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Flat Line Trading

In the medical world, “flat line” is a term used for when a heartbeat stops. In the world of binary options, the term is a bit different as it responds to when an asset is flirting with a support or resistance line, either barely touching it, or barely crossing it. The flat line strategy can be employed effectively when these lines exist, but only in a certain manner. Here, we will look at what conditions you should be on the lookout for, and what to be aware of, too.

If You Decide to Use This

The first step in using the flat line strategy is to identify an asset that has surpassed or is approaching either a point of resistance or support. The next step is to wait for the asset to begin its correction. Once this occurs, you need to wait for the asset to attempt to retest that resistance or support line a second time. If this doesn’t occur in a short amount of time compared to the timeframe that you are looking at, this strategy will not work. For example, if you are looking at a 1-minute chart, then this needs to occur in 10 minutes or less from the initial testing of the support/resistance line.

Look for Flat Line Trading IdeasIdeally, the asset should have a perfectly flat support or resistance line working for it, and should not be trading within a channel. The difference is subtle, but very noticeable when you are looking at a price chart. A channel can have an asset trading within a tight range, but the price can still be moving up or down. A flat line—for this strategy to work—needs to move in a perfect horizontal line across the face of the chart.

The final step is to initiate the trade once the previous signals have all occurred, and have occurred in the correct order. The direction of the trade that you make will be dependent on whether you are looking at the support or the resistance line. The support line is at the bottom of a price chart, and if the conditions occur revolving around this point, then you should be looking at call options. If they occur at the resistance line, then you will want to execute a put option.

The expiry of the trade that you take out will necessarily be dependent on the chart that you are using. Try to use an expiry that is slightly longer than the chart intervals you are using. For example, if you have a 1-minute chart, your goal expiry should be between 2 and 5 minutes in length.

Things Can Go Wrong – Remember

This strategy has been tested most thoroughly in the Forex marketplace, and applies most directly to currency pairs when you are using it within the world of binary options. These concepts can be applied to other classes of assets, but thanks to the fact that finding short term data for other assets is often more difficult—and more expensive because of the increased cost in the necessary software. Using this on other assets will be a little bit harder to do with the same levels of efficacy, then.

Another drawback is that this relies on what typically happens when looked at a large number of similar situations. It is not something that works in every single situation, and although it does work often, you will want to confirm your trades with other indicators as well. This will help you to ensure greater levels of accuracy and help improve your profit rate. This will naturally decrease the number of trades that you make, and this might cut into your overall dollar profit number, depending on how many trades you typically make and of the nature that they are.

Binary Options Camp

Binary Options Camp is a risk management class designed to teach you how to think more mathematically about trading binary options. Even though binary trading is based primarily on direction and price movement, knowing how much to risk and when to risk it are important parts of your success, especially if you want to overcome the differential that binary options brokers create in order to make their own profits. This class is designed to teach you how to recognize these things, and make them start working for you, rather than against you.

What is it?

The class is comprised of over an hour of video lessons, notes, and quizzes to help you better understand how mastering the math behind binary options trading can turn you from a losing trader into a winning one. Class registration also comes with access to online based risk assessment calculators.

The class can be taken at your own pace so that you can get the most out of it.

Does it work?

Binary Options Camp has an experienced team working for it. The creator of the class has been successfully trading and using these principles for several years, and uses this information throughout the class. The information is explained in simple terms, and examples are given to help reinforce the concepts used to help create winning trades.

It’s important to note that this is not a class that will teach you how to make profits right away. The class rests on the philosophy that being a successful short term trader is a long term job. This is because of the variance that’s natural in short term trading, and the only way to truly overcome this is to have a large sample size of trades in order to beat the oscillating nature of the markets. For many traders, this is a tough concept to grasp, but it is one that works and will really help you to become a better trader.

How to register?

If you are interested in registering for Binary Options Camp, you can register through their website. Just click on the “Sign Up” tab, and you will be redirected to the checkout page. The class has an introductory cost of $49, but this will be increasing to $99 in the near future, so if you are interested, it’s important to sign up quickly in order to save that money.

