Binary options 2015
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This document provides an introduction to binary options trading strategies. It discusses 10 top strategies, including the Double Red strategy, Pinocchio strategy, and 1-2-3 strategy. It also covers basics of binary options like risk/reward, expiry times, and best times to trade. Brokers are recommended and compared in terms of minimum deposits, payouts, regulation status and bonuses offered. Candlestick charts and other technical analysis tools are presented as aids for traders.
Binary options 2015
- 1. BINARY OPTIONS TRADING STRATEGIES GoBinary24.com Joining traders from New York • Tokyo • Singapore • Toronto • Paris • London Strategies of Pros Explained for Dummies GOBINARY24.COM
- 2. You are in the right place. In this e-book you will be introduced to the top 10 binary options strategies. As well as picking the most effective and easy-to-use strategies out there, we have presented them in a fun visual manner that is easy to understand, even if you don’t have much experience. Some binary option traders play the markets without any solid strategies. We however, strongly recommend mastering at least a couple of strategies and trading only when strategy indicators are clear. By doing so you can not only reduce your risk, but also significantly increase any profits. That said, always be aware of the other factors that drive markets, don’t just follow indicators blindly! And Remember that it’s okay to have losses – as long as more of your trades are ‘In the Money’ than ‘Out of the Money’. GoBinary24.com Joining traders from New York • Tokyo • Singapore • Paris • London Do you want to become a successful binary options trader? Welcome! TOP RATED SLIDESHARE AUTHOR
- 3. Fundamentals Why Binary Why Binary options are becoming more and more popular? With the forex market, every time you enter into a trade you risk the entire amount of money in your trading account. With binary options, however, your risk is always limited to the amount you committed to that specific trade. Less risk Binary options are generally simpler to trade than other instruments. This is because you only need to form a view on what direction the price of the underlying asset will move. In comparison, traditional options also require you to form a view on the magnitude of any price movement. Simplicity Unlike with other trading instruments, there are usually no fees or commissions attached to binary options. Brokers make their money from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades. Probably the best thing about binary options is that you know exactly how much your return will be before you make an investment. It makes risk management incredibly easy. No fees A trader can access multiple asset classes such as stocks, currencies, indices and commodities, and can usually trade them whenever a market is open some- where in the world. Multiple asset classes Binary options offer contracts with short-term durations, from 60 seconds to 60 minutes. This provides the trader with several investment opportunities during a day. It also offers flexibility as markets change over time. Fast outcome Johan – IT Consultant, Netherlands
- 4. Fundamentals Binary Vs Forex Comparing two top trading opportunities VSBINARY OPTIONS FOREX A nice little simulator tool for comparing your possible profits/losses in forex or binary - here. * Leverage (margin) allows you to increase your investment capital so you can make a larger trade, and potentially a larger profit if your trade is a winning one. Profitability rates 60%-85% Uncertain Risk Controlled Unpredictable Refunds for losses >15% refund None Risk/Reward ratio Reward < Risk Reward > Risk Leverage* Not available Up to X500 For beginners Simple to use Not so much (except social) Fees No Spread and/or commission Regulated in the US No Yes Ownership of asset No Yes Assets for trading Multiple Limited
- 5. Fundamentals Trade example Binary options offer a way to trade stocks, commodities, indices and currency pairs where your rate of return is FIXED. You just need to correctly pick whether the value of the asset is going up (Call) or down (Put). Usually, these options expire in 15-30 minutes. For example, a trader forms a view that the price of gold will fall in a given period of time, and so places $100 in a put. If correct, s/he wins a fixed payout - $175. It does not matter if the price of the asset falls $1 or $100 - the payout is the same. If the price of gold rises, however, the trader loses the entire amount of the investment - $100. Some brokers, however, let you minimize risks by choosing the payout and loss percentage you want. For example, you can choose to lose only 75% in the event that your view is incorrect. With such an option, you would also have to accept a lower win percentage. ExampleOverview How it works Gold $10018:00 PUT CALL 41% UP DOWN 59% 11:00 11:00 12:0011:00 13:00 14:00 15:00 16:00 17:00 18:00 Gold 1309.50 Payout percentage Potential payout 72% $175 1309.650 Time left: 00:29 Will Gold go up or down? 1. Choose an asset Market sentiment - dynamic fluctuations of buyers and sellers creating trends 3. Select investment amount 4. Decide if the rate will go Up or Down 2. Choose expiry time
