use strict money management in your trading plan. You begin to acknowledge losing as a natural piece of the game. You now understand that trading is a game of probabilities. This is when you start taking high probability trades. Your psychology has shifted from a beginner outlook to an expert one.
You trust your trading strategy and begin taking trades systematically. You are starting to gain consistency and are meeting your daily goals on a regular basis. You have now reached the conscious competence stage. You are now aware of what your strengths and weaknesses are as a trader. You can control your emotional swings because you understand your own psychological makeup. You are finally at the stage where you are able to trade for a living.
In this last stage, you totally understand the markets you are trading. You can now predict the direction of markets more often than not. You applaud yourself for the success you are having after going through all the trouble to reach this stage. When you talk to other traders, you can see in which development stage they are in. Individuals begin approaching you for trading guidance. You have developed a particular trading technique that speaks to you. Taking trades have become like second nature to you. You keep your head high but still remain humble. Congratulations, you have achieved what not many traders will ever achieve in their lifetime.
Trading is one of the toughest careers that you can choose. It can be a tough journey for some. If you enjoy the challenge, you will most certainly enjoy the feeling of accomplishment at the end. Remember that you should give your 200% if you truly want to make it to the Expert Trader Stage… Goodluck and make the best of your journey!
SO THE QUESTION IS – WHAT STAGE ARE YOU ON?
Hey, traders 🙂
I was wondering how we could make the trading forum a little more fun and get more traders involved. So I came up with an idea to prepare a trading quiz that will cover your trading journey and how you prefer to trade. I think that many traders will benefit from learning what other traders are doing and what is or isn’t working for them.
Before I list the questions, I want to add that it is not necessary to answer all of them if you don’t want to. (To keep it organized, just copy and paste these questions to answer them)
Q: How long have you been trading binary options?
Q: Why did you decide to start trading binary options?
Q: Are binary options trading what you expected?
Q: What trading strategy do you use?
Q: What timeframe do you trade from?
Q: What expiry times do you mostly use?
Q: How many trades do you think you average per week and/or month?
Q: Are you consistently profitable?
Q: Is there anything you know now that you wish you had known when you first started trading?
Q: Do you trade anything else besides binary options?
Q: Anything else you’d want to add?
Looking forward to your replies!
Most, if not all Binary Options newbies envision themselves being a daytrader, sitting at home or in a coffee shop and taking a few trades to make a living. This is probably the main magnet that attracts so many aspiring traders to the market. While this is the ultimate goal for most traders, there are some other trading career pathways that you could choose. A lot of traders realize that being a daytrader is not for them. The good thing is that with the knowledge and skills you have developed with trading, you choose from a wide variety of trading related careers.
There is a common joke surrounding teachers – people assume that teachers are those that have failed at the thing they teach. This could be true in some cases, but the reality is that this is a silly point of view. Being able to teach requires a unique skill set. Not all professional traders will be good teachers. However, somebody that failed at trading and has a lot of knowledge could be an excellent trading mentor.
Maybe you decide you want to become a trading mentor. There are many reasons why someone would wish to become a trading mentor. Let’s have a look at a few reasons:
The list goes on. Whatever the reason might be, if you enjoy teaching and have the ability to push other people to succeed, you could make a much better living being a trading mentor. Many other people have made an excellent living being a trading coach.
Being a trader, you learn a lot throughout your trading journey. You might have built up enough knowledge surrounding different investment opportunities that will enable you to become a successful financial planner. Being a financial planner, you will have to serve customers who are looking for the best ways how they can invest their money. By doing this, you will be receiving a commission from each customer. You might be surprised that you can make more money being a financial planner than what you could make if you were trading from home. You could also find that you enjoy being a financial planner more than a daytrader.
You could choose to trade for a firm instead of trading for yourself. A word of caution – landing a job as trader at a firm is no easy task. If by some chance you manage to find a job, you basically start out as a temp. You need to go through a trial period as part of your audition. Should you be profitable over your trial period and the firm is happy with your performance, they may offer you a full-time position. Being a trader at a firm is an invaluable learning opportunity, and it could also a start of a high-earning career if you manage to keep up your performance.
Some people love to analyze the markets, but don’t like the actual trading side of it. There are many positions available to analysts. Currency analysts typically work with other financial officers to predict the value of currencies. Analysts usually have access to all kinds of information services and high-tech computer systems that they use to make forecasts about currency movements. These predictions can lead a company to potential investment opportunities or aid them in their decision-making process when they do business overseas. Analysts also make appearances on financial news networks to give their opinions on currency issues.
You can still work on your own by being an analyst. You can do your analysis on the markets and send it through to other traders that can use your information to trade from. You can charge these traders a monthly fee in order for them to receive your market analysis. If you want to make this work, you really need to be a good analyst and your predictions must be correct more often than not. Traders will not subscribe to your service if there is no value in it for them.
You might consider working for a broker. There are many sections where you could find a job within a brokerage firm. Some positions can include account manager, marketer, sales representative, customer service, technician, programmer or one-on-one training. Brokers look for people who have experience in the Binary Options field to fulfill these job opportunities.
