Tips For Choosing A Binary Options Broker

Vinz de la Fuente - Contributor - Binary Options

The Importance of a Broker

One of the most important things to be considered before someone becomes a binary options trader is to find a reputable Binary Options broker. The broker is the bridge to your investment and the market itself. If you want to gain profits, you should make sure that you are dealing with the right broker. Good strategies can be a big help in your trading activities, but you should have assurance with your account as well so that you will not have future conflicts in your payouts.

Here are some tips that I believe a trader should have in mind before joining any broker in the market.

Factors to be Considered

There are various factors that a trader needs to consider before making the final decision in choosing the right broker. Some of those factors are the broker’s regulations, their terms and conditions, the company capitalization, incentives and bonuses they offer, their trading platforms and their customer assistance. Continue reading "Tips For Choosing A Binary Options Broker"

Binary Options Early Exit Strategy

Vinz de la Fuente - Contributor - Binary Options

Strategy Innovation

Investing in binary options requires various strategies to attain profits in every trade. Classic trading with binary options requires traders to choose from different kinds of assets which are stocks, currencies, commodities, and indices with basic options choices. Those choices include high/low, range/out-of-range/touch/no-touch where traders agree on the length of the option period, essentially choosing the expiry time and wait for it to end. Before, it was not possible to change a trade once it was made, but since innovation is also a part of binary options, brokers can now offer an early exit strategy which you can close the option before the expiry time.

Importance of Early Exit Strategy

Profitability is just one of the main goals in binary trading. You should also prevent losses in your investment or at least lessen them. You can avoid or reduce your losses if you close a trade early. For example, if an “out of the money” trade would result in an 85% loss, exiting the option early might result in a considerably better outcome, like a loss of only 30% - 50% vs. 80%. It will still vary in the current market condition when the option is bought back. An early exit increases trading flexibility because it gives every trader options vs. waiting for the expiry time and watching their losses grow when their investment moves opposite of the preferred direction. Another advantage is that the early exit option releases money that traders could use to buy more binary options. Despite the mentioned advantages, there are also other factors that need to be considered while using this option. Continue reading "Binary Options Early Exit Strategy"

Dealing With Bear And Bull Traps In Binary Options

Vinz de la Fuente - Contributor - Binary Options

Facing the Reality

Bear and bull traps are part of Binary Options and there is no guarantee that they will be avoided. Experiencing traps is inevitable when you are trading in the market. These traps occur in every market and on all time frames. Dealing with this situation can be frustrating, whether you're a new trader, seasonal or an experienced one. You may think that the market will be predictable, but there can be a sudden, quick change in the trend that surprises you and makes you feel helpless at the moment. Before you think negatively, try to analyze the situation and make sure you will not let yourself be a victim without doing something.

Understanding Bear and Bull Traps

When you see a false signal that shows you a declining trend in a stock or index which has reversed and is thought to move upwards, but the security actually declines continuously, then you are caught in a bull trap. This trap usually pushes some investors to buy the stock because of a wrong impression and it will turn into a bad investment. On the other hand, if you see a false signal that shows the rising trend of a stock or index has reversed when it has not, then you are in a bear trap. This can prompt traders to be in shorts on the stock or index since they expect the underlying to decrease in value, but instead of declining, the investment stays flat or slightly recovered. Continue reading "Dealing With Bear And Bull Traps In Binary Options"

Important Technical Indicators For Trading Binary Options

Vinz de la Fuente - Contributor - Binary Options

Trading Accordingly

Binary Trading could be simple to trade, but the difficulty comes up with how you will win your trade by knowing which direction you will choose. Traders can actually have a higher chance of winning every trade by simply knowing and applying some technical indicators whenever they trade in the market. Technical indicators can help identify price patterns and historical market behavior on market charts. Most of the traders are plainly looking at the wider trends in the market and then they will trade according to the direction of the trends, but sometimes success in using this is not assured.

The Technical Indicators

The technical indicators listed below are used widely in the market and have proven to be effective in some traders perspective. However, there is no 100% guarantee that it will be effective in every trading activity and it also has time-frame factors to be considered. Continue reading "Important Technical Indicators For Trading Binary Options"

Learn The Basics In Binary Options

Vinz de la Fuente - Contributor - Binary Options

Binary options are a modern way of trading fast and dealing easily in the world of finance. This idea was born and made legal in 2008 in the United States.

The essence in this type of trading is the non-ownership of any asset. There is instead, an attempt to somehow foresee the course of the underlying asset. One chooses an asset and gives a prediction of its movement. It is an investment in the present.

How do binaries operate?

In not so many words, binary options give you two choices - the choice to be right or the choice to be wrong. Either one wins, or one loses. There is no gray area.

It is not as scary as it sounds. Binary options, as a concept, is simple and concise. You choose an asset after which you foresee whether or not the price of the said asset will go up or go down in price.

Once you have made a decision, the broker you have made a deal with will show you the percentage of the amount. This will be returned to you before you have signed on your money to the trade.

You will then choose the amount that you want to invest. You will also choose the period within which you are willing to work. After taking all of these factors into consideration, you may then click on the button that finalizes the trade. Execution will take place. Continue reading "Learn The Basics In Binary Options"