Secrets to Smart trading with Binary.com

Powered by Binary.com
Secrets
to
Smart Trading
How to Trade
Wisely with
Binary.com in 2017
in Volatile Financial
Markets

Information and strategies contained in this guide are intended as educational information
only and should not be used as a sole trading guide. International currency, stock index or
commodity prices can be highly volatile and unpredictable. The past is not a guide tofuture
performance, and strategies that have worked in the past may not work in the future. Binary
options trading involves a high level of risk and may not be suitable for all customers. The
value of any trade, and income derived from it, can go down as well as up, and your capital is
at risk. Although due care has been taken in preparing this document, we disclaim liability for
any inaccuracies or omissions.
Published by: First Information
Email:info@thefinancialtrader.co.uk
All rights reserved. No part of this book may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, recording, or by any information
storage and retrieval system, without the written permission of the Publisher, except where
permitted by law. For information about the reproduction rights, contact First Information at
the above email address.
Copyright © 2016 Vince Stanzione

Contents
Introduction
• 2016: Global economic growth was the main story
Chapter 1: Core Basics 01
• The Key Difference between a Binary Option and a Margined FX, CFD or Financial
Spread Bet
• Why Binary Options Make Sense in Uncertain Times
• Playing Away from Home Is a Judicious Move
Chapter 2: Specialised Strategies 03
• The Power of Trading Falling Markets
• How to Profit Using One-Touch Trade
• Momentum Trading: Profit from Fast-Moving Markets
Chapter 3: Smart Practices 06
• How to Win, Even if Most of Your Trades Do Not Make Money!
Good Money Management
• Take Care when Dealing on Mobile Devices: It’s Real Money, Not a Game
Chapter 4: Power Plays 08
• A Small Move in the Market Can Give You a Big Gain withBinary.com
• Seasonality: History Does Repeat Itself in Many Markets
• How to Make Money from a Sideways or Dull Market
• Why Markets Stay in a Trading Range
Chapter 5: Timeless Wisdom 11
• 7 Top Tips to Help You Win at Binary Trading
Conclusion 14
• About Vince Stanzione

Introduction
2016: Global economic uptick saw markets rally worldwide
2016 has been a steady growth year for the financial markets, with major gains in the major
indices. The S&P 500 – which is one of the most followed indices in the world, representing
500 blue-chip stocks, including household names such as Apple, Microsoft and Amazon –
was up in the 13% range. Overall, 2016 has seen gains for most fund managers andinvestors.
The ability to profit from down moves, which I will explain further in this book, was also very
advantageous. Additionally, being able to trade other assets – such as Oil, Silver and Gold
– both up and down proved beneficial during the past year. These markets can all be traded
with one Binary.com account, and you can trade at will in your base currency (such as the
Australian Dollar [AUD], even though Gold and Oil are normally quoted inUSD).
Of course, hindsight is always 20/20, whenever we reflect upon the past. However, I strongly
believe 2017 will be another year where the “nimble” trader can make money from the markets,
even if the overall growth trend is flat. Within the course of this book, I will also show you how to
profit from markets with an absence of movement, as well as lock in returns from sideways
trading ranges.
Many professional traders and financial institutions sell traded options, which allow them to
collect premium, and in many cases, the options expire with worthless returns – not an easy
situation for the smaller investor to endure. However, with Binary.com, there are ways to profit
from these ranges – by successfully predicting that a certain outcome will not occur. For
example, let’s take the prediction that the Dow Jones will close below 18,000 in the next 14
days; it’s difficult to invest in this type of outcome with other brokers, especially with a small
account. Binary.com makes it readily possible to purchase such a trade, with as little as $1
staked on the prediction.
One of the main advantages to trading binary options through Binary.com is the ability to
profit from a full range of financial situations, no matter how bullish or bearish the markets
happen to be. In this book, I will walk you through a variety of different scenarios and
evergreen strategies, to help you achieve maximum success by applying practical judgment.

