Daily Archives: February 8, 2016

Bollinger Bands

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Introduction

The Bollinger Bands trading strategy was developed and introduced by John Bollinger and named after him in the late 80s. This particular type of strategy is aimed at those traders who have great technical skills meaning that they would be able to make a technical analysis of the market. Of course except technical analysis it is necessary to include different instruments and tools to have a clear and trasparent idea of the market.

The world “Bands” relates or refers to 3 bands: lower, middle and upper. A trader needs them to define “abnormally” high or low short-term prices in a security.

What is it About?

As it was mentioned above, Bollinger Bands is mostly used by advanced traders with technical analytical skills yet it doesn’t mean that other traders can’t use it especially if it is possible to trade a more simple Bollinger Bands concept where only bands are taken into account for the right decisions.

The main principle is: if a heavy selling occurs – lower band breaks and the stock price reverts back above the lower band moving to the middle one. An immediate signal to purchase the stock happens when the strategy calls for a close below the lower band. That’s exactly how traders are capable of making profit from this certain trading strategy.

What are the Drawbacks?

It is clear that every strategy doesn’t always work the way we want it or the way we know it in the theory. Here the Bollinger Bands trading strategy is not an exception meaning that it also has a few limitations.

For instance, the bands can still be broken and the price keeps decreasing as it rides the band downward. In this case, there is a big chance to lose money as the price doesn’t rebound fast. But during the long run, the concept is always correct and gives traders great chances to win.

Resume

Bollinger Bands trading strategy is not that complicated and difficult as it might seem from the first glance and therefore can be used by all traders of different levels with good technical and analytical skills of the market. In order to manage / handle this concept wisely and effectively it is needed to have a good exit strategy. Remember this and you will always have good chances to win the binary options trading battle.

Binary options trading strategies based on technical analysis

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Foreword

It is not compulsory to know all the binary options strategies in the world but just a few and the rush, heat and fast pace that you will feel during the trading process on the market will not let you panic or get into some kind of stress and as a consequence lose money.

First of all, you should understand why you are doing this and what can motivate you to perform at your fullest. These are the questions, the answers to which you will most probably find in this short binary options trading guide.

Perspective

Every one has a dream in life. It can be anything starting from buying an apartment, car and finishing with travelling around the world etc. In order to fulfill these dreams, certain steps should be taken towards it. If you decided to achieve the goal with the help of binary options trading then you should learn the effective and always-winning strategies that will definitely help you. And now more details about some strategies.

News Trading Strategy

This particular type of strategies is one of the simplest and therefore will perfectly suit to traders with little experience or no experience at all (beginners). The idea of this concept is the following – to check, compare and analyze financial news as well as economic situation in the world to make the right predictions on the market. Usually, traders who choose this strategy have great chances to get high profits as technical and economic analysis has never been unnecessary or irrelevant.

Breakout Trading Strategy

The breakout trading strategy also uses technical analysis which is needed to determine trading opportunities in a certain situation where the price is going to change / swift within a very short time-frame. The main rule here is to purchase call options when prices hit the break through and purchase put options when prices are below the level. This kind of strategy is mostly used by experienced traders / investors, yet if you are sure in your skills to analyze the market from the technical point of view then you are very welcome to try it too.

Swing Trading Strategy

Swing trading strategy is another strategy that completely relies on technical analysis of certain type of assets on the market. Trading breakout happen within a short period of time, to be exact 15-30 minutes. The most important here is to identify all possible breakout points, only then you have chances to win.

Resume

No matter what strategy you opt for, the most important is its complete understanding and an opportunity to make money with it.

Forex Strategies that Help to Increase Your Income

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Forex Trading known also as an abbreviation FX is a type of activity that is used by millions of people all over the world to accumulate their income / profit by trading options.

Forex market works 24 hours a day, 7 days a week that lets every trader to trade whenever and wherever he/she wants. It is a multi-trillion industry that assists traders to earn millions or even billions of dollars. Such large amounts of money can be earned when using special Forex strategies that were developed to help experienced traders as well as beginners. And if you follow at least a few of these strategies, they will definitely lead you to success in this sphere and consequently large profit.

There are more than dozens of these Forex strategies, yet there are some simple that will still help you to earn money. Some researchers have divided these strategies into categories: long-term, short-term and middle-term.

Speaking about short-term strategies, they usually last from 1 to 2 days. Such strategies are usually traded 2 hours a day, 3 times a week. A good example can be – Scalping strategy which is related to one of the most professional and its profit in case of winning is extremely high. Scalping is aimed at receiving accurate signals that never have double meaning.

