The Four Struggles Of Binary Options: Embrace The Challenge
Binary Options trading is a challenging endeavor that may leave your head spinning. Embrace the challenge and discover what it takes to turn yourself into a successful trader.
Just like Mr. Miyagi says, “walk on right side of road OK, walk on left side of road OK. Walk down middle of road sooner or later get squished just like grape”. What do these sage words mean for Binary Options traders; embrace the challenge and commit to learning to trade successfully or your account will get squished, just like a grape. Trading Binary Options is not easy, but nothing in life worth doing ever is. It takes time and patience to learn any skill, trade, hobby or pass time. The more time you spend, the more mistakes you make, and the more you have to struggle to learn, the better you will be. Just like coal that gets crushed under pressure to yield diamonds you too will emerge from the pressure cooker of the markets a changed and better person.
Struggle, adversity, challenge, pressure… these are the things that make us better. We must reach within ourselves to find the answers, sometimes we must reach out for help. In the end, no matter the outcome, if you have tried, truly tried, you will be better. You will be a better person and in this case a better trader. Think about it like this. When something comes easy what is the point of doing it? Sometimes it’s the challenge that makes an endeavor fun, interesting and captivating. On the other hand, struggle also makes you appreciate things more. Imagine the rich kid who grew up having everything, never having to work a day in his life. Does he appreciate having a car? Does he appreciate having a car he bought with the money he earned trading Binary Options? Hell no! He absolutely doesn’t because he has no skin in the game. At no time did he have to put himself out on the line in order to make it happen.
There are some common hurdles to trading Binary Options. Hurdles that I and BOTS.com can help you to at least prepare for, if not overcome. I am going to briefly introduce those areas now and provide links to the best content we have to offer on each subject. One thing I want you all to remember is that the struggle has personal meaning and requires personal commitment, but it doesn’t have to be done all alone. BOTS.com, Bogdan G, Okane, myself and all the guys on the forum are here to help you connect the dots to becoming a successful trader.
First Struggle – What are Binary Options?
The first struggle many new traders face is the question of just what is a Binary Option. Binary Options are simple financial vehicles based on traded assets, indexes, futures, commodities and currency pairs. Unlike other trading vehicles Binary Options only have two possible outcomes, win or lose. If the underlying asset closes “in the money” you profit by a predetermined amount and if it closes “out of the money” you lose. In the world of international Binary Options there a few different kinds of options including high/low, boundary, one touch, 0-100 and 60 seconds binary options. Each has different characteristics and uses so be sure to at least familiarize yourself with each types of binary options. The Binary Options Trading School at ThatSucks.com (former BinaryOptionsThatSuck.com) is a great place for new or experienced traders to learn more about binary options and binary options trading.
Second Struggle – Fundamental Analysis
The second struggle traders face, and this is one that is not limited to new traders, is fundamental analysis. This is the study of the underlying factors that drive the market, basically it means trading the news. In forex this could be central bank policy or interest rates, in the stock markets this could mean consumer trends or product demand. In the end, though fundamental analysis is a measure of how a company, currency, index or commodity is doing in the real world. One of the best fundamental analysts I know is Richard Cox. His insight is so deep that sometimes he leads the markets by days, weeks or even months.
The Third Struggle – Technical Analysis
The third struggle is technical analysis. This is the study of financial markets using charts of price action. Technical analysis assumes that everything is known by the market or soon will be and that knowledge is evident in the charts. Past prices, past and current performance and price action all have bearing on future prices. By studying the charts and applying some well known, tried and true technical analysis techniques you can accurately predict market direction with targets. The struggle is learning to read a language that continually changes. The key is learning to recognize the identifiable and predictable signals and apply them to your fundamental analysis.
Bogdan is one of our Binary Options strategies and tools reviewers, he is also one of the most down to earth writers I have ever worked with. For more on this subject you can read Why, What and How of binary options charts.
The Fourth Struggle – Putting it all Together!
The fourth and final struggle is tying it all together. Trading is a complicated task, do not misjudge the undertaking. You will have a hard time, it is not easy but struggle is good when learning binary options. If it was easy, simple or a snap everyone would be doing it and we would all be Richie Rich and sitting on the beach. Seriously. Tying it all together is the most difficult thing of all and it will take the most time. Like Bruce Lee says, it’s all about practice, the more you practice the better you will get and eventually you will be able to trade like the Dragon.
Eventually you will learn to ignore the noise, weed out the false signals and overcome the fear. You will discover that you are not who you were when you started, you will be a successful Binary Options trader. Until then I suggest joining the forum and participating in the discussions there. That is the number one place I know to engage other traders and analysts. We have threads on all kinds of topics ranging from broker forums discussions to trading tools, strategies and plain old debates on market direction.
CommuniTraders Binary Options Social Trading Platform is the place for all binary options traders, or any trader, to meet with other traders and advance the binary options trading community.