If you’re looking for that one tool that can make your trading life a lot easier, you should consider Bollinger bands. These three lines can help you out a lot with sorting out the stuff you see on your trading chart, which is why we decided to write an article that will introduce you to them. The concept is fairly simple, so even beginners should have no problems grasping it. As a matter of fact, using it can be a great transition towards more serious trading levels. Simply, it’s all about market statistics. Therefore, if you’re looking to up your trading game a little, all you have to do is read on.
Bollinger Bands | Three main lines
Now then, the three lines you get on your screen show you in which range you can expect the price to move. The middle line represents the so-called moving average, while the lines above and below it show how much the price moves away from the average. Therefore, these three lines show you what to expect from a price, i.e. how much it’s supposed to move from its average. This helps avoid Overtrading. Naturally, these lines can be broken, but because Bollinger bands are based on a huge amount of statistical data, the chances for that are very slim (some say they are lower than 5%). Because of that, with this tool, you can predict with a fair amount of certainty the limits an asset can reach. However, you still need to be careful. Why? We’ll explain below.
Bollinger Bands | Market conditions
You see, the gap between top and bottom Bollinger bands won’t always be the same. When a market is pretty sure about an asset, the gap will be significant because there won’t be many price changes and thus the price’s upper and lower limits will be firmly established. The thing is that this gap can narrow down significantly if something happens that will disrupt the market’s stability. Maybe a new GDP report comes out or some important piece of political news is issued, but the less the market is sure about something, the narrower the gap and it becomes easier for the price to break the two lines. So try to analyze the situation on the market first – if there’s nothing out of the ordinary, Bollinger bands will be of great help to you.
Bollinger Bands | Conclusion
If you want to predict where the limits of a price’s movements are, this is the tool for you. Bollinger bands help you acquire this important information by analyzing statistical data and making predictions with a very high degree of accuracy. However, do keep an eye on it because in hectic market conditions this tool is not so efficient. Still, they are a great addition to any trading strategy which you can build with the help of our other educational article on this website. Take a look around and immerse yourself in the exciting world of binary options.
Although the main principle of binary options trading is fairly simple, brokers and software providers often come up with different variations to attract more traders. Don’t worry, these binary options types are almost just as easy to understand as the basic type, even if you’re a complete beginner. To prove that, we will show you the most common types of binary options you can find, which are also known as trading modes. You might be surprised with how many possibilities the industry has come up with over the years, so stick around and maybe you’ll find your new favorite. Let’s get started, shall we?
Binary Options Types | Basic types
We’re not going to go into the standard Call and Put Options here because we have a separate article just for that, and instead we will dive head-first into all other binary options types. Something you’ll see almost everywhere is the so-called ladder trading. Here, price levels are stacked above each other like rungs of a ladder and you have to guess how high the actual price will go. The more “rungs” you guess right, the bigger the payout. Apart from this, pairs are also a popular type of binary options. Like the name says, here you will be dealing with pairs of assets which are always fixed but correlate with each other and come from the same industry. This is a good way to make a hefty profit if you’re an expert in one particular field. But there are more things to discuss, so stay with us.
Binary Options Types | Go social?
Don’t forget that, no matter which trading mode you choose, you need to have a sound and well-defined Binary Options Strategy if you want to profit. The only instance where that may not be necessary is social trading because there you can follow other traders and simply copy their decisions. Another of the binary options types is the so-called one-touch mode, where you have to guess whether or not an asset’s price will at some point touch a designated level. Here you’re not interested in the situation at the expiry time because the price can touch the level at any point in time between you opening the trade and the trade’s closure. Of course, there are also types of binary options offering trading in extremely short or extremely long timeframes, but we think those really don’t require any further explanations.
Binary Options Types | Conclusion
As you can see, there are many binary options types to choose from, so examine your broker’s platform thoroughly to find what suits you best. No matter which one you choose, you will grasp the concept quickly because everything always boils down to whether a price goes up or down. However, if you need help in creating a suitable trading strategy, don’t forget to check out our other educational articles. You will surely find what you need there.