Whereas long-term strategies refer to the trading process that takes more than 2 weeks.

Forex strategies also depend on the economical, political and sometimes even social situation in a country. All three have a certain influence on foreign currency exchange.

Central bank politics also affects Forex strategies. Consequently, there is no time to relax if you really want to trade. On the contrary you should always be 100% aware of the things that are happening on the market and know how to manage them. It is advised to read the latest financial newspapers, watch news, check, compare and analyze the charts etc.

Another not less important point is the knowledge of a particular trading jargon that is used while trading. There are some terms or expressions that should be learned in order to reach success in this sphere. When you know and understand them, you will not feel isolated on the market but full of confidence and desire to win.

And the last factor – to become a successful trader, you should be aware of the latest news about politics of different international central banks, have an ability to analyze development of the markets in different countries and as a consequence react according to the information you have got.

Best Broker as a Strategy

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Foreword

Knowing the fact that there are many binary options trading strategies that help traders of different levels to increase their income, we forget about such not less important criterion as – a trusted broker. In fact, when it comes to the binary options trading this is one of the most significant key points to consider as there exists hundreds of brokers yet not all of them are trusted, legitimate, respected, licensed etc.

So, here are a few simple rules to follow to select the best binary options broker on the market today.

Is the Broker Legitimate?

Remember, only 1 out of 10 brokers is a trusted one and worth cooperating with. The first and foremost point to check is the legitimacy. For that you can simply ask to see the license which will prove that this particular broker is regulated by jurisdictions and has a complete right to offer financial services to people worldwide.

What about Location?

There are countries where binary option trading is regulated and there are countries where the government or state is indifferent to it.

Countries, where binary options trading is 100% allowed and legitimate are the US, the UK, Malta, Cyprus, all European Union countries etc. Yet not being a citizen of any of the above-mentioned countries doesn’t mean that you can’t trade in your mother land. All you need to do is just to find a broker who has a license that is possible to receive at Cyprus Securities and Exchange Commission, Financial Conduct Authority.

How Wide is the Range of Assets?

A good broker will always offer you maximum number of assets. Everything is simple in this point – the more assets, the better for your trading as there are assets that are easier to predict on. Moreover, depending on a trader’s level, it is also important to opt for the right assets. Being a beginner – start with simple assets and with the time and gained experience move on to harder ones.

How Much is the Payout?

Depending on the type of assets, the payout percentage varies too. For instance, dealing with high/low options – 80%-90%, whereas trading one-touch or boundary options it is possible to get from 400% -to 600%. In this situation the choice is always after a trader.

When is the Time For Withdrawal?

Withdrawing the money is a pleasant process yet not always brokers do that or eager to do that. In order not to lose the earned money, read forums, feedbacks and reviews about the chosen broker at Forexpeace Army or FXempire and BinaryOptions.

The Right Strategy

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The Basics

Learning and understanding a big number of binary options trading strategies is very important as you never know what situation might happen on the market. Thus, knowing even a few, you will never be at a loss during the fast and quick pace of the marketplace during the trading process. This will not only help you to stay focused but also considerably increase your budget.

The Right Strategy

As it was mentioned above, there exists a wide range of binary options strategies. Some of them are easy and simple which means that they would be suitable for beginning traders whereas others are more complicated and difficult and are aimed at traders with good experience and knowledge

But that is still not all you should pay attention to. Another important factor is the financial situation and your experience in binary options trading sphere. In simple words, there are 2 main points you have to evaluate in order to opt for the best and most suitable strategies or so-called concepts

Knowing your goals is one more key factor that plays not less important role. For example, if you are good at stocks and perhaps even own, then you should consider such strategy as covered calls. If you wish to sell the owned stocks, think of purchasing Put option.

All in all, before making the final decision on the strategies, think twice about your goals, experience, funds and assets that you already have.

Stay Simple

This point is extremely important for beginners who can’t wait but start trading binary options on the market right now and right here. In order to be able to do that, try to opt for the simplest strategies, the ones you understand clearly and where you will not make mistakes or perhaps only minor ones that in no case will  influence on your profits. At the very beginning, the rule is simple – try to minimize the risk but get as much experience and knowledge as it is only possible.

Don’t make big investments as without proper knowledge you have big chances to lose it. Instead, learn the market, read financial newspapers, compare / analyze the charts and only after that make a little investment.

Go to your dream of being a successful trader step by step and you will definitely reach it.

Stay Focused

The market is a very unpredictable place and even the knowledge of some strategies doesn’t always help. Yet they will always help you to stay focused and perform at your best.