Big Week for the Fed

Let's See What HappensThe week of the Ides of March has a ton of economic information ready to be released. But unlike Julius Caesar, traders don’t necessarily need to beware. Retail sales info from February is coming out, as are the housing numbers, the inflation report, the Consumer Sentiment Index, job numbers, industrial production, and more. Watching these numbers might be a little tedious for those that are heavily involved in technical analysis, but the information that will be revealed will give us a thorough look at the U.S. economy’s overall state of health. This will be a huge help when it comes to deciding the overall tone that trades should take on for the coming month.

The first place to look is at what the best analysts are predicting ahead of time. Typically, these predictions are already taken into account in the market’s tone. If things proceed right at the analysts’ thoughts, little to no changes occur. However, when things start to deviate from the predictions, wild swings in the market can occur, and this leaves open opportunity for traders to take advantage of. If you aren’t paying attention to the reports and what’s expected from them, then you are leaving yourself open to unnecessary losses.

The Federal Reserve has a policy meeting beginning on Tuesday, March 15th, and what comes out of this will be likely to set the tone of the markets for the rest of the month. Until a statement is released at the conclusion of this meeting—most likely on Wednesday—traders are likely to be very cautious. As you start looking at binary options setups for the week, keep this in mind. Cautious tends to equal sideways motion, and for most binary traders, this is a clear warning to stay out of the marketplace until some sort of decision is reached. No news does not equal good news in this instance. If you do trade, be sure to limit the time before expiry and perhaps even be ready to scale down your risk per trade. Sideways markets can still be profitable, but the uncertainty factor goes up dramatically. Looking for ranges, and then taking advantage of them, is the clearest way to stay ahead of the game here, but even this can be risky if you aren’t paying attention to the news. Gravitating toward other markets where more information is currently available, such as the Forex marketplace, is a good idea for some. You can trade currencies through binary options, but the upcoming news will also affect the price of the U.S. dollar, so be sure that you have timely updates.

The other thing to be on the lookout for is if the Fed raises rates again. This is unlikely according to many, because if they do, volatility will increase dramatically. This is what happened after the December rate hike, and a sense of stability is just beginning to appear within the marketplace—three months later. Raising rates again would create further issues with the stock market, and many investors are not prepared to handle this. It’s very unlikely that the Fed is too concerned about individual investors, but the confidence levels in the market are something that they do consider, and the evidence points to the fact that this is only now just beginning to rise. Still, paying attention to the Fed’s decisions will be vital to your success. However, if long term stability must be bought at the cost of short term volatility, the former will always be chosen by the Fed, and for this reason, something unpredictable can happen. Having a plan for that, just in case, is a must.

Watching the Dow’s Volume

Indices, like the Dow Jones Industrial Average, do not have a trading volume, per se, mainly because they are measures of a group of stocks, and not an actual asset themselves. Derivatives of indices can be assets, and these can have volume, such as you see with ETFs, mutual funds, and binary options that rely on the price of an index for their worth, but the index itself cannot have a volume. This can make it hard for index traders to gauge momentum when it comes to an asset’s changing value, but luckily, there are ways to get an accurate idea of where things are headed without this concrete number.

We bring this up because right now, there is a ton of focus on the Dow. Almost every trading day in 2016, the Dow has started out with plummeting prices, only to try and drag itself out of the hole it has fallen in later in the day. [Read more…]

Gold Trading Volume Rises

A recent report has revealed that gold coins are selling at a furious pace in the United States. The last time this happened was right at the beginning of the financial crisis back in 2008. There is market volatility right now, but much of the uncertainty that investors see is based upon guesses and speculation of what might happen in the future. [Read more…]

Complete Technical and Fundamental Analysis

The process of analyzing potential binary options trades should be two-fold, including both research of general market conditions, as well as price movement. These two forms of analysis are referred to as fundamental and technical, respectively. Although they are completed separately, the results of each should be combined in order to arrive at the best possible decisions when entering into trades. The following guide will provide the basics steps required to complete each type. [Read more…]

