Making Money Binary Options

Here is a short video which explains more about Making Money with Binary Options and using Binary.com The popularity of binary options has grown over the last few years and they offer a low cost way to back your judgement on financial markets including currencies (FX), indices, shares and commodities.

What is “Binary Options Trading”?

It’s a special type of online trading with a fixed payout, in which you predict the outcome from two possible results.

The word “Binary” in Binary Options Trading comes from the choice of two potential outcomes, in a perfectly clear-cut, dual-sided scenario.
For example:

Will the price of Gold trade higher than the current spot price in 15 days?
No matter how you slice this scenario, there are only two outcomes possible:

-Yes, it will trade HIGHER.

-Or no, it will trade LOWER.

Let’s just say that you take the position that it will trade HIGHER, and decide to purchase this option:

-If your prediction is correct at the end of the set period, you’ll receive the payout that was determined at the start of the trade. Note that this amount is automatically calculated and reported to you through Binary.com’s pricing technology, before you even press the button to purchase this trade.

-If your prediction is incorrect at the end of the set period, you’ll only lose your initial stake, and no more. Note that the stake is equal to the amount that you initially pay to purchase the trade – so there are absolutely no surprises.

I cover Binary options in my Course Making Money From Financial Markets, you can find out more details at www.winonmarkets.net

 

Why 90% of Spread Betting Traders lose money — and what can you do about it

What Losing Traders Do

Vince Stanzione has been trading futures, options and equities for around 25 years. As well as trading his own money he has traded money for banks and been a broker for private clients. Over the years Vince has been fascinated to discover the difference between winners and losers in this business.

Try to learn from the points I am about to give you.

1. Many traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they over trade and use their equity to the limit (are undercapitalised), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

2. Many traders don’t realise the news they hear and read has, in many cases, already been discounted by the market. Often, new traders jump into a market based on a story in the morning paper; the market many times has already discounted the information.

3. After several profitable trades, many speculators become wild and un-conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”

4. Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.

5. They fail to predefine risk, add to a losing position, and fail to use stops.

6. They frequently have a directional bias; for example, always wanting to be long. A good trader should be happy to trade up or down.

7. Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake.

8. They over trade. Many new traders after opening a Financial Spread betting account are like a child with a new toy. They want to trade anything and everything. The new internet dealing offered by most bookmakers has made it even worse.

9. Many traders can’t (or don’t) take the small losses. They often stick with a losing trade until it really hurts, then take the loss. This is an undisciplined approach…a trader needs to develop and stick with a system. If you are following charts and a trendline or moving average is broken, you must stick to your rules.

10. Many traders break a cardinal rule: “Cut losses short. Let profits run.” Emotion makes many traders hold a losing trade too long. Many traders don’t discipline themselves to take small losses and big gains.

If you want to get a head start in the markets and see your trades turn into profitable winners, join the hundreds of traders already learning from Vince Stanzione. To discover more go to www.fintrader.net