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Chapters Page

INTRODUCTION

NOVICE TRADERS 01 Is binary options made for you?

02 The Trading checklist

03 The 1st time is always important

Test Your Knowledge

INTERMEDIATES TRADERS 04 Not a newbie anymore!

05 Time to use the charts

06 Financial Management

Test Your Knowledge

ADVANCED TRADERS 07 Trends/Expiry/Direction

08 Get the essentials of technical strategies

09 Winning tactics - support & resistance + chart patterns

Test Your Knowledge

3

5

10

15

19

21

24

27

31

33

36

41

44

TAblE OfContents

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You don’t know what is binary options or new to the industry? Don’t worry, this ebook will help you to take the first step towards a lucrative trading journey. Besides, giving you the right tools to begin your trading career, this ebook will also accompany you throughout your whole trading journey.

On the other side, if you already have a trading experience, then be prepared to learn new strategies to make more accurate trades. You can increase your potential of gaining more capital if your trading gets better and this ebook will play that very role in your life. In addition to these, through this ebook you will get a hand at making an optimum use of Fundamental and Technical analysis.

The Definitive Guide to Binary Options also comprise of advanced trading techniques that will help you enhance your trades. Traders! You have just laid your hands on the right ebook, the one that best suits your trading requirements. Your trading goals are sure to be met once you grasp what’s been elaborated inside, therefore explore, learn and become a Pro at trading binary options.

BinaryOnline is glad to present to you ‘The Definitive Guide to Binary Options’. This exclusive guide has been specially written for all our traders. Whether you are a beginner or an advanced trader, this ebook has been designed for you!

INTRODUCTION

NOVICE TRADERS

PART ONE

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Definition of binary Options

Binary Options was launched in 2008, it received almost instant acknowledgement due to its broad appeal. The popularity of binary options is such that it eclipsed the Forex due to reasons revolving around its relative simplicity and accessibility to traders who were incurring massive losses with the global economic crisis of 2008. Binary Options came as a Godsend helping investors to get on the wheel again for better days. And better days, there has been. The launch of BinaryOnline gave a boost to the industry, making it evident that the quality of features and superior level of services contributed to its known brand name.

IS bINARy OPTIONS made

for you?

01

The principle of Binary Options is easy to grasp and does not require that traders have an Ivy league education. The trader basically has two options, that is, to decide whether the value of the asset will increase or decrease. That’s it. Of course, there are some parameters which will definitely help you to make more successful trades, you will easily get to the top of your game in no time. It’s good to note that it’s an All or Nothing concept, that is, you either win and receive your full payout, or you lose your whole amount. Some traders now offer rebates, which we will tackle later. That’s how simple it is.

Understand how binary options work

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Advantages of binary options

1) Wide choice of assets. Prior experience

2) Profit and losses are already known.

3) No prior experience needed.

Most brokers provide an extensive list of assets giving you a very wide choice to opt for. BinaryOnline provides assets such as Commodities, Indices, Stocks and Currencies, which is a pretty large scope. The broker would offer you the possibility to trade these different assets at the same time, that is you will be able, for example, to trade stocks, currencies or indices at the same time.

At BinaryOnline your profit and losses is known in advance, the payout of each asset will be clearly visible next to the trading platform if the broker. Hence you will not need to wait long to decide whether or not it will be profitable for you to open the trade or not. Payouts are not subject to any changes once you have opened a trade, which is great because then you do not have to worry whether your profit will decrease or not.

You do not need to have any experience for that matter. You can easily start trading binary options at BinaryOnline without experience and still make it great. Trading in binary options is simple in nature and brokers would do their level best to help you climb the ladder to succeed by providing easy materials which you can apply to your trades without any fuss. The popularity of binary options has largely been attributed to its simplicity. However, it does not mean that if you have some prior knowledge in the market that you will not be able to benefit from it. Prior knowledge will help you in the sense that you will be able to benefit from an enhanced sensitivity to the various parameters, hence increasing your chances of successful trades exponentially.

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4) Educational section

5) High rate of return

6) Numerous trading features

7) Immediate results

Most brokers have crafted very interesting educative sections to help traders of varying levels of experience to find their way. BinaryOnline did not skimp on this crucial part. Educative sections at the broker are segmented to cater for your specific needs. Beginners will be able to understand the mechanisms of binary options trading while advanced traders will be able to polish their skills. Information is usually provided in the forms of ebooks, webinars, videos or interactive materials, you will be given the opportunity to choose the method you fancy the most. Moreover, brokers also offer Daily Market Reviews for you to be able to get a summarised version of important events you may have missed during the last 24 hours.

The high rate of return of binary options is a major plus. At BinaryOnline, payouts usually varies between 75 to 95 %, as such it is one of the highest rates of returns for the trading industry. Who doesn’t like to have a high rate of return? In less time you are able to gather bigger amounts of return, hence giving you the opportunity to earn greater profits in a short span of time. You can either withdraw your profits or reinvest them to reach higher peaks. At the end of the day what matters is that your efforts are paying off and you are able to make profits in a sizeable manner. Binary Options is just about that.

Traders are not restricted to a single trading tool, the industry has evolved considerably during the last years giving you the possibility to use a range of trading features which are adapted to your needs. Different people have different level of expertise, hence not all trading tool would suit everybody. Some brokers offer up to 9 different trading tools. BinaryOnline opted for an in depth approach for the benefit of its traders. You will be able to browse through them to gauge which one works well for you, you can always adopt the tool which suits you the best and simply leave the rest.

You do not need to wait for ages to be able to see whether your trade has been successful or not. Some brokers offer the 60-second tool which makes you earn dividends in only 60 seconds . The time at which your trade will end is known as the Expiry Time and it is a factor which varies from tool to tool depending on which one you opt for. Furthermore, there are some tools which offer expiry times which can go up to several months. It all depends on what you want and what strategy you want to adopt.

