Category Archives: Advice

Binary Options Learning Tip: Become an Autodidact

Binary Options Learning Tip: Become an Autodidact

booksWhen you were in school, you had teachers to teach you what you were supposed to learn. The majority of us only absorbed and kept a very small portion of what we learned in school, however, especially in higher education. Odds are you remember a lot of what you learned during your core major classes, assuming you went on to do something for a living which connects to what you learned in school. But you probably forgot the rest.

Why? Most likely because your learning was only self-directed insofar as you were choosing to take certain courses. On the job, you have probably retained more of what you have learned, because a lot of on-the-job learning is self-directed. As human beings, we absorb knowledge more deeply in many cases when we teach ourselves. We also are able to look at problems in new ways and see solutions nobody else has before—the essence of creativity.

One of the best things you can do when learning about binary options is to turn yourself into an autodidact.

What is an Autodidact?

Besides being a big buzz word in psychology these days, an autodidact is a person who self-educates. Autodidacticism means “learning on your own.” Famous autodidacts can be found in all walks of life and all professions. Some examples include Herman Melville, Frank Lloyd Wright, Thomas Alva Edison, the Wright Brothers, Malcolm X, Leonardo da Vinci, and Abraham Lincoln. Some autodidacts are highly educated in a formal system, while others quickly dispensed with formal education. But all these people have one thing in common, and that was the ability and drive to learn on their own and explore new ways of doing things.

Why is Autodidacticism Key for Binary Options Traders?

In many ways, trading for a living is the ultimate autodidactic activity. It is a learning process that literally never ends, and even if you are enrolled in some kind of coaching or mentoring program, your learning will ultimately happen largely on your own at home in front of your computer. No trading mentor can turn you into an amazing trader. Even the best mentors will fail with students who are not self-motivated and capable of learning on their own. And even without any sort of coaching, truly motivated autodidactic students will be able to overcome obstacles and reach trading success

Binary options traders have to learn the following in order to become successful traders:

  • The basics of binary options trading and how it works.
  • What to look for in a broker.
  • How to manage money intelligently and responsibly. This is an art form all in itself.
  • Fundamental analysis.
  • Technical analysis.
  • Price action.
  • Different strategies and techniques for trading. You will have to learn at least one trading method inside and out, based on one of the types of analysis above. Odds are you will learn a number of different trading methods while you are working on finding one that you like.
  • How to apply your trading method for success. Knowing how something works in theory and knowing how to make it work in real life are two very different things.
  • How to manage yourself. As a trader, you are self-employed. You will have to learn how to manage your own time, do your own accounting and taxes, and more. You will also need to learn about yourself and manage your own psychology.

While that may sound like a short list, each of those different topics involves a great deal of research, and you really have to be ready to apply yourself to learning in order to succeed. You need to be ready to go beyond theory and learn how to apply binary options strategies to create real life success.

How long does it take to become an expert binary options trader? The learning curve is different for every trader who embarks on this journey. For some, it only takes a few months to get up to speed and start trading. For most, it will take a number of months or even longer. For some traders, it can take years to make it through the learning curve and start trading for real money.

Most people who set out to become binary options traders never make it that far, though. They give up when they realize just how much learning is ahead of them. They do not have what it takes to be autodidacts. They become upset when they realize that they cannot learn everything about binary options just by watching a few video tutorials and reading an eBook. That is a good starting point, but an autodidact needs to be willing to go farther than that.

5 Tips for Becoming an Autodidact

Most of us do not have a lot of experience with self-learning, because it is not the way our formal education was structured. Again, even if you hire a binary options mentor, you will probably be spending 90% of your time learning on your own. Your mentor is there to coach you and provide you with guidance, but the hard work is still ultimately yours. Here are a few quick tips for becoming a binary options autodidact.

1. Set aside time for learning and stick with a schedule.

Learning requires self-discipline. Just as you had to schedule time for studying and homework in school, you will have to have study time for research and development when you are learning how to trade. Come up with a weekly schedule and block out hours for binary options learning. Come up with a schedule that allows you to maximize your productivity and utilize your energy. Figure out what time of day you are at your sharpest mentally, and take advantage of that clarity. This will also help you learn the discipline you need to trade later.

2. Reward yourself for milestones.

One of the keys to keeping up your self-discipline is to reward yourself for a job well done. When you reach a benchmark on your education, do something nice for yourself. Schedule a day off, do an activity you enjoy, have a nice meal, or so on. Look for ways you can make learning fun and encourage yourself.

3. Share what you learn online.

Get on a binary options or other trading form and start posting. Get to know other people, and share your learning journey with others. Posting about what you learn and sharing your questions as well as your discoveries can help you to stay motivated. Often we perform better when we know that others are taking an interest in our learning journeys. We strive to do better so we can offer more. Learning by yourself does not have to happen in a total vacuum.

