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How To Trade On Binary Options For Beginners

Trade On Binary Options

To make this simple, imagine you are getting ready for a trip to New York and you exchange 500 Euros into Dollars. A week later, your trip is unfortunately cancelled and you decide to change your Dollars back into Euros. Surprisingly, you end up with 505 Euros: a profit of 5 Euros! This is known as a profitable foreign exchange trade. You initially purchased Dollars at a certain rate of exchange and during the week that followed, the value of the Dollar went up against the value of the Euro. Without even meaning to do so, you managed to make a small profit as you bought your Dollars at a low rate and sold them back at a higher rate – the aim of any successful trade. One of the most efficient methods for learning to trade is learning market and trading basics. A solid understanding of the basics provides the foundation that will support your entire career. This first level of knowledge is required before more advanced trading information can be successfully implemented. Books on trading found at your local bookstore or reputable trading websites can provide you with all the trading basics you need at a relatively low cost or no cost. The basics include all of the factual information about trading, such as: What markets to trade How prices move (bid and ask prices) Order Types and how to place them Risk management Trading hours How to monitor trading performance How much capital is required to trade efficiently Trading basics are typically factual in nature, and there isn’t much subjectivity. One information source may say to start currency or forex trading with at least $500, while another source may say to start with at least $1,000. One source isn’t necessarily right or wrong . but may be bias. The amount you trade with isn’t necessarily an important factor especially when there are regulated brokers that allow deposits as low as $10 along with demo accounts that allow you to develop your strategies, Build your portfolio to progress to a steady income with next to no risk. The exchanges themselves provide traders with most of the market basics. For example, the New York Stock Exchange and NASDAQ provide educational resources on how the stock market operates through the main menus on their websites. The Chicago Mercantile Exchange does this for futures and the Chicago Board Options Exchange does the same for those wanting to learn about options trading.


