Quarterly-Closures

Do Quarterly Closures Affect Binary Options?

Quarterly closures are closely correlated to the assets one can trade in binary options trading. That is, the information released on a quarterly basis is considered to be of significance and can More »

Trade Binary Options Like a Pro

How to Trade Binary Options Like a Pro

Binary options trading is a fast growing trading avenue that comes with only two possible outcomes. The basic idea is that a trader bets on an increase or decrease of the value More »

30 Seconds trading

Binary Options – The 30 Seconds Trade

The 30 second trade in binary options trading is a short term trade option that has a brief expiry time of only 30 seconds. Yes, that’s half a minute! A short term More »

Qualities to Look for in a Good Forex Binary Options Broker

Qualities to Look for in a Good Forex Binary Options Broker

There are many decisions that new traders need to make such as what strategy to follow, what assets to trade, and most importantly which broker to use.  You will find differences in More »

options-trades

Information on Stock Market

Here’s some basic information on stock market that will help you understand how one of the most popular markets works.  Once you understand the basics, feel free to expand your knowledge of More »

Do Quarterly Closures Affect Binary Options?

Quarterly-Closures

Quarterly closures are closely correlated to the assets one can trade in binary options trading. That is, the information released on a quarterly basis is considered to be of significance and can lead to asset price movements. In return, having this type of information can lead to major rewards when incorporated into your trading strategy. While it is true that anyone can trade binary options without any experience at all, having an understanding of market movements and the factors which impact these movements can boost your trading success. For this reason, understanding quarterly closures and what they mean in terms of the market, is vital. One may wonder what quarterly closures are and what role they play in binary options trading, so let us look at this further.

In a year, there are four divided quarters. They include; January to March, April to June, July to September and October to December. In any government organization, or public organization, reports are issued at the end of every quarter. On an annual basis, these months include; April, July, October, and January. These four months are considered as corporate seasons and they really influence markets and in turn, the price of assets. The reason for this is that the revenue gauges and profits of any organization are issued on each quarter. This information is then analyzed to determine how this will impact the relevant asset prices in the future.

The large scale companies that are highly ranked in the major market indices use the technique of business quarters to report their income, calendars, revenue and more. Likewise, governments’ monetary execution reports are calculated through distributing the Gross Domestic Product (GDP) on a quarterly basis. Quarterly reports also highlight any major changes in forecasts for any organization and it provides traders with the platform to compare the organization’s earnings to others in its industry. If we look at an example, you will be able to get some more insight into quarterly reports. In this example, let us assume that Google speculates that its second quarter revenue will be at $150 billion with profits of $40 billion. In July, the company reports revenue of only $140 billion and profits of only $30 billion for the months of April, May and June.  When the financial specialists step in, they will analyze the figures for the quarter and since the results came in under the speculated amount, it is most likely that the price of Google shares will drop. In this case, making a Put option trade makes sense.

It is important to note that when earnings reports are released on a quarterly basis, analysts in the market dedicate a lot of time to analyze the future state of the organization including the short-term and long-term value of its stock. That is, in many cases, stocks react to the anticipation of the release of the earnings, the actual results as well as the markets commentary towards this release. Within a few weeks of the release, we often see a lot of movement in the relevant stock prices. There is also a long term effect where for example, if a company has performed well in their earnings release, the question then arises if the company can maintain these top results in the long run.

As a binary options trader, you can use the information provided in quarterly reports as binary options signals which pinpoint you in the right direction when it comes to potentially profitable trading opportunities. Take the time to read market news and stay updated with major events in the markets. In this way, you are able to fine tune your trading predictions.

How to Trade Binary Options Like a Pro

Trade Binary Options Like a Pro

Binary options trading is a fast growing trading avenue that comes with only two possible outcomes. The basic idea is that a trader bets on an increase or decrease of the value of an underlying asset in relation to the time the trade position expires. Trading binary options looks deceptively simple and easy. The potential to earn huge profits within a short span of time lures hordes of people. But what they fail to realise is that binary option trading is a discipline, which requires adequate time and effort. Traders who are successful, got to where they are by selecting an effective yet simple strategy and then sticking to it.

You will also find that another practice followed by successful binary options traders is that they find their own niche. They may have a certain style of trading that benefits them and makes them trade more accurately and effectively. Also, a trader might have specific assets that they know a lot about and so they stick to trading only these assets as opposed to spreading their trades across all assets classes. Too many traders are constantly jumping from one strategy to the next, thereby decreasing their odds of success. An important attribute of successful traders is that they never trade with too much money. They get into the habit of only trading with a reasonable percentage of their total trading capital, and are never tempted to go above this amount under any circumstances.