4. Distribute your time wisely.

It can be tempting when you are learning on your own to explore every single aspect of trading, but you need to realize early on that you will become an expert in some areas and not in others. Trading is a very broad discipline. Do not waste time on concepts that are not going to be applicable to you, and do not get caught up in details which are not important. You will have plenty to learn by focusing on what is really important. Build a working knowledge. You can spend time on theory all day and get nowhere in real life, or you can work on developing basic real-world, practical skills and perfecting them as you go. The latter is better.

5. Find out how you learn most effectively.

There are a number of different types of learners in the world. You might learn by reading and writing, or you could be a visual learner. You also might learn by doing or by watching demonstrations. Figure out the most effective learning methods that fit with your learning style, and make the most of them. If you learn well visually, look up lots of charts. If you learn by reading, go to the library and get books on investing. If you learn by doing or watching, download video presentations and tutorials on trading, and do lots of hands-on practice along the way. Make learning as easy for yourself as possible.

Learning to trade binary options does not happen in a vacuum. Other traders will be there to help you if you reach out to them, and trading mentors are also available. Nonetheless, the vast majority of the time, you will be sitting at home reading, watching videos, and practicing and testing on your own.

It pays off to become an autodidact. It is the only way to become a successful binary options trader!

Why Do So Many Brokers Refuse to Offer Demo Testing?

Why Do So Many Brokers Refuse to Offer Demo Testing?

Have you been looking for a binary options broker to trade with?  If so, you have probably noticed that some, but not all, offer demo accounts.  A demo account is an account which allows you to test out the platform for free and practice with fake trades.  The trades use real-life data and happen in real-time, but you do not gain or lose money on them.  Demo trading is an extremely important step in becoming a trader if you want to be profitable, but the fact that so many brokers refuse to offer it may make you wonder if it is really that important.

Demo testing is very important.

It is in some ways the most essential step you can take if you want to trade professionally.  When you demo test, you are accomplishing a couple of key things at once:

  • You are testing the broker’s platform to make sure that it is error-free and easy to use.  Not all binary options websites are equal.  In fact, two brokers can use the same white label software (such as SpotOption) and still not offer equal performance.  Brokers are limited by their bandwidth and other features of their hosting.
  • You are testing your own strategies to ensure that they work.  You may have done extensive back testing already (hopefully so), but that is not the same thing as testing in real-time, which is a totally different experience.  You need to see how your system performs in real life, and find out whether there are any additional tweaks you need to make.

So if demo testing is so important, why do so many brokers send the message that it isn’t?

It would be hard to take a guess at a percentage, but I am thinking out of all the binary options brokers I have investigated or reviewed, probably only 10% offer demo accounts of one form or another—and no, several risk-free trades upon making your first deposit does not count.  Demo accounts are often severely restricted as well.  You may for example only be able to use the demo account for a few days or a couple weeks before you trade live.  While this is certainly superior to no demo account at all, it is not sufficient for accurate, thorough testing.

Unlimited demo accounts are even rarer, but they are by far the best.  One broker we like a lot who offers a genuine unlimited demo account is MarketsWorld.  With an unlimited demo account, you can test to your heart’s content for as long as you want—years if necessary—before you trade live.  There are no strings attached.  With MarketsWorld, you do not even need to make a deposit.  With the majority of unlimited demo accounts, you need to make a minimum deposit before you demo test.

False Explanations

I once had a chance to ask a broker about the dearth of demo accounts on binary options websites.  After all, I remembered seeing demo accounts on practically every Forex site I had ever visited.  Why should it be different with binary options?  The response I received was surprisingly reasonable.

A lot of traders assume the reason is one of the following:

  • Demo testing is not truly important.  If it was, brokers would all offer it.

Or

  • Brokers want you to fail, so they do not offer demo testing.  If you do well, they do not make money.  It is in their interests to cost you as much money as possible.

Neither of these assumptions is correct.

The reality is that binary options brokers are likely to make money no matter how many amazing features they offer you to become a better trader.  Why?  First off, they make money on the difference between the payout percentages and the out-of-money refunds.  There is a slight gap that plays in their favor, and behaves a bit like a spread in Forex.

Second off, the vast majority of binary options traders do not even use the features provided to them.  They forgo demo testing anyway, or skip using helpful control features like early close, and lose money hand over fist.  A few successful traders will always remain in the tiny minority.  Brokers will always make money off of the majority, and build reputation off of supporting the minority.  And let’s not forget, they are technically borrowing your money while you have an account, and they should be paying you interest on it.  As they are not, that is one more way in which they are profiting.  Brokers are fundamentally like banks.

The Real Reason Brokers Do Not Offer Demo Accounts

Here is the real reason you may have a hard time finding a demo account when you are looking for a binary options broker:

The majority of binary options brokers are tiny startup companies.  There are hundreds of them springing up around the globe, and the vast majority are lacking in financial resources, particularly since regulation is so low.  Many of these companies barely have enough money to afford their bandwidth.  This is one reason the sites you look at are in such bad shape or do not staff their customer service desks.

