Binary options and since it was recovering from the losses

Binary options and since it was recovering from the losses

When you begin to do trading of binary options, it is very common that you have a series of losses, what possibly might diminish your confidence. This must not you disappoint, since almost all the traders have happened for this process. You have to use basically these experiences to promote your trading skills and to improve your psychology.

To go so far as to handle correctly a money strategy is a long way and it will allow to the trader to maintain the things under control. This implies knowing the adapted quantity to invest in the trading. Most of the experts advise to the raw traders to continue a strategy of handling of primary money in which there should not be used any more than 2 % of its capital by position. This way, the trader will be capable of expiring with the popular motto in the world of the forex that implies “without risking too much your balance”.

If you are capable of surviving the losses, you will do the trading of a correct way, if you start this strategy. For example, if you have a loss of eight followed, and good-looking positions 2 % of your patrimony in every position. With this the trader assures to have 85 % of its sure patrimony. If, on the other hand, we have a very ambitious trader who bets close to 15 % for trade, it means that at the end of eight losses of position, it was moving back with only 27 % of its balance.

Since the first method is seen it is adapted for any person, what guarantees that the trader is in good market conditions and it would have more time to perfect its negotiation skills, while it gains more knowledge on the trading of binary options. The second case, on the other hand, will demand from the investor to do some additional deposits if he wants to continue with its activity – this is something that all the traders have to avoid. The investors have to do rather different trading in a long period of time without need to realize additional deposits to its account. This is feasible if one tries to put into practice the skill of 2 % of the handling of the money what indisputably was safeguarding your account balance. Let's tabulate some of the problems associated with the detractions, by means of the visualization of the effects of persistent losses of 10 % in an account with capital of US $ 20.000.

The previous picture shows clearly that the detractions not only generate a harmful accumulative effect, but also it shows the percentage of profit that would be needed to be able to return your account to its initial state. The drawdowns are not good for the investors, and therefore it is necessary to guarantee the protection to avoid a problem and to safeguard the patrimony of the merchant.

If the merchant limits its exhibition to the risk concerning 2 % of its account size, then it is possible to avoid any insidious problem. It is advised the beginners to begin for centring its attention in improving its skills faced to the reduction of the losses.

Binary Options: One Touch system

If you've read or heard vaguely about the One Touch system in binary options, your first thought was: "big money". And certainly it is. The One Touch system is one that provides greater profitability within the binary options platforms. But here I'll tell you in detail, how the One Touch system works and what are its advantages and disadvantages. Voucher?

Knowing the One Touch

One Touch binary options have their name as well: you need only the trend has "a touch" for your line bet, upward or downward. For example, we have a tendency worth 1.0035 and One Touch bet tells you to win the upside should be on 1.0065 or higher, and low in 1.0005 or less. How do you win? Well, if you invest upwards, you should expect the trend comes, at least once, to the line bet. No matter if at the end of the option is lower. If at least once makes it to the limit of the One Touch, you have won.

Earn money with One Touch

Usually, One Touch binary options allow you to invest longer term. Thus, the upward bet on a Monday in One Touch, have until Friday to reach the level your tendency you bet. Thus there are many possibilities of profit. And that talk: profits.

The One Touch offer yields that range in 500% for every bet made. Imagine: $ 100 in a week becomes $ 500. Ready to invest in One Touch?

60 Seconds binary options

Type of binary options trading is the choice of 60 seconds - lend guys attention, because this is where the whole point is. Today, everyone talks of operations 60 seconds and in no way going to leave them out of this article. You might be wondering, "What exactly is trading 60 seconds?" And to tell how much hype? These questions will be answered now.

Here goes: 60 seconds options are really options UP / DOWN with maturities of 60 seconds (pretty simple, right?). Select UP (UP or Call) and expiration (60 seconds later), if the price is higher than it was when I opened the operation, I won the negotiation and receive performance. The opposite to DOWN (DOWN or Put). Yes, that's it, but we will see what are the pros and cons of this type of option is.

Why they are and are not terrible options "60 seconds"?

This is a difficult question to answer because it really comes down to the mentality that has the trader. Some investors like to be quickly in and out of the market, and need to see the result of their operations immediately, without waiting countless hours until maturity are met. From this perspective, the 60-second options are the next best option after the hot water and electricity, and this is one reason behind so much hype. I mean, I barely have time to put my negotiation and the result is shown here fast. Imagine how many operations can be performed during trading hours if you know the result of the operation in just a minute. These are the main reasons why investors happy love this type of binary option.

But the same things that make them great, can lead to a disadvantage: because we keep operating just for a minute, technical analysis (even the most advanced operators) becomes very difficult to implement. It is almost impossible to determine how prices behave in the next 60 seconds using support, resistance, divergence or technical analysis tool. Well, are not the Holy Grail, but if you do not like the stress that comes from a long period of maturity and need to constantly feel the excitement of being in the market, operations with 60 seconds options are definitely the way to follow.

