Category Archives: Getting Started

Understanding the Uses and Limits of Volatility

Entendiendo el uso de los límites de volatilidad

All investors should always focus on the promise of high returns, through different strategies depending entirely on how comfortable they are with their options. Some investors may be more comfortable with the larger prospect of risk, while other traders will consider investing over longer periods of time in order to generate a consistent profit. No matter whatever, however, the trader should always focus on comfortable levels of risk, especially when working with volatility. The uses and limits of volatility are important factors to take into consideration before and after every trade, especially for new traders who are just beginning to work with their environments. While risk is often understood in a general sense, volatility can be understood in a risk and reward type of relationship, where the higher the risk is, the better the payout can be. As such, in order for investors to understand what options will provide them with the largest room for profit, they must learn about the risk involved in such trades.


Understanding the Uses and Limits of Volatility

Understanding the Uses and Limits of Volatility

There are many different types of volatility that traders need to stay on top of when they analyze the market. Regular volatility is one such example, and unlike implied volatility, a type that concerns option pricing theory, regular volatility focuses on a backward analysis. It can be understood in technical terms as the annualized standard deviation from previous historical returns. This type of analyses focuses on previous trends in order to draw relevant conclusions into current ones.

As such, traditional risk frameworks will usually rely on most standard deviations because they assume that returns will conform to ordinary bell shaped distribution patterns. This can allow traders to work with useful guidelines that can help them plan ahead for their trades. Paying attention to the trails left by the graphs can help determine the appropriate course of the commodities, and while they can be indicative of good, potential leads, they are not without their faults. Most traditional models treat all sections of uncertainty as certain risks. This can cause a variety of problems in immediate sections where the map is not direct or symmetrical. Investors may find that they will worry about their losses at the left of the average, without thinking about their gains to the right.

The uses and limits of volatility are typically defined by how much planning the trader plans on doing and whether or not they are comfortable in moving with certain directions. Analyses that focus too heavily on any single indicator or movement may often provide unreliable returns, especially in the long term, where market movements can easily become sporadic and difficult to work with. Patience is one of the most important things that all traders need to have in order to work with sudden volatility in the market, as planning the right calls at the right times will require them to carefully monitor movements.

Is Binary Options Trading For You?


To gain financial stability in the current harsh economic environment, one needs to look for ways of making extra money. One of the sure ways of doing this is by embracing binary options trading. This is a relatively new form of online trading which allows traders from all across the globe to make money by simply trading on assets listed on the trading platform such as precious commodities like gold and silver as well as stocks, indices and currency pairs.

How Does Binary Options Trading Work?

Basically, binary brokers allow prospective traders to create a free account in order to access the trading tools and features. However, you will be required to deposit a given amount of money in order to trade. Unlike conventional traders, who usually purchase or sell assets, here you only need to accurately predict price movement of your preferred asset. For example, if you invest $100 on Samsung stocks that have a payout of 80%, you have a chance to earn $80 if you correctly predict the direction that the price of the asset will move by the expiry of the trade.

Let us proceed and look at reasons why you should take part in binary options trading and why this exciting form of online trading is for you:

  1. High Returns

This is one of the supreme benefits of taking in this form of online trading. Due to the high risks involved in trading, most broker platforms offer high returns on investments that usually range between 60-90%.

  1. Fast Turnover Rate

Binary options trading offers fast turnover. That is, you will be able to make profits instantly as brokers offer a quick payout system. If you make an accurate prediction and your trade ends successfully, you are paid out immediately by the broker. Also, some trades are only 30 seconds which means you will get to know the result of a trade quickly.

  1. Access To A Wide Variety Of Assets

Unlike Forex trading that only give traders limited assets to trade in, binary options trading offers a wide variety of assets. More importantly, you are able to gain access to a wide range of global assets which might be over expensive for same traders. Since you are only making a prediction when trading binary options and not actually buying and selling assets, this form of trading is accessible to everyone.

  1. Straightforward

Binary options trading is a no brainer or rocket science; the geniuses behind these platforms have worked smart to create an intuitive and user friendly interface to guide you through the trading process. Some brokers have gone a step further to offer demo accounts, live chat features, an FAQ page, as well as informative videos to guide you on your trading journey.

  1. Transparent

At times, conventional trading platforms are confusing due to their complicated nature. It’s almost impossible to know the amount of profit that you will make when purchasing assets. Fortunately, binary options trading is very transparent, as it furnishes traders with information on the exact profits and losses that can be made from each trade. You will be able to know exactly how much you’re risking.  That is, you will know how much money you can possibly win or lose before investing.