Chapter 1: Core Basics
The Key Difference between a Binary Option and a Margined
Forex, CFD or Financial Spread Bet
You have likely heard of margin trading or futures trading, as well as the variations thereof –
such as Financial Spread Betting (common in UK) and Contracts For Difference (CFDs), which
are higher-riskproducts.
With these types of products, you profit from market movement up or down. The more correct
you are, the more you make; the more wrong you are, the more you lose. The appeal of margin
trading is that you can control a large position with a small amount of capital or deposit (i.e.,
the “margin”). The downside is that you can really lose your shirt if you’re not careful; it’s
inherently a lot riskier, since you never know with any degree of certainty how much you stand
to gain or lose, depending on the level of movement in the market. With this type of trade, it’s
also possible to lose more than your initial investment; this dreaded situation is known as a
“margin call” or “house call,” when the broker comes knocking for additional funds to cover
yourposition.
Binary options trading is quite the opposite of margin trading or futures trading, in that it involves
a limited degree of risk – all under your direct control through the payout or stake that you
select for each trade. In purchasing binary options through Binary.com, you know exactly what
you stand to gain or lose with any given trade, because these potential win and loss amounts
are all clearly displayed for you upfront. You’ll never lose more than your stake – the amount
you initially pay to purchase the trade – so as trading goes, it tends to be a relatively safer play.
Why Binary Options Make Sense
Most spread bets and Forex trades have a “stop loss” – meaning that, if the market moves a
certain amount of points against you, the broker has specific instructions to sell it, to limit
potential loss. However, this does not always work, because execution is not guaranteed.
In 2015, we saw the devastating losses that were incurred by traders when the
Swiss Central Bank removed the Euro/Swiss peg:
http://www.reuters.com/article/us-swiss-snb-cap-
idUSKBN0KO0XK20150116#X4GcdMCjxAL54quP.97
1

This also caused some brokers to either take large losses, or to go out
of business, one being AlpariUK:
http://www.bbc.co.uk/news/business-30846543
The good news: All Binary.com customers were strictly protected from such catastrophic
losses, using binary trades. Even in the midst of such severe market undulations, they could
never lose more than the upfront amount they paid for each trade – not a centmore.
I see binary options, CFDs, ETFs and stock purchases as different tools in a toolbox. A smart
trader can use a combination of these tools to build a solid portfolio.
Playing Away from Home Is a Judicious Move
Most traders have a “home bias” – that is, they tend to trade the shares and markets of the
country in which they are personally based. So if you’re in the UK, you tend to trade the FTSE
100; if you are in Australia, you’re more likely to dabble in the ASX 20.
Whilst this may sound comfortable, the world is a big place, with virtually endless possibilities
to explore. Technology makes it possible for me to sit by my pool in Mallorca (a dot of an
island near Spain) and trade stocks and indices in New York, Tokyo, Hong Kong, Australia or
Indonesia – depending upon the greatest sources of potential at any giventime.
“We should trade where the opportunities are, rather than just get fixed into trading one market.”
Quick Quiz:
In 2016, which was the best-performingindex?
a) Nikki 225 (Japan)
b) Australian ASX (Australia)
c) Bolsa de Valores Lima (Peru)
Answer: Peru … Up over 91% in 2016!
2

Chapter 2: Specialised
Strategies
The Power of Trading Falling Markets
In 2016, there were many profitable opportunities with Binary.com to make money on falling
markets. Many newer traders missed out on these opportunities. Trading for something to go
down is still an alien concept to many new smaller traders, but I assure you, it’s a very
common practice with professionals; in my 30-year trading career, I have made plenty from
falling markets.
One big market that made money for “short sellers” was the Crude Oil market. Binary.com
offers trades on the Brent Crude Oil market, which is the popular oil contract traded in Europe.
But isn’t short selling risky?
If you have seen the classic movie Trading Places with Eddie Murphy and DanAykroyd, you will
remember how the two main characters made money from short selling the Orange Juice
market and in turn bankrupted the Dukes.
In the futures or physical stock market, short selling is risky. But by using Binary.com, you
always know what your maximum loss is: The amount you initially invested in the contract to
purchase the trade – never a penny more.
Example:
Let’s say that you believe Oil will go down in the next 50 days, and place a trade
at $50 a barrel. During the next few weeks, Oil suddenly soars due to political
issues, and it’s trading at $70, or a 40%move.
Had you been short with futures, you would lose 40%, and likely much more
because of leverage. Yet with Binary.com, the worst that can ever happen is
that your trade goes to zero, and you lose the amount you invested to
purchase the trade – for example,$50.
The other advantage is that you could be wrong for 45 days of the trade, but
if – in the last few days – the trade then shifts your way and settles in your
favour, you still win.
3

