Introduction Binary trading and Effective Strategies

Are you looking to trade the financial market without having to go through the lengthy beginner courses and rigorous training? if so this post is for you.

Binary trading is a relatively new investment product similar to that of the Forex market. It allows you to trade the major currency pairs and some major stocks without having to go through all the rudiments of risk sizing, detailed analysis etc. They are usually easier than conventional Forex or stocks because there are only two (binary) options involved and that is to decide if price will go up or down.

Be Warned though there a lot of fraudulent brokers who manipulate the results/price. A lot of countries have banned this investment because of the degree of fraud perpetrated by many institutions/individuals.

Tips on Trading Binary options

• Look to trade  higher timeframes. the lower the time frame the harder it is to predict where price will be in x minutes
• use a 5period , 8period or 14 period moving average to to determine the trend on the timeframe you are trading
• use strength indicator to show you where the price is like going to be heading in the next hour
• place your trades based on the assessment above. if you do it right you should get about 70% accuracy in trading which is a very good return giving that each correct decision doubles your investment
• do not trade more than thrice a day. Simply look to have a profitable day and get out. three consecutive loss is a good time to call it off.

Pros of binary trading

1.  They are easier because they don't involve the need to predict how far price will go.
2. They only risk the amount you put in the trade. its not like conventional trade where not having a stop loss can ruin your account 
3. you get upto 90% of  the investment you make in each trade when you trade.

Cons of binary trading

1. A lot of critics consider them gambling. I sit on the fence non this one as they actually need analysis and can have an accuracy that exceeds 80%.
2. They are fraud prone as many fraudsters look to defraud individuals looking for quick lazy money
3. They can make you loose your investment traits and become a pure gambler.

Trading Binary options can be easy and fun if you know what you are doing. I personally don't trade them because I don't want to have a gamblers mentality. If you have weighed the pros and cons and are comfortable with them you can invest in them.  ALPARI ONE OF THE REPUTABLE BROKERS THAT TRADE BINARY AND THEY DO HAVE A CONTEST THAT CAN HELP SHOWCASE AND TEST YOUR SKILLS