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8) Trade anywhere, anytime.

9) Trade small amounts.

10) It’s fun!

With the advent of technology, brokers have designed Mobile applications enabling you to trade from your mobile phone. According to statistics more than 92 % of mobile users now use their smartphone to log on the internet. With binary options, you will be able to trade on your mobile phone, whether you have some idle time at work or you are on your way home in a bus or somewhere on a beach in the Bahamas. You are not restricted, you no longer need to remain in front of your computer, you can trade anywhere. Yes, you can trade anytime as well. The financial world is in a perpetual dynamism, you can trade anytime you wish.

You do not need to invest huge amounts, a trader is not defined by how much he/she is actually investing. There are some brokers which offer traders the opportunity to start trading with only $ 10. Traders have the possibility to sharpen their skills without having to run the risk of investing large amounts. Small amounts invested can easily accumulate to help you trade larger amount.

Let’s face it, binary options is fun, you do not need to scratch your head to decipher some complex financial equations, you have two options to take after which you can roll back and relax while monitoring your account to see if your trades have been successful. Best part, you do not need to wait endlessly, you can be much richer in only 60 seconds.

Each second count. Are you still wondering?

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limitations

Is it made for you?

1) It’s all or nothing.

2) Emotions

3) Absence of a plan

The fundamental of binary options is that it is an all or nothing concept. When you lose a trade, you lose it all, there are no inbetween. Hence trades must be placed with care. However in the course of time, there are several brokers who came to the conclusion that offering a rebate on losses is the best strategy to adapt, some gives rebates as high as 15 %, but this is not extended to all brokers, most would still stick to the all or nothing concept.

Whether binary options is made for you or not is a tricky question. During the course of time, traders have evolved, many have opted for binary options as a secondary revenue, for the thrill of trading on markets, or because of its simplicity as well as accessibility round the clock. The advantages of binary options outweighs its limitations significantly in such a way that it’s quite difficult to see why it would not suit anybody, the industry itself has been designed to have a broad appeal.

Traders who are emotional while trading tends to react in a disproportionate way especially when they are losing. It’s important that traders understand that trading should be done without emotions, emotions must take the back seat. Those who do not adhere to this policy run the risk of incurring losses.

To be successful at binary options you definitely need to have a plan. Failure to have a plan can prove to be costly in the long run. What we mean by a plan is that you need to know what you are doing and when, you can’t just trade impulsively as it’s important to have a pathway

Now that you are sure that Binary Options trading is made for you and that you are willing to start a trading career. It is time for you to check the different essential elements in order to have a healthy trading experience.

Trading assets are the essence of binary options trading as without an asset you cannot place any trade. There are four different kinds of assets that you will encounter during your trading journey, these are:

CurrenciesCommodities

IndicesStocks

The Trading Checklist outlines all the different elements you need to consider before embarking on a trading journey. This chapter will help you have a better understanding of the different trading assets available in the industry and will also give you some tips to start this new adventure on the right foot.

02

the trading CHECklIST

Trading assets

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Currencies

Commodities

Currencies were one of the first trading assets available in the industry. Once known as Forex trading, currency trading has evolved a lot with the advent of Binary Options. Nowadays, this asset is solely traded in pairs. Examples of popular currency pairs available on trading platforms are: USD/EUR, USD/JPY, EUR/JPY among others.

Considered as one of the most volatile assets of the industry, trading commodities might sometimes be very challenging. The price of these assets might fluctuate within some hours as they are impacted by different economic and climatic events. Examples of popular commodities available on trading platforms are: Gold, crude oil, rice and many others..

The first part of the currency pair is known as the

Base currency and the second part of the pair is

called the Quote currency. The Base currency and

the Quote currency has an inverse relationship,

thus meaning that when the Base currency will gain

forces, the Quote currency will fall and vice et versa.

DID YOU KNOW?

DID YOU KNOW?

The commodity market is segmented into 2 distinct

parts. There is the Soft commodities family which

are commodities obtained through agriculture such

as rice and wheat. The second segment is known

as the Hard commodities family. Hard commodities

are obtained through mining such as precious metal

and crude oil, for example.

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Indices

Stocks

Indices are the average performance of a group of different companies. That is, the price of an index is determined by the performance of the whole group of companies it is made of. Besides, an index can be used as a representation of a country’s economic performance according to the group of companies it englobes. Examples of popular Indices available on trading platforms are: Nasdaq Composite, S&P 500, Hang Seng index and many others.

A stock is a share which represents the performance of a company. What is interesting with this asset is that it enables investors to develop a sense of belonging to the companies. As when the company performs well, the shareholders will benefit from it.

Each country has its own set of indices. In the

United States, the major indices are the S&P 500,

the Dow Jones industrial average index and the

Nasdaq composite. Furthermore, in Asia, there are

indices such as Australia’s S&P/ASX 200, the South

Korea’s Kospi and the Japan’s Nikkei among many

others.

The three technology giant companies Facebook

Inc, Google and Apple Inc all form part of the Nasdaq

composite index. Therefore, if the share price of

Apple falls, the price of the Nasdaq composite is

likely to fall.

DID YOU KNOW?

DID YOU KNOW?

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Selecting the right broker is one of the most difficult decisions a trader has to go through before starting a trading journey. Besides being one of the most complex, this particular decision will also determine the whole future of the trading adventure. Similar to choosing a life partner, before saying yes to a brokerage firm there are some points to consider. Below are these specific points:

It is important to test a trading platform first, before opening a trading account. It is advised to navigate on the platform and test the different features provided. If there is a demo account then it is even better as it will enable you to place fictive trades and evaluate the responsiveness of the trading platform.