4
How to Profit Using One-Touch Trade
Markets tend to be like lightning; they look for the path of least resistance. When a market
breaks above a resistance level (or “ceiling”), you’ll tend to find that the market will carry on
in the same direction for at least a few more days. Just as a market breaks down through a
Support (or “floor”), the market carries on falling until it hits the next support.
Using a One-Touch trade, traders can back these events. Remember: In placing this trade,
you’re simply predicting that the market needs to touch the given level; a single point of
contact during the trade period would be enough to yield thepayout.
So let’s use Gold as an example. Gold started to build up momentum, breaking over the
$1,010 per ounce level. Looking at the chart, I could see $1,050 was the next potential target,
so I placed a One-Touch bet that Gold would touch $1,050 within the next 14 days. Gold
went on to hit $1,070 within a few days, so the bet paid out. (Of course, if Gold did not touch
$1,050 during the 14 days, then my bet would have expired worthlessly.)
If I do see the bet going against me, and time is running out, I can sell the bet back, to salvage
some of the stake.
A Few Quick Tips
• Markets have a tendency to move to round numbers, both on the upside
and downside; you often see this happen in currencies, indices and
individual shares. Look for possible moves to next levels, especially on
falling markets; if you look at the way the Wall Street Dow Jones fell from
17,300 to 15,600 in a matter of days back in August 2015, this instance
demonstrates thepoint.
• They also say “markets take the stairs up, but the elevator down”– which
basically means that markets fall faster than then they increase. Gains
that take months to accumulate can easily vanish in a few days.
Momentum Trading: Profit from Fast-Moving Markets
Newton's first law of motion states that:
"An object at rest stays at rest, and an object in motion stays in motion, with the same speed and
in the same direction, unless acted upon by an unbalanced force."
In financial markets, “momentum trading” basically means that you are following the price
action, looking for markets that are moving and likely to continue in the samedirection.

Binary.com offers a variety of ways to profit from momentum, ranging from trades lasting
for just one minute to weeks or more.
• You can try out new ideas and systems by using a virtual account or testing
the waters with minimum bet sizes in a real money account. These test bets
can be as low as a few USD. Sometimes an idea on paper does not work in
the real world, and it’s good to test it with real money and actual market
prices, with just a small amount of risk on the line. Then, if you’re happy with
the results, you can increase to a bigger trade size.
• Overall, if a system is not working on a small bet size, it’s hardly going to
start working if you risk more. Use your head; besmart.
How to Win, Even If Most of Your Trades Do Not Make Money!
Most new traders believe they have to be right more often than wrong when trading. But here’s
the surprising truth: It’s not the win-or-loss ratio that matters; it’s the amount you win on a trade,
compared to the amount you lose.
I have seen systems with a 90% winning trade rate … yet they still lose money over time.It
sounds completely crazy, doesn’t it? But here is why: If the system makes, say, £10 on nine
trades out of ten, but the one time it loses, that loss is £100 … then you may think you’re
winning, but the actual system is losing money.
Warnings:
• Be careful of those selling systems or offering free systems on the Internet;
many times, they are just trying to get you to trade and receive commission
back from the binary brokers. Their only goal is to keep you trading, and
eventually, you are likely to lose your funds. Overtrading and placing a lot of
trades over a short period of time is more like casino gambling than
professional trading.
• There is nothing wrong with taking a certain percentage of capital and going
for some higher-risk trades period. Many like to place bets on random
markets, which are offered by Binary.com – even on weekends, when the
official financial markets are closed. But these trades should only be placed
with risk capital.
5