This has created a vicious feedback loop.  I spoke to a broker of a company that offers a demo account, deposit-only, and asked why they required a deposit.  The reason, they told me, is that they used to offer an unlimited demo account with no deposit requirement, but because they were one of the very few, traders who planned on trading with other companies flocked to their site to test, and then fled back to their real brokers without depositing any money.  In other words, they hogged all the bandwidth, and then left.

This is why most brokers who offer demo accounts do so to paying customers only, and at least require that you open an account.  It is why most of those accounts are severely restricted.  The landscape would probably look very different if more binary options brokers were not poorly funded startups to begin with.  This is also why most of the companies that do offer demo accounts are larger and may even be regulated as one type of financial business or another—they meet the funds requirements to register.

What Should You Do?

You cannot simply bypass demo testing if you are serious about trading.  If you are trading for fun only, you may want to skip demo testing to avoid using up unnecessary bandwidth on a binary option broker’s website, and you may also not need to search for a company which offers demo testing.  Demo testing is really only offered with serious traders in mind.  If you are gambling for fun, you do not need to demo test.

If you do need to demo test, you can avoid making the problem worse by choosing to demo test with a broker you are actually going to trade with—whether they require a deposit or not.  And you can make sure that when you are searching for a company to trade with, you make a demo account one of your primary search criteria.  That way you are not using up bandwidth on a site where you are not planning on investing money.  This allows you to do your part in keeping the problem from becoming worse.  At the same time, you are doing what you need to in order to become a profitable trader, and also sending the message that you value the inclusion of demo accounts on binary options sites.

Check out binary options brokers with resources and tools for you to use!

5 Things Successful Traders Do Differently

5 Things Successful Traders Do Differently

successYou have the perfect trading system.  You know that it works, because you have tested it and proven it to yourself.  You know other people who have been trading with the same method and are doing great.  And yet, you are still struggling to succeed.  You are easily discouraged, but still determined to make it.  Why are those other traders doing so well while you are lagging behind?

Scenarios like the one above are very common.  You can hand two traders the exact same method, and the method can suit both traders’ personalities.  Both can be trained in proper money management.  And yet, you will see one trader succeed while the other continues to fail.  What is the difference between the two?  It all comes down to psychology, specifically the psychology of success.  Here are 5 things that successful traders do differently.

  1. They do not confuse knowledge with action.

You can accumulate information on trading all day long and become an absolute expert—and still fail.  You can in fact become a kind of expert novice—someone who knows all there is to know about trading binary options without actually trading them.  There are a number of reasons this can happen of course, some of which may be out of control (lack of trading capital, time constraints, etc.).  For a lot of people though, it is the fear of failure, or even the fear of success.  Not all people are consciously aware of what is driving them to stand still.  Learning all you can about binary options is key, but never forget that if you do not put your knowledge to use, it is without value.

  1. They do not over-think what they have to do.

How do you feel when you sit down to try something new, like binary options trading?  Do you feel overwhelmed by all the steps involved with learning and trading?  Does that sense of overwhelm paralyze you into inaction?  If so, you may be over-thinking.  Obviously you do not want to shut your brain off when you are trading, but there is such a thing as trying to take on too much at once psychologically.

The best way to tackle over-thinking is to plan ahead, but not become so wrapped up in your plans you cannot see what is right in front of you.  Write down any long-term trading plans, and also make a checklist of steps involved with trading.  Once you have done that, focus on the next couple of steps which are right ahead of you at any moment.  If you try to look too far ahead, you will simply scatter your mind and not be able to concentrate.  Instead of constantly over-thinking, start doing.  Use your checklist and your trading plan to keep you on track.  Externalize those overburdened thoughts so that you can act unimpeded by over-thinking.

  1. They step outside their comfort zone.

Successful binary traders, and successful people in all walks of life, step outside their comfort zones regularly.  Actually, a better phrase might be “complacency zone.”  After all, you are not necessarily comfortable in your complacency zone.  You may be thinking about learning how to trade binary options so that you can live more comfortably with greater financial resources and success.  But that does not mean that there is not a temptation to sit right where you are.  After all, trading involves embarking into the great unknown, and that is always scary, even when it is likely to be beneficial.

You may find yourself struggling with this issue within the framework of your trading as well.  For example, you might become comfortable with a particular trading system.  That system might stop functioning on the level you need it to, but you may feel uncomfortable making changes to improve it.  Successful people force themselves to face their discomfort and their fear of the unknown.  They climb outside their comfort zone instead of falling into complacency.  They do what they have to do in order to progress.