Oil Crashes 8% and Looking Lower

Now that oil has crashed 8 percent, is it really the worst that the crude industry will see in the United States? This is what many experts believe, but is it realistic to base your trading of this commodity off of this information? This is the worst selloff that crude has seen in about five months, but a barrel is still about $10 off of its six year low. While many believe that the worst is over for oil, others believe that there’s still a lot more downward pressure and that there’s a chance it will test the six year low and fall below $42. [Read more…]

Backing it Up With Binary Options

Right now, the U.S. stock market is being torn by two different types of sentiment. One group of people believes that the market needs a breather and that a correction is right around the corner. The other group believes that there are stocks that will keep going up at the ultra fast pace that we’ve seen over the last couple years. There just might be enough of these people trading to help boost prices artificially for some time still. If you are able to pinpoint where these opportunities are, you can use that information to your advantage and increase your profit rate a little bit more. This type of trading approach requires a lot of research, but it will uncover areas of opportunity that not many others are cashing in on.

First, be warned that a lot of the stocks that have the biggest upside potential also have the highest amount of risk. They typically take the form of cheaper stocks; those priced at under $5 per share. Depending upon how you trade these, there may not be much of a reason for you to venture here. Some stocks have restrictions on how you may trade them. For example, it’s currently not legal to sell short penny stocks. This immediately removes half of your choices when it comes to making money. In other words, the trader that is going to be successful consistently in any market is limiting themselves if they take this approach.

Trading the DirectionInstead, you need to focus on bigger stocks. Again, you will find yourself limited, though. In order to make a profit day trading, you need to be able to front tens of thousands of dollars at a time in order to overcome any sort of variance that might occur. It is not something that the average person can do, or even wants to do. And, it is something that limits your profitability.

This is why binary options have caught on so quickly. They allow you to day trade, but with small amounts of money. They do limit your available stocks to just the biggest companies, but most traders would already be in this situation for reasons listed above. You can use all of the same evaluation strategies, but a lot of the technicalities that need to be overcome in the stock market are simplified here. It’s certainly not the same because of the trading platforms, but it’s a great starting point for smaller traders. As the industry grows, many pros are finding that they prefer binaries, even. Binaries are improving a lot, and traders are finding that they are more profitable than ever before.

The beauty of all of this is the fact that although the six year old bull market is gaining more doubters every day, there’s no need to let this hurt your trading potential because of self imposed limitations on what you can and cannot do. If you take a position on a stock, and the markets begin to drop, there may be limitations placed on selling short on a more comprehensive level, such as what happened after the 2008 financial bubble. Then, selling short was completely banned for a few months. If this were to happen in the stock market today, many traders, including hedge fund managers, would be in a rough spot. Binary options present you with an opportunity to keep these alternatives open and gives you room to make money on your own terms as they are independent of the stock market regulations for the most part. At the very least, having this as part of a backup plan opens doors that were not there before.

Cherry Trade Explained

Trade with Cherry TradeCherryTrade is a binary options broker based out of the United Kingdom. They are relatively new, but that has become the norm in this quickly evolving industry. Despiet being brand new, they have already shown that they can compete with the big names in binaries. Their primary focus seems to be geared toward newer traders, but this doesn’t mean that they are not able to supply the big established traders with the tools that they need for success. CherryTrade has become a top broker for a reason; let’s see what that reason is.

Open an Account at Cherry Trade Right Here

Site Standouts

The first thing that you will notice about this brokerage site is the site design. It’s very sleek looking, and very attractive. This is a great thing, but doesn’t mean much as far as using the site goes. Luckily, the design is user friendly and simple to understand. This doesn’t seem like it should be a useful feature in a financial site–these are all about making money, right?–but with binaries, it is an important thing. If the site is smooth and quick to use because of a superior design, then the fast trades, like 60 second options, become a tiny bit easier to navigate successfully. This eliminates user error, and it will eventually increase the number of trades that can be made per day. Even if that’s only one extra trade per day, a winning trader will still benefit quite a bit over the long run. [Read more…]

AutoTrading the Markets

Autotrading is a service that allows anyone to trade binary options without the need to complete any analysis or remain in front of their computer for hours on end. Once an automated system is set up and certain selections have been made, the only thing left to do is to monitor the progress and outcome of the trades which are executed, collecting any profits have been earned. The words, “collecting any profits” are key in that sentence, as not all systems produce the same results.