Lately, we have seen more and more types of binary options available for trading. Sometimes it can be confusing, especially for a new investor in binary options. Brokers tend generally do a good job explaining the differences between the types of options, but unfortunately sometimes lacking explanations simple enough, and most of the time tell us only care about how much money we will win, instead of telling us how to do it. That is why it seems appropriate to explain the main types of binary options in a simple and easy to understand, and of course, using images to it. We all know that a picture is worth a thousand words. So let the matter on track and start with the most common type of options, known as UP / DOWN (also called English UP / DOWN, HIGH / LOW, Above / Below or CALL / PUT).

Options UP / DOWN

These are simple: only need the expiration price is higher or lower than the initial purchase price of the option (the price of the asset on which the purchase agreement is based), depending on the mode you select ( up or down). It's that simple. If I select UP (UP or Call) and the expiry price is even higher pip only the price that I opened the transaction, won 100% of the specified performance. If I select DOWN (DOWN or Put) and the price of maturity, even a lower price pip with which I opened (the entry price of the option), won all the performance. Here's an image that exemplifies an operation with a type of negotiation UP (UP or Call):

The price was opened up after the negotiation and I managed to stay above at the time of maturity: Cling! Let's box!

Binary Options "UP / DOWN" Conclusion in 50 words

I will not discuss whether this type of negotiation is terrible because you should know when to use it, so you will avoid unpleasant surprises and to meet the "smelly" factor that can have this type of transacciones.Todos types of binary operations have a certain market condition and work best with options UP / DOWN, the market trend is the best. Look at the picture above, the UP option was used in an uptrend. If you trade with the trend, you will be on the safe side and the likelihood that the operation is a success will increase dramatically. If the market is oscillating, use another type of option.

UP / DOWN summary:

ABOVE: wins if the expiration price is higher than the opening price
DOWN: wins if the expiration price is lower than the opening price

When to use:
in a market trend

Options ONE TOUCH / NOT TOUCH

When ONE TOUCH option (in Spanish, a touch) bet that the price will touch a certain level before maturity is used. We just need the price range (touch) the level once, until maturity, and no matter where the price go once you've reached our marked price, because our operation has already resulted winner. For NOT TOUCH option (in Spanish, Lockers), the opposite applies: we will receive 100% return if the price does not touch the predetermined level. Here we can see the picture:

My target price (the red line) was hit (touched) before the end so I get paid performance. For a negotiation NOT TOUCH I need the price section is maintained and never reach my default until maturity level. Although ONE TOUCH operation do not have to wait at maturity (if the target price is reached before the negotiation is over for me as I have gained in the operation), in a negotiation NOT TOUCH I expect the maturity to see if the target price will be reached or not.

Binary Options "ONE TOUCH / NOT TOUCH" Conclusion in 50 words
Such options are not a bad choice when you are unsure about the sustainability of a given level. For example, if you think that is forming a potential Double Top (two consecutive peaks of similar height), then you can use a choice of ONE TOUCH. When volatility is low, you can use an option NOT TOUCH, when it is assumed that the price will not reach the target price. However, do not use options NOT TOUCH after prolonged periods of low volatility, because a sudden and sharp movement may occur after periods of this type. We all know that the Asian session is fairly quiet so a choice NOT TOUCH probably will not be a bad choice.

ONE TOUCH / NOT TOUCH summary:

ONE TOUCH: wins if the price hits the target price before maturity.
DO NOT TOUCH: wins if the price does not touch the target price before maturity.

When to use:
Use ONE TOUCH if you think a certain level will be reached, but is not sure if the price will remain above / below that level.

Use NOT TOUCH in quiet market conditions (the Asian session is known to be slow motion). You can also use the NOT TOUCH option to the short side in a strong uptrend or the long side, in a downtrend. The idea behind this use of the option is that the price will not move against a clear trend enough to touch our price range.

IN / OUT or BOUNDARY (limit or range)
When the "IN" option is used, the trader expects the price to move between an upper and lower (fixed limit) level within the maturity. Let me give you an example: EUR / USD is currently trading at 1.2000. Assume that the upper limit is set at 1.2050 and the lower limit is set at 1.1950 and chose "IN". If at the expiry, the EUR / USD is trading at anywhere between 1.1950 and 1.2050, we received performance by this operation.

For a "OUT" negotiation, we need the close price, of course, outside the limits marcados.Eche out the image below to see an operation range (or Boundary limits). Note that this is an example of negotiation "IN" (we need the price is within the limits when the expiration occurs):

We see that even sweating, when the price went lower limit just before maturity, and then return to the limits, finally we got the much-needed performance. The "OUT" negotiation requires that the price is out of bounds to win. Such options IN / OUT are presented under different names, such as Boundary (in Spanish, limit), Range (range) or Zone (zone).