Trading is a growing industry that has caused hundreds of average brokers to pop up all over the place. As a trader, you know precisely what other traders are looking for in a Binary Options broker. This will enable you to start your own brokerage firm that will stand out above the rest of the brokers.
During your Binary Options journey, you will undergo a tremendous personal transformation. You will develop a lot of different character traits that you maybe did not have before you started trading. Some of these traits could include:
During your trading, you may discover that you are passionate about an entirely different field other than trading. With the skills you have built up, you could be the perfect fit for some other career. Being a trader, you learn how to be a self-starter and motivate yourself every day. Many traders use this to their advantage to start their own business.
Self-employment is not for everybody. Some people are passionate about trading, but they are not interested in becoming self-employed. There are various reasons why people would not want to be their own boss. One of the top reasons is that being self-employed as a trader; you are not guaranteed a salary at the end of each month. Many people prefer to have a guaranteed source of income or maybe they just can’t deal with all the responsibilities that come with being self-employed. There is absolutely nothing wrong with this. Your goal at the end of the day is to find the best option that is suitable for you.
Learning how to trade Binary Options will open a lot of different doors. It could very well be a new career in finance or another field that you never thought about. This article is not intended to discourage you from trading. This article is simply for information purposes. If you love trading and have the necessary skills, resources and time on your hands, there is no reason why you should not follow your dreams of becoming a trader.
Has your trading become somewhat boring for you? If the answer is yes, don’t stress – you are on the right path! Every trader, at one point or the other, has experienced the “thrill” of trading. The rush of not knowing what will happen next. Will I win or lose this trade? Am I going to double my account today? Will I make enough profit to be able to buy that expensive car that I have always wanted? Trading can be a lot of fun until you realize that you are not actually trading, but gambling. Then reality sets in, and you realize that if you want to become a real trader you need your trading to become less exciting.
If you are trading and it is not “boring” for you, you may be doing something wrong. Proper trading should be effortless and boring to a large degree. Don’t believe me? If you ask any professional trader that has been trading for a few years, they will all tell you that trading has become just another daily task for them. They don’t get excited as they used to back in the day.
A lot of people tend to associate trading with movies they have watched such as the famous “Wall Street”. They see a trader yelling over the telephone or waving his hands in the air to get his orders placed at the best price. Trading is the exact opposite as to what these movies show you. Yes, maybe that is what you needed to do back in the day to take a trade when floor trading was still in full-swing, but these days all you need to do is click a button to be in a trade. The idea that trading is a fast-paced, adrenaline pumping activity could not be further from the truth. Come to think about it, trading should be the exact opposite. Most professional traders sit day after day doing next to nothing. Don’t get me wrong, this does not mean that trading is easy.
An average trader’s day will look something like this:
-> Wake up and eat breakfast
-> Open trading charts and plan their daily trading
-> Watch charts for a few hours
-> Eat lunch, visit trading forums and do trading research
-> Watch charts
-> Go over the day’s trading and draw in levels for the next day
-> Eat dinner and go to sleep
Your day-to-day trading routine should be regular and reliable. Every day should be about the same if you are doing it right. Some days you might not even trade at all which is a hard pill to swallow for most.
Trading is a waiting game. Professional traders will wait for an “A+” trade setup to appear before they take a trade. After taking their trade, they will sit and wait for the next A+ trade to appear. Waiting for the perfect setup to present itself can be extremely challenging for many traders, especially if:
All that sitting and waiting for a trade to appear is only one reason why trading for a living can be boring. The other reason trading might be boring is when trading goes right.
A successful trader knows more or less what to expect each day. They have planned beforehand what they will do if X, Y or Z happens. This enables them to control themselves and not be controlled by the movements of the market. Controlling yourself is boring in most cases, because it means not giving into temptation and how you feel in the moment. Successful traders effectively manage their risk, and they do not over-trade.
Amateur traders, on the other hand, look for excitement when they trade the markets. They tend to experience mixed emotions when trading. This is highly due to the fact that they are not prepared for different situations or don’t stick to their trading plan. Beginners will typically trade with relatively small accounts. Many of them will feel tempted to build that account as fast as possible. This feeling will cause them to over trade and not manage their risk properly. When traders fall into this trap, their emotions will go through many highs and lows. This emotional imbalance will in return cause them to lose their money.
I’m not saying that you can’t have any emotion when trading. There is nothing wrong with taking pleasure when having a winning trade. What I’m trying to say is that you should not have a huge imbalance in your emotions such as feeling ultimate victory and then a few moments later a crushing defeat. You need to be able to control your emotions and have trust in yourself.
It sounds weird if you ask the question in such a way. I mean who wants to be bored, right? The truth is a bored trader is often a successful trader. So how do you go about it?
Trading is not a game nor is it a casino, in other words, it’s not here to keep us entertained. Think about it, if you were trading with millions of dollars, you would not be taking stupid risks to entertain yourself. You would stick to your rules and only make the best possible trades. So why would you want to trade differently with a smaller account? You need to pretend that your $1000 account is a $1,000,000 account.