Top 10 Rules For Successful Trading

RESEARCH ON BINARY OPTION

Most people who are interested in learning how to become profitable traders need only spend a few minutes online before reading such phrases as "plan your trade; trade your plan" and "keep your losses to a minimum." For new traders, these tidbits of information can seem more like a distraction than any actionable advice. New traders often just want to know how to set up their charts so they can hurry up and make money. To be successful in trading, one needs to understand the importance of and adhere to a set of tried-and-true rules that have guided all types of traders, with a variety of trading account sizes. Each rule alone is important, but when they work together the effects are strong. Trading with these rules can greatly increase the odds of succeeding in the markets.
KEY TAKEAWAYS
Day trading is only profitable when traders take it seriously and do their research. Day trading is a job, not a hobby or passing fad of a pastime. Treat it as such—be diligent, focused, objective, and detach emotions. Here we provide some basic tips and know-how to become a successful day trader.
Rule 1: Always Use a Trading Plan
A trading plan is a written set of rules that specifies a trader's entry, exit and money management criteria. Using a trading plan allows traders to do this, although it is a time-consuming endeavor. With today's technology, it is easy to test a trading idea before risking real money. Known as backtesting, this practice applies trading ideas to historical data, allows traders to determine if a trading plan is viable, and also shows the expectancy of the plan's logic. Once a plan has been developed and backtesting shows good results, the plan can be used in real trading. The key here is to stick to the plan. Taking trades outside of the trading plan, even if they turn out to be winners, is considered poor trading and destroys any expectancy the plan may have had. 2:12 Jack Schwager: Investopedia Profile
Rule 2: Treat Trading Like a Business
In order to be successful, one must approach trading as a full- or part-time business—not as a hobby or a job. As a hobby, where no real commitment to learning is made, trading can be very expensive. As a job, it can be frustrating since there is no regular paycheck. Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a trader, you are essentially a small business owner and must do your research and strategize to maximize your business's potential.
Rule 3: Use Technology to Your Advantage
Trading is a competitive business, and it's safe to assume the person sitting on the other side of a trade is taking full advantage of technology. Charting platforms allow traders an infinite variety of methods for viewing and analyzing the markets. Backtesting an idea on historical data prior to risking any cash can save a trading account, not to mention stress and frustration. Getting market updates with smartphones allows us to monitor trades virtually anywhere. Even technology that today we take for granted, like high-speed internet connections, can greatly increase trading performance. Using technology to your advantage, and keeping current with available technological advances, can be fun and rewarding in trading.
Rule 4: Protect Your Trading Capital
Saving money to fund a trading account can take a long time and much effort. It can be even more difficult (or impossible) the next time around. It is important to note that protecting your trading capital is not synonymous with not having any losing trades. All traders have losing trades; that is part of the business. Protecting capital entails not taking any unnecessary risks and doing everything you can to preserve your trading business.
Rule 5: Become a Student of the Markets
Think of it as continuing education—traders need to remain focused on learning more each day. Since many concepts carry prerequisite knowledge, it is important to remember that understanding the markets, and all of their intricacies, is an ongoing, lifelong process. Hard research allows traders to learn the facts, like what the different economic reports mean. Focus and observation allow traders to gain instinct and learn the nuances; this is what helps traders understand how those economic reports affect the market they are trading. World politics, events, economies—even the weather—all have an impact on the markets. The market environment is dynamic. The more traders understand the past and current markets, the better prepared they will be to face the future.
Rule 6: Risk Only What You Can Afford to Lose
Rule No.4 mentions that funding a trading account can be a long process. Before a trader begins using real cash, it is imperative that all of the money in the account be truly expendable. If it's not, the trader should keep saving until it is. It should go without saying that the money in a trading account should not be allocated for the kids' college tuition or paying the mortgage. Traders must never allow themselves to think they are simply "borrowing" money from these other important obligations. One must be prepared to lose all the money allocated to a trading account. Losing money is traumatic enough; it is even more so if it is capital that should have never been risked, to begin with.
Rule 7: Develop a Trading Methodology Based on Facts
Taking the time to develop a sound trading methodology is worth the effort. It may be tempting to believe in the "so easy it's like printing money" trading scams that are prevalent on the internet. But facts, not emotions or hope, should be the inspiration behind developing a trading plan. Traders who are not in a hurry to learn typically have an easier time sifting through all of the information available on the internet. Consider this: if you were to start a new career, more than likely you would need to study at a college or university for at least a year or two before you were qualified to even apply for a position in the new field. Expect that learning how to trade demands at least the same amount of time and factually driven research and study.
Rule 8: Always Use a Stop Loss
A stop loss is a predetermined amount of risk that a trader is willing to accept with each trade. The stop loss can be either a dollar amount or percentage, but either way it limits the trader's exposure during a trade. Using a stop loss can take some of the emotion out of trading since we know that we will only lose X amount on any given trade. Ignoring a stop loss, even if it leads to a winning trade, is bad practice. Exiting with a stop loss, and thereby having a losing trade, is still good trading if it falls within the trading plan's rules. While the preference is to exit all trades with a profit, it is not realistic. Using a protective stop loss helps ensure that our losses and our risk are limited.
Rule 9: Know When to Stop Trading
There are two reasons to stop trading: an ineffective trading plan, and an ineffective trader. An ineffective trading plan shows much greater losses than anticipated in historical testing. Markets may have changed, volatility within a certain trading instrument may have lessened, or the trading plan simply is not performing as well as expected. One will benefit from remaining unemotional and businesslike. It might be time to reevaluate the trading plan and make a few changes or to start over with a new trading plan. An unsuccessful trading plan is a problem that needs to be solved. It is not necessarily the end of the trading business. An ineffective trader is one who is unable to follow his or her trading plan. External stressors, poor habits and lack of physical activity can all contribute to this problem. A trader who is not in peak condition for trading should consider a break to deal with any personal problems, be it health or stress or anything else that prohibits the trader from being effective. After any difficulties and challenges have been dealt with, the trader can resume.
Rule 10: Keep Trading in Perspective
It is important to stay focused on the big picture when trading. A losing trade should not surprise us—it is a part of trading. Likewise, a winning trade is just one step along the path to profitable trading. It is the cumulative profits that make a difference. Once a trader accepts wins and losses as part of the business, emotions will have less of an effect on trading performance. That is not to say that we cannot be excited about a particularly fruitful trade, but we must keep in mind that a losing trade is not far off. Setting realistic goals is an essential part of keeping trading in perspective. If a trader has a small trading account, he or she should not expect to pull in huge returns. A 10% return on a $10,000 account is quite different than a 10% return on a $1,000,000 trading account. Work with what you have, and remain sensible.
Conclusion
Understanding the importance of each of these trading rules, and how they work together, can help traders establish a viable trading business. Trading is hard work, and traders who have the discipline and patience to follow these rules can increase their odds of success in a very competitive arena. (For related reading, see "20 Rules Followed by Professional Traders")