By doing so, they can absorb these losses and are still able to trade another day. The ability to avoid emotions so as to keep a clear head is also vital. When hundreds or thousands of dollars are at risk on a daily basis, becoming emotional will do more harm than good. Successful traders realize this and take failure and losses in their stride. Since binary options are relatively new trading products, the key to becoming a successful trader is to avail every opportunity to read credible and informative material. The more knowledge traders acquire about binary options trading, the more successful they’ll become. It is also advisable to stay on top of the latest news that is relevant to your preferred assets. Success in trading depends greatly on how well-informed your trading decisions are and how well-planned your strategy is. Binary options trading requires time and effort to understand and fully master. Make sure you choose a reputed trading company that offers a high payout ratio. Choose the asset properly, and start small.

Open only positions when you’re confident about it. Keep your emotions in check when trading, and keep abreast of the latest news relevant to your underlying asset. Last but not the least, never quit reading and learning about binary options trading. The binary options world changes at a rapid rate, which is why you need to keep in tune with the markets. If you want to succeed in binary options trading, you have to be prepared to put in the hours on a daily consistent basis.

Developing an Options Trading Plan

Options Trading Plan

Developing an options trading plan is critical to long term success in binary options trading.  You cannot simply work from a whim and a prayer and hope to be profitable in the long term with this, or any type of investing.  A solid strategy must be developed and all of your trading should be planned out in advance, following rules that both protect your capital and maximize your profits.

So, how does one go about developing an options trading plan?

The answer isn’t as complicated as you might think.  The first thing that needs to be considered is money management.  This will form the core of your risk management and reduction strategy.  It will prevent you from trading positions which are too large for your account, and it will also stop you from over trading by taking too many positions at the same time.  Basic money management says not to trade more than 1-3% on any single trade, and no more than 10-20% at any one time.  This is simple enough to setup and calculate, and should be part of every option trader’s plan.

Next you need to consider which assets you wish to trade.  Analysis and trading is different for different asset classes as the markets for each are different.  Even within an asset class, different markets can behave differently.  For example, you wouldn’t trade the EUR/USD in the same way that you would trade the GBP/JPY.  Each market behaves differently due to macro economic factors as well as the risk profile and volatility of each pair.  So, before you begin developing a trading strategy you should determine which asset(s) you are looking to trade.

Next, decide when you will be trading.  If you have a job this will be fairly easy as your decision will pretty much be made for you.  You will have to trade after work hours.  If you like in Asia this could actually be a good thing as it means you’ll be trading the late European session and the early U.S. session.  These times have the greatest liquidity and the largest moves in most markets.  If however you live in the U.S., you will most likely be trading the Asian session, which requires a different approach.  If you can trade in the early morning hours you might be able to trade the morning European session, which is usually better than trading the Asian session solely.

Now that you have all these things out of the way, you can register for a demo account and begin to practice trade your chosen asset.  Learn about common trading strategies and try these initially and then as your experience grows you can build on these basics.  Under no circumstances should you begin trading real money if you can’t be profitable trading a demo account.  Trading real money brings additional stresses and can end up unprofitable even for those who trade in demo successfully.

As your experience grows you can branch out into other assets and types of trading, but always keep the basics in mind.  Developing an options trading plan is not that difficult if it is approached logically and methodically.

Binary Options – The 30 Seconds Trade

30 Seconds trading

The 30 second trade in binary options trading is a short term trade option that has a brief expiry time of only 30 seconds. Yes, that’s half a minute! A short term trade option such as this ensures that your investment capital is not locked in for a long time, meaning you can get trade results quickly. But why would someone want to trade in a 30 second trade option? Here are five reasons why this super-fast trade option is so popular.

  1. 30 Second Options Are Exciting

For the gamblers and thrill seekers out there, it doesn’t get better than this. For binary options traders, the 30 second trade option is twice as exciting as the 60 second one. It provides an exhilarating opportunity to bet on the market, knowing full well that in just half a minute, you’ll either be a winner or a loser.

  1. Trading with the News

We all know how quick the market can react to a news report or major event, and we also know how fast it can return to normalcy. This short period of time is the only window you might have to cash in. You take advantage when the market shifts due to some news and pull out before it normalises. Sometimes all it takes is 30 seconds. If you need to exit early from your trade, the 30 second trades are what you need. You will be able to lock in your profits in time. Test this kind of system first before you use it, and become an economics expert so you can boost your trading success.

