This study is divided into several pages. Anyone wishing to acquire it, can immediately download the full 22-page PDF version
Binary Options are an often exciting medium, and with the appropriate techniques you can get good profits. However let’s face it, most brokers do not like the trader to earn regularly.
FreeBinaryOptions.one, partner of forzaforex.it has considerable experience in the sector, having created over 200 articles and services dedicated exclusively to binary options, on the website flanked by Facebook pages and Telegram chat. They have also won several tournaments. They are traders, not just articles authors.
This information will be useful to both the beginner and the expert, who can sometimes face unexpected problems. In short, better safe than sorry!
(this paragraph only for those who start from scratch)
If you are right at the beginning and do not even know what the name binary options means, option stands for choice and binary stands for two, so choose between two possibilities, Buy or Sell, Sale or Descend, etc. So it’s simple, just choose between the two options the right one.
For example, if I say that the euro gains against the dollar, I will win by choosing the “the euro increases” option (and vice versa I will lose).
The action is performed by clicking the green button on the broker’s platform (otherwise for the red button).
I will still have to indicate the expiry time and logically the amount to risk. In case of correct prediction we will earn on average 80% (depends on the broker). In case of an incorrect forecast, 100% of the investment is lost.
These operations take place on the broker’s web page, which manages your money and pays your eventual winnings, offering in exchange a service to open trading positions.
The Enemy to Overcome
Trading is arduous
Needless to listen to those who simplify, trading is complicated. There is no magic pill that can turn a newcomer into a trading wizard in an instant.
Trading is a complex system and depends on various factors, but some of them are particularly important. Let’s analyze them individually. By breaking down a problem into separate parts, it becomes easier to solve it better.
Sometimes we envy those who make a lot of money by using their own strategy and we would like them to share it with us, but there is no single better strategy suitable for everyone. To become a trader, people spend years and spend a lot of time and effort on their research. Still, many of them fail.
Let’s see how to overcome the main difficulties by analyzing three aspects, the financial markets, the human factor, the amount of information.
Markets are changing
Markets are never the same. They are constantly evolving and constantly evolving, it is part of their nature.
Chances are you’ll never see identical market conditions twice, due to the number of factors that influence the change in assets. The price of an asset is influenced by an infinity of different factors.
Despite all the complexities, there are some techniques that can help estimate the future performance of a given asset.
Markets are not static and market conditions are rarely identical. However, there are some patterns that repeat themselves. These schemes can be identified and used in trading. They can be used as a signal to act on, but of course they should be double checked for confirmation. The patterns are made up of groups of candles that make up figures, or patterns.
The Human factor
Human nature plays an important role in trading. It doesn’t matter if you consider it an inconvenience or a source of further opportunities, this is something that simply cannot be denied. After all, the trading chart is created by us humans who buy and sell goods both.
There are several ways to deal with the human factor when trading any activity in any span of time.
As a single trader you cannot influence the behavior of other investors, but you can change your attitude. This is something you’ve probably heard of (and heard more than once) of.
All you have to do is eliminate, or rather minimize, the human factor in your trading. With this specific purpose, try to get rid of emotions, both positive and negative, as they can adversely affect your trading performance.
Trade according to your trading strategy, not your intuitions, and you will manage the unnecessary risks associated with human error.
Too much information
The amount of information that tries to explain how markets work has become a problem in itself. Often, it is impossible for a novice trader to navigate himself in the sea of trading knowledge.
There is so much to learn about trading and financial markets that it is sometimes easy to get lost.
What is the possible solution to this problem? Specialized in one sector.
Focus on one type of asset, a time frame and a trading strategy. It is much easier to get lost when you don’t have a clear picture of what you are doing. Different activities are traded differently and identical strategies cannot be applied. Different time frames use different types of analysis. Different indicators provide different signals. It is better to focus and specialize on a single sector.
As you can see, the general complex nature of financial markets is the result of its complex constituent parts. Here we have highlighted three.
It is easier to work with complex systems when breaking them down into small, easily digestible pieces.
In this case, it is easier to fight the different obstacles one on one and not the system in general.
Let’s now see another aspect that may represent a further difficulty, which however can be overcome: the choice of the broker.
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