- 6. Fundamentals Bulls & Bears A visual trick for memorizing what is bull and what is bear On Wall Street, the bulls and bears are in a constant struggle. If you haven't heard of these terms already, you undoubtedly will as you begin to invest. The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securi- ties. These images will help you memorize which is which. Bullish action Bearish action Bearish trend Bullish candlestick Bearish candlestick
- 7. Fundamentals Tools How to set up your workspace for successful binary trading Precise binary trading decisions must include technical analysis. This requires more specific information than that provided by a line chart, so professional traders use independent candlestick charts that offer more in-depth data. Recommended free chart tools Simple binary line chart Binary line chart + candlestick chart tool • Trading View tm • Free Stock Charts tm • Multicharts 2.1.1.
- 8. Fundamentals Charts Unlock the potential of charts! Open price Close price Open Close Close Open Open Close Close Open Highest price of the day Close price Open price Lowest price of the day Highest price of the day The line is called “shadow” The color bar is called “body” Lowest price of the day Color variation 1 How to read candlestick charts Color variation 2 B.A. C. A. Doji - when the opening and closing price are equal. B. Long-Legged Doji - after small candlesticks, they indicate a potential trend change. C. 4 Price Doji - where the high and low are equal. Normally only seen on thinly traded pairs.
- 9. Fundamentals Timing Best time for trading One of the most important aspects when trading binary options is to know when to trade the market. Even though trading on foreign exchange options, stock options, commodity options and index options is available 24 -hours a day, five days a week, not every hour or minute is worth trading. There are different hours during the day and differ- ent days of the week which see more volume and liquidity than others, resulting in high volatility and oppor- tunities to maximize trading. 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 London GMT time New York Sidney Tokio The binary options market is most active when there is an overlap of the London/New York and Asia/London sessions. The market experiences a high volume of trades at these times. When more than one market is active, you can expect to see increased volatility, meaning that prices move around more and in a clearer direction. During off-peak hours, there is little volume and less price movement, resulting in flat and directionless markets. Overlaps - the peak time As a binary options trader, you profit when you correctly predict the direction of an asset price. Volatility is therefore essential to maximize the chances of you increasing your return on investment. Studies have shown that the most active trading hours occur during the European session. In the US, trading activity picks up sharply around 8:30 am EST. this is due to the release of closely watched US economic data, which generates the liquidity and volatility needed for the underlying asset to reach its target price before the option expires. Prices become most volatile when the US releases its monthly non-farm payrolls report on the first Friday of every month. In contrast, markets will be less active and liquid during major holidays in the US and Europe, resulting in subdued trade. Effects of timing There are days that see more volatility and price action than others. According to our research, Tuesday and Wednesday are considered to be the most active trading days of the week. Friday is also recognized as a high-volatility trading day, especially during the hours when European and US trading sessions overlap. During the second half of the day, price movements can be very unpredictable. Best days of the week Tokyo/London overlap London/New York overlap MON TUE WED THU FRI SAT SUN Best time
