Top Ten Tools for binary options traders

Star Bucks Coffee Mug.

For binary options trading, the trader needs to make sure that his work station is sufficiently equipped. This means that he needs all of the latest items to keep him at pace with other binary options trader and to stay on top of the game. He needs subscriptions to all of the latest finance magazines online - and he must have at least three or four computer monitors so that he can keep track of all of the trading going on. He needs a few wall clocks so that he is current on the times in various places in the world, and he may want a watch that does so as well. He, of course, needs an Android or similar phone in his pocket. To alleviate his stress, he may want a stress ball, a foot massager, a back-rubbing chair or other item.

How much exactly should you invest in gold when trading binary options

With binary options trading, there are many things that make it such an appealing process. When you trade binary options, you don't have to decide if the asset will hit a certain amount or be exactly as some number. Rather, with most of the choices when you participate in binary trading, you are simply predicting if the asset will finish higher or lower than the amount that it started. So, how should you make this prediction? One suggestion is to make sure to take world events into account as you look at your binary options trading. Is it a bull market at the moment or a bear market? How is the political atmosphere and the economic situation today? These items will help you to monitor your asset and to more easily predict if the asset will be doing better over the given time period until expiry or worse.

Go the distance with logic and binary options trading

Try to distance yourself from the outcome of the trade and base your transactions on logic and educated guesses, not on emotional desires or relying on winning to achieve your happiness in any way.

Earth market rising with the full spectrum of binary options

When you do the math, you will see that it takes a great deal of extrapolated data and refined number crunching to get to the bottom line for your decisions about binary options trading. 


Don't just rely on what your friends and family tell you. Whip out your calculator, look at the graphs, read the latest news about the asset you wish to invest in, and know your facts before you buy or sell your binary options.


You might not yet have won a Nobel Prize in Economics for your binary trading genius, but at least with good returns, you could be in a better financial position, and maybe one day you too can afford the time to earn such laurels from the elites in Oslo.


Remember, you invest because you want to succeed, not because you want to do what someone else says is good to do, or because an ad you saw made you feel good about a certain stock or asset.

Commodities traders pad the wallets of affiliate program members

Red Green Circles of Affiliations

Second-hand smoke can kill. Second-hand income can make you wealthier. These are two facts, one of which is more widely known than the other. Of course, the latter generally provides for a happier, more financially secure life. When you become an affiliate of one of the binary options trading platforms, you are on the road to creating your own second-hand income. For each and every trader you bring in to the trading platform, you earn a fee. Get a lot of people to sign up, and you have created your second-hand income, without having to do too much work. Pretty much you set up affiliate landing pages, and promote them everywhere you can, mostly online. By doing this, you can generate enough side-income to pay more than just your regular bills.

Popular commodities traded with binary options

Gold bars are an investment vehicle

The binary options trading process is one that has gained a great deal of popularity as of late - and for good reason. Many people enjoy that it is a very straight-forward way of investing. Everything is in front of the investor and there aren't any hidden secrets about what you can make if your prediction is correct or what will happen if you select one choice over another. When you make your decision about the asset, the time frame, the investment amount you want to make and the prediction about the asset, you'll know exactly how much you stand to gain or lose based on those decisions. And this puts the binary trading investor in the driver's seat, so to speak, and allows you to feel like you're in control of the process. Learn more about the process with binary options so that you can make educated decisions and enjoy this type of investment!

How to predict a market rally

Splash and Dash

Let me start with a disclaimer that there is no 100% accurate way of predicting any markets and even more so rallies and runs. However, what we will share with you in this article are the characteristics that a market shows before a rally and the types of behavior that precede such events. Doesn't mean that the next time you see this sort of activity you should in any way assume your able to predict it, but there are variations in the markets that allows for such things to offer forecasting value and also a best 3 out of 5 type of ratio.

Binary options trading is one of those things that allows you to further reduce the data to its simplest activity and allows for easier decisions to be made when actually trading binary options. 

Binary Trading with high-priced commodities

Binary Options Trading Sunrise - YAAAWNNN

As a professional binary options trader, I get questions from readers all the time asking me about trading binary options of gold and oil, which are two very bloated and overpriced commodities that can fall in value or gain value very quickly, and at any time.