The live chat of a binary options broker reflects its customer support department. Therefore, you should always try the live chat of the broker you intend to trade with. In addition, this feature should be tested at different hours so as to know if the customer support will be able to answer your queries at any time of the day.

It is of utmost importance to carry out research on a broker before thinking of opening a trading account with the latter. However, research should be carried out in an effective way, that is, not all the information find online are relevant. This is why, before trusting a review about this particular broker, you should ensure that the source is trustworthy first.

Is the trading platform provided by this broker user friendly and reliable?

Always test the live chat!

What about its reputation?

Choosing the right broker

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It might happen that traders omit the second step while opening an account with a broker. However, it is one of the most important steps as without these documents, it will be difficult for you to withdraw your profits. This is why, it is advised to always submit the compliance documents.

Now that you have completed your Trading Checklist, you are 100% ready to place your first trade. But don’t worry you are not alone in this first time, in the next chapter we are going to arm you for your first trade!

final Note

Opening a trading account

Once you have a binary options broker that you can trust, half of the battle is won. You can now proceed to opening a trading account with your chosen broker. The procedures while opening a trading account usually vary. However, most of the registration process follows the same schema, which is:

Filling in a form

with your

personal information

Submitting

your compliance

documents

Choosing

your method

of payment

Funding your

brand new

trading account

1 2 3 4

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To be able to place a trade you must first have a fully complied account for which you need to submit all your compliance documents. First of all you need to log in into your trading account. Then you need to select your trading tool.

How to place a trade?

A crucial aspect that you need to master while trading in binary options is to know how to place a trade. Too many traders tend to take it as granted and make mistakes which affects their trades. This chapter is focussed on helping you to understand the process of placing a trade on BinaryOnline. After you have mastered the various of trading basics, now it’s time get in the game and trade ! So ready?

03

the 1st time is AlWAyS IMPORTANT

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You will get two options High or Low. Choose the high option if you believe that the asset you have opted will rise, conversely choose Low if you believe that the asset will decrease in value. Choose your investment amount according to your budget. Lastly you just need to relax, monitor your account and wait for the profit to roll in.

Now that you have completed your Trading Checklist, you are 100% ready to place your first trade. But don’t worry you are not alone in this first time, in the next chapter we are going to arm you for your first trade!

Trading Advices

1) Do not over invest

2) Trail on familiar grounds

3) Submit all your compliance documents

When starting to trade it is important to have a good control over the amount of money to be invested so as not to take any unnecessary risk. It is advisable to invest only 5 % of your total capital, such that if you incur losses, you will not lose a large portion of your capital at a go. Moreover when you are beginning your trading journey, there is a learning curve, as in anything new there is a learning process to undergo and starting with small amounts will help you to explore avenues without having to incur consequent losses.

If you have some prior experience on an asset, try to widen your knowledge on this asset, do not let your experience go to waste, use it. You will definitely benefit from your background knowledge to make successful trades.

To be able to make withdrawals you will need to have a fully complied account,which means that you will need to submit all the required documents to the compliance department of BinaryOnline. These documents are requested in order to make sure that all accounts are not infringing any law. You will not be able to make any withdrawal if these documents are missing.

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Proof of Payment : A colored copy or high quality picture of the credit/debit card. However note that, the first 12 digits of the front of the card must be hidden, as well as the CVV (3 digits number) at the back of your card.

Investment Testimony Form (ITF)The investment testimony form can be downloaded at Investment Testimony Form (ITF). It must be filled with all your deposit along with a handwritten signature.

4) Check the various trading tools

5) Check the Copy Traders section

As a beginner it is important that traders get a grasp on the various trading tools which are offered by a broker, this will help you find which works best for you. BinaryOnline offers different trading tools for the benefit of its traders.

The copy traders function help beginners to mimic what the most advanced traders are doing. You will not have to do the hard work, the copy trader section of BinaryOnline is of a massive help for beginners. Advanced traders do not place trades at whim, but after thoroughly researching charts, financial indicators or the news, these traders often have a very high success rate. BinaryOnline allows you to copy the trade which these investors are making. Cool, isn’t it?

Different traders have varying skills and experience, what might work for one trader might not work for another trader.

They are :

High/ LowOne Touch

RangeHyper

Proof of identity : A colored copy of your National Identity Card, an International passport, a driving licence or any legal identification document issued by the government of your country.

Proof of address : Any utility bill (Electricity/Water/Bank Statement or Gas) which is not older than three months. Alternatively, a duly filled and signed Declaration of Address is acceptable.

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7) follow the News

8) Check our key Terms

9) brush the Educational section

News have a huge impact on the value of an asset, as a beginner, you need to understand that assets are influenced by their environment. For instance a climatic calamity in a region of the world where wheat is heavily grown will undoubtedly affect its value due to a consequent shortage which may result out of it. Similarly all assets are influenced by external factors often out of control. As a trader you need to learn to interpret these information such that you are able to benefit from them.

As a beginner there are some technical terms which you need to understand before being able to open traders. For example, you need to understand the very principle of High or Low, expiry time or return on investment. It is good to note however that these technical terms are very easy to understand, they are straightforward. You can find all of these, in the educational section of BinaryOnline , namely the Winners Corner, where you will be able to understand them better. In the eventuality you are still not able to figure it out, you can always revert to the Customer Care of BinaryOnline.

Each broker has their own ways of distilling valuable information to its traders or prospective traders. BinaryOnline has crafted Ebooks, Webinars, reading materials and videos so as traders get a clear picture on the different fundamentals of trading at BinaryOnline. The information which we have provided are enough for traders to get a clear understanding. Information has been segmented in various sections, where traders are given the possibility to choose the method of learning which they feel the most at ease with.

