Binary options

Trading Discussion Binary Options
1

Hello guys,

Hope all are making good Money :36:.
Alright, i am new to trading and when i went through all the information given in this site i was quite happy and i do appreciate all the knowledge provided so i decided to join the community instantly.

Now, I have done some trading in binary options in bet365 and to be frank i did not make any profit . On the whole, i ended up loosing $500USD.

I just wanted to know is the information that is given to forex trading be used for binary options, like the chart patterns or elliott wave theory or any of the other lessons be used for binary options and also could any1 tell me which will be a good site for trading binary options.

regards,
newbie

2

Hi, Im also new so dont take my advice as 100% accurate.

I used etx capital and they were decent, good sell prices if you do long term trades and a minimum of $10 per trade. I used the same Technical analysis as I did with binary for forex, so yes im pretty sure it can be used.

However Binary is such a swingy game imo. Stay away from the turbo trades and focus on the longer time frames imo like EOD etc, your going to be trading a lot less but with a higher win % if your strategy is legit. Forex is just so much better for me, i was chancing the get rich quick of binary and specially when martingale and doing 60sec trades you can go bust before you know it.

I would focus on forex if your interested in long term success. The basic reason for this is if you do a $10 binary trade you get say $17 back ( broker and pair dependent obvs, just a example) so lets say you do 10 trades pm at a 70% win rate. That gives you 7wins and 3losses. So you get 7w x $ 7=$49. You lose $10x 3L = $30 so you make a profit of $19 for the month.

Now with forex, lets say you doing a 2:1 risk to reward, same trade size but you only win 50% of the time for example.
that means you win $20 when you win and lose $10 when you lose. So we take 5w x $20 = $100 and we take 5l x $10 = $50. comes to $50 profit at the end of the month. With forex, if you use your risk to reward ration correctly etc it gives you room to loose at a higher % and still be profitable, where as binary doesn’t allow it, without a very high win rate you are going to lose.

Just my 2cents, im also a noob but i walked this same path.

3

thanks for the advice stev

i heard some say that in forex there is a possibility that you may loose more than the premium amount i,e more than the stake price. Is it true and also do you know which site is a good for forex trading. i’m planning to join 24option , but i do have a account for binary trading in bet365.

4

Forex trading is a field in which there’s a huge turnover of aspirants, a very small proportion of whom (whoever’s figures one decides to believe) ever become profitable overall. Starting off with binary options is undoubtedly a way of stacking the deck even further against yourself, because [I]the degree of “profitability”/“edge” one needs to be able to develop and exert is significantly higher[/I], with binary options.

It’s technically true, but extremely rare - and there are also some brokers offering “negative account balance protection” as part of their account-opening terms and conditions package.

This one. :slight_smile:

Investopedia isn’t bad, either.

However you trade (including binaries), these are the five classic mistakes you’ll need to learn to avoid, to achieve profitability.

Good luck!

I would start with the “School” pages, here: School of Pipsology | Learn Forex Trading .

5

Thanks for the reply.
alright, so is it fine to say forex trading is a better option on the long run and even in terms of profit generated coz i want to be a full time trader.

Also could you suggest which site would be helpful for a demo account cause rather than starting with real money i would like to trade with a demo account for atleast a period of 4-6 months so that i can understand the market better.

6

Good idea …

I think that what matters is to open your demo account in the same place you’re going to have your real-money account later on, so that by the time you switch from one to the other, you’ll already be familiar with both the broker and the interface, and therefore not have to acclimatise to those at the same time as using real money for the first time. So the time to do all the “due diligence” is right at the start.

I trade mostly with Interactive Brokers, whom I strongly recommend (but I’m not sure how suitable they are for beginners, because they don’t like to do a lot of “hand-holding” and I know that some people find their customer service when it comes to answering questions slightly less than optimal - but that’s probably their only imperfection: on every other criterion, they’re great.)

If you need a counterparty market-maker “broker” (these are not genuine brokers, but are what very many of this forum’s members use), I suggest having a look at Oanda. They’re ethical and honest, in my opinion (and I’ve done a lot of trading there in the past), and their “FxTrade” interface is really easy to learn to use. (I’ve also heard, more recently, that their spreads may not be quite what they used to be, so that might be their imperfection.)

I advise you to use a well-regulated broker, not a lightly-regulated “offshore” one, and to stay away from brokers who offer “deposit bonuses” because those are a [I][U]really[/U][/I] bad sign.

I also advise you [B][U]always[/U][/B] to check a broker’s [U]regulatory history[/U] carefully, before opening an account there: this is one of most helpful things you can do. You might want to avoid any brokerage that has a long history of adverse regulatory rulings and fines arising over issues related to how they’ve treated their customers in the past (there are some who are really recidivistic, and they can be well-represented in trading forums, too!).

Personally, I’d also advise you to stay away from any broker where you’d [I]have[/I] to use the “MetaTrader” interface, because it’s a clunky, horrible, unreliable piece of junk that also displays many indicators incorrectly.

7

thanks for your time and patience… i really appreciate all the information… it cleared most of my doubts… all i got to do now is to understand the market…

8

Thanks for the detailed answer however i would like to ask what would be the alternative to metatrader, any suggestions?

9

I use NinjaTrader (and commented here on why I find it so much better than Metatrader).

It’s also not perfect, but it suits me.

Quite a lot of the “better things” I’ve heard on this subject, from people I’m inclined probably to trust and believe, are suggestions to use Sierra Chart. It’s only second-hand information - I’ve never used it.

For many years I used Oanda’s “FxTrade” and liked it (it’s dead easy to learn and to use, which was part of the reason I liked it - I doubt whether many full-time pro’s would recommend it.)

[B]301 Moved Permanently

10

It is a difficult trade, many lose at the beginning and do not have, others are still trying and eventually have profits

11

bet365? I’ve heard from one guy that they are fraus. I don’t know if it’s truth, but…