Why Do Binary Option Traders Need A Trading Blog

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Thread: Does trader need too much indicator to trade binary option

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Does trader need too much indicator to trade binary option

Does the trader need too much indicator to trade binary option market.

The binary options market have some Similarities with the forex market which makes the use of Indicators to make analysis possible. I dont think anyone needs to use so much Indicators for making trading analysis in the Binary options. What is necessary is that the trader should know how to combine two or more Indicators when making analysis with some level of expertise on the part of the trader which is very necessary to make profits. The level of understanding in putting a good trading Strategy into use is what is necessary. When a binary options trader have the capacity to trade using a combination of just two Indicators that are properly understood, there will be no need to have so many of them to use in making analysis as just two Indicators can produce the same result that is needed.

In terms of what is required to succeed in binary options,the principles required are almost the same with the principles required to succeed in forex trading.To succeed in forex trading one needs adequate knowledge of technical analysis,fundamental analysis and market psychology.With these one would have a particular strategy that will ensure success and this is the way for binary option.The simpler the strategy the better.the strategy though entails the use of price action and indicators but it is of no use having many indicators which is the reason why some traders don’t even use indicators knowing full well that they only play confirmatory role

many indicators? I think that many indicators make binary options traders even more dizzy. If using one indicator is possible. You see, I have tried to use indicators Initially, I always wanted to know and try to understand all kinds of trading systems or indicators that are considered good. After all, too long trying to understand a variety of indicators, or even trying to tamper with making custom indicators on their own, I think it’s actually quite time consuming too. But try to understand the behavior of these indicators. Get to know his behavior, when he gives a bright signal, when he gives a false signal. Well, instead of knowing a lot of indicators but do not understand their behavior, there will even be a lot of false signal trapping.

There is not a single part to success in Forex or any financial market. If you can trade with price action good for you. If you can’t trade with price action still good for you. Just do what you know how to do best. Trading with indicators has made Forex trading easier and reliable. Just imagine going through all the price action tutorials, then you talk of mastering them before you start trading, you would have spend a decade learning before thinking of trading live. But indicators have made the journey of this business interesting and easy. If you think using indicator is good for you then use it. What matter is that you are making profits.

Does trader need too much indicator to trade binary option
If we are planning to trade the binary options then we can take advantage of the different things that we have in the business to understand what we are doing because if we use too much indicators to trade anything that would make it very easy for us to gain some things that might not make sense, one of the reasons that we have seen some issues happening in the forex business is because we a re doing things that do not make us gain advantage in the business, there is no way we can trade wit too many indicators and not make mistake in the analysis that we have done that is why we need to use something that is fairly okay, we need to know how e can trade and make something good enough.

While I am not an expert in binary option trading, I believe it is one of the many available financial market investors or traders could trade to generate profit from. To say that a certain financial market needs a lot of market indicator in the process of analysis for an accurate prediction to be done is totally wrong. In fact, the use of multiple market indicators at once during analysis process will make the analysis being done very cumbersome and eventually lose importance. With the use of too many indicators, the attention of the trader would be drifted from what is important to the less neccesary things as they would overshadow all the other important aspect of the analysis. I would conclude by saying, in whatever financial market a person finds himself, the best thing to do is to analyse and trade the market with ease.

Too much indicators doesn’t guarantee a successful trades, the more indicators you use, the more complex you make your chart and trades. And the fact you don’t engage in plenty indicators doesn’t make you less successful. Below good indicators you can use:

Zig Zag indicator
The number indicator is very straightforward and precise. You can easily locate it on the MetaTrader system, it helps traders to visualize a clear highs and lows of the market.

Barry.mq4
Barry is another easy indicator which can be used to draw support and resistance zones. Drawing SR is necessary for traders and relevant to find trends. But new traders can find this hard to do, but with this indicator you can easily find them.

News Indicator
A very critical indicator for your charts is a news indicator. You really need to keep tabs on those news and get a head up when things are about to go down. A news indicator will show you if there are news release for the market, as well as next news release. And you don’t need to be fundamental trader before you know about news, it’s essential for every traders.

Using too much indicator for trading in the forex market can make you negative outcome because you may automatically become confused about what is the right method that should be used for trading in the forex business, meaning that all the information you have about trading would tend towards losses, indicator are good but there is always a moderate application that would make it possible to maximise the potential that we can get from them, anyone that is trading in the forex business without knowing something that could increase his account popularity will gain losses and discouragement eventually, because when we apply too many things in our trading charts, it automatically makes it clumsily and difficult to read.