6) Revert to Customer Support, anytime

Traders should take advantage of the fact that BinaryOnline sports a 24/hr support centre. There are many brokers that do not have a 24/hrs customer support to help traders round the clock. The broker has set up several contact medium through which they can be contacted by traders from around the world. Emails, live chat, phone numbers of the support department or the contact us form on the website of the broker has made it even more accessible. The fact that you are located in a far remote timezone is not an issue, you do not need to worry for you will always have an agent to communicate with you on the other side.

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In which year was Binary Options trading launched? (a) 2010 (b) 2007(c) 2008(d) 2012

What are the different assets family available?(a) Commodities, Stock & Indices. (b) Indices, Currencies & Commodities. (c) Currencies, Stocks & Indices. (d) Stocks, Currencies, Indices & Commodities.

Which one of these documents should be submitted while opening your trading account? (a) Proof of payment.(b) Proof of address. (c) Proof of identity. (d) All of the above.

Before choosing a broker, it is very important to test the live chat? (a) True.(b) False.

What is the payout range for BinaryOnline? (a) 75% - 95% (b) 40% - 50%(c) 80% - 100%(d) 60% - 80% .

Answers: C, D, D, A, A

bEGINNERS

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INTERMEDIATESTRADERS

PART TWO

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04Now that you have placed your first trade and many other trades, we are glad to announce that you are not a beginner anymore. In this chapter, you are going to learn how to maximise your chances of making more accurate predictions.

By now, you must have understood what is binary options and most importantly what advantages it holds. If you haven’t then no worries, you can still take a tour of the previous chapters. However, if you feel ready to get to the practicals of this industry, it is the perfect moment to start crafting some strategies to leverage your profits.

not a newbie ANyMORE!

Market updates is indispensable in the application of any trading strategy. Besides, it is for this reason that many brokerage firms provide market analysis reports on a daily basis. These reports help you to know what is happening to your favourite assets on global financial markets.

Market Updates

Read the latest Market Updates.

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Have you ever done market analysis or used those provided by your broker before placing a trade? If not, you should definitely start today! However, if you want to make an optimum use of market analysis, here are some guidelines:

Assets fluctuate everyday and that is why it is very important to stay up to date. Furthermore, if you don’t have time to read whole market analysis reports, you could focus only on those pertaining to the assets you usually trade on. Nevertheless, keep in mind that it is essential to read it on a daily basis so as to keep up with the flow of trends and events.

It is advised that you keep a repository of what is happening to the assets you trade on. Why? This will help you to keep track of their trends. For example, crude oil might be trading higher today and the following day, it might be back to the lows. Take note of the events which are impacting on this asset. This will help you to better understand how the asset behaves.

Instead of relying entirely on the information provided by brokers, it is advised that you get in the arena and start analysing by yourself. You should be able to analyse markets on your own as it will help you to strengthen your knowledge of the financial market.

Market Analysis is like your trading bible, therefore as a good trader, you should take time to read it everyday if your broker does provide it.

Don’t only read it. Take some notes!

Don’t restrain yourself to the market analysis reports of your broker. Do your own analysis.

Fundamental Analysis helps to evaluate and anticipate the future price movements of a specific asset based on economic and financial events happening worldwide. Also, events not necessarily pertaining to finance, but important enough, that it may have direct impacts on the trends of specific assets.

fundamental Analysis

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The term Fundamental Analysis may sometimes frighten traders. However, once you understand the 3 basic approaches used to carry out this analysis, you will never stop using it. Here are the 3 pillars of an optimum Fundamental Analysis:

Throughout a year, important economic data as the U.S Nonfarm Payrolls data are released. These reports have a definite impact on the trends of assets as the U.S dollar. Investors make use of an economic calendar to keep track of the date and time of important releases. Based on the outcomes of these data, the direction of an asset’s market value can be easily determined.

Unexpected events are great opportunities to trade on. If you carry out regular market analysis, you will be able to anticipate the impact of certain global events. For example: If the supply of oil is slowed down for any unexpected reason, then the prices of crude prices will rise. An example is the recent wildfire outbreak at Fort McMurray, Canada, resulting in considerable swings in crude prices.

You might not be aware, but some assets are correlated. It implies that price movements in one asset affects the market value of another asset. An example of this, is the inverse relationship the US dollar and the crude oil have. That is, if the dollar strengthens, crude prices should normally fall.

Fundamental analysis is a very important technique to consider if you want to place accurate trades. However, it is only the tip of the iceberg. So let us dive deeper to discover the rest.

Reports release.

Unexpected global events.

The relationship between assets.

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05If you are looking for an informed analysis for your next strategic move, you should not limit yourself to fundamentals. Market are much volatile especially ahead of financial events and it’s wise to be doubly sure of the next step to take. One element that can help you with it is Technical Analysis. Most experienced investors take this into account when investing their money into any particular trade. If you are unsure on how this can be helpful to you, dive into this chapter to get all the details.

time to use THE CHARTS

Technical analysis most importantly deals with the use of charts. There exist various kinds of charts which investors can use to perform technical analysis. What is subject to analytics here? Well, the trends of specific assets. By analysing the past fluctuations of the market value of an asset and also its present movements and behavior, investors try to determine the future course of the asset. However, many other determinants come into play while analysing asset trends. We’ll come to that in a while.

One most commonly used chart is the Japanese candlestick chart. As the name suggests, this chart depicts the price movement of an asset through candles, specifically red ones and green ones, representing bearish and bullish trends respectively. Trends of assets can be assessed on a scale varying from one minute to one month. Analysing charts isn’t as easy as looking for fundamentals, but it is not rocket science too. One can learn and start putting it into practice within a week and that is not an exaggerated statement. With a few basic skills, traders can very well start analysing charts and deliver reliable predictions. Here’s a chart depicting the course of the EURUSD currency pair along with labels of key features:

What do charts represent in binary options trading?