Finally, despite the high risk attached to any form of trading, you will surely find the inherent unpredictability and fast pace of binary options trading exciting and intriguing. The fact is binary options trading is for everyone – you do not need any experience or understanding of the markets in order to trade. This form of trading has many benefits so the bottom line is, binary options trading is for you!


Create Your Own Binary Options Trading System

Binary Options Trading System

Successful binary options traders have their own strategy.  It is important for traders to develop their own trading strategies because when they develop their own strategy, they acquire a greater understanding of the underlying asset and its price movements. They are more tuned into how the strategy actually works and what will cause it not to work, which can happen because market dynamics change. Beginners often find this a daunting task. So here are some basic rules to get you started.

  • What is your time-frame?

The first step is to identify whether you are an intraday trader or a swing trader. Will you trade on a one-minute chart or a daily chart? Choose your time-frame after considering your personality and mind-set. Some like the fast-paced action that ultra-short term trading affords, while some others are more laid-back and prefer to trade the longer time-frame charts.

  • Focus on the asset you wish to trade

Most binary option brokers offer a variety of underlying assets. Currency pairs, stocks, indices, commodities are some of them. Each market has its own demand-supply mechanisms. Carefully assess each asset and choose one that suits your trading style.

  • Are you a trend trader or a range trader?

Assets are either trending or moving in a range. Different market scenario will require different sets of indicators and rules. Using an oscillator during a trending market will lead to false trades. Similarly, moving averages fail miserably when prices are stuck in a range. Understanding the current phase of a market is important to adopting the right trading strategy.

  • Do you follow price action, or are you dependent on indicators?

Price action traders read the market and make their trading decisions based on the actual price movement of an asset. They do not rely on conventional indicators to form a trading bias. However, some traders are more comfortable with indicators pointing them in the direction of a trade. Both styles of trading work. What suits you is for you to decide.

  • Money Management

Money management is the most overlooked aspect of trading. Make sure the percentage you are willing to risk per trade fits your account size. Risking too much money on one single trade can take you out of business sooner rather than later. Conservative traders generally risk around 3-5% on a given trade, but this also requires either a larger amount of trading capital or precise entry points.

Final Thoughts

Analyze as many charts as you can, and look at them as opportunities. Look for good price moves, and examine the underlying technical conditions that led to those move. Once you have zeroed in some common technical parameters that generally lead to profitable price movements, construct a set of entry rules that help you get into the market, without exposing yourself to excessive risk. See if the strategy worked on past price data, and if it did, paper trade for a while. Once you are satisfied with the efficacy of your trading strategy, start trading with small amounts of money to help build your confidence.

Payouts in Binary Options Explained

payouts in binary options

One feature of binary options that all traders appreciate is that payouts in binary options are always clearly shown on the trading platform.  This means you know right from the start of the trade exactly how much you stand to profit if your prediction about the price of the underlying asset is correct.  For example, if the payout is shown to be 75% and you place a $500 investment, you know that if your option finishes in the money you will collect $875, which is your initial investment plus the 75% payout.

Payout Rates Vary

You should understand when getting started in binary option trading that every option has its own payout, which is set by the broker, and is dependent on the probability of the trade ending in the money.  In general, payouts in binary options range from 60% up to 89%, though you might find lower payouts for trades that are very likely to succeed, and higher payouts for extremely risky trades.  Some brokers are offering high yield trades that yield as much as 550% when the trader is correct.  Note that a higher payout is not always the better trade.

Other brokers have also begun to offer rebates on losing trades, which means if you are wrong in your prediction you get a portion of your initial investment back.  These rebates range from 5% up to 15% and can be a good way to protect your capital, but you must understand that when a rebate is offered, the payout for a winning trade will also be lower.

Large Payouts versus Small Payouts

As was mentioned above, payouts in binary options can range from 60% all the way up to 550%, so which are the best for making profits in binary options?  It isn’t an easy question to answer and really depends on the traders own style and personality.  One thing that is sure however is that traders should avoid making huge bets on binary options.

For example, you could choose to risk your entire account on one trade, in the attempt to win big.  Say a trader has a $5,000 account and is looking for a huge payout.  He could place the entire amount on one high yield trade, with the potential to turn that $5,000 into $27,500 if he is correct.  It’s great news if he actually is correct, but if he is wrong his entire account is gone, and he is no longer able to trade.