The truth is that you should treat binary options of gold and oil commodities just like you would with stocks or currency (cash). With the bold exception that you if you notice a trending pattern, jump on that train, and by that I mean buy that option for instances where the graph is just very predictable. Binary options trading is all about predicting the market correctly, and gold and oil offer that prediction as they react to market news or other conditions.

One thing to avoid when trading binary options of gold and oil is that if one of those commodities is somehow involved in the news, then I would recommend only short positions, and avoid long positions

Maze design - binary options trading artwork

Binary Options Trading Art - That Girl's Shirt

Drawing of two circles squished into the same space. Created while trading binary options and after loosing a few times in a row, I decided to become LESS involved in the process and simply draw at the same time that I trade. The result was somewhat higher profit and MUCH LESS regrettable decisions. It helps you maintain logical decision making ability yet restricts emotional decisions - perfect for binary options trading.

Thanks to this source for the binary options trading art

The "Let It Rain" Binary web-art

I call this web-art piece "Let It Rain" as it resembles the ripples that flow through the surface of a puddle that forms when the atmosphere want to rain.

I created this artwork while in-between trades of binary options and studying the various science and math such as the Black-Scholes valuation model which basically forms the basis for modern day binary options trading.

let it rain, Let It Rain, LET IT RAIN!!

One tip I give to all those that ask me for advice on how to best trade binary options is that they need something to diffuse the tension that comes with the waiting for the options closing time to expire. While it is tempting to just stare at the movement of the graph and perhaps your act of looking at it will somehow help you earn more, unless you are closing your positions early with that as a goal in mind, it is best to draw, or watch TV while you trade. You'll have more fun doing so and you'll make more money.

Thanks to this source for the binary art

Binary Options Trading Art by Traders

A real binary options trader made this while awaiting his positions to clear

Binary Options Trading Art


Artwork that was created while trading binary options online

Download this binary art from these sites:

• Download this art of Doppler effected ovals of binary trading from Panoramio
• Get the Doppler Effect of Binary Options from Photobucket
• Dopper effect of trading binary options on Red Bubble

Binary options trading is legal, but this haircut should not be.

Art of a 70's style funkadelic binary options trader. Check out the hair style:

Binary Trading is WAY easier now than it might have been in the 1970's

You can download this cartoon of a 1970's style binary options trader at the following links:

• 1970's style binary options trader on Flickr
• Binary Options Trader with full 70's style hair and mustache on Panoramio
• Binary trader with old-school walkie talkie on Red Bubble
• Guy trading binary options on 70's size walkie talkie on Twitpic
• Photobucket hosted pic of 70's style binary options trader 
• Or you can find this image on the binary options trading blog

Real life tips - hedging binary options trades for profit

Get you paws on as much as you can

Top Ten Super-Tips for using the Black-Scholes Valuation formula to gain large profits with online binary options trading:

These tips are called "super-tips" as the regular tips we give are designed for novice traders. These tips are designed for more advanced users who are willing to forego some excitement and risk in exchange for dull, boring, and more consistent profits.

1. Trade only in small amounts till you have a much stronger grasp on that specific commodity, stock or indice.
2. Utilize "closable" options to hedge the rise so that you can make very quick 20% to 40% gains rather than drawn out 85% gains that carry a risk of 100% loss.
3. Be technical analytical and review the graphs for patterns and predictability. Only trade in graphs of options you feel comoftable predicting. 
4. Better to not trade for a half hour than loose durring that half hour.
5. Don't hedge your risk by trading in opposing option. The profit of 85% comes at a risk of 100%, so hedging like that will result in an across-the-board 15% loss.
6. Remember: Its important to avoid losses as much as it is to achieve gains.
7. Don't let losses or gains effect you overall strategy. Emotion are your enemy in this game. 
8. With currency related binary trade, compare different currencies to narrow down which ones are actually falling and which ones are only relativity falling
9. Avoid trading binary options at the beginning of market open unless specific events in the news provide a window of predictability.
10. Learn from your mistakes. Binary Options Trading is an aquired skill. Don't be afraid to make mistakes, but do avoid repeating them.

 We hope you've enjoyed these tips. Please feel free to leave comments or questions. These tips are based on Trading Binary Options on OptionsClick.com - not sure about any other sites.

Great binary options trading tips - low-risk-40% return rather than high risk 85%

Trading binary options online can be a tricky business. You ability to extrapolate data from graphs and charts is so very critical for the success of your trading.