Commodity Channel Index (often called the CCI) is another tool designed to help you make the right trades on the binary options market. It is an oscillator, and we will look at it as such in this article, although in some instances you will find that it is considered to be a simple trend indicator. This is why you may sometimes find it in different sections of your trading platform. Nevertheless, we are going to show you how to use it, so that you can add one more weapon to your arsenal in your battle for profit. Keep reading and see what this interesting tool has to offer.
Commodity Channel Index – CCI | Basic features
Just like any other oscillator, the Commodity Channel Index will also appear below your Binary Options Chart. Usually, the levels plotted on it by the brokers are 100 and -100, but don’t think the CCI can’t go pass those two numbers – it can and it does so fairly often, especially when a strong trend appears. These two levels are just another way of designating overbought and oversold territories, so the usual rules apply here: if the oscillator has hit its overbought level prepare to start buying put options, but if it’s in the oversold waters you want to go with call options. But that’s not the only way you can use the Commodity Channel Index. Stay with us and learn more about it in the next paragraph.
Commodity Channel Index – CCI | Another way to use it
Another thing you can do with the CCI is to plot the 0 level on it and use it as a reference point. In other words, every time the oscillator breaks it you can expect the trend to last. Therefore, if the 0 level is broken while the line is traveling downwards you will want to start buying put options (but only until it reaches the oversold area) and if it is broken in the other direction you want call options. One thing to be very careful about here is the Expiration Time because the Commodity Channel Index is well known for its sensitivity. It can change its behavior very quickly, so its period becomes extremely important. The oscillator is usually plotted on 14 periods, and we recommend you leave it at that until you become more familiar with the way it works.
Commodity Channel Index – CCI | Conclusion
And those are pretty much the main things you need to know when you’re using the Commodity Channel Index. It’s not very complicated, but you have to be ready to react quickly because the index in known to be very sensitive. Additionally, it’s always a good idea to confirm the data you’re getting this way with some other tool, just to keep things nice and safe. If you need more tips about trading on the binary options market, just take a look around our website. There are loads of articles like this one here.
Binary options trading is essentially very simple – you just have to predict if an asset’s price will go up or down. However, if you get it wrong you can lose all your investment, so the question becomes how to profit from binary options. Why are millions of people busy on the market investing every day? These people are just like you, not a bunch of stock brokers or financial experts, but people from all sorts of backgrounds. This is what we are going to show you in this article; our team has been a part of this industry for years now, so we know what new traders are interested in and what we can do to help them. Read on!
How to profit from binary options? | Be smart
Rule number one on how to profit from binary options is that you don’t put all your eggs in the same basket. Spread your trading funds out, open multiple trades in accordance with your Binary Options Strategy because, as we have said in the introduction, one miss will lose you everything you invest in that trade. Given that successful trades will bring you on average about 85% profit each, two of them can cover one loss and still bring profit. You can’t get into this business thinking your every single investment will earn you money – your main preoccupation has to be to end the day with a surplus. With just a little bit of thought and caution, this can be achieved. Literally thousands of traders do it every day.
How to profit from binary options? | Use everything!
Another thing you have to do if you want to know how to profit from binary options is get familiar with your trading environment. Every trading platform has loads of analytical tools (such as Oscillators) you can use to extract data from your chart, plus brokers often have some interesting promotions and bonuses you can grab. There will probably also be educational materials with which you can expand your trading knowledge and maybe even a news section. In short, make the most of all resources you can find because information is key in any type of trading, especially this one. You also may want to check withdrawal methods and whether or not they have any fees associated with them that could cut into your profits. The success lies in the details.
How to profit from binary options? | Conclusion
How to profit from binary options? Well, first of all, never invest everything you have in a single trade. Build a strategy and explore all the details of the website you’re trading on – you’re bound to find useful and interesting stuff. Also, try to get as much information as you can from all available sources. When all these things click, there will be absolutely nothing standing between you and profit. Just remember that patience is the key here. If you need more tips, however, browse around our website a bit more and you will find many more educational articles. Enjoy!