Chapter 3: Smart Practices
Good Money Management
Regardless of how big or small your account is, you need to treat trading with Binary.com as a
business. Some come into trading with a “gambling” mentality; they’ll start off with good
intentions, but end up making reckless trades and then trying to play catchup, or – if they are
doing really well, they’re on a roll – they’ll become reckless.
It makes sense to slow down a little. If you’re going through a bad run, then take a step back;
reduce your trade size; or maybe even go back to using a virtual account forawhile.
Let’s say you start with a $1,000 account. If you risk 5% of the account on any one trade, this
would allow you to keep trading, even with a bad run. If your balance goes down, thenyour
trade size is reduced. So let’s say you have $900; your 5% is now $45. If you have had a good
run, and your account is $1,200, your 5% is now$60.
This is a very basic overview, and you can build up your own money management system, but
the key is that no one trade causes you to blow up your tradingaccount.
“The key is that no one trade causes you to blow
up your trading account.”
If your account goes down 50%, how much do you need to get even? Most will say 50%, but of
course, you now need that account to move 100% to get even, and – as any trader will tell you
– that is a hard task.
Money Management Tips
• Big losses are hard to recoup period. The maths of percentages show that as
losses get larger, the return necessary to recover to breakeven point
increases at a much faster rate. A loss of 10 percent necessitates an 11
percent gain to recover. Increase that loss to 25 percent, and it takes a 33
percent gain to get back to breakeven. A 50 percent loss requires a 100
percent gain to recover, and an 80 percent loss necessitates 500 percent in
gains to get back to where the investment value started.
6

• Watch that ego: Don’t mistake a lucky run with skill. After a good run, many
become overconfident and start taking stupid risks. After a poor run, many
try to play catchup, and want to make their losses back fast. Both actions
are the easiest way to lose your trading capital. Many books have been
written on money management with complicated formulas. The key should
be that no one trade should ever cause you so much damage financially or
emotionally. However sure you are that “XYZ” is going to rocket, only a
percentage of your trading bank should ever be risked.
Take Care when Dealing on Mobile Devices: It’s Real Money, not a
Game
Technology is wonderful; today, you can carry the power of a supercomputer in your
pocket. It’s now possible to make trades on the move from a mobiledevice.
But do take care. Some tend to trade very differently on mobile devices than they do when
they are sitting at a big screen.
Be sure to apply the same level of strict discipline to trades purchased on mobile devices as you
would on your desktop. It’s all a matter of mindset. Even if you’re on the go, the critical
mentality that you use to gauge trading opportunities should always remain on the same
solid footing.
7

Chapter 4: Power Plays
A Small Move in the Market Can Give You a Big Gain with
Binary.com
With a spread bet or margined futures type of trade, we normally need a fairly large move to
see a good potential profit on a small bet. Yet, with Binary.com, we can often obtain very
good returns, even with a small move of the market.
For example, let’s take a $10 a point move in Silver, from $15.00 to
$15.10. That would normally make you 10 points multiplied by $10, or $100
profit minus the spread. To hold that position, you may need a margin or
deposit of $1,000, so your return on capital is around 10%. A similar binary bet
can return more than 30%; and by using a Higher or Lower bet, even if the price
just moves a few cents, you can make a substantial return. A spread bet, CFD
or margined type product would not even cover the costs or spread.
Seasonality: History Does Repeat Itself in Many Markets
My trading style uses technical analysis with seasonality. Most know what technical
analysis is; however, seasonality is not as well-understood. Seasonality is using the
calendar and past results to forecast the likelihood of the same instances happening
again.
Examples:
• Holidays: Periods around market holidays such as Christmas, Thanksgiving,
Independence Day and the first few days of the month tend to be stronger.
• March: Watch the Yen strengthen around March time, as large Japanese
companies close their financial books, tending to put Yen back on their
balance sheet.
• May: There is a well-known saying: “Sell in May, and go away.” Whilst not
perfect, this adage has worked as a solid base to a trading system, which I
have used to make large profits.
• September: Gold tends to be strong in September, whereas stock markets
tend to be weak.
8