  1. Perfect for Scalpers

The 30 second option is not just for fundamental analysis traders. Scalpers too can get in on the action and benefit from the short expiry time frames. Scalpers who also trade based off other methods, like technical analysis and price action are also drawn to this short term trade option. Thirty second trades offer a chance for those who have excellent profitable systems in place to take advantage of the shorter expiry times. Don’t forget to test the system before you start trading with real money.

  1. Little Capital Required

For traders with a small starting capital, you might find the minimum threshold too high on other trade types. ‘Too high’ is a relative term, depending on how much you can lose before you go bust. The minimum investment threshold offered by most brokers is $20 or $25, so make sure it’s less than the percentage of the total capital invested. The 30 second option allows you to trade with smaller minimum investments, thus enabling you to trade a lesser percentage of your account.

  1. Easy and Simple To Learn

For the newcomers to the binary options trading world, it is worth mentioning that this form of trading is easy to do and to understand. Learning to trade 30 second options is also as simple and quick as actually trading them. The trading interface can be learned easily, and once you open an account and fund it, you can start trading. Have fun while investing and making money. Who knows what will happen in only 30 Seconds?

Binary Options and Online Stock Trading

Binary Options and Online Stock Trading

Binary options and online stock trading are both similar and different, but we feel that binary options provide a distinct advantage over trading in the traditional stock markets.  For one thing, binary options are a more efficient way to profit from price movements in stocks.  Because of the leverage provided when trading binary options it is much easier to realize substantial profits in a shorter period of time versus buying and selling the actual underlying stocks.

Binary brokers offer hundreds of different individual stock options, spanning all the major industries, and from all corners of the globe.  You will find technology companies such as Google and Twitter, telecommunications firms such as Vodaphone, entertainment companies like Disney and Sony, and financial stocks such as JPMorgan and Citigroup.  Indeed, there are many advantages to binary options versus online stock trading.

One of the benefits to choosing binary stock options over other assets is the ease with which you can do your research.  Information about all the companies offered as binary stock options is no more than a click away.  When you combine this fundamental analysis with a solid understanding of charting and how stock prices move historically you have a formula for success in binary stock trading.  Anyone can learn how to do this, and once you become proficient it is a skill that can be applied to any stock, or any asset you would like to trade.

Trading binary options is also much easier than trading the actual stocks.  It is quite easy to follow a stock’s price and make a prediction of whether it will rise or fall thanks to the wealth of information available from analysts, financial publications, company reports, and many other sources.  This access to information makes trading stocks easy, but when done through binary options it becomes even easier as there is no need to worry about liquidity in the binary options markets.

Because stocks are linked to their industry group, a binary option trader can take advantage of broad moves much more quickly than an online stock trader can.  They can also do so with a much smaller base of capital, since binary options are available for as little as $1 each.  A move by one stock in an industry often leads to similar moves in most if not all the other stocks in that industry.  In this way, a binary options trader can profit from news in stocks that aren’t even offered by the binary broker, as the news is likely to affect all the other companies in the same industry.

Binary options also provide a benefit in that they are not linked to any specific country.  Traders in Japan can easily trade U.S. stocks as binary options, just as U.S. traders have access to German stocks.  This simplifies the trading process greatly, and also avoids any currency risk that might be inherent in trading foreign stocks.

Qualities to Look for in a Good Forex Binary Options Broker

Qualities to Look for in a Good Forex Binary Options Broker

There are many decisions that new traders need to make such as what strategy to follow, what assets to trade, and most importantly which broker to use.  You will find differences in all of the brokers, and a broker that is suitable for one trader might not be such a good fit for another trader.  With that in mind, I’ve put together the following list of qualities to look for in a good forex binary options broker.  If your prospective broker meets these characteristics it is likely you’ll find success with them.

A Large Selection of Currencies

I think it goes without saying that if you are going to trade forex binary options you want a broker who offers a large number of pairs.  Gone are the days when just the basic EUR/USD and GBP/USD pairs are offered.  These days you can find brokers that also offer trades in the Mexican Peso, the Turkish Lira, the Russian Ruble, and many other currencies.  Why limit yourself to the basic currency pairs when you can take advantage of brokers who specialize in forex.

Excellent Payouts

While payouts on similar pairs are generally quite close from broker to broker, there can be some differences.  Even a 1-2% difference can have a large impact on your profitability though, so compare payouts at different brokers and find those that offer the highest payouts on the currency pairs you are most likely to trade.  This one tip could mean the difference between profitability and losses.