Overtrading is a somewhat common problem among binary options traders, especially those who do not have enough experience to control themselves on the market. This can lead to serious losses, but the good news is that all problems of this type can relatively easily be avoided. All it takes is a certain amount of money management skills and a cool head and in this article we will give you some advice about acquiring both. We’ve seen this problem on many occasions, so we know exactly what causes it and how to resolve it. Therefore, investing a few minutes of your time into reading this text, especially if you’re still new to this type of trading, can help you a lot. Let’s go!
Overtrading | How can you recognize it?
But what exactly is overtrading? Well, simply put, it’s the situation in which you start to open more trades than you really need, which can be extremely dangerous for your account balance. Two emotions are the main cause of this – fear and greed. You can start overtrading out of fear when you see that the trades are not going your way and people often go ahead and start opening more of them in order to somehow get their money back. Apart from that, people think that because this type of trading seems simple and offers many possibilities they can simply waltz in and start picking up profit like cherries. That’s not how it works and we’ll show you the proper attitude in the following paragraph. Stay with us!
Overtrading | Avoiding problems
We mentioned that panic is often the cause of overtrading. This is because people are often not prepared to lose and cannot control their Trading Fears. Well, guess what? Losses are bound to happen in this business and you need to know how to cope with them. Your goal is not to win every single trade, but to be profitable. This is why you need to come up with a plan that will encompass all your principles, goals and assets you want to trade. In other words, you need to create your Binary Options Strategy and not deviate from it. These strategies take time to develop, but it’s important that you stick to their main ideas for a while to see if they work. If they don’t, you can easily tweak them after a while. But the important thing is that you stick to your plan and never allow bad trades or missed opportunities to lead you into a trading frenzy.
Overtrading | Conclusion
Overtrading is something that has probably happened once to all of us, but the less experienced traders are much more exposed to it. Keeping a cool head about your investments is vital and having predetermined rules about the way you’ll behave on the market can help you a lot. That’s why you need to have a sound strategy. If you need help on creating one, there are loads of other educational articles on our website that can help you, so go through them and you’ll improve your trading skills in no time.
Binary options offer a lot of possibilities to traders and they do not behave in the same way as some other financial markets. This latter fact becomes most evident during financial crises, which actually become much less of a threat if you’re engaged in this particular type of trading. As a matter of fact, pretty much any negative shock in the business world can be turned into a profit if you’re not completely detached from the world and follow news at least occasionally. Therefore, trading binary options in a crisis becomes an increasingly interesting proposal. In the rest of this article, we will show you how to make best use of this situation, so read on!
Binary Options in a Crisis | Unique type of trading
Let’s say that you’re investing in stocks of a certain company. This means that you are actually buying those stocks and hoping that their price will go up and bring you profit. However, if that company enters a rough period its stocks will plummet and you will start bleeding money. The same principle applies to all other risk assets. But in binary options trading you’re simply choosing between Call and Put Options, i.e. you are not actually buying the asset itself, but rather trying to predict its behavior. Therefore, trading binary options in a crisis can be an excellent and pretty easy way to start earning even though all other markets are facing difficulties. How? Stay with us and find out.
Binary Options in a Crisis | Everything is clear
When a crisis appears, the only way stocks and indices can go is down. Like we said, in binary options trading you only need to correctly predict how an asset will behave, which is very easy to do in this type of situation. All you have to do is do a bit of research and see which assets will be most affected by the crisis and how long the crisis will last so that you can set your Binary Options Expiry Time. After that, you will have all the variables right there in front of you and the only thing left to do will be to make your choice. On top of all this, the returns are always fixed, which means that you cannot win less when you’re trading binary options in a crisis. No matter what the economic situation is, your profit will always be the same.
Binary Options in a Crisis | Conclusion
So there you have it, that was one of the most important advantages binary options trading can give you, apart from its simplicity, of course. No matter how dire the economic situation is, you can always invest here and even expect some nice profit from it. Trading binary options in a crisis is always a good idea, but if you need more tips about it just take a look at other educational articles we have on this website. They will surely help you find the right strategy.