- 10. Fundamentals Expiry time What time frame to choose for trading binary options When it comes to trading binary options, you have a variety of choices for what kind of time frame (time until expiry) to trade in. the majority of binary options, however, have expiry times ranging from 60 seconds to 30 minutes. In order to confirm a trend, use a candlestick chart with a bigger time frame than the one you use to decide your expiry time. it is usually recommended to use a time frame of at least 1 hour for chart pattern recognition. short- term traders, however, may choose to use 1-minute and 15-minute candlestick charts. The 1-minute chart provides entry and exit signals while the 15-minute and hourly charts are used to confirm the trend and support and resist- ance levels. If you trade binary options with 15-minute or 30-minute expiry times, 1-hour and 4-hour candlestick charts can be used to determine/confirm your view. What time-frame to use for the pattern recognition Description Return rate Type of analysis 60 sec Very unpredictable time frame. Quick results, but hard to make a sound prediction. 65% - 70% More like gambling 10 & 15 min Most popular Random reversals are less likely to occur here. Use hourly chart to understand the underlying trend. Up to 80% Technical 30 min 30 minutes binary options should incorporate some fundamental analysis techniques during your re- for an asset to perform more closely to what its long term forecast is. Long term investors rely very heavily on fundamentals. You will also want to look at 15 minute charts and hourly charts to give you a broad view of the technical factors surrounding the asset. Fundamental analysis will help you here, but 30 minutes is still short enough that you can’t neglect the technical side of things. Looking at both of these things will give you a much more complete picture of how an asset will perform over this longer time period. 80% and up Technical + Fundamental NEW!
- 11. The double red strategy is a short-term reversal system based on price action and resistance. The trade is planned on a 5-minute chart and is signaled when two bearish candles form following a test of resist- ance. 1. Choose an asset and watch the market until you see the first red bar. then wait for a second red bar. 2. If the second red bar closes lower than the first red bar, then that’s it – Jackpot. 3. Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should immediately place a Put option on the asset, with an expiry time not longer than 15 minutes. • Chart for analysis: 5 min • Expiry time to use: 5 -15 min • Not suited for volatile markets. • Do not use it when big news events are taking place. The Double Red Strategy Strategies #1 1. 2. PUT Key elements Watch out Description
- 12. The Pinocchio Strategy Strategies #2 Bearish Pinnochio 1. Uptrend 2. Upper shadow at least 2x the size of the real body 4. Potential profit 3. Confirmation of a downtrend. PUT A Pinocchio bar is a candlestick bar that has a very small body and a very long wick (nose). It is also called Shooting star, Hanging man, Hammer and Inverted Hammer. As you remember, Pinnochio’s nose grew long when he was lying. The same happens with the pinnochio strategy - when the wick is longer than the body, this tells us that the market is deceiving us and that we should trade the opposite way! The entry point varies, as some traders prefer to wait for the next candle to retrace to the 50% Fibonacci level of the Pin bar, while others enter immediately after the Pin bar closes. A long wick indicates strong selling pressure, whereas a long tail suggests intense buying power. • Time-frame for analysis: 1h, 4h • Expiry time to use: 5-15 min • Do not use 60 second expiry time! • Do not trade in a neutral market! A true bearish pinocchio signal must come after an uptrend (see image above). Trying to trade the bearish Pinocchio pattern in neutral market conditions can be risky. Key elements Watch out Description 68% win rate
- 13. If a peak is not surpassed, it becomes point 1. Point 2 marks the end of a counter move. Point 3 does not go higher than point 1. PUT The 1-2-3 Strategy Strategies #3 1. After an uptrend or at least a strong move up, look for the 1 – 2 – 3 pattern to form, starting of course with the first peak (1). 2. Now, if a counter move starts, mark the bottom of that move with (2). 3. If the new move up does not surpass point 1 and starts turning down, mark the highest point of this new move up with (3). 4. our pattern is now complete. However, there is still a very important rule that must be observed: the price must move down to break the low created at point (2). If that happens, all our conditions are met, and we enter the trade with a ‘Put’. • Choose expiry time equal to the time frame in which you spot the pattern. • It is better to open two trades with smaller expiry times than 1 trade with longer expiry times. Key elements Watch out Description 1. 3. 2.