Trading the same setups day in and day out, having the same trading schedule and sticking to the same rules will essentially make your trading repetitious. This will cause your trading to become somewhat predictable. As we all know, predictable is boring, but predictable is also profitable!
There seems to be a huge uncertainty amongst traders when it comes to Binary Options and the USA. Nobody actually knows whether Binary Options trading is legal in the USA or not. Hopefully after reading this article you will have a better understanding of why it is such a complicated issue for US traders.
It all started back in 2008 when the USA had their financial crisis. This crisis had a huge impact on financial markets and the regulations surrounding them. Since then financial markets have become very restrictive, especially regarding Binary Options. Let’s first take a look at what influences Binary Options in the United States.
The US financial trading market is regulated by the Commodity Futures Trading Commission (CFTC), along with the Securities and Exchange Commission (SEC). Both these organizations supervise the US financial markets, which includes Binary Options. The regulation of Binary Options has become stricter the last couple of years to protect customers by preventing any illegal offshore brokers from doing business with US residents. The CFTC and SEC have put strict trading rules in place that they expect both traders and brokers to respect. Their goal is to enhance the financial market’s strength and reliability for both traders and brokers alike.
Many say that the laws in the USA surrounding Binary Options are restrictive and unfriendly towards offshore brokers. The US financial industry is tightly protected. Many foreign companies meet the criteria for US regulations, but up till now no Binary Options license has been awarded to any offshore broker. Regulatory authorities have only granted licenses to a few US brokers. Should a company receive a Binary Options license, they must respect and ensure the safety and security of traders. Should they fail to follow the rules and regulations, it can lead to enormous fines, loss of their trading license, and even incarceration for serious offenses.
US traders have two options when choosing a Binary Options broker. The first option is joining an offshore broker. Investors still have the ability to register with a broker of their choice, although this is highly discouraged by the CFTC and SEC. It is important to note that the United States regulatory authorities prohibit offshore brokers from soliciting US residents to trade with them. Traders who wish to sign up with these brokers do so at their own risk. No foreign broker can obtain a license from the US regulatory agencies. If you come across a broker that says otherwise, they are more than likely fraudulent. Instead, traders should look for brokers that are registered with CySEC or the FCA.
The second option US traders can take is to choose a broker that is registered within the United States. You will need to trade with an exchange-backed broker such as NADEX or with a broker that offers Binary Options on Exchange-traded funds (ETF’s) which are listed on the Chicago Board Options Exchange (CBOE) and AMEX.
This is the question that everyone wants to know, right? The simple answer is, YES! US residents are allowed to trade Binary Options, only if the broker allows it. However, there is an illegal aspect regarding Binary Options and the US, and that is offshore brokers are not permitted to solicit US investors to join them.
I have taken the liberty to make a list of brokers from our review section that still accept US traders to join them: (brokers list subject to change)
Last updated – 11/10/2015
You might be wondering why other brokers are not also accepting US traders. There are various reasons why a broker would not accept US customers. Any broker that uses the Spotoption platform is not allowed to deal with US clients. This has caused a lot of brokers to pull out of the US market since most brokers use the Spotoption platform. Some brokers simply prefer to stay away from the US due to their complex regulations pertaining Binary Options, while others refuse to comply with some of their regulations.
The US Binary Options market is closely monitored by regulatory agencies that make it very safe, but it is also making it tough for legitimate and high-quality brokers to enter the market. Experts believe that the strict regulations will only be expanded on, and it is highly unlikely that the US will ever allow off-exchange Binary Options. This means that the financial market will be dominated by just a few major players. If this happens, it will result in less competition and will inevitably lead to poor service and less industry improvement. It will be interesting to see which direction the CFTC and the SEC choose to go and what impact it will have on the future of Binary Options as the popularity of the industry grows.
Every trader’s dream is to be able to kick back and have nothing to worry about except having to take a few trades now and then. Wouldn’t that be great? For most traders that is only a dream, at least for now. The reality is that most of us traders have a day job which has a major influence on our trading. Your work hours will more often than not overlap with the best trading hours during the day. The other problem is that your day job will take an enormous toll on your energy. Trading when you are tired is a big no-no. You will make all kinds of mistakes that you normally would not.
This leaves the trader with a difficult choice to make. Do I put my trading first and my job second? You could find yourself without a job if you do this. Should I put my job first and my trading second? If you do this, you might never be able to make enough profits to make a living from trading.
Your answers will depend on the type of job you have. Having an office job will make it so much easier to trade than having a physical job, such as a construction worker. This might not always be the case. It also depends on how much free time you get during the day that will allow you to trade. Let’s have a look at a few things you should and should not do when having a day job.
Some situations can be difficult to overcome, but not impossible. You should be willing to make some changes to your daily schedule to make time for trading. It is important that you find a balance between trading and your regular job.
Being there myself, I know it is not easy to trade while you have a full-time or part-time job. Even if your job allows you some freedom, it is still challenging to give your full attention to the markets. It is even harder if you have to work all 8-hours of the day and always being monitored. The moral of the story is with some determination and creativity; you still may find some time to trade during the day. If you cannot now, you may be able to find some time in the future. Make sure that you are ready when that time comes so that you can capitalize on it.