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Binary Options Prophet

mikemike Posts: 12
Hello, my name is Michael Kitt and I’ve written this just for you! That’s right, I once was a newbie Binary Options trader and I made a ton of mistakes that cost me a lot of money and many sleepless nights.

The truth is that it can be tough to learn how to properly trade with Binary Options since they are complex financial instruments that few people can understand. However, if you have a burning desire to be successful and you’re willing to follow good advice, then you can make as much money as you could ever want with Binary Options trading.

Inside of this post I’m going to reveal to you the information you need to be successful. By reading this entire post you’ll be able to begin making profitable trades right from the start. So if you’re ready, let’s dive right in....

What Is Binary Options Trading?

Binary options is a trading vehicle that allows you to escalate your profits at an astronomical pace compared to other day trading avenues. You can also define your risk level with each trade to where you do not have to set any stop losses, etc. You either are successful on your trade or you are unsuccessful, all or nothing.

In order to make profit on any given day, as a general rule you need to be at a 56% win rate on any given day. This is possible and achievable if you have utilize/formulated a solid strategy that nets a high probability in various assets categories.

What About Binary Options Brokers?

Binary option brokers operate and make profit based on your losing trades. They are banking on the 90-95% of unsuccessful traders, and many are hedging against the 5%. Brokers put into place failsafes against successful traders that allow them to discourage profitable traders from trading with their platform. It is very important that you find the right broker to invest your income with, that will be trustworthy with your funds and provide a fair, extensive, and user friendly platform that you can prosper with. Finding a broker of this magnitude is harder than it may seem. With as many brokers there are on the scene, it takes much trial and error to find the broker who is willing to contour to the morality that you would come to expect from a investment company.

Do You Have What It Takes To Be A Successful Binary Options Trader?

When considering being a professional binary options day trader, there are a number of things that need to be taken into account. One is that over 95% of the people who attempt day trading end up failing at it, and losing money. In order for you to overcome the overwhelming obstacles of being in the top 5 percentile, you’re going to have your work cut out for you. Another thing that is very important to note about day trading is that even if you have studied heavily and have figured out a trading strategy that you’ve backtested and live tested to come to the conclusion that it has an incredibly track record of producing profitable trades, you’re going to need to be prepared for that strategy to suddenly stop working altogether, indefinitely.

The market is always changing, and the price action will vary. It is vital that you have multiple strategies at your disposal. However it is likely that there will come a time when you have a trade triggered using one strategy, while at the same time you have a hint at a signal in the opposite direction with another strategy. In such cases, you will become confused, wondering which strategy you should base your trade off of. In reality, when this happens it is better to stay out of making any trades, and wait for a clear signal that doesn’t have any of your other strategies giving you contradictory information.

When it comes down to it, a trader is only as good as his trading strategy and his interpretation of it. The elements of emotions and money management (which can directly relate to your emotions) also come into play.

Bonuses From Binary Options Brokers Exposed

Be extremely careful when considering taking a bonus from one of these binary option brokers. They push these bonuses heavily, some appear to be incredibly lucrative, but with that comes withdrawal requirements that are connected to such arrangements. In most cases, when you deposit a certain amount of money and take a bonus on top of that, you will no longer be able to withdraw even the amount that you deposited initially, let alone the added bonus incentive amount. You may find that you do not like the broker’s platform or may have found some shady exploits that the broker might be putting into play, making you not want to continue to make trades with the broker.

In that case, if you have yet to reach withdrawal requirements, you have no choice but to either trade until you meet the requirement regardless of your feelings about the broker, or forfeit all money that you have in the account. There are two reasons why these brokers offer these bonuses. The one that they would like for you to think is the sole reason is to create a competitive advantage in comparison to other brokers by offering better bonus deals than the others. However, the primary reason for these bonus deals is that the brokers are betting that the trader will deplete his or her account in its entirety before the bonus requirements are ever met. It’s designed to keep the broker’s cash inflow (deposits) at the maximum and their cash outflow (withdrawals) at the minimum.

Comments

  • mikemike Posts: 12
    Reading The Market And Making Binary Options Trades

    In binary options it is not only necessary to be able to have a good read on the market direction, but you also have to know when the market will make these moves, and this is known as timing the market. As a general rule, short term traders and investors time the market, while many longer term investors follow a technique of “time in the market”, where they use fundamental techniques for their picks and directions, such as overall undervaluation or overvaluation of an equity, etc. For binary options, you are far better off operating entirely based on technical analysis.

    There are two ways to build trade volume while trading your account, high frequency and low frequency trading. You can make a multitude of trades throughout the day or week, utilizing only a small percentage of your trading account, with the goal in mind to achieve a high enough consistency that will enable to you have profits at the end of the day or week. This method of trading can be good, but it is important to be conscious of your consistency level when you are making many trades throughout the week. An excessive amount of trades would be in the range of 15-25 trades on a daily basis.