10$ to 124$ in 5 minutes - IQ Option Live Trades Starting With Only $10

IQ Option Live Trades Starting With Only $10

1.Trade with money you can afford to lose.
Traders have invest little capital and make big money they’re saving for retirement or another long-term goal. Make sure your invest money is not actually going to affect your life savings or standard of living because you can loose or gain it . It’s not absolutely forbidden to use this money occasionally for a day trade, but the odds should be very high in your favor.
2. Be patient
Paradoxical though it may seem, successful day traders often don’t trade every day. They may be in the market, at their computer, but if they don’t see any opportunities that meet their criteria they will not execute a trade that day. That’s a lot better than going against your own best judgment out of an impatient desire to “just do something.” Plan your trades, then trade your plan.
3. Be disciplined
Again, you need to set a trading plan and stick to it. If you’re trading on your own, impulsive behavior can be your worst enemy. Greed can keep you invest in trades that do not seem promising enough. Don’t expect to get rich on a single trade.
4. Don’t be afraid to push the button
Novice day traders often face “paralysis by analysis” because they get wrapped up in watching the candles on their screen and can’t act quickly when opportunity presents itself. If you’re disciplined and work your plan, actually placing the order should be automatic.
5. Never risk too much capital on one trade
Set a percentage of your total day trading budget (which might be anywhere from 2% to 10%, depending on how much money you have) and don’t allow the size of your position to exceed it. Otherwise, you may miss out on an even better opportunity in the market.
6. Don’t second-guess yourself, but do learn from experience
Every day trader has losses, so don’t kick yourself when the occasional trade doesn’t go your way. Do, however, confirm that you followed your rules-based strategy and didn’t get in or out at the wrong time. Also here are our TUTORIALS, we know that only a quarter of traders watch them, so please do not ignore these.



