Successful Trading is a Skill You Can Learn
The famous Turtle Traders founder Richard Dennis made history not only through his record-breaking trading performance but also for transforming the lives of a handful of individuals like you and me in under two weeks. He believed that he could pass on his successful principles as a trader to a non-professional trader and that based on them following his principles to the letter they too can become just as successful. Contrary to his peers opinions he proceed to do just that and the rest is history. This is no different to the teacher student relationship or master builder and apprentice relationship. Modern educators are promoting this exact principle to accelerate and help transform people's performance. It makes sense that success is a skill which can be taught even to trading Binary Options.
Binary Options Trading Strategy
Binary Options trading may be a fairly new investment vehicle but it should be no different to any other style of trading. It unique returns which range from 70% to 95% in under an hour make them appealing but should approached with the same discipline of any investment vehicle. All the tools a traditional trader uses to trade his market whether it is currency, stocks, options, indices and commodities are critical for their success. The primary features of trading include but are not limited to the understanding and utilizing charts of price history, indicators, trading strategy, trend analysis, trading journals, money management and mindset. These are all relevant and in most cases critical to formulate, formalize and utilize consistently. Any diversion of your trading rules, practices and strategies can be detrimental to your performance and will be pivotal for you to succeed as a trader.
It is important to be prepared and to have all these tools available for you to utilize and become familiar with. Charts are readily available online for a reasonable price. Most people pay anywhere from $40 to $200 dollars a month depending on what services and markets they subscribe too. When starting out keep it simple and minimize your costs. There are several free charts you can simply Google within seconds and view directly online. The charts may appear complicated and foreign at first but once you are initiated these too will become instinctual and you will be able to see information unfold before you. Most charting applications allow you to use either lines, bars or candlesticks. I am a fan of the latter but you will become acquainted with what works best for you in no time.
The next feature of the chart is the indicators and depending on the strategy that you learn you will only need a select few to get the job done. Again follow the strategy to the letter as too much information can be just as bad as having none in the first place, so it is important to keep it simple.
The point of using the charts and the selected indicators is to determine where the market is going. This is called the trend and it can either be going up, down or sideways at any particular time interval. This is particularly relevant to Binary Options because you only need to identify up or down by even a fraction, point or pip in order to receive a payout. There is a saying that traders have at the back of the mind and it says, "the trend is your friend" and it is intended to remind us that we do not fight the markets. As we cannot control the markets we must utilize these technical analysis tools to recognize the markets trending patterns.
All professional traders use a system to document their performance using a trading journal. This is critical as they not only study the charts from the previous day, month or year but they also monitor their trade performance so that they can identify and adjust their strategy to improve what is working and eliminate what is not. This is an essential characteristic of the professional trader that one starting out must emulate.
Once you learn about your trading strategy and documenting your performance using a trading journal, you then need to understand money management. Another term for money management is risk management. Without money management you are relying on your luck and that could run out when you least expect it. Primarily money management requires that you define what percentage of your trade you are willing to risk and stick to it.
One thing a lot of people take for granted is why a Casino always ends up winning. That is because they have all these systems to define the rules and control their market and increase their chances of success. They never deviate from these rules not one bit and they always expect to win. You too must follow suit and so too, find out everything that your need to structure yourself to succeed as a trader.
Magnum Options is a broker platform that seems to have mastered the brokering world of Binary Options. Established in early 2013, Magnum Options uses the latest technology for Binary Options traders. The broker is privately owned by investors with many years of experience in the online trading industry. The day to day management is handled by a team of experienced online trading professionals who have all been in the position of their users, and really understand the needs and priorities of both novice and experienced traders. These professionals have assembled an educational team like no other that really focus on informing and educating all traders interested in trading binary options. Because of their expertise in the financial trading industry, Magnum Options has a very unique and refreshing approach to education, teaching people not only how to trade using a binary options account, but also how to use binary options with other trading methods to maximize profits.