A common feeling is that of "get rich RIGHT AWAY" which you should avoid at all costs (no pun intended) - The best thing to do for making money with binary options trading is to start an account with a small amount of money and learn how to trade with small amounts of $10 or $20 and get a strong percentage return. Once you are comfortable with you prediction ability of the market, you can increase the amount.

Check out this video on how to make small gains quickly, rather than long drawn out riskier larger gains:

 Video of Binary Options Trader Making $5 in 5minutes

Special thanks to ZEN OPTIONS for providing this video on binary trading to us

Tips for trading binary options online:

Think before you click. Trade Binary Options Smart

Tips for binary options trading:

1. Trade online, only use binary options trading platforms that have real-time updates and don't charge a commission.
2. Use sites that offer binary trading with the possibility of closing your position before it expires and still making a solid return - utilize this capability to hedge your risk and make lost of small, profitable trades.
3. Do not start making large trades when you are below your starting point with the hopes of re-couping your losses.
4. Do not trade if your mindset is not that of a small-gains and reserved approach.
5. If you loose several trades in a row, then stop trading for a few hours. Do not try and regain your losses quickly.
6. Analyze graphs and only trade on positions you have a clear picture of. Utilize the various forms of options for different market behaviors
7. Don't be afraid to take chances, but don't take the chances with large wagers.
8. Practice reading graphs, review the trades that end in loss so that you can learn from your mistakes.
9. Keep up to date on the news, especially for political events that effect the price of oil and the stock markets.
10. Learn the graphs of the financial data and learn to differentiate between a correction and a trend.

Don't be left in the cold. Learn before you trade

Obviously these tips alone are not going to enable you to suddenly become a wealthy binary options trader. But by learning the trends and patterns that keep winning overall, you can be in a better position than starting out cold. Educate yourself about financial betting and general binary options trading and enable yourself to succeed in the volatile marketplace. Don't be discouraged if you have a few losses, the main thing is to learn how to read the market and apply it when it counts.








binary options trading tips - source

List of Top Ten hilarious explanations of what are binary options:

Hysterical Binary Options Trader

List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:
10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.

Laughing Binary Options Trader

We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options

Pricing the Binary Options for trading in market.

Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff

Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black-Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff of an option is unknown and is only known upon exercise of the option, which the payoff for a call option being the asset price on exercised less the strike price of the options. In contrast a digital option has the payoff defined when the option is issued.  For example, the payout is a specific cash value know prior to entering the transaction.

The payoff of a Digital option is preset value (cash amount -as in a Cash-or-Nothing option) or a unit of the underlying option (ie an Asset-or-Nothing option). For example a Cash-or-Nothing option on a stock would either payoff zero or a fixed cash at expiry, similar an Asset-or-Nothing option would either payoff zero or a fixed number of stocks.

In pricing a binary option, there are a number of variables that need to be used, similar to a vanilla options.  These variables include:

Market Price :

The market price of the underlying asset on the valuation date.  When evaluating an option in real-time, a trader would used the current underlying price to determine the current market price.  Traders could also use the closing price of the prior day to gauge an estimate of the market price.

Strike Price :

This is the price level at which the option holder has the right to buy or sell the underlying asset. It is the most straightforward input as it will always be given in the option contract.  In general, the market price in a binary option is also the strike price.  In a “above or below” option, the market price is the price that is used to determine the strike price.

Time to Maturity :

The time until the option expires and the holder is no longer entitled to exercise the option.  For binary options, this is usually the end of the day or the week, as well as a specific time in terms of hours.

Interest Rate :

The risk free interest rate for the period until the option expires. The risk free rate should typically be a zero coupon government bond yield.  For example the risk free rate for the US is current less than 25 basis points or very close to zero.  This factor will not change the value of a binary option since most are very short dated.

Volatility :

Albert Einstein Understood Binary Decision Making.