BEGINNER’S GUIDE TO THE TRADING PLATFORM

METATRADER 4 – A METAQUOTES SOFTWARE PRODUCT

Any beginner’s guide to Metatrader 4 starts with understanding Forex trading. Forex comes from foreign exchange. This is the most liquid and largest market in the world. Players of all types exchange hands for various reasons. Some look to profit from currencies’ fluctuation. So-called traders, they buy and sell in the hope prices will rise or fall. Some others merely execute a mandate. For instance, in the case of a cross-border merger or acquisition, the buyer pays for the goods in the seller’s currency. Hence, the buyer sells its currency in exchange for the other one. Finally, there are commercial and central banks. Commercial banks execute clients’ order. When you change a hundred Euro in USD or the other way around, you instruct your bank to make the exchange. That happens in the same arena: foreign exchange. Central banks, on the other hand, play with a different purpose in mind. Aiming for price stability and targeting inflation, they stir the monetary policy to stimulate economic growth. Setting monetary policy is one thing. Implementing the changes is another. Hence, there are trading departments in charge of implementing the measures. When central banks buy bonds under quantitative easing programs, who’s doing the buying? Effectively? The central banks via their trading desks. These players or market participants act as buyers and sellers on the same market. Also called the interbank market, it became available to retail traders only recently. More precisely, a bit more than a decade ago, brokers spotted the opportunity of the online environment brings to trading. From this to online trading was only a small step forward. With the help of leverage, any retail trader buys and sells directly on the interbank market. Only about ten or more years ago this was a dream. Today, it is a reality.
BEGINNER’S GUIDE TO THE TRADING PLATFORM
Before traders open a Forex account with a Forex broker, they check the offering. Account types, regulation, trading conditions, and trading platforms, mobile trading availability, are only a few elements. The Metatrader 4 is the first choice as a trading platform. And, for good reasons. One is that almost every retail foreign exchange speculative trader knows it. And, even if not, the majority of indicators to find for free on the Internet belong to the Metatrader 4 platform. Plus, most trading strategies explained over the Internet use the Metatrader 4. But what is this platform? Is there a beginner’s guide to using it?
METATRADER 4 – A METAQUOTES SOFTWARE PRODUCT
Launched in 2005, the Forex metatrader platform belongs to the MetaQuotes Software company. It company licenses the software to Forex brokers. Brokers, in turn, provide it to the clients that open a Forex account. It comes with two sequences: one for the broker and one for the actual traders. The server component belongs to the broker, naturally. Traders use the platform to monitor live prices, buy and sell at market or use pending orders, and so on. The ease of opening a demo Forex account makes the platform the first choice among traders. All you need is an email address, fill in some personal data, download the software, and off you go. A demo account mimics a live one. However, before traders open Forex account and fund it, a demo one serves its purpose. It helps traders learning the features. The Metatrader 4 or the MT4 is a version that followed other attempts by the same company to build a performant trading platform. Despite the developing of the MT5, the Metatrader 4 remains the number one choice. We’ll explain later why. Because brokers don’t need to invest anything in the Metatrader 4 as they just license it, it is the first choice for them too. Moreover, the MetaQuotes company offers each broker the opportunity to brand the platform.
BEGINNER’S GUIDE TO A TRADING ACCOUNT OPENING
Firstly, the trader must choose the Forex broker. There are so many of them competing for the same traders, that it’s impossible not to find one. Usually, the one that advertises the most isn’t the best pick. In any case, traders make sure to check the following: regulation – when the broker complies with the rules established by a financial authority, the broker’s and trader’s interests align funds segregation – the broker can’t use the funds in the day-to-day activities trading accounts – types of accounts offered – the more, the better server time – where are the servers – time zone and implications for the Metatrader 4 minimum trading conditions – minimum funds to deposit, minimum and maximum leverage offering – nowadays currency pairs are only one part of a broker’s offering – the more, the better technology – STP (Straight Through Processing) or ECN (Electronic Communication Network) Secondly, the account opening process continues with downloading the Metatrader 4 platform. The software promptly asks for the login data, and off you go to the interbank market. The first impact on novice retail traders is that this is a video game. All the numbers changing values, sometimes faster, sometimes slower, give the impression that this is a game. It may be one, but an expensive one to find out how it works if unprepared for it.
CUSTOMIZING A CHART IN METATRADER 4
One of the benefits a trading platform brings is that traders can use technical analysis. That is the number of trading tools, indicators (oscillators and trend ones), trading theories, that helps to forecast future prices. For that, traders open one or more charts corresponding to one or more currency pairs. Initially, a chart looks like this: How to Open a Forex Account However, with a simple right-click the Metatrader 4 platform allows traders to customize it any way they like. Just choose from the Properties, and by changing the colors and settings it may look like the example below, helping one to analyze a currency pair: Metatrader 4 for Beginners Traders can write on a chart, draw lines, channels, use Fibonacci, change colors, etc. Simply put, there’s no limitation to the degree one can customize a Metatrader 4 chart.
IMPORTING A CUSTOM INDICATOR
The trading platform comes with default indicators. Some oscillators, some trend indicators, basically the standard offering is there for the retail trader. However, technical analysis evolved and changes all the time. New ideas, new strategies, and new indicators appear. Custom ones. How to use them on your trading platform? Nothing more natural: import them. The Metatrader 4, like any software, exists somewhere on the PC (Personal Computer). By using the “Open data folder” option from the File tab in the main menu, traders easily find the trading platform’s location. Just place the new indicator in the Indicators tab, close the Metatrader 4 for the changes to take place, open it again, and the indicator is there to use under the Custom Indicators tab. The same process works when importing an Expert Advisor, for example.
