By Ines Matkovich - February 5, Binary options trading is one of the most technically advanced types of financial trading. From the very beginning, binary options were based on internet technology and dependable on technological advance. This type of trading was developed in the internet age and there was no need to adjust it to new technologies like some other types of trading, but some old techniques and tools are still used for market analysis.
Many traders neglect the importance of all possibilities the modern trading platforms provide. Platforms are nowadays equipped with trading instruments, tools and features that can help traders increase their profit, but only if they know how to use them. Some tools should be used directly on the chart, before even making a trade, during the process of analysis, while others are meant to be used during trading, in case something goes wrong, or trader simply recognizes there is the possibility to make most out of the good opportunity.
Here is the list of 5 most important tools that can help traders maximize their opportunities in binary options trading. There are many charts that are used for financial trading, and candlesticks are among most popular and most useful ones.
Candlesticks were developed by Homma Munehisa, rice trader from Japan. Every candlestick represents certain time frame like one day , and their color represents the direction.
White or green candlesticks are a sign that the price goes up while black or red color stands for downward direction. Every candlestick has two parts — body and wick.
The longer the wick, the bigger the chances that market will move in the opposite direction. This information can be used as a signal, but is better to confirm the information by using other tools as well. Candlesticks should be used as part of the analysis prior to the trade execution. More about candlesticks also known as bricks or columns can be found here.
No matter what type of chart trader is using, support and resistance levels are of crucial importance. Chart can be in shape of candlestick, lines etc.
Resistance and support lines should be seen as possible limits in market movements. Resistance level or line is a line that is placed on the top of the chart. It shows the highest values over the selected time frame. This line basically resists the urge of the trend to break it.
The support line is on the bottom of the chart and is calculated based on lowest price values. It supports the uptrend. Here is an example. These two tools should be used after the purchase is made. Sometimes traders place reckless trades, but sometimes market takes an unexpected turn. Reason for this is that it can happen that events outside financial sector influence the market war, natural disasters etc. More on various tools provided by different platforms find here.
In cases when things are going differently from the plan, there is still a chance to make a profit. Rollover allows a trader to extend the expiry time.
This can be useful when a trader knows he made the right decision and that it takes just a bit more time to achieve profit. DoubleUp is another useful tool that can be used to increase profit. It can be used in case when trader believes the adverse price is not here to stay, he chooses to double the investment, but also double the profit in case of success.
Brokers are really doing their best to provide full service to their traders. As the competition in the binary industry is getting bigger and bigger, brokers are forced to provide more and more useful tools. Such tools are sell and buy, but traders are sometimes intimidated by their strong names.
The logic behind these tools is easy and simple. The trader can use sell tool in order to gain part of the investment back. On the other side of the planet, there is a trader that believes that this is a valuable trade that will end up in profit. He buys it and continues to trade with it.
Many lines of text are written about demo accounts. And while the demo account is not a tool per se, it can be considered one as nothing helps traders improve their trading as it does. Demo account is the best tool for learning binary options trading.
Demo accounts are equipped with same tools, assets and options types as a real trading platform. They help inexperienced traders to learn how to use various tools but experienced traders can profit from it as well. For example, they can test their strategies and analysis, and that way, optimize their trading results and achieve better profits.
Binary Tools | Best binary options signal service
All this can be done by using virtual funds provided with the account. Traders can multiply the funds, or lose them, depending on their skills, but the real money will stay intact. It is still a great opportunity for all binary options traders to become more successful in the trading process.
Tools for binary options traders - BinaryOptionsGeek
After the demo trading has been experienced, trading on real money platform should be more successful and pleasant experience. Still not decided on your style of trading? Try automated trading with Binary Options Robot instead! This website is independent of binary brokers featured on it.
Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed. The website does not provide investment services or personal recommendations to clients to trade binary options. The potential client should not engage in any investment directly or indirectly in financial instruments unless s he knows and fully understands the risks involved for each of the financial instruments promoted in the website. Potential clients without sufficient knowledge should seek individual advice from an authorized source.
In accordance with FTC guidelines, FairBinaryOptions. Binary options trading entails significant risks and there is a chance that potential clients lose all of their invested money. Your capital might be at risk.
Investment Rating Your capital might be at risk. This type of trading was developed in the internet age and there was no need to adjust it to new technologies like some other types More about charts read in Academy. Candlesticks charts There are many charts that are used for financial trading, and candlesticks are among most popular and most useful ones. Support and resistance levels No matter what type of chart trader is using, support and resistance levels are of crucial importance. Rollover and DoubleUp These two tools should be used after the purchase is made.
Sell and Buy Brokers are really doing their best to provide full service to their traders. Demo Account Many lines of text are written about demo accounts. Top Binary Options Signal Service Binary Options Robot Review Best Auto Trading Software Reviews by FBO Top 10 Myths about Binary Options Trading Binary Options Regulation in South Africa Binary Option Free Signals Top Platforms for Binary Options Trading How Do Successful Traders Efficiently Use The Binary Options Robot?
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