  1. They keep concrete records of their activities and review them regularly.

If you do not have a spreadsheet where you are tracking your wins, losses, and the logic that accompanied your trades, you should start one now, along with a comprehensive trading journal.  Successful traders do not meander through their careers without keeping records.  Records are vital for a couple of reasons.  Firstly, they keep you honest, and secondly, they give you information which is essential if you want to keep winning and prevent future losses.  When you do not keep detailed records and review them often, you are leaving your fate up to chance.  Keeping records scares some people, both because it involves effort, and because it exposes mistakes.  But until you are willing to confront your mistakes, you will never make it in binary options trading.

Don’t get caught scamming yourself.

  1. They live balanced, healthy lives.

One surefire way to destroy a trading career is to maintain an imbalanced lifestyle.  This is just as true for traders who invest all their time and money into trading as it is for those who invest too little.  You have to put your energy into trading, but you cannot put all of it there, or you will be burning the candle at both ends.  Take care of all your responsibilities.  Do not neglect your day job, your health, your friends, or your family.  Successful traders set aside time to relax, work on other projects, and spend quality time with loved ones.

Hopefully now you have more perspective on the psychology of success, and how you can cultivate a state of mind which is conducive to success.  If you are feeling lost with your trading, mimic more successful traders.  Take action, stop over-thinking, step outside your comfort zone, keep records, and live a healthy, balanced life.  You may be surprised what a difference taking these steps can make in your trading!

5 Tips for Choosing a Great Trading Mentor

5 Tips for Choosing a Great Trading Mentor

mentorA trading mentor is someone who you pay to help you learn how to trade binary options.  Trading mentors typically provide their customers with an abundance of resources and training materials.  These may include articles, eBooks, video tutorials, a private discussion forum, trading alerts, systems, and one-on-one coaching.  You can learn how to trade without a mentor, but a mentor can cut months or years off of your journey, if you find the right one.  In this article, I offer a few tips for choosing a trading mentor.  Here are some more.

  1. Look for a mentor with a believable history.

Be very wary of trading coaches who have some kind of rags-to-riches story that has absolutely no viability.  This means having realistic expectations yourself, because there is no other way for you to evaluate the stories told by someone else.  This does not mean that your trading coach didn’t have a rags-to-riches story, but it should not go like this: “I started trading with $100 in 1979, and within five years, I was a millionaire.”

That is simply not how trading works in real life, as much as we would like to believe otherwise.  A mentor who tells you that is lying, probably about far more than that.  A trading mentor may have come from modest beginnings, but the story of how he or she became successful should have its ups and downs.  It needs to be something that could have happened in the real world.  Here is what a more realistic story looks like:

“I started trading with $100 in 1979, and blew my first account inside three months.  Two years later I tried again with $2,000, after years of testing and hard work, and I managed to break even the first couple of months.  I started turning a minor profit after a few more months.  Ten years later, I had $20,000 in my account, and I was finally trading for a living.  I have been trading for a living ever since, and I’m finally living comfortably and traveling.”

Your trading mentor should be honest about all of his or her past mistakes, and about the struggle to overcome.  Because those are the kinds of mistakes you are likely to make.  A mentor can help prevent them by offering you the benefit of his or her experience.  Moreover, a mentor who is honest about mistakes and the struggles of his or her trading career is probably honest about the services he or she offers.

Click here for elements that will help you be a better trader.

  1. Look for someone who will help you to find your own way.

Do not confuse a trading mentor with somebody who is selling trading systems.  Your mentor may offer you trading strategies as part of the coaching package, but ultimately your mentor’s job is to help you find your trading style and your trading system.  You may end up using a system that your mentor provides (or a variation of it), but you may also end up using a completely unrelated system.  Either way, your mentor should be able to provide you with help developing or using your system of choice.

Don’t be afraid to check out signal services as well.

  1. A mentor should excel at expressing complex ideas in simple, straightforward ways.

Trading is a very complex activity in many ways.  Systems, analysis, and other aspects of trading can make trading look unapproachable to many (just consider the reactions you have gotten from people you have told about trading).  But at its heart, trading can be very simple and elegant.  In fact, the most successful traders are usually those who can boil down all that complexity to discover that simple essence.  Likewise, a good trading coach is going to be able to help you to do just that.  Look for a mentor who can distill the simple essence of trading from all that complexity and present it in a clear, easy-to-understand format.

How can you find out about a trading mentor’s style?  Have a look around his website and download any free materials which are available.  A lot of mentors offer free eBooks.  Trial membership may also be available.  If the materials you read are overly complex or ambiguous, you should go elsewhere.  Look for material that is presented clearly and succinctly, and takes the mystery out of trading.

  1. Owning an island is not a criteria for being a great teacher—teaching well is.

Okay, so maybe not an island.  But you will run into a lot of trading teachers who present themselves as desirable mentors because they are supposedly wildly successful and swimming in vast riches.  But a mentor really does not need to be a millionaire or a billionaire to teach a great course, or provide excellent one-on-one coaching.  A coach does not even technically need to be a great trading success to coach well.  You will sometimes find students attacking teachers because those teachers are making most of their income coaching, not trading.  But there is a huge difference between trading well and teaching well.