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A chart pattern is a distinct formation on a stock chart that provides a trading direction, or a sign of future price movements. Investors make optimum use of them to identify current trends and trend reversals so as to trigger buy and sell signals. The idea behind using patterns is that normally patterns repeat themselves. Therefore, investors base themselves upon the historical trend of a chart pattern and the price movements it set, traders try to identify trading opportunities.

Some of those patterns:

Head and Shoulders- Among the most popular and reliable chart patterns, the Head and Shoulders is a reversal chart pattern. When a Head and Shoulder is formed, it is normally indicative of a security moving against the previous trend. There exist two version of the Head and Shoulders chart pattern:

Triangles- These are also much coveted patterns and they exist in three types- Symmetrical triangle, Ascending triangle and descending triangle.

Symmetrical- Represents two trend lines converging towards each other. A breakout to the upside or downside is a confirmation of a trend in that direction.

Ascending- In this triangle, the upper trend line is normally flat and the bottom is upward sloping. It is a bullish pattern and using it, analysts look for an upside breakout.

Descending- The lower trend line if flat and the upper trendline is descending. Through it, a downside breakout is normally looked for.

(1)

(2)

Chart patterns

Head and Shoulder Top Head and Shoulder Bottom.

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A downtrend alludes to an overall downward direction of the price movement of an asset. It normally occurs when each successive peak and trough is lower than the earlier ones in the trend.

As for an uptrend, it is formed when the overall direction of an asset’s price movement is upward. In a uptrend each successive peak and trough are higher than the earlier ones.

Indicators are vital tool when it comes to technical analysis. They help confirm if one’s prediction is really plausible or not. In simpler terms, indicators provide hints about the future price movement of an asset. The use of indicators is not rocket science and can be easily implemented by novices too. Among the most popular and accurate indicators, figure the Ichimoku Cloud Indicator, the Bollinger Bands, the Hull Moving Average, to mention only a few. You’ll get to learn about using few of them in the following chapters.

Investors adopt many strategies to complement their analysis. Why so? Because predictions are subject to unexpected changes. Strategies therefore, help to limit the possibility of losses. One obvious and very simple strategy we can give you at this stage, is to always combine chart analysis with fundamentals. This works as a cross checking whereby if any unexpected event takes places on the market or throughout the world, traders can anticipate a drastic change in trends unlike depicted on charts. Discover strategies for intermediate traders.

Ready to get to take the jump?

Downtrend and Uptrend

Indicators

Strategies

Cup and Handle- As the name suggests, this pattern looks like a cup and is followed by a downward or sideways movement which is the handle.There is possibility of the continuation of the upward trend.

(3)

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06In his young age Jason Hull, who is now a Certified Financial Planner, lived a life to the hilt. He traveled a lot and had no limits. This obviously led him to be buried under a pile of debts.

finanCial MANAGEMENT

However, Jason Hull didn’t let his financial worries take over his life. He took conscious decisions and talked to his soon-to-be fiancee. He got the impetus to stop the madness of spending his money on the go.

Today, he is helping people around the world to plan and manage their finances in the most effective way. He also gives them advice on how to increase their profitability and meet their end goals.

Like Jason Hull once had, many traders are having the same issues today. It is becoming a real hurdle to manage money equitably and at the same time make a handsome profit on their investment.

Rest assured, we are not going to go into the advanced calculations performed by Jason Hull to help you manage your finance properly. Rather, we are going to outline the very basics, trusted by major financial experts. Ready to go? Let’s dive into it!

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Trading binary options is not always easy but you can, without any doubts, generate money in a short period of time. That’s one of the biggest advantages of this type of online trading.

Nevertheless, who says hardship, also says lots of mixed emotions. This is obvious as we often see traders placing trades out of frustration or excitement after winning some of their previous trades. Or, in some cases, traders excessively analyse charts and news because they are afraid of making the wrong move about their investment.

Our advice to beginners and advanced traders is to effectively understand their emotions and not indulge in hasty decision making regarding their trades. You should also keep a balance and know when to stop.

Binary options trading can be thrilling and challenging at the same time. So, take a breath and hold on your emotions before taking on your trades.

Setting objectives right at the beginning helps in keeping you focus on your trading endeavors and hence reduces the risks of making mistakes.

Now, that you grasped the importance of setting up your objectives, time to break all these in parts to have a simplified approach. Objectives can be classified into 2 parts, each one having their own importance.

Short Term Objectives: These objectives are set for a short period of time which usually last for days or weeks. Here, traders usually invest because they need money urgently.

long Term Objectives: These objectives are set for a long period of time and usually requires some dedicated time and investment from the trader.

Once you set your objectives right, you will be able to properly allocate your finance according to your priority.

However, note that short term objectives don’t necessarily require big investment and vice versa for long term objectives.

Control your emotions

What are your objectives in trading binary options?

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Equally important to setting objectives, budgeting your trades can help you minimize the risks associated with your trading endeavors.

As such, it is primordial to know how much you are capable of investing on your trades. Being experts in the field, we recommend traders to have a financial plan whereby they clearly identify how much they can invest on different trades.

This might look quite restrictive and time consuming but having a financial plan keeps you on track with your investment capacity.

Sometimes traders want to earn money the quick way and eventually invest high amount, taking the risk of losing out a lot of money.

So, take some time to create your financial plan to manage your daily, weekly, monthly or yearly investment. You may include the following :

budget your trades

How often do you want to trade per day/week/month/year?

What is your monthly income and expenses?