- 14. Social Binary Strategy Strategies #4 Social trading features enable you to view other traders' positions on your chart, witness others' invest- ment decisions and tap into collective wisdom. Social trading is still new for binary options and is not yet as advanced as with forex copy trading, where you can follow and copy your favorite traders, analyze their past performance and ask them questions. Neverthe less, social trading is a good way for beginners to get a feel for the binary options market, confirm their ideas and strategies or look for advice. • Trader profiles with past performances not yet available. • Not possible to automatically copy trades of favorite traders. Drawbacks of Binary Social Trading Description • Ubinary Social - Forex (not available in US) • 24 Bulls - Binary options (not available in the US) • Zulu Trade - Forex (available for US clients) • eToro - Forex (not available for US clients) Brokers with social feature
- 15. TOP brokers for USA clients TOP 5 brokers outside USA 2014 Visit broker Visit broker Visit broker Visit broker As broker data is subject to change, we have developed a regularly updated section featuring our top 5 brokers, both for US and World clients. Visit it here. MININUM DEPOSIT EUR/USD PAYOUT DEPOSIT BONUS BROKER REGULATED HOW IT LOOKS IIIIII IV II IIII Visit broker Visit broker Visit broker Visit broker Visit broker MININUM DEPOSIT EUR/USD PAYOUT DEPOSIT BONUS BROKER REGULATED HOW IT LOOKS $200 75% - 1250% 100% $250 85% 100% $200 85% 100% Pending $200 70% 100% $250 85% 100% $250 85% 20%-40% $100 65% 50%-100% IIIIII IV V II IIII TODAY’S TOP 5 - regularly updated & fresh tops. TOP binary Brokers $200 85% 100% Pending Pending $250 85% 100% Pending by AvaTrade
- 16. Why our Top & Reviews are different TOP binary Brokers Most reviews out there are one-sided advertisements, filled with marketing traps like “payouts of up to 95%”. We know that such promos are useless, as these 95% payouts only apply to exotic options, which nobody actually uses. That’s why we use specific comparable values such as payouts for EUR/USD options. Honest and useful numbers We have not only summarized the strengths of each broker, but also investigated their weak points. Just as every person has their weaknesses so does every company. It is our duty to provide the full picture. We also highlight broker weak points The most common problem with broker reviews is that they are based on sketchy information. Very often, the data is either incorrect or different from what clients actually think and experience. That’s why the statistical part of our reviews is verified by the brokers themselves. And most importantly, our overall ratings are based on user reviews and feedback. Deposit options: WireTransfer, MoneyBookers, Paypal, CashU and more. Verified information If there are any fees, we include them in our reviews! This is because even when brokers advertise no fees, there are usually hidden charges involved, for example in certain withdrawal options. No hidden fees Payouts 95% Secondary information! The thing you really need to check is NOT the deposit options, but the withdraw options!
