Binary Options Strategies, Tools and What’s Between Them?
Sometimes, just before an exam, I felt I didn’t learn enough or that I forgot everything I learned, even if I studied seriously and worked diligently towards completing the tasks required. Trading is a constant test and can easily make any trader feel the way did before those tests. You learned everything about Binary Options you need to know, you went through our School section, you completed the quizzes, picked a strategy and you chose a reliable broker from our Recommended Binary Options Brokers section but you’re not sure what’s next. Well my friends, now it’s time to connect the dots to becoming a true binary options trader.
Binary Options vs. You: Preparing for Battle!
The first thing is to find a good charting package because the charts provided by most Binary Options platforms are simply useless. Some have been offering better charts but not all, and even those are found lacking when compared to a more advanced charting package. As you might know, I use Meta Trader 4 and I recommend you to do the same. Of course, if you try it, but you don’t like it or you need additional features that are not included in Meta Trader, please feel free to choose a platform that makes you feel comfortable. However, if you want to use Meta Trader 4 for charting, you might want to read our article related to it: MetaTrader4 – The MUST have charting software. Free charts can be found on a wide variety of trading websites.
Ok, now that you have your trading charts, we need to “dress” them. And we will do this with the use of tools and indicators. The indicators you use will depend on the strategy you’ve picked. Don worry, if you decide you don’t like the first strategy you pick it is OK to move on to a new one. Meta Trader 4 has a lot of the most important indicators built-in and in our “Tools” category you will find a lot of custom indicators gathered from all over the Internet. Every indicator or tool is also accompanied by a review and detailed explanations about how to use it and what are its strengths or weaknesses. I also recommend reading my article dedicated to my top five favorite technical indicators and tools to get familiar with them.
Now you have a charting package, a good binary broker, indicators and tools but the picture is still not clear. Part of this may be because you are missing the most important part of the game: a Plan. This plan includes your Strategy – your sword, and Money Management – your shield. Together these two things will form the rules by which you trade. You cannot succeed in this business without a plan, so please don’t even think about going into battle without your trusted sword and shield. I feel the next question coming: “Where can I get a shield?” Have no fear, BOTS is here: we have an entire section dedicated to Risk and Money Management. I’m sure at this point some of you are saying to yourselves, “I know what I’m going to do, I have a plan, I’m ready” but if you don’t write it down it’s really just an idea and much harder to follow. I suggest you start a trading journal, put your rules in there, keep a record of trades you make and any new rules, strategies, tools or techniques you learn.
Test your Skills Before Attacking The Market
The world of real trading is much different when prices are live and the charts are moving, not like in school where charts are examples of things that have already happened. This is why practicing with a demo account is the next step on your path. This can be a difficult task because there are so many choices for demo accounts but we have you covered with our Communitraders Platform. We all know how hard it is to get a “real” DEMO account from a Binary Options broker. For some reason they all try to make it hard for us to test strategies and sharpen our skills. That’s why BOTS chose to offer this amazing free tool for traders.
While writing this article I took a trade based on the Simple Balanced System using my Meta Trader 4. On the chart I plot the indicators needed and check if the conditions of the system are fulfilled. So here’s what I did: first I set up my charts with all the system indicators and I got this:
Everything lined up according to the strategy and I opened the CommuniTraders platform and I placed a Put trade. After a few minutes, I checked my Meta Trader charts and also the CommuniTraders platform and I saw that my trade expired In The Money.
Never go into battle without checking your sword to see if it’s sharp enough and if it fits your style. Never go into trading without first testing your strategy on the CommuniTraders platform!
Ready? Let’s get it on!
The road from wannabe to trader is hard but we do our best to help you every step of the way. However, you are the one who has to put in the long hours of reading, learning and testing to put it all together and connect those dots. If you haven’t already go through our school, take the quizzes, choose a reliable broker, read about indicators, learn how to use them and get yourself a good charting package. Master a strategy and then test it using the CommuniTraders platform. These are the steps that need to be taken in order for you to become a successful trader. Remember, you have to work to achieve your goals; the Binary Gods Callinius and Putioux will not just pour money in your pockets… but the entire BOTS team is friends with them and we’ll put in a good word for you. Then, when you are ready to take that final step you can do it with confidence you will be successful.