If you’re new to binary options trading, you may need someone to point you in the right direction and give you some simple guidelines to follow until you get used to your trading environment. That’s what we want to do with this article – to give you some basic binary options trading tips that will make sure you get off to a flying start. After years in this industry, we know what the most common mistakes among new traders are. Fortunately, they can be easily fixed, so if you think you need a bit more info about this topic just read on.
Binary Options Trading Tips | Your strategy
First and foremost, you never want to invest all funds from your trading account in opening one single trade. If that trade doesn’t go as you expect it to, you lose everything. Therefore, our first advice is that you come up with your own Binary Options Strategy. This is one of the most important binary options trading tips we can give you. Your strategy will guide you in selecting your trades and can even eliminate a lot of stress. Simply set up some main principles that you’re willing to follow and do not deviate from them, but do tweak them a bit if you see that this needs to be done. Remember, it takes the time to come up with a good strategy, so don’t let some bad trades get you down. Nobody can win 100% of the time in this industry.
Binary Options Trading Tips | Educate yourself!
Every strategy you create has to be based on some kind of information, so try to get as much of that as possible. No matter if the information comes directly from the market or it turns out to be something that can help you improve your trading skills, never miss a chance to know more. This will help you predict and detect Binary Options Trends much more easily and once you can do that your success rate will go up significantly. Also, try to follow news from the (business) world regularly because those can often show you what to expect in the following days, especially if some big event takes place. Basically, persevere and stay in touch with the market – those are probably the best binary options trading tips we can give you. If you can do that, you will see the number of trades that end up in the money steadily grow.
Binary Options Trading Tips | Conclusion
There really are a huge number of binary options trading tips we can give you, given the size of this industry and the number of elements that can affect it. However, we wanted to keep things nice and simple here and help those of you who are at the very start of your trading journey. If you want more advice, however, we have loads of other educational articles here focusing on various aspects of this type of trading, so make sure you check them out!
If you have ever followed the market for a longer period of time, you know how important interest rates can be. They are the most important way of controlling the currency central banks have at their disposal, so knowing whether these rates will go up or down is of utmost importance to every serious trader. Even new traders can benefit a lot from this type of information because it’s really not that difficult to acquire it and it can help you increase your success rate significantly. We are going to show you everything you need to know about interest rates in trading right here in this article, so sit back and read on!
Interest rates in trading | What to follow?
In order to be able to predict interest rates in trading, you absolutely must follow major economic releases. You can learn their schedule from your Economic Calendar, since the releases are official reports from various government departments, agencies or even independent third parties that provide data about an economy. GDP is a good example of that. What you’re looking for are clues concerning the inflation of the currency you’re interested in. The more information you get from various reports, the clearer the picture will be and you will be able to predict central banks’ moves with greater certainty. Since they are the ones that determine interest rates, you understand why it’s important to stay one step ahead of these institutions. Don’t go away, we’ll explain how they work in the following paragraph.
Interest rates in trading | Up or down?
Now then, if the economic releases are not good and they point to the conclusion that the economy is not developing, the currency of that economy will lose its value. This is because the central bank will lower the interest rates in an effort to get things back on the right track. In this situation, you have a choice between Call and Put Options, but should focus on buying the latter because the currency’s value is very likely to drop. Likewise, if the data is showing that an economy is growing, interests rates and the currency’s value will go up, which is why you want to buy Call options. The key here, however, is to be able to correctly guess how long the trend is going to last and to set the right expiration time. If you can do that, profit is pretty much guaranteed.
Interest rates in trading | Conclusion
Interest rates in trading are one of the most basic things you have to keep an eye on and master if you want to profit from your trades. Various economic releases can help you a lot with that, so make sure you know when the information that concerns the currency you’re interested in is published. Once you can assess what the situation in an economy is, you can predict central bank’s moves with a much bigger certainty. However, there is much more to learn when it comes to trading, so take a look at our other educational articles and see what else you can learn.