Trading Platform

If you can find a broker who offers a trading platform with advanced charting capabilities it will be a huge time saver for you.  This type of charting is not so common in binary options brokers, but the top brokers have been working to improve the charting experience.  While you can still use a third party charting program such as MetaTrader to do your heavy research, it is best if you can time entries with the data from the same platform you are trading from.  This means that the trading platform must have enough charting capabilities for you to effectively time your entries.

Types of Trades

Chances are when you are just getting started with forex binary options you will stick with the basic high/low options.  There is nothing wrong with this basic option type and many traders continue to use it successfully for all their trades.  However, many of you will want to take advantage of the new and advanced trade types that have been developed recently, so finding a broker who offers these advanced trade types is important.  You might not have a use for touch trades and boundary trades now, but there’s a good chance that you will in the future.

These are the most important qualities to look for in a good forex binary options broker.  If you can find a broker that meets these criteria you will be well on your way to trading success.

Information on Stock Market

options-trades

Here’s some basic information on stock market that will help you understand how one of the most popular markets works.  Once you understand the basics, feel free to expand your knowledge of the stock market and trading. The stock market is where shares of public companies are traded.  In nearly every case you will need help from a broker if you wish to buy or sell shares.  While you can buy and sell shares yourself, the legal framework makes it much easier to use the services of a stock broker.  There are many regulations and laws surrounding the buying and selling of shares, so in most cases a firm or individual needs to be properly licensed and registered to trade directly in the stock market. The stock broker has these licenses and registrations and acts as your intermediary to buy and sell shares, for a fee of course. Trading stock occurs on stock exchanges, the most well known of which is the New York Stock Exchange.  There are many other smaller exchanges in the U.S., and there are exchanges in nearly every country in the world as well.  One upside to the larger exchanges is that they provide more liquidity, making it easier to find a buyer or a seller when you are interested in trading stocks. Most people envision the stock exchange as a frenzied environment, with groups of traders shouting out orders and offers, gesturing wildly with their hands and frantically writing orders.  While this is true to some extent, behind the scenes everything about the stock market is very well organized.  Stock prices are set based on supply and demand, and are sold on an auction framework, with shares always being sold to the highest bidder.  Some markets, such as the Nasdaq are totally computerized, making it impossible for anything but this to happen. As a retail investor, the process of buying or selling stocks seems fairly simple.  You call your broker, or more likely simply log into your online account, you place and order for shares of a company and several minutes or even seconds later you get confirmation that your order has been filled.  Behind the scenes though there are quite a few things that need to happen for your order to be filled.  This is where the brokers, specialists and market makers come in.  They ensure the orderly progression of the market even when hundreds of orders may be pouring in. So, that’s the basic information on stock market and how it works.  Most traders will never see all of the processes that occur behind the scenes, and in fact they don’t even need to know about them in most cases.  An even easier way to trade stocks is to use a derivative such as binary options.  With binary options you aren’t even actually buying the stock, instead you are trading the price movements of the underlying stock, without ever needing to take physical possession of the stock.

An EZTrader Review

eztrader

If you are trying to decide what binary options broker to use, a review of the broker in invaluable.  This review will give you the basics of trading with EZTrader, and will help you decide if they are an appropriate broker for your needs.  EzTrader is based in Cyprus, like many other binary options brokers, and they are owned by Win Gaming Media Inc.  They have been offering binary option trading since 2008, and are one of the original binary options brokers.  They use a proprietary trading platform, unlike many of the brokers who currently use third party solutions for their trading platform.  This is not surprising given the early brokers had no choice but to develop their own trading platform.  It should also be noted that Win Gaming acquired EZTrader in 2011 and they have made substantial changes to the site since then.

The EzTrader Platform

As has already been mentioned, the trading platform at EzTrader is proprietary to the broker.  Since the acquisition by Win Gaming, several changes have been made to the platform that have made it more user friendly and have improved the trading experience.  These changes are as follows:

-          The lockout period for options has been reduced from 15 minutes to an industry standard 5 minutes.

-          Spreads have been eliminated and the options are now more profitable for traders.

-          It is now possible to sell a profitable option before it expires and lock in profits.

EzTrader Payouts

Payouts at EZTrader were historically some of the lowest in the industry, but since Win Gaming has purchased the broker the payouts have been increased.  In the past it was normal to see 50% payouts on options, but now it is more common to see payouts approaching and even exceeding 80%.

Assets at EzTrader

EZTrader still offers far fewer assets than most binary options brokers, but you can still trade all the popular currency pairs, commodities and stocks.

Customer Service at EzTrader

EzTrader offers customer service channels through email, live chat and phone.  You will find that the customer service staff are extremely knowledgeable and can handle any question or concern in a professional and prompt manner.