• December / January: The S&P 500 tends to be bullish during the last five
trading days of the year, as well as the first two trading days of the New
Year. This is referred to as the “Santa Rally” and is something that you can
use to make money with a binary option.
A good reference tool is the Stock Trader’s Almanac, which is edited by my friend Jeff Hirsch.
He also has a good blog with seasonal information, which you can visithere:
http://jeffhirsch.tumblr.com.
How to Make Money from a Sideways or Dull Market
Most traders are conditioned to look for moving markets or trends. Trends are when a
market is moving higher or lower over time; think of it like a staircase.
• Uptrends: In an uptrend, the lows are getting higher, and the highs are even
higher. Selloffs or pullbacks are quickly recovered, and the market goes
higher.
• Downtrends: In a downtrend, lows are lower, and highs are also lower. Any
up moves are quickly sold off, as the market is losing energy. I think of it as
a boxer being knocked down, and taking longer and longer to get up each
time.
• Sideways / Dull Markets: Markets can also be dull or range-bound. This
sluggishness can last for weeks and sometimes months.
Try using No Touch trades to take advantage of Sideways / Dull Markets onBinary.com.
9

Why Markets Stay in a Trading Range
Markets are made up of buyers and sellers. Simple economics tells us that demand and
supply move prices. But what happens when buyers and sellers are fairly evenly matched
or in equilibrium? This is how a “trading range” can form.
Let’s say that every time Oil gets up to $60, we have sellers come in, creating supply or
resistance. But every time we get to $40, we have buyers come up to support the market.
We now have a $20 trading range: $40 to $60. The market is not trending up or down, but is
instead going sideways.
So how do we make money from this situation?
Binary.com offers a few ways to profit from traderanges:
• Rise/Fall Trades. If we are approaching the resistance (i.e., the high), place
a “Fall” trade; in the next 7 to 14 days, we will be lower. At the support
bottom, place a “Rise” trade.
• In/Out Trades. If you select "Ends Between," you win the payout if the exit
spot is strictly higher than the “Low” barrier and strictly lower than the “High”
barrier.
This is the perfect trading range tool to use. It’s very complicated to structure
this trade in the options market; however, Binary.com has made it really easy
to execute this trade – all with strictly limitedrisk.
10

Chapter 5: Timeless Wisdom
7 Top Tips to Help You Win at Binary Trading
Some things simply never change. Below are seven evergreen tips to follow in trading binary
options throughBinary.com.
1. Start small, and build up.
I have been in the trading business for over 30 years, and yes, I currently trade and invest
with a multi-million-dollaraccount – but I didn’t start that way.I started small and built it up.
Understand the power of compounding; it’s critical to realise how money makes money.
Below is an excerpt from one of my favourite fables, which sums this up. The same
principle can be used when trading withBinary.com.
Excerpt from A Grain of Rice, by HelenaPittman:
The daughter of the Chinese Emperor was ill, and he promised riches beyond compare to
whoever could cure her.
A young peasant named Pong Lo entered the palace. With his wit and bravery, he restored the
Princess’ health and won her heart. As a reward, Pong Lo asked for her hand in marriage. The
emperor refused and asked Pong Lo to think of anything else he would like.
After several moments of thought, Pong Lo said, ‘I would like a grain of rice.’
‘A grain of rice! That is nonsense! Ask me for fine silks, the grandest room in the palace, a stable
full of wild stallions – they shall be yours!’ exclaimed the emperor.
‘A grain of rice will do,’ said Pong Lo, ‘but if his majesty insists, he may double the amount every
day for a hundreddays.’
So on the first day, a grain of rice was delivered to Pong Lo. On the second, two grains of rice were
delivered; on the third day, four grains; and on the fourth day, eight grains. On the fifth day, 16
grains; on the sixth day, 32 grains; on the seventh day, 64 grains; on the eighth day, 128 grains.
By the twelfth day, the grains of rice numbered 2,048. By the twentieth day, 524,288 grains were
delivered; and by the thirtieth day, 536,870,912, requiring 40 servants to carry them to Pong Lo.
In desperation, the emperor did the only honourable thing he could do, and consented to the
marriage. Out of consideration for the emperor’s feelings, no rice was served at the wedding
banquet.
11