Out of all trading tools that you can use to improve your success rate, very few can match the importance and usefulness of an economic calendar. This handy list of upcoming market events is absolutely essential for any strategy because it allows you to plan ahead and to fully prepare yourself for all possible outcomes. If you want to be a serious and successful binary options trader, this is something you really must master and we are going to help you do it. In the following few paragraphs, we will tell you everything you need to know about using this important tool, so stay with us and keep reading!
Economic Calendar | Basics
Every decent economic calendar will give you the exact time a Market Event is scheduled to happen. This way, you can plan your trading strategy almost by the minute and be able to react immediately. However, you must also know which currency/economy/industry will be most affected by a market event. Usually, only one country will feel the consequences, but sometimes news can be so important that they affect multiple countries or maybe even the global economy. An economic calendar gives you time to research the consequences of an event. Furthermore, this tool usually has some sort of metric incorporated into it to help you distinguish more important events from those that have little impact. With all this data you can make a fairly accurate prediction, but don’t go away yet – we have more to tell you.
Economic Calendar | Most important parameters
All parameters you get from the market are called economic indicators. This is the data you base your decisions on. However, there are some indicators that are more influential than the rest. GDP is a good example of that because once that is made public, it can change the way investors look at a particular country, especially if the GDP is dropping or increasing quickly. There are also many popular indices you can follow to get some interesting data and other numbers that can help you: retail prices, unemployment rate, and industrial production are all excellent examples of that. Just check your economic calendar to see when these numbers are published and prepare yourself for trading after that. You really don’t want to miss out on them.
Economic Calendar | Conclusion
As you can see, without an economic calendar it becomes nearly impossible to plan things out properly. This very helpful tool allows you to know what’s going to happen in the world economy next and helps you to find a way to predict market movements. See when an event is going to happen, what will be most affected by it and then make your decision. Obviously, keep in mind that not all economic indicators are equally important so that you don’t waste any time unnecessarily. And if you need more educational articles, just take a look around our website some more – there are plenty of them here.
The Consumer Price Index is one of the most important economic releases you as a trader can get your hands on. It essentially shows us how much the cost of living has increased or decreased in a period, which gives everyone a very solid indication of trends in a country’s economy. This index is a vital piece of data upon which whole monetary policies are based, so if you can access it you can predict a lot of moves a government is likely to make. To help you figure things out, we wrote this article in which our experts explain the basics of using this indicator. Therefore, if you want to know more about it, just keep reading!
Consumer Price Index CPI | What do you need to know?
Now, like we said, Consumer Price Index (also known as the CPI) shows the cost of living in a particular country. The elements included in it are things like food, education, recreation, medical care, transport etc – things people use on an everyday basis. You can see when each CPI is released from your Economic Calendar, so you can make prepare yourself and focus on the economy that you’re most familiar with. The importance of this indicator lies in the fact that we can clearly see how strong the inflation is from it. This, in turn, causes the most important financial institutions to react, which is what you can predict thanks to this index. But that’s the topic of our following paragraph.
Consumer Price Index CPI | How can it help you?
If the Consumer Price Index turns out to be significantly above what the central bank has predicted, the bank will increase the interest rates, which will lead to an increase in demand for that currency. Naturally, everybody wants to have in their possession a currency that yields high interest. This is when you want to start buying call options. Of course, the opposite is true as well – low CPI means lower interest rates, so buying put options in this situation is the way to go. In terms of percentages, anything above 2% is viewed as bad for the economy and the same goes for everything below 0, obviously, i.e. when deflation is happening. So when you’re constructing your Binary Options Strategy, always make sure you include this important economic indicator into it.
Consumer Price Index CPI | Conclusion
Consumer Price Index is published regularly by countries’ central financial institutions and it is a very good indicator of inflation. You can easily keep track of the CPIs for every major economy with the help of your economic calendar and then make a move once you get the necessary data. When the CPI is published it will trigger a chain reaction on the market, which means you can predict certain actions based on how big the index is. To learn more about what needs to be done, check out our other articles on this website and get more valuable tips from our experts.