A better approach is to risk no more than 5% of your account balance on any one trade.  This is a method for protecting your capital, which is actually more important to professional traders than anything else in trading.  Such a trader could lose not one or two trades, but could lose a series of 10 or more trades, and still have capital remaining in his account to continue trading.  In the long run, we could expect that he will recoup his losses and end up profitable, all because he was more cautious and protected his trading capital.

How to Begin Trading Binary Options

How to Begin Trading Binary Options

To begin trading binary options is simple. For starters, the biggest advantage of this form of online trading is that anyone can trade. That is, you do not need any experience or understanding of the markets in order to trade options and to succeed. Within a few short years, binary trading has quickly grown in popularity and many traders globally are taking advantage of the low risks and high rewards that this form of trading offers. So let us look at how you too can be a part of this exciting world of trading.

Tips On How to Get Started In Binary Options

  1. Get In-Depth Understanding Of How It Works

As with everything in life, before you jump into anything new, you need to have a clear understanding of what is involved and/ or how something works. In binary options trading, this principle also applies. You need to have a clear understanding of online trading including the risks involved as well as the rewards. The benefit of trading options is that you know even before you trade what you stand to win or lose. The trading process is simple and it requires a trader to select an asset to trade in, select an expiry time and then to make a prediction regarding which direction the asset price will move, either up or down, by the expiry of the trade. Simple!

  1. Choose An Ideal Binary Options Broker

Currently, there are hundreds of binary option brokers online. You need to compare and contrast the services offered by each one of them so as to choose the best. While you do this, consider the withdrawal and payment options that you can use to load money into your account. Other factors that you need to consider include: the quality of customer support services, the level of professionalism, legal accreditation, as well as reputation and accessibility, as there are some companies which accept traders only from a given geographical region.

  1. Do Background Research On The Assets

To accurately determine whether or not a trade contract will expire in your favor, you need to carry out intensive background research to make intelligent decisions regarding the direction that the price of an asset will move. Most trading platforms offer traders a wide range of trading tools and services which can help in making better informed decisions. Also, take the time to follow the daily financial news as this will give you some indication of how asset prices will move in the future. For example, if you read that there are tensions between the U.S. and Russia, this could impact the price of oil as a limited supply of this commodity might occur if countries place sanctions on Russia.

  1. Have A Financial Plan

Based on the fact that it’s very easy to make quick profits in binary options trading, you might end up investing all your savings at the expense of other important financial obligations, such as paying rent. Woe unto you if you make excessive losses, as you will plunge yourself into financial constrains. Hence, formulate a financial plan and stick to it to safeguard your financial stability. The bottom line is, never invest more than you can afford to lose.

Taking part in binary options trading is easy if you first learn how it works so take the time to learn the ropes and then get started.

The Basics of the Lazy Day Trader Strategy

Lazy Day Trader Strategy

If you are interested in getting started with trading binary options, it is important for you to learn effective strategies that you can utilize to their full potential. Among the most effective and easy to utilize of these strategies is known as the Lazy Day Trader Strategy. This strategy is also known by its secondary name of Sixty Second Profit. While there are no strategies that can reduce risk to one hundred percent completely, this strategy is one that can help traders manage risk and greatly cut down on the extent of their losses.

It is easily one of the most ideal strategies to begin working with, especially for traders that are just getting started. It works with the trader investing money in four simple phases. The first phase involves investing ten dollars within fifteen minutes of expiration. The second phase involves investing twenty six dollars within the same time frame. The third involves investing with sixty five dollars, and the final phase recommends investing with one hundred and fifty. With such a successful increase in earning, you will move back to phase one and continue until you have all of the earnings that you desire.

Among the advantages that come with these strategies is the fact that it is very fast and simple. Traders will have the opportunity to get immediate positive results, no matter their skill. The strategy can be very effectively applied to increase earnings, and while there is still a risk of loss, the strategy helps minimize the damages that it will do to your earnings. It can be a good way to increase general knowledge about binary options because of the immediate immersion that it provides for traders.

This strategy works because it relies on two premises. The first premise is that the trading sentiment will always lead the trader to observe their best trading assets. This acts as a signal to learn how certain binary options are performing and how they are positioned in their trades. The second premise is based on the Martingale premise, which also focuses on trading strategy. This premise can effectively increase earnings because it encourages traders to double down their lose trade, which increases the profit to recover from the loss. However, this premise can be a particularly risky one as well. There is the chance that the trader will win large amounts of earnings, but the possibility also exists that the trader can become bankrupt with a few wrong decisions. This type of premise is generally not recommended for those who have just begun trading. It can be a very effective way to navigate the market after becoming more familiar with the Lazy Day Trader Strategy, but until then, traders are advised to use the first premise. Comfort and risk assessment are both important factors in helping traders decide when they should consider investing.