Volatility is probably the most important single input to any option pricing model. There are numerous methods for estimating volatility.
Historic volatility entails using historic price data for share price movements. A key issue is how far into the past to collect data from. A useful rule of thumb is to collect data from as far back as the options term. Historic volatility is often considered as flawed as it assumes the past will reflect the future – thus several forward-looking measures of volatility can be more powerful and accurate:
Historic Volatility is the volatility of an asset based on its past price movements. The volatility of the underlying asset for the option’s remaining life is a key input into most option pricing models, however this volatility is never in practice observable since it is based on future price movements which cannot be known. Thus, volatility must be forecast, and one method of forecast is to use the historic volatility of the asset which is calculated from its past price movements.
Typically, daily data is used and the standard deviation of the daily log of price movements is the volatility. If daily data is used then a daily volatility is the output from a calculation. For input into an option pricing model such as Black Scholes the annualized volatility is required.
Implied Volatility is the volatility implied by the market price of traded options. As the price is already known and the volatility (which is typically an input) is unknown the pricing model is reversed to determine the volatility. Other models such as ARCH, EWMA, GARCH use historic data and condition the data using factors such as mean reversion to achieve a more accurate volatility forecast.
Implied Volatility is the volatility derived from an option with a known price (or premium). If the price of an option is known, the other inputs (such as spot, strike, time etc) can be either taken from the option contract or market data sources, thus the only remaining unknown input – the volatility  can be solved for. The Black Scholes option pricing formula cannot be reversed to express volatility in terms of other inputs so an iterative approach is required by testing different volatilities.

Binary Code looks like this

Yield :

The average yield generated by the underlying asset for the life of the option. This can be either a dividend or the income generated by a commodity. It is often difficult to forecast the yield for the entire option life so the current yield of the asset is often used.

Conclusion

Binary options are generally priced in a way were the dealer or broker is taking a fee in the theoretical price of the option.  There are numerous tools that can be used to determine if the price of a binary option is relatively fair, and if your broker or dealer is given you a realistic market price.

NHS faces growing financial pressure, how it effect GBP

The NHS has an uncertain future. What does that have an effect on the Great British Pound (GBP) and other currency markets. Keep these

Sell, Sell Sell 10-4 Charlie

details in mind when trading currency or placing positions on when trading binary options online.  The main thing to remember is that the uncertainty means that it can rally one day, or dive the next, however, elements like the trading volume and speculation buying can help the stats go awry in regards to where the market really stands.
Here is the article, you can read it in full at this link    Thanks to Binary Options Blog for posting this and sharing.

Audit Commission finds NHS made £4.3bn of efficiency savings last year but financial challenges are increasing
Most NHS organisations have made good progress in cutting costs to reach the £20bn savings required of them, but they face growing financial pressure, according to the Audit Commission.
In its report on the 2010-11 financial accounts of primary care trusts (PCTs), NHS trusts and strategic health authorities, the commission says that, assuming there is no double counting, efficiency savings totalled £4.3bn for the year.
PCTs reported savings of £1.9bn and NHS trusts reported savings of £1.2bn. These figures are equival

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is a fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

Want to try and trade binary options on your own, visit http://optionsclick.com

Thank you to this source for the info on Binary Options

Federal Reservce makes promise to keep interest rates near zero

I came across this article today, I really wonder if the US Gov't will keep the interest rates "near zero" for the duration of time that they claim to do so, which is 2 years, and, if they go back on their word, what will that do to their rating?

WASHINGTON (Reuters) - The U.S. Federal Reserve, in an unprecedented move, said on Tuesday it will keep interemoney, markets, federal, reserve, standard, poor, downgradest rates near zero for at least two more years and is considering further action, bolstering battered stock markets.

The Fed's policysetting Federal Open Market Committee, in a 7-3 vote, overcame internal discord in the first triple dissent against a policy decision since 1992.
Investors were still unsure whether the Fed's even stronger promise to maintain rates at rock-bottom lows until mid-2013 would be enough to revive a flagging economic recovery.

But the decision sparked a rally in equities that pushed the Dow Jones industrial average up more than 400 points. Short-term Treasury yields fell to all-time lows. The gains came after a rout that stemmed from Standard & Poor's historic downgrade of U.S. credit quality last Friday.

 Click here to read the full article on Money Control

Thanks to this article for the source

Oil prices plunge, but motorists not getting much relief at pump

By ROD WALTON World Staff Writer
Published: 8/9/2011  2:26 AM
Last Modified: 8/9/2011  3:58 AM

Crude oil futures fell to their lowest level in nearly a year Monday, but Tulsa gasoline prices are still clinging to an average that was charged when a barrel cost close to $20 more.