There exists more than one type of auto-trader. Even so, most perform the same base function of entering into trade contracts on behalf of the trader. The decisions of which trade to select, as well as the specific parameters selected, are made by the system itself. Any decisions related to investment amounts are made by the trader. Additional selections may also be made by the trader, depending on the setup of the system. This provides some means of control over the overall level of risk. [Read more…]

No1Options Trading

Trade with No1OptionsHeadquartered in London, No1options ( is a reliable and reputable binary options broker. Catering for all types of traders, No1options offers traders access to a powerful trading platform, a wide variety of global assets, a selection of advanced trading tools and much more. To ensure their traders are profitable, No1options also offers competitive payouts on successful trades as well as a variety of exclusive welcome bonuses. Added to these benefits is the broker’s Risk Free Trading program which enables a trader to trade without the risk of losing any money. No1options also provides its traders with access to an exclusive eBook series, eVideos, trading signals, one-on-one training and much more. Whether you are new to the world of binary options trading or an advanced pro, No1options has all the trading tools and features required to trade binary options effectively. [Read more…]

Asset Price Action Forecasting with Divergence

All who trade binary options will have access to a number of helpful strategies, techniques, methods, and indicators. Strategies often involve the processes of technical and/or fundamental analysis. On the technical side of things, it’s going to be indicators which are the ingredients that help traders identify existing price trends, after which this information can be used to forecast future price trends. Divergence is a tool that can help you with this.

At a base level, divergence reduces risk levels by allowing you to formulate more accurate predictions for your each of your trades. When used as a technical analysis tool, divergence may be used to help you narrow down any asset movement which would indicate an upcoming price reversal. Reversals are quite common, as no price can move in the same direction indefinitely. Whether you’re using it to identify price trends or reversals, any information which is going to allow for better price forecasts is going to be advantageous. [Read more…]

Using a Good News Strategy

One of the best binary options trading strategies involves looking at major news events and forming a short term approach off of that info. It is a strategy that needs an understanding of trader psychology, and this takes some time to learn well, although for most, the basics are pretty common sense. Let’s outline a brief system for utilizing this strategy. Traders all over use this, but it is at its most effective when you use it with binary options and focus on major stocks. These are the assets most heavily impacted by news, so this is the best place for you to start.

First, pick a sector that you are familiar with. When it comes to binaries, there are many tech and energy stocks right now. Some brokers might offer major financial stocks, as well, but these are much more rare. Binaries are very limited when it comes to asset choice, and while this might seem to hinder you at first, this is a good thing for this strategy. It automatically limits your search and makes sure that you are looking at only the companies that will be the most impacted by big news. Also, remember that the stock market is huge, and this helps you so that you will not just be overwhelmed by trying to figure out where to start [Read more…]

Why Binaries are Becoming Popular

You have to pick a directionAn easy investing strategy involves looking at companies, thinking about where they will be ten years in the future, and if they feel like they will still be profitable at that point, they are a good long term buy and hold. This, however, is not how short term trading works. For the short term, the only thing that matters is movement, especially when you look at binary options. If you think that a stock will move ten cents in the next 15 minutes, a short lived trade could make you a lot of money if you risk enough.

This is why binary options are catching on so quickly. They present an opportunity to give yourself a safety net without risking anything extra. In fact, you can still make big profits and risk much less due to the high rates of return.

You can only use them with major and popular stocks, though, like Apple, Facebook, and Microsoft. [Read more…]

Trade with GOptions

Trade at GoptionsGOptions is a place for fast trading. They specialize in binary options, and as a broker in this field, they have become one of the world’s top names. Here, we will go over some of the reasons why this is, and how they can help you to use short term trading to profit over the long term.

Educational Resources

If you’re new to the site, you will want to start here. They have a couple sections for beginners, mainly the FAQ and the How To Trade sections. This will walk you through how to open an account, fund it, select an underlying asset to trade, and finalize the trade. The FAQ will look at some of the most common questions you will have, and answers them in detail. And, if you’re brand new to trading in general, the dictionary will define the common terms that will become a part of your daily lexicon. [Read more…]