A good mentor must understand the essence of good trading, but there is nothing wrong with making an income from teaching if the mentor truly can help students to progress.  And do not forget, not every expert trader can excel at teaching.  Just because someone makes hundreds of thousands of dollars each year trading does not mean that person has any teaching expertise.  And likewise, just because someone doesn’t make hundreds of thousands of dollars per year trading does not mean that person cannot help you do the same.

  1. Look for a comprehensive course.

Learning how to trade is about a lot more than systems, analysis, and mechanics.  It is also about trading psychology and money management.  Furthermore, it is about getting to know yourself and integrate your trading routines into your actual day-to-day life.  At some point, theory has to be put into practice.  A real mentor will help you to do that.  Your instructor will understand the complexities of your real life, and will teach you how to become a trader in the real world—not just what it means to conduct a particular type of analysis or how to trade in theory.

Finding a top-shelf trading coach is not easy, but a great instructor can cut down your learning time and help you to save money by not making costly mistakes.  How should you start your search?  Get on trading communities and talk to people.  Look for referrals, or follow leads from free materials.  And remember, a really good instructor may not even advertise services or offer coaching to students en masse.  If you meet someone who you think can teach you to trade binary options like a pro, consider making that person an offer.  And if you do decide to learn how to trade without the aid of a mentor, do not forget you are not alone.  You still can learn alongside other members of the binary options community when you join forums online.

Binary Trading Forums & Communities

What to Look for in a Trading Community

Query “binary options community” or “binary options forum,” and you will see dozens of different forums you can join to post your questions and have conversations with fellow traders. You can add a lot more results by also typing in “Forex forum” or “Forex community.” Even though you are not trading Forex, the process is very similar, and many binary options traders are FX traders and vice versa. How do you actually choose a worthwhile community to join, though?

Not all communities are created equal. Some forums have a lot more to offer you than others. The quality of the people are going to determine the quality of the advice you will get, and if you join a community that does not have intelligent, patient traders, you will actually surround yourself with negative influences. A positive, smart community can empower you tremendously. Here are some signs you have found a good trading community:

There are plenty of categories for discussion threads. Look for sections on trading systems, general trading discussion, team trading, platform technical issues, brokers, trading journals, beginning trading, and more. Why is this important? It indicates a well-organized site, for one thing. For another, these sections indicate that people on the site are actually focused on various important aspects of trading, and are serious about making progress.

Look for intelligent responses. Actually open up various discussion threads and see how people respond to questions and comments. Do you see intelligent, carefully crafted responses? You do not need to search for perfect grammar (many traders are from other countries than yours), but you do need to look for full sentences which have been carefully considered and add something of genuine value to a discussion.

Look for humility in responses. If you find a forum full of conceited binary options traders, run the other way as fast as you can. If everyone on the site is boasting about how much money they make or how little time they spend, they are not serious about trading (and they probably are not being remotely honest with you or anyone). The best forums have traders who have a degree of humility and can accept the realities that go with trading, including losses, mistakes, and numerous trips back to square one.

Consider etiquette. Stay away from communities where people are not polite to one another and do not respect one another. Would you really want to trade with people like that? And what kind of an effect do you think they will have on your mindset? Positive, helpful people on the other hand can help you cultivate the traits you need to succeed—and they can share useful information with you. You may find great accountability partners and allies at a quality binary options community.

You may also want to look for a moderated community. This is not a must, but moderation of new member posts can help deter salespeople, spammers, and others who are simply not very serious about trading from joining a site and distracting others. When you make your initial posts at a binary options community which is moderated, make sure that your posts demonstrate how serious you are about succeeding. Do what you can to make the community a better place by participating and providing quality interaction!

List of Active Forums We Have Used

Binary Options Daily – This forum was really active when I first joined back in 2011. Today the entire site has split into two with a different forum at Binary Options Edge.

Forex Peace Army – These guys are mainly forex but have some good binary traders and advice in there.

Hot Stock Market – Arguably one of the largest trading forums out there. Not directly related to binary options, but trading none the less.

BabyPips – an awesome site that teaches trading in forex. Binaries are frowned upon here mostly, but there is good value in this forum.

Which Is More Profitable: Trading or Your Day Job?

Which Is More Profitable: Trading or Your Day Job?

Here is an interesting question I ran across today while browsing a binary options discussion forum:

For those of you who are doing or have done both, which has been more profitable for you—your binary options trading or your day job?  Right now, my binary options trading is far less profitable than my day job, but I hope that someday I can turn that around.

Profitable vs. Valuable

I think this question is intriguing, because there are two definitions I can find for the word “profitable.”  The first definition is very specific, which is “yielding financial gain.”  The second definition is very vague: “beneficial, useful.”  If you look up the definition for “value,” you will find, “worth a great deal of money.”  This actually is a pretty narrow definition, though.  In terms of daily use, I notice that when we talk about value, what we are actually talking about is worth measured against input.  When we discuss “the best value for the money,” for example, we are talking about a product which provides the most benefit for the least amount of cash.  We could also talk about “value” in terms of time.  What gives you the highest benefit—the highest profitability—for your current input of time and effort?