In Conclusion

EzTrader is certainly an improved broker since Win Gaming has taken over.  Additional assets would be an improvement, and the company has been addressing this.  One positive is that the company has been taking customer service very seriously, and they are now one of the best brokers in this regard.  There are really no questions or issues that the customer service staff can’t handle adequately.  EZTrader is certainly worth trading with, and given the commitment to customer service they should improve more over time.

What are the Most Common Binary Options Assets?

Most Common Binary Options Assets

You probably already know that binary option trading consists of predicting the future direction in the price of an underlying asset.  Now you want to know what are the most common binary options assets so that you can create an appropriate trading strategy.  There are four asset classes that are common to nearly every binary option broker and we’ll take a closer look at each below.

Currency Pairs

The currency market is the largest market on the planet, so it’s no wonder that currency pairs are some of the most commonly traded binary options as well.  In fact, many of the current binary option traders are former forex traders.  You’ll find that binary options brokers  offer a wide variety of currency pairs.  While forex can be difficult to trade successfully, when done through binary options it isn’t as difficult to trade currencies since there is no need to worry about such things as spreads and draw downs.

Equity Indices

These are the well known stock averages such as the S&P 500, the Dow, the Nikkei in Japan, the DAX in Germany, and many others.  Because these are averages of a large number of stocks, the indices rarely make large daily moves.  This can make them difficult to trade, because they often experience small daily movements, and even several reversals during a single trading session can be common.

Individual Stocks

The world of individual stocks is huge, but most binary options brokers will offer several dozen of the largest and most popular international stocks.  Even so, these are the second most popular of the binary options assets because many traders are familiar with the individual stock names.  Plus, they are fairly easy to trade because of the immense amount of information available about individual stocks and their companies.  Many professional traders prefer using stocks as the underlying asset in binary trades because of their high confidence in transacting a winning trade.

Commodities

Most binary options brokers will offer trading in several commodities.  The most popular are gold and silver, but copper, oil, coffee and other commodities can also be traded.  While these are the least traded binary options, they are also quite easy to trade successfully.  The reason for this is that commodities have a tendency to trend very strongly for extended periods of time.  Once you know the direction of the trend it can be simple to trade commodities through binary options since with binaries all you need to know is the direction price will take.

These then are the most common binary options assets.  While a new trader should focus on the asset they are most familiar with, it is also beneficial to learn about the other assets and how to trade them successfully.  This can give you a definite edge as you will have an alternative when your favorite asset is not behaving well.

Evaluating Binary Trading Platforms

binary trading platforms

Before you dive into the world of binary option trading it is important that you take the time to set yourself up properly for success.  One of the steps in doing this is evaluating binary trading platforms to find the one that is best suited to your needs.  Note that I did not say the best binary option trading platform, because I don’t believe that there is a single best platform.  The determination of best trading platform is going to depend on the trader’s needs, expectations, and goals.  So, you need to do your own evaluation to find the best binary trading platform for you.

What exactly will you be looking for when evaluating the trading platforms?  Well, a bit of that depends on your needs, but there are some basics that any good platform will contain, so we can certainly start with those to help narrow down the field of choices.  Below are the 3 characteristics that are going to be most important when evaluating binary trading platforms.

  1. The stability and reliability is the most important characteristic of any trading platform.  It doesn’t matter what other features you find in a trading platform, if it isn’t reliable it won’t be a benefit to your trading.  Can you imagine having a trade fail because the trading platform disconnected from the broker’s servers?   Such an event is more than just frustrating.  So, test the platform, look for reviews from others, and make sure that it is reliable and stable.
  2. A binary options trading platform should be designed for ease of use.  It should not only be clear to you what everything in the platform is designed to do, it should also be quick and easy to place trades.  One click trading will ensure you don’t miss out on a trading opportunity as you fumble through the user interface of the trading platform.  One of the key attractions of binary options is the ease of trading, and the trading platform should reflect this.
  3. If you never trade from outside your home this might not be important to you, but I feel that all binary trading platforms should be available in mobile versions.  Even if you don’t trade when you are away from home now, maybe you would if you had access to a good mobile trading platform.  At the very least, you would appreciate the ability to check on open trades and do some market analysis while out and about.  It beats wasting time with Twitter and Facebook.

Any other features that are beneficial in binary trading platforms will depend on the needs of each individual trader.  Some will appreciate having deposit and withdrawal options built into the trading platform, while others will find it more useful to have access to customer support from within the platform.  Still others will be impressed by more advanced charting capabilities from within the binary platform.  This is why it is so important that each trader goes through the process of evaluating binary trading platforms on their own.

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