Four Basic Trading Criteria for Investing in Binary Options

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Four Basic Trading Criteria for Investing in Binary Options

Posted on by John Thiel

Dowe Bynum, Co-owner at Bynum Asset Management believes there are four investment criteria or strategies he uses to build his investment portfolio. 1. Circle of Competence: This means before you choose to invest in a stock, index, commodity, or currency, you must conduct proper research. The trick is to target hundreds of stock options and then slowly dilute the lot until you are left with 5-10 good options. Your circle of competence is basically your ability to predict and understand everything that particular stock did on a certain day or time. 2. The Business Logic: Behind every stock there is …

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High Frequency Trading Strategy in Binary Options

Posted on by John Thiel

Is high frequency trading even possible in binary options? Well, assuming you don’t have access to a sophisticated trading algorithm automating the trading process, I highly recommend you stay away from it. However, purely from a theoretical perspective the fundamental analysis is correct. Let’s say you have the option of moving in and out of multiple short term positions in milliseconds based on a predictive analysis of a specific currency, stock, index, or commodity. Let’s continue to assume that that this will be based on the processing speed of the financial markets. Purely from a theoretical perspective you would be …

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How to Become a Successful Binary Options Trader

Posted on by John Thiel

A friend of mine asked me recently if I have been taking hits on binary options contracts. I smelled a rat so immediately I told him that I have absorbed some losses recently, specifically on commodities like XOM (which by the way is undervalued) and Comex Gold. Now, obviously since the Eurozone sovereign debt crisis started effecting how everyone buys and sells stock options, I immediately switched to Cbot Corn and Soybean since I did my research by using the candlestick patterns and analyzing financial news.    I didn’t want to tell him that the recent developments in global markets …

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Binary Options Demo Account

Posted on by John Thiel

Anyone wanting to start trading binary options online will have to open an account with a broker first. Before you open a real money trading account, its best you register for a free demo account. The benefits are obvious, it allows you to simulate a trade in close to real life  circumstances from the comfort of your own home, without taking any real risk. Whether you are an experienced trader, or an amateur just starting out, opening a practice account with one of the recommended platforms is mandatory. Just like you wouldn’t buy a car without taking it for a …

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Trading EUR USD Forex Binary Options – A Strategic Analysis of a Bullish Market

Posted on by John Thiel

Today I will be looking at the Candlestick patterns and trying to formulate a Forex trading strategy on the EUR/USD exchange rates. Chart A represents a Harami Bullish pattern. Harami translates to “pregnant” in Japanese. This specific Bullish Pattern is usually characterized by its small white body contained within a previously longer black real body (for explanations about bullish and bearish markets please refer to our strategy section located at the top menu of the home page). The long black candlestick is referred to as the mother and the smaller one is also known as the baby (my friends call it …

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OptionsClick Offers Free Trades on Facebook Stock

Posted on by John Thiel

OptionsClick, the popular binary options trading platform is offering special free Facebook (FB) trades for a limited time. A couple of days ago the OptionsClick Head Trader contacted me and offered me the deal, and this was how the free trade promotion was explained to me. The minimum deposit to receive the FB trades stands at $300. Of course you can buy more but you don’t have to, and the money isn’t automatically credited to your OptionsClick account. I was told I have to call a certain number and ask to participate in the Trade Facebook promo. There was more criteria, …

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OptionBit Digital Trading Tutorial

Posted on by John Thiel

The following post is a step-by-step trading guide or tutorial designed to do the following things: 1. Explain, in the most simple and easy to understand way how to register an account with OptionBit, one of the more well-known and recommended online binary options brokers. 2. How to enter the cashier, make a deposit using a credit card, making a wire transfer or via Western union (OptionBit is currently working towards integrating an ewallet and paypal solution) depending on how you would prefer making your purchase and receiving your bonus or educational allowance. 3. How to select the underlying asset, …

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How to Use a Naked Put in Binary Options Trading

Posted on by John Thiel

The classic Naked Put definition refers to a scenario when a writer owning a put option does not have a short position in the stock on which he’s written the put. This situation is also known as an “uncovered put”, and the level of risk is very high because the profit is limited to the premium received at the time the option is sold. I have seen a lot of novice traders lose a lot of money because they do not know how to manage risk properly. I have two friends who trade binary options on a regular basis and I …

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