Spread betting and binary options trading are very similar in concept. Both involve making predictions on price movements. Both also involve trading financial instruments based upon the price movements of their underlying assets. And neither type of trading requires you to actually own the asset on which a given trade is based.
READ MOREThere is a fascinating phenomenon in the field of human psychology known as “loss aversion.” Loss aversion is in part exactly what it sounds like. It is the tendency which we all have to avoid loss—but it is a little more complex than that. When we experience loss aversion, we are willing to trade a chance at substantial gains for a chance to simply avoid a loss.
READ MOREAs you get into binary options trading and start building up a strong set of skills and techniques, you are actually opening a number of doors to possible career pathways. You can trade for yourself (the default option), but that is not the only option you have. Another alternative is to consider trading for a firm. This is known as proprietary trading, or “prop” trading for short. A lot of people talk about proprietary trading, but not a lot of people know much about it.
READ MOREPreviously, I talked about how to write a great binary options blog, and what goes into posting quality entries. Some people love to blog, and the idea of sharing their binary options journey with the world is an exciting one. For others, however, it may beg the question. Why would you want to share an experience online that is potentially quite painful and embarrassing? After all, it is often a struggle of years to generate any success as a trader. Why would you want to showcase your failures to the entire universe?
READ MOREBeen trading binary options for a while without achieving the results you were hoping for? Most traders who do become successful do so after struggling for a while to get there, so it is not necessarily a bad sign that you are having difficulties. Success is a challenge and nobody makes it overnight. What is holding you back from success? Oftentimes it is actually mistakes that you are making. Could you be standing in your own way? Here are 5 common mistakes that traders make which hold them back.
READ MOREOne valuable tool which you can use to keep track of your binary trading decisions and outcomes and also plan for the future is a trading blog. A trading blog is basically the same thing as a trading journal, except that you are keeping it in the public eye. Some trading blogs become very popular resources for traders who are learning or teaching. So writing a trading blog is in essence also a community service. Not only are you helping yourself, but you are helping others by making your experiences public and sharing your learning process. A trading blog also gives you the additional accountability which comes with public exposure. So how do you write a good one?
READ MOREPrior to this year, I do not recall seeing any binary options brokers offering trades much longer than several days, and very few brokers even offering that. Almost all brokers for binary options have made it their specialty to offer trades which take place within a single day. Now, however, I am noticing a lot more brokers that allow traders to enter into positions for several days. And some are even offering special “long-term binary options.” Long-term binary options are the exact opposite of short-term binary options. Whereas short-term options expire within a couple of minutes or less, long-term trades may expire weeks or even months in the future. Should you trade these long-term options? What are the benefits and drawbacks?
READ MOREAre you a full-time employee working during the day and trying to somehow squeeze in a secondary career as a binary options trader around your work hours? Learn to balance your trading life here. If so, you are very much in the same position as most other traders. Very few people are able to immediately start trading binary options for a living, both because it is not that easy to learn to trade profitably, and because most people do not have the money it takes to fund a life and a trading account without a full-time job.
READ MOREI ran across a thread with a similar title to this on a Forex forum, and I thought it was a good topic to discuss. When you are first embarking on your binary options adventure, the last thing you probably want to think about is quitting, but it is important to set some kind of guidelines for quitting, because in many ways, your treatment of this topic determines what you are in the market for. It is a good way to analyze your motivations for trading and your end goals.
READ MOREWith binary options, unlike other types of trading, you do not necessary have to wait for the market to make a move in order to make money, thanks to options like Range or Boundary trades. Even though this is the case, trends still offer you some of your best opportunities to make a lot of money trading. If you can learn how to identify trends as they are forming, you can get in on the action fast and reap the maximum reward. Let’s talk about the basics of trends and how to trade them.
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