AUTOMATED TRADING WITH METATRADER 4
Speaking of an Expert Advisor, this is a robot or a computer program. Also called a trading algorithm, or merely a bot, it buys and sells according to instructions. Any beginner’s guide to the MT4 platform must talk about auto-trading. The Metatrader 4 was one of the first platforms to give retail traders the possibility to run automated trading. It became so popular that today’s trading is over eighty percent automated. The Auto Trading option available on the Metatrader 4 offers automated trading with a simple click. First, traders upload the Expert Advisor. By the way, to build one, the platform offers the MetaQuotes Language Editor (under the Tools option in the main menu). This unique program gives traders the possibility to code their own strategy and wrap it up into a robot. Or, indicator. Second, traders use the Strategy Tester. This tool tests the strategy on historical prices. After all, it is essential to check the chances of any trading strategy to make money in the future. How come? Because trading is a game of probabilities, chances are it’ll make money if it did so in the past. Instead of using manual testing, the tester does that very fast, providing a clear statement of past performance.
TYPES OF TRADING ORDERS
Trading orders belong to automated trading too. All traders know that having a stop loss is mandatory. It helps contain the risk in a trading account. Also, a take profit defines the reward. Or, the target. Hence, after buying or selling a currency pair, the stop loss and the take profit levels contain the price action. Once the price reaches them, the Metatrader 4 executes them automatically. This beginners guide to Metatrader 4 can’t skip the ways to place a trade. This is done either: at the market – traders buy or sell at current prices, with the Metatrader 4 executing the order right away using a pending buy stop order – buying takes place from higher prices than the current ones using a pending sell stop order – selling takes place only if the price reaches lower levels than the current ones placing a pending buy limit order – buying takes place only when and if the price falls first to the desired entry level placing a pending sell limit order – selling takes place from higher prices
WHAT MAKES A TRADING ACCOUNT?
More precisely, we should ask what is Forex through the eyes of a trading platform? That is, we must understand a trading account’s elements. Balance is the first. When traders deposit funds, this is where it goes. In the balance, which will stay unchanged until a trade is open. A beginner’s guide through the elements of a trading account starts with the balance and ends with the leverage. And, margin. Moreover, in the middle, the equity of an account plays the leading role. It shows the true value of a trading account at any moment in time. For this reason, the balance misleads traders. Traders should focus on the equity in the Metatrader 4 account, rather than on balance. Furthermore, the leverage dictates the margin available and the percentage required for a trade. One separate warning here should make traders aware than the margin differs for various currency pairs. Namely, trading some pairs requires more margin than others. For instance, the NZD (New Zealand Dollar) pairs block less margin than Euro one.
TIPS AND TRICKS WHEN USING THE METATRADER 4 PLATFORM
The Metatrader 4 has so many features it is impossible to cover them all in this article. Instead, we emphasized the most important ones. However, there are still some tips and tricks to use when trading with the Metatrader 4, like: save templates – after customizing a chart, editing indicators, building a strategy, right click on it, and choose the option to save the template. From that moment on, on any new chart, just load the template, and the setup appears instantly. use profiles – the platform comes with the default profile, but traders can change the name, and save as many profiles as intended. What is this good for? Well, one minor thing comes to mind: when changing the broker, just copy the profile and upload it into the new broker’s Metatrader 4 It’ll spare you of plenty of extra work. under the Tools and Options tab from the main menu, make sure you choose the “Select object by single mouse click.” This small trick will save you one click every time selecting an object, which will get you a long way on the day-to-day use of the Metatrader 4 use the CTRL + click option to copy any object on the Metatrader 4. Again, it’ll spare a lot of time when using the platform extensively.
METATRADER 4 LIMITATIONS
In some parts of the world, the financial authorities imposed strict regulations to protect the retail trader further. The best example comes from the United States. The SEC (Security and Exchange Commission) imposed a FIFO (First In First Out) order for all trades. And, it banned hedging. Instead of adapting the Metatrader 4 to the new U.S. requirements, a new version appeared. The MT5. The two are the main differences between the platforms, and anything else is pretty much similar.
CONCLUSION
For a beginner’s guide for using the Metatrader 4 platform, this one turned out to be quite complete. It covers everything a trader needs to know, from the opening of a Forex account to the actual trading. Still, there’s more to add. Every function mentioned here has more to it than what we’ve covered. For instance, the automated trading with Expert Advisors needs further explanations. Traders face numerous challenges when placing and trading with a robot. However, they aren’t necessarily Metatrader 4 related. Instead, traders need to know they can address them from inside the platform. Again, this beginner’s guide aimed at showing the importance of the Metatrader 4 platform in today’s online retail trading. No other trading platform offers such versatility and functionality like it today. Perhaps the future will see a new platform rising to challenge the Metatrader 4’s dominance. Until then, this beginner’s guide meant to ignite curiosity in the retail Forex traders in start searching for the features mentioned. In time, you’ll find out that all the other available trading platforms got inspired from the Metatrader 4. And, for a good reason, as it represents a benchmark in the industry.