How much can you invest in trading options without being short at the end of the month?

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In this chapter, you learned about 4 fundamental approaches to managing your money while trading binary options. Financial management in binary options is a must if you don’t want to be ruined.

There are several websites claiming that binary options trading is easy. Yes, it is, provided that you are disciplined with what you want to achieve. But, let’s be honest, the path to success is not always rosy. You’ll need to properly manage your investment as well as your profits and losses. Money management can definitely help you decrease the risks associated with your trading.

The bottom line

Binary options is an ever evolving investment venture whereby the market changes at a rapid pace and new strategies come in the limelight to help traders gain more money.

Successful traders are those who don’t have a static learning curve. In fact, they take the time to learn everything from the strategies to how assets are evolving.For this, BinaryOnline sports several tools and features for the empowerment of its traders. Indeed, our Winners Corner is home to several learning materials for beginners and advanced traders.

All these in the form of videos, ebooks and interactive tools. You also need to keep track of your past mistakes and learn a lesson from them.

Take Time to learn

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What is the main purpose of an indicator? (a) Helps to choose which asset to trade. (b) Helps confirm if the prediction made is accurate or not.(c) Provides news about the financial market. (d) Helps to determine the bonus rate of a broker.

Can your emotions affect your trading skills?(a) Yes. (b) No.

What are the 3 different approaches of Fundamental Analysis?(a) Market analysis, trading platform, charts. (b) Report release, Unexpected global events, financial news. (c) Assets’ inter relations, report release, unexpected global events. (d) Financial strategies, webinars, climatic events. What are the names of the most popular technical indicators? (a) Ichimoku Cloud Indicator, Bollinger Bands and Hull Moving Average.(b) Tamagochi indicator, Mason indicator, Nakamora indicator. (c) Okora indicator, Reversal indicator, Trend indicator. (d) Kite indicator, Running average indicator, Card indicator.

Can everyone carry out a Market Analysis? (a) Yes.(b) No. .

Answers: B,A,C,A,A

INTERMEDIATE

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ADVANCEDTRADERS

PART THREE

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07The chart lines can get very dodgy at times right? Well, we do understand your dilemma when you look at charts and do not find the correct trading entry point. The main trouble here is not only being sure when to place trades but also to know when to exit trades. Many traders often get confused on trends, directions and expiry times in binary options and this chapter will address these issues .

trends/expiry/DIRECTION

In binary options, many brokers have certain features which let you decide your trend, direction and expiry, but if you are not trading binary options but trading forex then you do not have much option to gauge trends so as to reap benefits out of it. At the same time, special features like these, differ from broker to broker. Reference to market trends has often been made to traders in the binary options industry and it has become a popular term. But what is market trend and why does it hold so much of importance? You’ve been a beginner, an intermediate but you cannot really progress as an advanced trader if these small terms do not form part of your daily trading dialect.

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Trends are often derived from a series of calculations. You don’t need to worry since we are not going to urge you to do any calculation but certainly you need to know the reason why this is so. If you cannot decipher a trend, it is quite futile to trade because your earning potential will automatically be considerably lower than what you are expecting. Trends have been an integral part of binary options in all the stages of development of the binary options industry, which explains its importance. It has always been there and many traders are successful mainly because they have mastered a crucial part of this industry. You need to be part of the elite team.

Take any technical strategy, pattern or trading method, you may find that around 90% of them make reference to trends in their calculations. If you notice the price of an asset taking a strong trend and maintaining the same trajectory over a long period of time, then this trend is a dominant trend. Most traders make use of trends over short-term trades compared to long-term trades. Now how do you know that this trend is good?

Interestingly, there is no best trend confirmation but you can confirm it on your own if you are a regular trader. That is why this topic is included in the advanced section. Trading regularly is a basic task for an advanced trader and by doing so the trader will notice that trends often repeat themselves and staying in the same position for hours or days. Moreover, many economic events are repetitive throughout the year and bolster the market when data releases occur in major economies. Technical analysis may be a step ahead of fundamental but news and economic events do play a role in determining trends. Thus take note of the trends that are often repetitive over a period of time.

Also, on a daily basis you can use chart analysis to find more on directional trends which can be in terms of Uptrend or Downtrend. Key factor while gauging for trends is to analyse if the trends are persistent. A simple trend can be considered when an asset’s direction is constantly moving higher, the odds are that the trend may carry on in the same direction. Trends can be applicable on any asset such as currencies, commodities, indices and stocks.

What is a trend?

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Evaluating correct trends can be done by the use of common indicators often available on charts such as:

Now what can a broker offer you to simplify your search of a trend? A boundary option or one touch trading. Offered by many brokers these features are the most advanced, innovative and exciting parts of binary options. They are risky but advance traders deem that the risk is worth it. In a boundary option, a typical range consist of two lines and the space created between both lines is called the range. The two lines forming the range are often referred to as the “boundaries”.

Your task in only to predict whether an asset’s value will leave this boundary in a particular time frame or not. Here’s a little example to help you understand that:

The direction of the value of a given asset is quite obvious when assessing a chart, but choosing the right expiry time is in your hands. BinaryOnline offers the feature of choosing your expiry time on any asset you want to trade on.

boundary options / One touch Trading

Direction and Expiry

Moving Average MACDIchimoku cloud (An excellent trend indicator) RSI (Relative Strength Index)

Apple’s current price value is at $400 A boundary option will let you predict that prices will be between $390 and $410 in around 15 or 30 minutes.

This option promises a payout of 400%

It’s your decision if you want to invest $100 or more but keeping the amount invested below $400.