    The other way to build trade volume, which I recommend over the former is to make trades at low frequency, utilizing a slightly higher percentage of your account balance, but placing trades that are on the highest end of your probability spectrum. Know that when you take a trade and it loses, you are then forced to have 2 successful trades in a row just to recuperate that one loss. It is better to aim at having the fewest amount of losses possible, so that you are not spending the majority of your time attempting to come out of a deficit. If you are trading at high probability while maintaining a high frequency, then by all means you should continue to take a large amount of trades throughout the day, but I warn that this combination will not last long. When a person starts trading at a high frequency it can become habitual, and harder for that person to settle down when the market is not working in their favor.

    Sustaining Long Term Profits With Binary Options Trading

    In order to sustain continued longevity in the marketplace, one must employ a low frequency trading methodology. It is imperative that a trader take the best trades possible based on their trading setups, and remove all emotional attachment to the trades. If you are only making 2 trades in one week, both of them successful, you break even with the guy who is making 100 trades a week and winning 60 of them, depending on your investment per trade.

    Lets say you take only the highest probability setup you have and land in the money twice on $500 trades at an 80% profit return. The other guy is making 100 $100 trades in that same time period. You both net a $800 profit, but the person with only 2 trades has greater piece of mind, knowing that he only took trades that he was confident with, and was never in the hole in the process of getting his returns. If you are waiting for superior trade setups, it is only logical that you invest more when they occur.

    Hitting The Limit Of Normal Binary Options Chart Setups

    At some point you’re going to exhaust yourself trying so hard to keep abreast of the ever-changing market conditions. If you have multiple strategies using multiple chart setups, you will very regularly have conflicting trade signals that seem to never be in agreement. The more different strategies you have, the more confusing it becomes, and you are left in a quandary. What you will ultimately need if you want to have prolonged success in binary options or in any day trading form is a streamlined method of trading that can be used in all market conditions. You want to have a chart setup that will consistently give you high probability trading triggers/signals regardless of how the market has been performing that day or month.

    Developing a chart setup of this nature is far easier said than done. It takes many hours of painstaking chart reading and analysis done over the course of years and fine tuned again and again for maximum accuracy to get a chart setup with a constant probability of over 60%. However, after much work and many sleepless nights, I have developed a proven system with a consistent probability of over 75%.
  • binaryoptionsnetbinaryoptionsnet Posts: 135 admin
    edited July 2013
    Mike, you the man! Epic post.
  • mifunemifune Posts: 159 mod
    Thanks for taking the time to post all that. Once I have the time, I will investigate what you're trading strategy is all about.
  • jclbizjclbiz Posts: 2
    Great posts Mike!!
    jclbiz
  • kct3937kct3937 Posts: 1
    Good informative post Mike. I looked at Marketsworld and didn't see the Touch/No Touch trade options. Did I miss something in your explanation or on their site?
    KCT3937
  • mikemike Posts: 12
    Marketsworld is a good broker, but that's one thing they don't have. You can use Optionsclick, OptionsXO, or another Tech Financials platform if you wanna trade No Touch. I'd recommend 24option if you don't live in the US.
  • BrianBrian Posts: 33
    Thanks Mike, simply brilliant.
  • ajpcasperajpcasper Posts: 8
    This is great, thank youuuu
  • mikemike Posts: 12
    Binary option brokers have gotten a bit smarter on the way they spread their touch/no touch options by the way. I would recommend using that particular technique with Nadex and doing condor spreads, etc. That is what I'm currently preparing to do alongside regular spot binaries.
  • mifunemifune Posts: 159 mod
    mike said:

    Binary option brokers have gotten a bit smarter on the way they spread their touch/no touch options by the way. I would recommend using that particular technique with Nadex and doing condor spreads, etc. That is what I'm currently preparing to do alongside regular spot binaries.

    I've taken fewer than five touch/no touch trades ever since I began trading binaries, but I've noticed that the odds seem to be stacked more against the trader than they used to be.

  • mikemike Posts: 12
    Yea, it can still be done at high probability but the spreads have become tighter to where you might as well just do a spot trade in most cases.

    I'm not as familiar with Nadex trading but I opened a demo account today with the goal of safely doubling the account in one day. However, I didn't foresee having issues with trade fills. Nadex doesn't ever take the other side of a position, which is good, but it prevents you from entering some trades.

    Anyway, because of the issue I was having with fills, I wasn't able to double the account. I instead went 6/6, and from $25,000 to $40,720 in about 5 hours. Would have been far more if all my orders were filled. I won't go live on these for a couple months, need more practice, my focus now is still traditional binaries. That said, in traditional binaries, I haven't seen any setups that absolutely had to be traded today, so I haven't taken any yet.

    With the Nadex trades, you need to take them further out from the trade expiration, so you would want to expand your chart. I have a second chart with only pivot points, Keltner Channel (not important) and a MACD, where I extend the viewing timeframe for about 13 hours out to get a better sense of the overall trend, but still using the 5 minute chart. Final trade decisions are always made from the chart I show in the vids and screenshots though. Using something like a 30 minute chart may prove better in the long run in Nadex however, and the strategies work exactly the same regardless of the charting timeframe as long as it's a popular chart (don't use charts like the 3 min or the 2hr).
  • carloscarlos Posts: 3
    Thanks for this information, great !
  • chirag352chirag352 Posts: 12
    Is it really working for anyone?
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