"With markets the way they are, it's anybody's guess on what they're going to do," AAA-Oklahoma spokesman Danial Karnes said. "It's all over the board."

That board is making a steep downhill run at the moment. West Texas Intermediate crude oil for September delivery dropped $5.57 on Monday to settle at $81.31 per barrel on the New York Mercantile Exchange.

The closing crude price is the lowest since it settled at $80.05 on Aug. 31, 2010. The one-year high for WTI was $114.83 per barrel on April 29.

Tulsa retail gasoline, meanwhile, is not falling by the same leaps and bounds. The Tulsa average reported by AAA is $3.44 per gallon, but it was closer to $2.50 when domestic crude oil was last around $80.

"Gas prices aren't always logical," Karnes said. "But logic tells us if oil continues to fall, then gas prices should continue to fall as well."

The price at many QuikTrip stations in Tulsa was $3.39 on Monday afternoon. The QuikTrip price at the end of last August - the last time crude oil was anywhere near this low - was $2.46 per gallon. 

click here to read the full article 

Special thanks Binary Trading Tips for finding this article

Casino vs binary trading

Are binary options like gambling?

 

I have heard several times from people that when you are buying and selling Binary Options, your are basically gambling. While this may be the case for some people who have addiction issues, they are both quite different. 

Casino games are based on luck and binary trading is based on real market conditions. This is not to say that casino's don't also involve skill or that binary trading doesn't experience luck, but the basis for the trades and exchanges of the two are very different. 

The thing is that casino games are designed for users to win in order to keep them entertained and binary trading are based on which ever direction the market swings, So not sure which one is better.

Got this article from this source

Stock Tip? Boeing, BAE to Build 'Laser Machine Gun

The stock tip below caught my eye because I personally have always wanted to have my own laser machine gun, and because it will change the economics of war and that is something that I, as a Binary Day Trader need to be kept abreast of.  I found this article at http://pimp-my-trades.blogspot.com/2011/07/boeing-bae-to-build-laser-machine-gun.html

I found this article while trolling the web and aside from thinking that it is very much out of sci-fi movies to shoot stuff with a laser gun, I also think that it will result in strong performance from the companies developing it.  The primary companies involved are Boeing and BAE, so keep a sharp eye out for their stock performance.  

Boeing, BAE to Build 'Laser Machine Gun'

Published July 27, 2011

BAE System's ship defense laser.

Like peanut butter and chocolate, the U.S. Navy thinks machine guns and lasers are two great tastes that taste great together. They hope the combination of old school lead with new school "pew" will better protect their ships from attack by smaller boats.

BAE Systems, a British defense firm, already makes the giant machine guns that protect warships from approaching watercraft. Tuesday, Boeing announced that it will team up with BAE Systems to develop a solid-state laser that would work in tandem with the already potent weapon.

"Boeing is committed to developing this directed energy system that will significantly enhance ship defense," said Michael Rinn, Boeing DES vice president. "Combining BAE's engineering expertise with the proven directed-energy proficiency of Boeing's DES division creates a team uniquely qualified to integrate directed-energy technology into the Navy's shipboard armaments."

BAE won the contract to develop the laser, which the Navy envisions as a countermeasure against small drones, tiny boats and anything else that gets too close a Navy surface vessel. Now, Boeing has joined the team to develop the prototype weapon.

It's anybody's guess what kind of threat a machine guns or lasers can't defeat on their own (Mothra? Decepticons? Kraken?). But now that 19th century ballistic technology has teamed up with 21st century ray gun tech, whatever that enemy may be will think twice about messing with a U.S. Navy warship.

  *   Ten Military Aircraft that Never Made it Past the Test Phase
  *   Could America Really Build a 'Star Wars' AT-AT Walker?
  *   INFOGRAPHIC: When Will I Get My Laser Gun?

 

How much gold is there in the world?

When it comes to precious metals, they really are short on supply. Gold, which is not the most scarce of those metals is still defined in personal sizes even when discribing quantities of the world.

There are various estimates of how much gold there is in the world, but most estimates place it at an amount that could be stored in a single medium sized area. One estimate, which states that all the gold in the world would fill up two olympic sized swimming pools  and that article also states that all the platinum in the world would fill up a medium sized living room.

So think about that, the entire world, vs the size of a few pools or even a living room. It is a scarce metal and it never goes bad. Its an interesting investment, or is it an inflated commodity?