What Benefit Does a Day Job Give You?

Anyone who is reading this most likely has some kind of a day job right now, whether it is full time or part time.  Balancing trading with a day job is notoriously difficult, but almost everyone has to do it.  I believe though that many trades overlook the true value of their day jobs, in light of the fact that the day job is not currently all that profitable according to the first definition.  In other words, the day job does not pay you all that much (probably).  You get paid at an hourly rate which is unlikely ever to change.  That rate is flat, not exponential.  You probably will never get rich doing it.

But your day job offers immeasurable benefits, and you should not think about giving up those benefits until you no longer need them.  By the second definition, your day job is therefore incredibly profitable.  And it has great value, because it gives you the ability to put in a finite amount of time and effort to pursue something which can provide you with an unlimited yield.

What is that thing?  Trading, of course.

Trading does not require a finite amount of time or effort.  You are daring to strive for unlimited wealth, which means that you are undertaking a project that forces you to face life’s uncertainty.  There is no boss setting hours for you and promising you a set amount of money in return for your time.  You do not know how long it will take you to start making a reasonable return (or a great return), measured against when you begin.  For a long time, you could put in a great deal of effort and receive no income at all from trading.  So when you are a beginner, trading is not as profitable as your day job.

But you could argue it is every bit as valuable, because over time, the yield can far exceed that of your day job.

A Day Job is a Pre-requisite for Binary Trading

One thing which I have figured out over the years about trading is that it does not happen in a vacuum.  It is wonderful to think that you have found your calling and life and that you can now quit your dull, tedious, time-wasting 9-5 job and start doing what you are meant to do, but life does not work that way.  Your dull, tedious 9-5 may feel like a waste of time, but it is also what enables you to start trading at all.  What will you live off of if you do not have any income outside of trading?  Even if you are achieving amazing success on your trading account, that success will never compound if you have to keep withdrawing funds to pay your rent.

So will your day job ever pay you more money than it does now?  Not directly.  But since that seemingly unprofitable flat rate allows you to pursue riches through trading after work, it actually is very profitable.  Without it, you would be unlikely to ever succeed, unless you were starting out with a ton of money to begin with.

And that is why I do not suggest quitting your day job, or trying to measure profitability in black-and-white terms.  Your day job and your trading are connected.  They are not completely separate entities.  If you are struggling with how to schedule your trading and manage your time around a full time job, read this article.  Do not quit your day job until you are reliably and consistently earning enough money to easily pay your bills and grow your account simultaneously.  If you do not have a day job, but you also do not have enough money to build up your trading account, I suggest getting one.

10 Elements of a Winning Trader’s Psychology

10 Elements of a Winning Trader’s Psychology

Struggling with binary options trading and trying to figure out what separates the winners from the losers?  Sometimes it is said that failure is simply the absence of success.  In other words, if you are failing at trading, you simply haven’t won yet.  What makes you win?  Determination, and the resourcefulness and insight which come out of it, along with patience and a great work ethic.  If you are having a hard time with practical hurdles, like enough money to start a larger account, those factors can also make it difficult to move from failure into success.  The internal traits of a winning psychology can assist you in overcoming those obstacles though, and ultimately are far more important.

  1. Determination

This is probably the single biggest factor which divides the winners from the losers, not just in trading, but in any other walk of life.  Yes, it pays to have money and time on your side, but you could have all the money and time in the world and still fail at trading if you do not have the drive to do well at it.  On the other hand, you could have a lack of resources, but have a greater chance of success because you have the drive to win.  That drive will help you preserver when the going gets tough.

  1. Perseverance

Closely related to determination, this is the quality that keeps you from giving up when you are struggling.  It is the ability to continue to follow through, even when you want nothing more than to throw in the towel.

  1. Patience

This is one of the most important characteristics that a trader can possess.  Patience not only is key because of how long it can take to become a successful trader, but also because it keeps you from making poor trading decisions like taking bad setups or investing too much of your bankroll.

  1. Discipline

disciplineThis is the trait that keeps you focused and working when you would rather be doing something else.  It is a kind of “override” on your other emotions and desires, and allows you to push yourself beyond your normal limits.

  1. Balance

Pushing yourself beyond your limits is often an indispensable ability when it comes to achieving great success, but so is having the poise necessary to step back and take a break when necessary.  If you push yourself too far, you can easily burn out.  A trader with balance will make sure to rest, get plenty of sleep, spend time with loved ones, and relax and think about things other than trading now and again.

For some traders, resting and relaxing may be a given, but for others, it is easy for that discipline to turn into a tyrannical force.  Ironically, it takes a different sort of discipline to keep that quality in check and to live a full and balanced life.  You cannot exercise sound judgment if you do not have a clear and healthy mind and body.