The Benefits of Learning How to Trade Binary Options with the Leaders of the Industry

trade binary options with the leaders of the industry

Like many novice investors, you have probably noticed that some markets generate far more hype than others.  This is especially true of binary options, which do not require a massive upfront investment of money and allow just about anyone to establish a fairly consistent and impressive source of income.  In order to move past the stage of merely gambling your hard-won cash on options that you know little about, however, you have to learn how to trade binary options with the leaders of the industry.

Working With A Good Brokerage

People who trade binary options can have as much or as little involvement in these efforts as they want to.  Making sure that they can entrust the decision-making process to a seasoned broker who will always have their best interests at heart is often vital for traders to do, especially during the formative stages of the learning process.  Not only can a good brokerage assist with trades, but these entities can also help people to access the resources they need for devising effective trading plans of their own.

Signing Up With An Affiliate Network

Another way to trade binary options with the leaders of the industry is to join a reputable affiliate program.  With these opportunities, there are numerous ways in which people can earn money and thus, the risks of losing money are minimized and the overall profit potential is significantly increased.  More importantly, these organizations tend to have the best stores of informational resources and tools that are designed to help new traders out.  The costs of joining an affiliate network are nominal when considering the benefits.  These arrangements also give traders who are brand new to this market more freedom and flexibility when it comes to structuring their own put and call orders.

What To Look For

In all markets there are both legitimate offers and scams.  Thus, it is vital for traders to do their due diligence and carefully research the organizations that they are considering.  This is true whether you are interested in signing up with a brokerage or joining an affiliate marketing team.  There is a wealth of online information that can assist you with these efforts, including genuine and in-depth reviews that other traders have left behind.

It is also vital to learn how to spot a scam.  Offers and promises that seem too good to be true generally are.  This is often the case when it comes to things like sign-up bonuses.  Always make sure to find out what you will be required to do before you can access any money that you place in an account that comes with a sign up bonus.  For instance, some companies pad the accounts of new clients with generous incentives only to inform these individuals that they cannot touch any of this money, including their own, until a certain number of turnovers have been made.  Looking out for surprises like these will ensure that you are truly preparing to trade binary options with the leaders of the industry, rather than being led astray by one of the many binary options scams that currently exist.

Understanding Trading Long-Shot Strategy


As you become more and more familiar with binary options, you will want to look into different trading strategies that can help increase your profits with regular application. The trading long-shot strategy, in particular, is one that is typically linked with very high paying ratios, ones that surpass upwards of three hundred percent. However, while this strategy can result in much greater yields, it also comes with much greater risks. One of the best things about the strategy is that after only a few results, your equity will be safeguarded.

The strategy can be efficiently used with just about any assets that your binary options broker will support. The purpose of the strategy is to target trades that have a pre determined price, placed away from their opening values. Investors should remember that the size of the gap between the target price and the opening price are in direct proportion to the profit ratios. This strategy is effective because risk rises dramatically in accordance with how far away it is from the opening price. As the price becomes less and less likely to touch the target, the chances drop, while the potential for profit sharply rises.

Trading with this type of strategy is the most effective when you notice that the current market conditions are volatile. With such existing conditions, a trader will be able to apply the technique after major data has been released. This data should be short of market expectations, which means that it is possible that the market did not price in such events. Often, investors will end up placing quick trades into bids in order to adjust their portfolios. It is during these conditions that long shot strategies will be at their most effective.

Additionally, the trading technique can be utilized if the trader identifies the target level that price will touch at least one time before it expires. The resulting size of the ratio will be defined by the distance away from the opening value. This will result in proportional profits, which means that traders will have the opportunity to analyze probably targets and see what options can be taken advantage of.

When comparing the trading long-shot strategy to most other trading strategies, many will notice that the risks can be especially intimidating. However, to many, the risks are well worth it, because despite the higher exposure to risk, the pay outs can be as high as five hundred percent of the initial price. Much like with any other strategy, traders are strongly encouraged to spend some time practicing with targets and finding where they will be comfortable in proceeding. No beginning trader will be immediately ready to work with all of the risk associated with such a strategy, but with practice and patience, it can prove to be one of the most efficient and profitable strategies available for your consideration.

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.

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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