- 17. DETAILED REVIEW Banc De Binary was the very first specialist binary brokerage to become licensed and since then has gone from strength to strength. It is one of the biggest online trading platforms and is seen as very reliable by its customers worldwide. The website and one-to-one broker service is available in eight different languages, and the firm has won awards for its excellent trading platforms. You’ll love the wide range of available tradable assets and the high payouts on every trade. Banc De Binary provides an impressive selection of free educational resources to help clients succeed, from webinars about trading tactics with its financial analysts, to daily email bulletins and market event updates. You’ll be able to put the tips into action on its user-friendly trading platforms, which are available on desktop and also via its free mobile application. The firm takes pride in catering for all its traders, with an exclusive VIP platform for professional investors and free $50,000 demo accounts for beginners. Sign up today and be sure to claim your 100% deposit bonus! • Minimum trade just $1 • 150 currencies, stocks, indices, commodities • Free mobile app for apple & android • $50,000 demo account • 5 user-friendly trading platforms • Free daily analysis and trading advice • Educational videos and webinars • 100% sign-up bonus • Founded in January 2009 • Regulated by CySEC & registered with FCA • Minimum deposit: $250 • No fees to deposit or withdraw (debit card, credit card, wire transfer, Moneybookers) FactsPros • Demo account only after deposit • Doesn’t accept U.S. clients Cons Trading methods Visit broker Binary One touch Long-term Pairs 30 seconds 60 seconds 120 seconds 30
- 18. DETAILED REVIEW uBinary is our favorite binary broker in terms of functionality. We recommend this broker for its user-friendly, high-performance binary system. It has a unique trading platform that stands out from the rest with its attention to detail. The firm’s proprietary platform is second to none with its unique tools, such as analytics to deeply monitor the markets; “Option Builder” that allows the trader to create their own trades by either minimizing the risk or maximizing the payout; Social trading; “Dynamic Buy Me Out”; Trading signals with an average precision of 80%; and more. Our favorite tool is called “Flip” - it allows a trader to change his/her position after s/he starts trading and sees that the market is going in a different direction than first expected. uBinary offers five different account types to meet the needs of different traders. All of the account types include training and client protection insurance. Platinum accounts enjoy a bonus program of 20% to $5000. • Most highly developed platform in the market • Biggest offer of unique and useful tools • Social trading and Signals for smarter decisions • You can change the position if market changes • Possibility to create your own terms by either minimizing the risk or maximizing the payout. to create their own trades by either minimizing the • Very well written guides and personal help from uBinary’s analysts • Founded in: 2012 • Regulators: None. • Minimum deposit: $250 • Assets to trade: 80+ • Withdrawal methods: credit & debit card (free), wire transfer (free), neteller (free), Skrill/moneybookers (free) FactsPros • No mobile platform yet Cons Trading methods Visit broker 60 sec Up-Down Speed-trade Option builder
- 19. DETAILED REVIEW Goptions Binary Options Broker was founded in 2009 by two partners with a combined experience in the financial market of over 50 years. With a central office in the heart of London, GOptions provides a fast customer service and one of the most visually pleasing platforms. GOptions offers one of the widest ranges of different option types: 60 seconds, Turbo options (30 seconds), Ladder, One-touch, Long-term, Pairs and, of course, binary Up-Down options. What traders love most about GOptions is its same-day money withdrawal. Another unique and popular feature is the Ladder trading option, which offers a win rate of up to 1250%. Goptions’ well-designed platform, together with its wide choice of tools and options, makes this broker one of the most versatile ones around, this makes it a good choice for both beginners and more advanced traders. • Biggest payout of 1250% (with ladder options) • Up to 100% bonus or four Risk Free Trades • Same day withdrawal! (24h) • Beautiful & user friendly platform • Mobile app for iPhone & Android • Wide choice of trading methods • Founded in 2009 • Regulators: None. • Minimum deposit: $200 • Assets to trade: 150+ • Withdrawal methods: credit & debit card (free), wire transfer (free), neteller (free), Skrill/moneybookers (free) FactsPros • Demo account only after deposit • Not regulated Cons Trading methods BEGINNERS Visit broker 60 sec Binary Long-term Pairs One touch Ladder