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08Ready to embark on other challenges? As an advanced trader, it becomes important to seize all trading opportunities because you are trading to win and the best way to minimize losing risks is to learn. Learn, fail and repeat until you are able to master what’s next for they are the technical strategies that will get you to your trading goals.

get the essentials Of TECHNICAl

STRATEGIES

As mentioned earlier, with chart reading you can use many technical strategies that can give you the right indication of which asset you can choose to trade and which is the best time to do so. You have to first carefully monitor the market and economic events that eventually have an impact on it. Trading floors are often very much susceptible to changes occurring due to economic events that have a high influence on them. That is why BinaryOnline team wants traders to keep fundamentals in mind while opting for technical analysis. Other brokers urge you to differentiate between fundamental and technical analysis, but our team’s advice is: “do not forget to keep an eye on daily fundamentals”. Economic events have the power to affect a chart in real time and with technical analysis you become a better predictor of what is going to happen next.

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Fundamental analysis also counts especially when something major is occurring in a major economy, let’s take United-States for example. U.S. elections expected in November 2016 are one of the major happenings in the entire world. Everybody wants to know who will be elected the next president, Donald Trump or Hillary Clinton. The only trouble here is that this will not affect only the White House but also the trading floors and exchanges as well. The USD will be most influenced during those times as traders will want to gauge the initial months aftermath presidency to know what changes will be brought to the U.S. economy and if investment changes are going to be applied. It’s quite normal to adopt the wait and see approach when something new has occurred.

Along with what’s big and brewing up in major economies, on a daily and monthly basis, there are economic releases such as the:

These data releases tend to have an influence on trading markets which at the same time creates the volatility needed. The excitement on a trading floor is derived from a combination of a pinch fundamentals along with technical analysis.

Why never forget fundamentals

CPI (Consumer Price Index)Retail Sales Interest Rate decision

Central Banks meetings Nonfarm Payrolls (U.S.) And much more…

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Moving on, we are sure that you want to get acquainted in more depth with the technical strategies we have been mentioning above. Carefully analyse how these strategies work, as they are about to change your payouts if used properly. Many advanced traders use them and if you want to be part of the big league, then these are what you need to imbibe.

This indicator enables a deeper analysis of a chart and helps in getting up-to-date market predictions. This charting system is a good visual support, which provides a better way of getting a closer look at what’s going to be the next trend on the market.

Goichi Hosoda is the creator of this strategy which is now very well known and used by many traders. This strategy gained value over years for its accuracy and this is why is it the strategy that we recommend to most traders who want to trade with full conviction out there. The Ichimoku Cloud is worth a trial, but you need to regularly implement it.

There are five components of this strategy which are:

Technical Strategies

The Ichimoku cloud indicator

Japanese Name English Name formula

Tenkan Sen

Kijun Sen

Chikou Span

Senkou Span A

Senkou Span B

Turning line

Standard line

Lagging line

1st leading line

2nd leading line

(Highest high + Lowest low) /2 for past 9 periods

(Highest high + Lowest Low)/2 for past 26 periods

Current closing price time - shifted backwards (into the past) 26 periods

(Tenkan sen + Kijun Sen) /2 time shifted forward into future

(Highest high + Lowest Low) /2 for the past 52 periods time-shifted forwards (into the future) 26 periods

The Ichimoku Cloud indicator signals an early warning, just like a vivid alarm. The indicator provides a visual on all trends that occur on a chart daily, monthly, yearly. Since it can also project a 26 period assessment of an asset in future, a trader can verify whether the trend is actually strong. Future trading projections become an easy task, while at the same time a trader can also gauge for a reversal trend in advance.

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The Ichimoku cloud hovering below candles suggests a bullish session to follow while if the cloud hovers above the candles, this is a dangerous zone to venture in. The session can become bearish. So if you are trading on Apple and you use the Ichimoku cloud indicator, you may place a PUT if you see the cloud over the chart candles and may place a CALL if the cloud is below the candles.

Simple as that? No, it isn’t. There are many things to verify when applying this strategy which will help you get the exact outcome. The five components are also a must to grasp.

Real time trading is actually the real beauty of trading. If you ask us why it’s simply because while trading in real time, you will find that charts do not lie. All the trends on a particular chart are the result of real time estimations and by using technical strategies you confirm your trend. That is how confirmation of trends is possible.

When the direction of an asset value becomes difficult to perceive, price actions are the ultimate points you need to consider on a chart. Price actions are the bottom line of an analysis and traders should pay particular attention to it.

In the moving average, the momentum is a very important aspect. It refers to the acceleration rate of the price or volume of an asset concerned. Momentum comprises of the force or speed of an asset’s movement which is normally defined as a rate. That is how the rate of change comes into play, as the indicator is also a reference to the rate of change of price movements. Thus, it determines how fast and on which frequency price levels are changing on a particular chart.

Many times, as a trader you will find that a given piece of news has had a lot of anticipations attached to it but at times it has little than expected effect or carries too many faulty claims on an asset. These are referred to as ‘market noise’. Moving Average (MA) helps to clear this kind of noise on the market and thus traders remain at bay of risks by being able to use Moving Average and filter those unnecessary information. That is the job of an MA.

Moving Average

Remember that there are different types of Moving Average which pertain to different purposes. You need to know what you are looking for and why this should help you. Moving Average is simply the average price of an asset over a given period of time and its calculation is as follows:

Sum of all closing price (during a specific period) x data points

Sum of the number of periods

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J. Welles Wilder, Jr. was the super mind behind the concept of this indicator which has over years been highly acclaimed by traders. This strategy has the capacity of telling you when a market is currently overbought or oversold. Thus, you may know break out points and know for sure when a market will take the next uptrend or downtrend.