  1. Curiosity

Curiosity is a great trait for a trader because it takes you in new directions.  When you were a child, you probably remember asking dozens of questions a day, or even more.  How many questions do you ask a day now?  The more curious you are, the more you expose yourself to new material and learn.

Being curious about trading will help you expand your knowledge.  Being curious about other subjects will lend perspective.  Often times insight comes when we least expect it.  The more you engage your brain, the more connections you will make between different topics within trading and beyond.  These connections can give you the edge that you are looking for.  You can even test brokers before jumping on board.

  1. Consistency

As a trader, you are always facing chaos and uncertainty.  The more often you deviate from your path, making massive, abrupt changes to your activities, the more chaos and uncertainty you introduce into your trading.  When you are consistent, you reduce chaos and uncertainty, and introduce control and predictability.  That is how you move from failure to success.

  1. Risk

I do not want to imply that you should be a “risk-taker” and not a cautious trader.  You actually need a balance of risk-taking behavior and caution to succeed.  But you cannot be entirely risk averse and hope to make it in binary options.  Every time you embark on a new path in life, and start a new professional journey, you are risking failure.  And if failure is the non-presence of success, you are going to face your personal demons along the path.  You need to prepare yourself for that if you are going to make it.

  1. Honesty

A trader who can admit his mistakes to himself and also recognize his positive traits is one who is likely to succeed.  Honesty gives you clarity, and clarity allows you to make sound decisions which have a basis in reality.  If you do not know yourself and cannot be honest with yourself about your trading activities, you cannot see what is going on.  Imagine getting into a car blindfolded, turning the key, and driving out into rush hour traffic.  That is what trading is like if you are dishonest with yourself.  Another good metaphor would be driving drunk.  An inebriated driver has no idea whether or not he is even making mistakes, and does not hold himself accountable from his actions.  Stay sober and check your windows and mirrors when you trade.

  1. Generosity

This may not sound like the most obvious trait to list, but I absolutely believe it is a necessary ingredient of success.  Generosity allows you to share your knowledge and your experiences with others.  The flip-side of the coin is gratitude.  You should be thankful for the knowledge and experiences that other traders share with you.  Traders who work together and leverage their shared experiences are more likely to succeed than those who isolate themselves.  Be part of a community and give something back, and you are positioning yourself for greater success.

What should you do if you do not have these personality traits?  Don’t fret or get down on yourself too much.  Not many people are born with all or even many of these qualities in abundance.  Like trading, they are something you learn along the way.  And they all start with determination—the will to become better and to win.  Honesty is another core quality which will drive success.  Combine your willpower and your honesty and you will probably start to cultivate the other traits on this list. Keep studying and testing, and as you do, you will continue to improve.

Do research to find out more ways for you to be successful – not only in binary options but overall.

Photo credits: Determination

Binary Options Trading Sites Spring Up Like Weeds

The hottest trend in finance trading is binary options. The demand is huge for these types of services and in return binary options trading sites have sprang up like weeds to get in on this action. I use the term weeds because that is what the majority of the trading sites are. Weeds. They are not legit, not regulated, not reputable.

I can tell you that the way many binary options trading sites work is by ‘white-labeling‘ an existing trading platform. What this means is that with some new logos, graphics and colors slapped on top of an existing trading platform, an online trading site can open up. They can open up and appear legit. They can boast all of the features and functions of the underlying trading platform that they are white-labeling.

This does not mean that they are reputable, legit or should be trusted. In all seriousness, there are so many shady looking binary trading websites out there that unless you are very careful you are likely to open an account with an un-trustworthy broker who has no intention of ever letting you withdraw your deposit, much less to pay out winnings and profit in your pocket.

Winning Is Hard Enough

It’s hard enough to win a lot of money at the trading binary option sites anyway. Sure it can be claimed a 50/50 chance but in reality it is harder to win than that, and you’ve got to deal with the house edge. Winning trades pay out 70-85%’ish and losing trades from 0-15%. That leaves the house with a 5-10% edge built in on top.

So not only do you have to overcome the house edge by making smart trades, you have to then try and get paid from the broker. If you are at one of the legit binary option trading sites then this is not a problem assuming you have met all the requirements (proper ID, t’s and c’s, cleared any bonuses you accepted, etc). If you are trading at one of the less than legit binary option sites then I wish you luck good sir.

I have been in this industry long enough to hear true horror stories from traders who lost thousands by trading at the non-legit sites. Do not be one of those traders. Find a site you trust and only trade with funds you can totally afford to lose.

The good news is that there are brokers you can trade at that will pay you your winnings, offer fair trades and not mess around with the expiry times. We only list a select few we are comfortable risking our own money at and you can find those from our home page.