- 20. DETAILED REVIEW Established in 2013, PowerOption is a relatively new company powered by Avatrade Ltd., one of the most reputable Forex companies in the industry. Available for all major mobile platforms, PowerOption brings one of the market’s most reliable trading platforms to Binary Options and, with it, one of the most effective team of account managers. With real-time market data, combined with up-to-the-minute news, PowerOption offers traders everything they need to successfully invest in global markets. PowerOption is a regulated Binary Option platform. • Mobile platforms optimized with single touch trading execution • Market data and economic calendars • Authorized and regulated by the Financial Services Commission (“FSC”) under the Securities and Investment Business Act, 2010 (“SIBA”) • Founded in: 2013 • Regulators: CySec, BVI • Minimum deposit: $/€100 • Assets to trade: 100+ • Withdrawal methods: 100% of initial deposit through method of initial deposit, and remainder can be sent through pretty much any method of payment: PayPal, Neteller, Wire, MoneyBookers, Skrill. FactsPros • Not available for USA clients Cons Trading methods Visit broker High-Low One touch Range 60 seconds
- 21. 60 sec Up-Down One touch Builder DETAILED REVIEW Since the beginning of 2011, TradeRush has been one of the leading binary options platforms in the industry. This platform offers its traders one of the best online trading experiences in the market. TradeRush was the first platform to launch the 60-second trading option. The TradeRush platform is known to be one of the most user-friendly and simple platforms to navigate. It gives traders the option to trade with a variety of currencies, commodities, indices and stocks, offering over 150 different assets to trade. Also, TradeRush has one of the largest selections of online and live webinars. Furthermore, users can earn up to 81% in just 60 seconds on the TradeRush platform! • Up to 81% payouts • Free eBook • Mobile app for iOS and Android devices • 24/7 customer support • 10 different customer support languages • Up to 100% Bonus • Founded in 2011 • Regulators: Pending Cysec regulation • Minimum deposit: $200 • Assets to trade: 150+ • Withdrawal methods: All major credit cards (free) and wire transfers (fee $30, however traders are allowed one free wire transfer withdrawal per month) FactsPros • Demo accounts given only upon request • Currently unregulated Cons Trading methods Visit broker
- 22. DETAILED REVIEW EZTrader is one of the oldest binary brokers in the market. Unlike most other brokers they have their own proprietary trading platform that is built woth ease-of-use in mind. Many rival brokers have been trying to emulate their platform. EZTrader has had some issues, but after they have been acquired by Win Global Markets (WGM) Services Ltd in early 2011 the company has had remarkable improvements in the level of its services. EZTrader is great for beginners, but it lacks advanced charting features and different expiry dates if you are looking for something more than basics. A unique feature that we loved is the “profit locking” which allows traders to sell their positions before expiry to lock in profits. Of course this service comes at a premium as traders either have to sacrifice some profits via a reduction in expected percentage return or pay some money to close out early losses. • Very beginner-friendly platform • Big bonuses up to 52% • Unique profit locking feature lets you sell the winning position before the expiry • Apps not only for Android and iPhone, but also for tablets • 24/7 support • Founded in 2008 • Regulators: CySec* • Minimum deposit: $200 • Minimum trade: $25 • Assets to trade: 107 • Withdrawal methods: Credit/Debit card (free), Wire transfer (€15 processing fee) FactsPros • Only high/low trading options • Limited extra features, like chart options etc. • No demo account Cons Visit broker
- 23. Up-Down 60 sec One touch Builder DETAILED REVIEW Released in the spring of 2013, Redwood binary Options has already proved itself in the binary options industry. Redwood offers over 150 different assets to trade and three different account types. It also offers a Mini Package, Executive Package and Gold Package. Traders can choose which package they prefer upon sign-up. All new users receive an interactive binary options eBook once they register. With its high payouts of 81% on 60-second options, Redwood has grown substantially over the past year. • Live daily webinars • Up to 81% payouts • Mobile app for Android devices • 24/7 customer support • No downloads required • User-friendly interface • Founded in: 2013 • Regulators: Not regulated yet • Minimum deposit: $200 • Assets to trade: 150+ • Withdrawal methods: All major credit cards and wire transfers FactsPros • Demo accounts given only upon request • Unregulated • No iOS trading app Cons Trading methods Visit broker
- 24. Thanks for reading and good luck with your trading! It will encourage us to make more books like this in the future. Thank you! Please share this e-book if you liked it. GOBINARY24.COM Risk Warning: Trading in Binary Options is highly speculative and involves a significant risk of loss. Such trading is not suitable for all investors so you must ensure that you fully understand the risks before trading.