2. Money management keeps you in business
“Risk too much, and a few bad trades
will make you lose your trading bank.
“Risk too little, and it’s going to be a
long time before you see any decent
profits.”
As previously explained, money management does not have to be very complicated, but
a simple system will ensure that no one trade causes you to wipe out your trading
account. The mistake many new traders make is trying to grow their account toofast.
3. Don’t let your emotions overcome your trading system.
Trading with a virtual account and trading with real money are not the same. As in most
walks of life, when real money is at stake, circumstances become instantly emotional.
Sadly, you will never eliminate emotions as a factor that impacts trading; after all, we are
humans, with this irrational feature hard-wired into our circuitry. But by using a system
and steadily applying practical experience, you will learn to cut your emotions down to a
bare minimum.
Be careful about taking in too much news and over-monitoring your position. It is easy to
overreact to a news story that may cause a short-term spike, but is actually not that
important in the long run.
Using mobile devices and apps can cause you to make snap decisions that you may later
regret; the same sound judgment should be used with all trade purchase decisions, no
matter how or where they’re ultimatelyexecuted.
4. You can make money in all market conditions.
Many still believe that – in order to make money – the price of a share, market, currency or
commodity must go up. However, this is not true, as I have outlined. With Binary.com, you
can profit from up, down and even sideways movements, so don’t see falling markets as
a negative.
5. When in doubt, sit it out.
If you watch financial news channels such as CNBC or Bloomberg, it seems that you
should always be doing something, since the channels are filled with “breaking news.”
Remember: These channels have to fill their airtime, and – in many cases – the best
12

trade is in fact “no trade.” If you are not sure, or do not see an opportunity you are happy
with, then do nothing, and just wait for the nextone.
6. The higher the returns, the lower the chance of a payout.
Binary.com offer a vast selection of trading opportunities – ranging from low-risk
trades with returns in the 5% to 10% range, to those with higher returns of 100% or
more.
Binary.com prices trades based on mathematical probabilities. Of course, unexpected
events do happen, but overall, if you are being offered returns of more than 100% for a
trade lasting seven days or less – as just an example – the reason for such generous
returns is that the likelihood of a payout is fairly slim.
Keep in mind it’s readily possible to “mix and match” your trades on Binary.com. Try
purchasing some higher-risk, higher-return trades, as well as some lower-risk trades
with a higher chance of payout.
You may have heard of the Pareto Principle, also known as the 80/20 rule. This can be
applied to your trading, by purchasing 80% of your trades with lower risk, and 20%
higher.
7. Treat trading as a business, not as a trip to the casino or
racetrack.
Regardless of how big or small your account is, you need to treat trading with Binary.com
as a business. Some come into trading with a “gambling” mentality. They start off with
the best of intentions, but end up making reckless trades and then are forced to play
catchup. Or, if they are doing really well, they assume they’re on a roll and become too
brazen.
Keep solid records of your winning and losing trades; a diary can help with this, to
complement the tracking tools you’ll find on Binary.com, enabling you to keep tabs on
your winnings. Stick to a trading system, to help minimise emotionaldecision-making.
13

Conclusion
I hope you found this short guide of use, and that you will refer back to it in due course.We are
always learning in the trading business, so continue to study and expand yourskills.
Regardless of market conditions, you have great opportunities to profit. Using Binary.com allows
you to trade a great selection of markets, all with strictly limited risk.
Wishing you lots of success.
18
About Vince Stanzione
Vince Stanzione has been trading markets for over
30 years and is a self-made multi-millionaire. He is
The New York Times best-selling author of The
Millionaire and is the author of “Making Money from
Financial Trading.”
He mainly lives in Mallorca, Spain, and trades
financial markets including currencies, stocks and
commodities.
For more information, visitwww.fintrader.net.
14

Secrets to Smart trading with Binary.com

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