Binary option is another market on it own with another trading platform, binary market platform doesn’t have the same tools we do in the forex trading market, many of those binary platform if not all platforms doesn’t have any analytical tools, the binary option market is about guessing where the price will move to, so this is why many consider it to be a bit related to gambling.

But I think a good forex trader is likely to be successful in the binary market, because of their analysis skills, and after all analysis can always take place within the forex market and make execution in the binary market. I think it might work better this way.

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A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

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Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Binary options trading – an intelligent casino for gambling traders

Traders are gambling people. And if Forex trading requires strict adherence to the rules of money management, then trading binary options is perceived by them as a kind of intelligent casino. How do brokers use it?

Today trade binary options is very popular and quite a lot of companies offer it. Most often, brokers are online casinos, sites about poker, lotteries, betting. Based on the fact that actually a deal with binary options in all its manifestations is a dispute or bet, it becomes clear that such companies do not completely change their line of business. They only add a new asset, a little more tied to our familiar financial market. It is no secret that traders are often gambling people, they go to gambling houses with pleasure and sit at poker tables in the evenings; it is not surprising that binary options have become so popular – they combine the usual trading analysis and the pleasure of increased risk and profit.

Articles of the master class “Trading binary options”

Binary Options Trading: Who Are Hobby Traders?

The first thing that is written in books on the psychology of trading is that trading in the markets is not a casino, but a complex analytical work. The authors urge speculators to abandon the idea of ​​quick money and focus on training, research on exchange processes, and trading practice. Teachers and authors, as bewitched, tell us about the need to comply money management principles, as well as the selected rules of the trading strategy. We learn not to react emotionally to unprofitable positions and understand that a high percentage of profit entails a high risk of losing a deposit. All this distinguishes traders of financial markets from visitors to gambling houses – we go to the terminal as a job, and not for entertainment. Most of us, but not all.

At one time, we conducted a small survey among representatives forex companies about how many traders actually come to their company to work? Are there many who absolutely certainly trade not for profit, but simply for pleasure, as a hobby? The answer was surprising: someone called a smaller figure, someone a larger one, but on average it turned out to be less than half. In many respects, the result depended on the status of the company, its reputation and trading conditions. If the broker was just starting to develop, giving a lot of bonuses, convenient conditions for trading with a small deposit, then you could safely talk about> 70% of clients who either did not replenish the deposit a second time or made obviously unprofessional transactions, periodically increasing the thin account. Older companies wrote about 30-40% of such “high-flying” traders, which in general is also a lot. Some of our readers admit that they are interested in Forex, they read magazine they are happy to try something, find out the news on the site, but at the same time trade from time to time, making 1-2 transactions on an obvious trend or based on their vision of the situation, for almost the entire deposit. These hobby traders have become, in the opinion of FOTRADER.ru magazine, the main users of binary options.

Binary options – a means to keep a trader in the company

Now the answer to the question put in the title of the article, for sure, will not confuse you. Yes, forex brokers always tell traders that for profitable trading in the markets you need to undergo training, be disciplined and be able to analyze the situation. They offer us trust management and signals from those who already feel confident in trading. However, not everyone listens to these opinions, preferring to engage in such “investment”, skipping the transaction support process. Binary options are just for them. Seeing that the tools of the modern trader include these tools, having everything necessary for the implementation of such trades, forex brokers prefer to include binary options in their arsenal so that traders do not go to other companies.

“According to the results of our work, we see a significant increase in the number of traders interested in binary options, and a significant increase in turnover in this market. Nevertheless, I don’t think that in the near future this tool will supplant Forex, it will soon become one of the obligatory elements of the OTC market, ”is how Stanislav Vaneev, president of Grand Capital, commented on the appearance of binary options in his company. interview for our magazine.

In conclusion, I would like to recall that, despite the favorable view of the FOTRADER.ru magazine on binary options, we should not forget that this is a non-market tool. This means that absolutely all transactions are concluded within the company and are not blocked by anyone (for this reason, forex brokers working on agent model, do not offer to trade binary options). Earnings broker BO receives due to the negative mathematical expectation, from there you get all the bonuses and returns when you lose your deposit. Therefore, you do not need to treat binars as a tool for stable profit, but for a rare bet on the growth of the euro for 2 weeks – it is quite possible and sometimes much more profitable, especially if you buy the One Touch option with increased profitability.

Evaluate your efforts and desires in the Forex market and you might want to find out if binary options trading is included in the tools of your broker. Or take a look at our new binary options brokers rating and find out if he is on the lists.

FORTRADER magazine experts

FORTRADER Magazine is a large team of experts in trading in financial markets. Traders, managers, investors, programmers, testers, technical administrators – we all work for you every day for many years. Sometimes we write articles together, then the whole journal becomes the author.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

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