Binary Options "IN / OUT" / limit / range. Conclusion in 50 words
The most important skill for binary options, currencies, commodities or any type of operation is to correctly identify the type of market that trades in a given time. A "IN" option will be terrible on a fast market, but at the same time, a "OUT" will not be a bad choice in such markets. The opposite occurs with slow or oscillating market.

IN / OUT summary:
"IN" wins: at the time of maturity, the price is within the limits
"OUT" wins: at the time of maturity, the price is out of bounds

When to use:
Use an "IN" swing trading during periods without clear trends or during quiet session.

Use an "OUT" negotiation with strong trends, after a setback and during periods of high volatility. In these periods it is unlikely that the price remains confined within limits.

You can invest like the rich

In the world of investing in the stock markets there are many stereotypes belief for many small and medium investors or potential participants in the parks on that, people who have a lot of money are always invest high financial risk technically sophisticated, highly diversified money-wise or lack of control in their quest to win every day.

Nothing is further from reality, but the lifestyle of some of the lucky millionaires seem to be unaware of their investments is not normally put their trust in professional managers to properly advise them when placing part of that capital Exchange markets, including financial assets (diversification), which can generate them higher profits in its entire investment plan. For if they know how to maintain or increase their capital ... Why can not we try to imitate their operational ... Here are some useful tips to follow in the successful footsteps of the rich better advised?:

Knowing how much we are willing to lose: The main idea of ​​the new investor is always to win, but often lose touch inverter mistake. It is essential to know from the beginning before it is invested how much money we are willing to lose, without it, a serious risk or heavy damage to our own personal finances. We must remember that: "A major benefit will always accompany increased financial risk".
Search the stock bargain: It is very difficult to succeed in buying shares of a new company, which is triggered months in the stock price and multiply your returns by providing (for example technological Amazon, Twitter, Google ... etc type.) several digits. Normal for the rich is to choose good companies with a profitable business, with favorable prognosis of future profits continue to generate new businesses or the park where the share price in relation to its business activity compensate them the risk-return.

FEES, ADVERTISING AND PSYCHOLOGY INVERSORA

Knowledge and comparison of fees we can charge for different financial services are emphasized when referring to stock investing, wealthy investors often seek the lowest costs in the diversification of its assets. Great cost in fees does not guarantee higher yields for investors. Likewise, the fact that the media made "promotional campaigns" of some listed companies or certain securities industry does not imply that they are better than others to invest there periodically in times of strong advertising market pressure on the Prospective investors (as an example remember the near Bankia case).

Finally, investor psychology and teaching reminds us that while rich people can afford to support superior to other more modest investors monetary losses, emotional attitude and mood do not understand numbers, so for a lucky millionaire can assume pass on "bad nights" with losses of 10% of capital invested, small investors may get it lost 3% of their money. Being possessing more money than the average population, have no excuse psychological, emotional and personal problems have to take stock losses.

Having more money is never a safe investment success, so if you are a small investor can make a good investment plan and follow the previous strategy marked before investing in the stock market in a disciplined and responsible ... "You can invest as the rich".

Calculations

Calculation of Binary Options expiration rates

Many regulated in binary option brokers have a part of their binary option trading platform dedicated to "expiration rate". Some also call it "time-outs" or "expiry level". This is the official rate when the various binary options reach maturity.
Not to lie to the traders, binary option broker regulated based on data of the largest flow providers such as Reuters or Bloomberg. This is particularly true of, which is based on the official courses provided by Reuters or Bloomberg to determine the rate at expiration time T. Is known that the most trading platforms also use the same streams.

Calculation of expiration rate in binary option

However, in financial markets, there is no "real" price for an asset, but still a fork (bid/ask) with a purchase price and sales price. In relation to this, it is the broker who will choose the formula for calculating the expiry level of the binary option. Some use the simple formula: [bid + ask] / 2 (= the middle of spread).

Which is easier? Forex or Binary Options?

Is Binary Option easier than Forex?

When one is not familiar with the financial markets, it is legitimate to ask whether the binary option is easier than forex or not. From a purely theoretical point of view, yes the binary option is easier to understand. Indeed, the description of this financial instrument  is very clear and the potential gains are fixed from the start. For forex, gains are not set at the beginning, and there is no date. In short, there is much to appreciate the binary option for the fact that it is much easier to deal with (the 4 parameters are set in advance: management, amount, maturity and potential gain), while the forex remains unclear.

Binary Option is easier than forex

The definition of the binary option is easy to understand

For those who want to get into the financial markets, the binary option is ideal because it is simple to understand. No need to have trading concepts, the product is easy to handle. However, we must not overlook the risks around it. If the investor has the wrong direction, it loses all of his stake. However, again, it is less risky than the forex that can potentially lose more than what you invested.
In all cases, the comparison between forex and binary option  goes in the direction of the former. This is also why it is gaining much popularity in recent times, while the foreign exchange market loses in number of active traders. It is also one of the reasons why forex brokers gently to launch the binary option, particularly on the rise. However, the pure players have gone already so far ahead so it will be difficult for foreign exchange brokers to corner the market.