24Option Binary Trading Site

24option.com - Binary Option Broker24Option is one of the few binary options brokers on the web that are already regulated. While this alone is a great reason to consider 24Option as your next binary options broker, there are other compelling reasons as well, including 24Option’s many trading resources. While the resources are still rather basic, they are far more extensive than those hosted at many of their competitors. The average binary options broker seems to only offer up a brief page discussing what binary options trading is—if you don’t know that by now, you probably shouldn’t be investing. 24Option offers a lot more.

  • www.24option.com – Official Website
  • Regulated & Legit
  • One of the largest binary brokers online
  • Bonuses available for new depositors
  • Demo account is available

*USA visitors should consider TradeRush as 24Option stopped accepting US traders in January of 2013.

Learning How To Trade Binary Options at 24Option

24Option Has a Simple To Use Trading System

24Option Has a Simple To Use Trading System


The typical resources are available at 24Option as well as a bit more in the Education Center. You’ll find the page discussing what binary options are, along with a page on binary options trading, a FAQ, and a glossary. These pages will familiarize you with the basics of binary options trading. Once you’ve done that, you can check out the resources in the Education Center.

24Option offers a free trading eBook that can help you learn how to use the 24Option platform and orient you with the registration process and terms and conditions. You’ll learn about different types of binary options and how to choose an option. Twice a week there is a free webinar which you can watch to receive expert tips.

Free videos at 24Option are another great way to learn more about binary options. There are hours of videos on the site that introduce you to money management, market analysis, and trading psychology—all critical areas to address before you start trading, and matters that are left pretty much neglected by most brokers in their resources sections. It says something positive about 24Option that they are eager to introduce traders to these topics.

What it tells you is that this broker is trying to cater to traders who might become serious and investors, and not just gamblers who are looking to make a quick buck by chance.

This is ultimately a sign of trustworthiness. You want a broker who is willing to forge a long-term professional relationship with you.

While these resources form a great starting platform for your education, it’s just the beginning. After you’ve learned these basics you’re going to need to start learning about trading methods and developing one of your own (or adopting one for your own use).

Testing is another important step to take before you go live. And don’t forget that education in binary options trading is ongoing, even after you start to trade. The markets are always changing, and it’s the adaptive trader who can go on to long term success.

Binary Options Trading Resources and Tools

toolsBinary options websites usually have some kind of educational tools and resources available to new traders. This is often a selling point, not because the same information may not be available elsewhere, but simply because it demonstrates good will on the part of the broker. And in some cases, it can mean value added, especially when there is one-on-one training or trader alerts available for account holders who deposit more money when they join the site.

What’s A Good Resource?

What types of resources should you be looking for? Some resources are pretty basic, and honestly not that important. You should expect an FAQ, glossary, and some basic how-to pages, but out of those things, it’s really the FAQ that’s most important. These aren’t trading resources, though—these are website resources. Some sites try to pass off “how to use our site to trade” materials as resources which are actually teaching people how to make intelligent trading decisions. It’s not the same thing, however; it’s much easier to learn to use a site than it is to learn how to trade binaries successfully (source).

Additional resources that are helpful include expiry calculators, economic calendars, daily and weekly market analyses, blogs on trading, and articles on trading techniques. Other good resources might include eBooks and trading videos. These resources again however should actually help you learn how to trade, not how to click your mouse. They should be the start of your education and not the end of it, too. The presence of these resources should help you evaluate the company itself. Do they seem like they’re looking for long-term customers? Or customers who aren’t going to plan their trades at all? More resources indicates a desire to find customers who will actually learn how to trade. That’s a broker which is potentially less likely to rip you off.

Trade Alerts Could Be Helpful

Trade alerts are potentially helpful as well, though we recommend that you plan your own trades. If you do use trade alerts, you should trade them using your own discretion, and only trade them if you know how and why they work. Planning your own trades keeps you involved in your trading, though, and gives you a better chance of noticing in time if your trading method isn’t working in current market conditions. With trade alerts, you might not see things going south until it’s too late. No method is perfect, including those which trade alerts are based on. Taking responsibility for your own trading decisions also can help you to stay honest and accountable.

You Can’t Go Wrong With One-on-One Training

One on one training is a great feature which a few brokers offer to members who make larger initial deposits. You can find out about features like this on pages which summarize account tiers. Your standards for one-on-one training should be the same as they are for other resources. You aren’t looking for someone who can just tell you how to use a website. The best one-on-one training will help you to learn how to actually make sound trading decisions, find a good trading method, and stick with it.

You shouldn’t rely 100% on the resources a binary options broker gives you to learn how to trade. If you want to be consistently profitable, you’re only taking the first steps on a long journey toward market expertise and trading success. That journey will probably take you to many different internet and print resources. A large part of the learning will take place when you’re testing trades as well, so learning is an active process. Trading resources on a binary options site can help you to evaluate the trustworthiness of a potential broker however, and that’s another key step toward successful trading.

Head to TradeRush to check out their resources and tools!