The RSI is normally considered overbought over the 70 RSI handle, however, some traders also use 2-period RSI to look for readings above 80 level by raising the overbought to 80. But this is not recommended for novices. Same goes for oversold which can be brought down to the RSI 20 level. This is good to know, but let us stick to the normal RSI levels of 70 (overbought) and 30. The calculated value for the RSI oscillates from 0 to 100, on which the range between 70 to 30 is taken into consideration.

Now if you see that the asset you chose is moving high up to the 70 means it is getting momentum and hiking upwards. An Uptrend there means a bullish trend of course but when this trend crosses above the 70 level, you must prepare to take out profit and think about your next move, since this is the ultimate point that an asset has reached and it cannot move above the said value. Fact is that the value of the asset will then become overestimated which is not healthy for traders. Thus a downtrend from that point is imminent. It will happen in some hours or at most a day or two.

The same effect is seen when prices of an asset move below the 30 handle on an RSI chart, which signals that the session is becoming underestimated. A momentum then is unleashed to give more power to the asset. The power may not be strong but is enough to create the next uptrend. However, the uptrend here may take many hours or even some days to fully take formation in an upward trajectory. However, indications of the asset’s value and next trends are what traders need to know here

Technical strategies are a great tool to use. They are the true armor of advanced traders and knowing them is getting the real power of a trader. So next time you trade, make sure that your arsenal of technical strategies is ready and be ready to embark on a ride of super gains in binary options.

The Relative Strength Indicator Strategy

The bottom line

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09All of us want to be winners right? It’s not easy but it’s not impossible also. To be in the on winners’ side, all you need to do is follow the trend and basics of trading in binary options. As an advanced trader, it is now time for you to close the deal and wait for your profit. This is why you are here and this is what our team at BinaryOnline is ready to provide you.

winning taCtiCs - support &

RESISTANCE + CHART PATTERNS

Surely you must have watched many movies, but have you ever noticed that some stories’ endings are same and some differ. The same effect can be seen on charts as well. Some trade are likewise and some have another story to tell. The end result is not the same. Everything depends on how you apply the strategies which have been provided to you. Measure your fears, the factors that impede you from getting further in binary options. Take note of what is wrong and be part of an elite team instead of being just another trader. Be the trader that can cope with the binary options industry for this field has a lot to offer but yes, it demand a little push from you as well.

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In any kind of trading, charting techniques are extremely important. Charting encourages a systematic trading method in binary options. Traders can understand the movement of an asset upon mastering the basics of a charting system and this can eventually result into binary options gains.

Having opted for the charting technique, starting with candlestick charting is a good initiative,it is a proven favorite for advanced traders. Both candlestick charting and technical analysis make a good pair, as traders can derive an advantageous analysis which can be accurate ranging from 80 percent to 100 percent.

Trading techniques

What is Charting?

Trading Techniques to Re-member

Charting

Involves candlesticks, lines and Time measure

Pricing of an asset.

Uptrend /Downtrend of an asset

-MACD -RSI-Ichimoku Cloud-Parabolic Sar -MA & Momentum

Define the level of support & Resistance

Past periods & current pricing of asset

Price Pattern TrendTechnical Indicators

Support&

Resistance

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Price patterns are the pillars of chart reading and technical analysis. Often important transitions are signaled by price patterns which depict the rising and falling trends in prices. The two price patterns commonly are:

A trend is simply the direction that an asset takes on a given chart. Trends indicate the general direction of a market or the price of an asset. A trend can exist for a short-term, intermediate term or long-term.

The use of trends while trading is a plus for traders, as they generally give traders the current position of an asset. Traders can rely on the current trend and verify whether there is a change in the trend and thus secure the safest position while trading.

Support and resistance gives an idea to which extent the price of an asset can rise or fall. Basically, if an asset is seen falling several times to a given price level, that line becomes the support line. The role of the support line is to control a further fall of prices and it works the same for resistance line, when several times an asset has been hiked up, it creates a certain range at which the asset has often peaked. Therefore, its role is to limit the excessive uptrend of an asset. The role of both is to limit falls and climbs.

Uptrend in a price pattern occurs when prices are in higher highs and higher lows, whereas when prices make lower highs and lower lows, this results into downtrends. A consolidation is the contrary of both, where prices navigate within a specific range remaining between a higher and a lower range. Very often in a consolidation mode, it is difficult to know whether prices will hike up or go down.

What are price patterns?

What are trends?

What is a support and a resistance line?

Reversal Pattern - Price pattern indicates an alteration in trend directionContinuation Pattern - Price maintains a specific trajectory after a pause

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What are the major economic releases that should regularly be checked?(a) CPI (Consumer Price Index)(b) Central Banks meetings (c) Interest Rate decision (d) All of the above.

What are the 5 main components of the Ichimoku cloud indicator? (a) Reversal Line, Lagging line, Jumping Line, Average Line, Leader Line. (b) 1st Leading Line, 2nd Leading Line, Turning Line, Bollinger Line, Diagonal Line. (c) Standard Line, 1st Leading Line, 2nd Leading Line, Lagging Line, Turning Line. (d) Turning Line, 3rd Leading Line, Reversal Line, 1st Leading Line, Standard Line.

What are the different elements of charting?(a) Graphs, Lines, Angles. (b) Candlesticks, Time measure, Lines. (c) Y-axis, X-axis, Curve(d) Time measures, Lines, Graphs

What is a trend? (a) It is the direction an asset takes on a given chart. (b) It is the price fluctuation of assets. (c) It is the break even point on a chart. (d) It is a common indicator.

Charts can be regularly used to spot downtrend and uptrend?(a) Yes.(b) No.

Answers: D, C, B, A, A

ADVANCED

Now that you’ve have all the knowledge about binary options at your disposal and having tested it. it’s time to take your trading career to a whole new level.

yOU’VE GOT THE GRIT!

START YOUR TRADING JOURNEY