What You Need to Succeed in Binary Options

What-Do-You-Need-to-SucceedBinaries are simple to trade but don’t make the mistake of thinking that they are easy to make money with. There are many websites that tell you differently. They make you think that you just have to sign up for an account, start trading and …voila, become a successful trader. Well, life is not that easy.

Like in many other areas, you need a solid knowledge before you get started. Hopefully you’ll get some of it here in this guide. Be aware, though, that just reading this guide will not automatically make you an instant millionaire. You’ll learn a lot of facts and strategies about binary trading, but in order to make the most out of this guide and become the trader you want to be, you’ll have to adapt the ideas that you’re about to learn to what you already know.

For starters you need to learn how to read the charts. Charts are your main weapon in winning the Binary Options wars – …well, maybe I’m a bit melodramatic here. But seriously, charts are a vital resource for a serious binary trader, actually any valid strategy involves reading and analyzing charts.
(General Risk Warning: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.)

Basically, the charts allow you to predict the future course of an asset by finding patterns in its past price movements, and after all this what we need to win a binary trade.

Don’t be intimidated by the charts, actually they are not that hard to read and understand. Strategies that are based on reading and analyzing charts are part of the technical analysis area.

Technical analysis follows a straightforward set of rules freely available on scores of websites. Happily, the simplest rules in charting tend to be the most reliable. In a later chapter we will go over several strategies that you can apply in your trades.

The most basic form of technical analysis would be to look for support and resistance levels that markets have struggled to break through in the past. Charts in this way works best in moderately volatile markets. Technical analysis is also useful in identifying trending assets.

Another simple way of using charts is to look at moving averages, such as the average price over 10 days. The idea is that this gives you a better representation of what the price is doing over a longer period of time.

Another simple pattern is based on the so-called relative strength index (RSI). This highlights situations where a market is overbought or oversold and warns of a potential reversal in the trend. The RSI is the total points gained on up days, divided by the total points lost and gained, multiplied by 100.

Now that you are convicted in the necessity of charts the question is where can you get them. Well, there are a lot of online charts services and software, to find them simply run an online search for “real time charts” or “charts software”.

Effective charting service packages help you access the market data in real-time; this information is shown in a number of ways, which will help you in performing your trades.

Finding the “right” charting service is definitely a personal choice – it could be compared to selecting the right car. What another trader prefers could be not the same as what you select, and the other way round. That is the reason why it may be necessary for you to properly examine a list of features – with both pros and cons – prior to making the decision on a charting service.

In essence you must have a list of criteria, and you have to compare the available charting services using that list. Make your selection based on the results. Listed below are requirements you should consider:

Real-Time Data – You want a reliable system that will provide real-time information immediately. This particular feature by itself will leave out many of the options available, because a lot of online packages will have some kind of delay. With regards to binary trading you obviously can’t afford to face a delay.

Market Data Coverage – Look at markets which are included in the charting service. The majority of programs include the major U.S. markets, but if you have to have other global markets, like Asian or European markets, then you definitely have to make sure that data is available in real-time.

Variety of Indicators – Based on your own personal requirements, you may be interested in a diverse variety of indicators and charting methods, such as bar charts, point-andfigure charting, or Japanese candlesticks. Additionally, find out if the charting service can show basic indicators like MACD, RSI, and Moving Averages easily (I will explain all these later). If you’re serious about technical analysis, ensure that you can easily program your own indicators or modify the existing ones to your desires without having too much trouble.

Reasonably competitive Rates – You will need a charting service that won’t cost you all of your money before you even get into your first trade. It’s necessary to shop around. Nonetheless, locating a competitive price is not to mean that the provider’s service is the cheapest. You need to be cautious with this one – the old saying “you get what you pay for” certainly does apply with regards to trading. Consider your choices. You seldom want cheap trading service that gives you next to nothing, however, you probably don’t need the most expensive service with options you won’t make use of – either. And make sure that the company you choose will allow time to test out how the service really works. Should you be not comfortable with using it, you should be able to ask for a refund.

User Friendly Platform – You need to have a system that you can use easily, not one that needs a degree as a computer engineer. You’ll need a system that lets you back-test strategies and program customized indicators and trading systems without a lot of difficulty.

Reputable Company – Pick a reputable provider which has a recognized reputation online for its platform and data feed. And obviously, select a provider which has superb customer service.

I hope at this point you have a much better notion of what sort of charting service can best meet your needs. Keep in mind, effective charting application is actually what will give you the velocity and ability to perform fast trades in response to breaking news. Over time, you may want to move on to more sophisticated services as you become more skilled in the investing universe.

(General Risk Warning: The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.)

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Thomas Jan

Thomas has worked in securities company for 7 years and he was a finance columnist for 3 years,
Now, he is the founder and lead author of Binary Top Gun since 1'st January 2016.
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Thomas Jan

Thomas has worked in securities company for 7 years and he was a finance columnist for 3 years, Now, he is the founder and lead author of Binary Top Gun since 1'st January 2016.