Binary options trading training

Today the network is filled with a lot of materials teaching binary options trading. There are lessons from experienced mentors, special literature on trading, practical video lessons, and even paid courses. In general, it’s impossible to list everything.

In fact, the fruitfulness of learning binary options (free or paid - it doesn’t matter) depends mainly on the beginner himself and on how much time and effort he spends in mastering this difficult profession.

Let us consider in this material the most significant nuances of learning to trade binary options from scratch.

Level of knowledge: beginner

What are binary options and how do they work, as well as general information about this financial sector.

Course content:

1. What are binary options 
2. Who invented binary options 
3. Are binary options a scam?
4. Pros and cons of binary options 
5. Real binary options 
6. Types of binary options 
7. Taxes in binary options 
8. Binary options and Forex: main differences 
9. Types of fraud in binary options 
10. Trader's Dictionary 

Level of knowledge: advanced

Introduction to the fundamental knowledge for profitable binary options trading.

Course content:

1. Trading session times 
2. Timeframes in binary options 
3. What is expiration?
4. Risk management 
5. Money management 
6. Psychology in trading 
7. Why do you need a demo account?
8. MetaTrader 4 terminal 
9. MetaTrader 4: instructions for dummies 
10. How to install indicators in the MetaTrader 4 terminal 
11. MetaTrader 4 on Mac OS 
12. How to trade binary options in MT4 
13. How to use the TradingView platform 
14. Live chart for binary options 

Level of knowledge: professional

Introduction to the general principles of making money on binary options, as well as indicators, strategies, and technical analysis.

Part 1: Basic Principles

Course content:

1. TOP 8 secrets for profitable binary options trading 
2. How to make money on binary options 
3. Investing in binary options 
4. "Grail" in binary options 
5. Why do many traders “leave”?
6. How to “overclock” a deposit?
7. Patterns of binary options 
8. How to choose currency pairs for trading 
9. Binary options trading methods 
10. Medium-term binary options trading 
11. Scalping with binary options 

Part 2: technical information

Course content:

1. Fundamental Analysis 
2. Technical analysis 
3. Trend and types of trend, as well as how to trade it 
4. Bearish and bullish trends 
5. What is flat ?
6. Trend phases 
7. How to trade on a clean chart 
8. Graphic analysis (shapes, patterns) 
9. Candlestick analysis 
10. Price Action 
11. Volumes in trading 
12. Training videos on indicators 
13. Indicators for binary options 
14. Strategies for binary options 
15. How to Apply Forex Strategies to Binary Options 

Additional Information

Information that will be useful for additional familiarization.

Regulation of binary options

Content:

1. Types of licenses for binary options brokers 
2. Regulator FMRRC 
3. Regulator CySEC 
4. Can binary options be banned in Russia ?

Binary options brokers

Content:

1. How to choose a binary options broker 
2. Verification of an account with a broker 
3. Minimum deposit for binary options 
4. The best ways to fund your account with a broker 
5. Binary options brokers 
6. The whole truth about the Pocket Option broker 
7. The whole truth about the Quotex broker 
8. The whole truth about the Binarium broker 
9. The whole truth about the Olymp Trade broker 
10. The whole truth about the Deriv broker 
11. Forex brokers 
12. Trading platforms for binary options 
13. Brokers are scammers 

General information

Content:

1. Books on trading 
2. What is Martingale ?
3. What is AntiMartingale 
4. What is volatility 
5. What are OTC quotes ?

What Are Binary Options for Real?

This is a relatively new, but quickly gaining popularity trading tool that works on the “all or nothing” principle. In binary options trading, you need to correctly predict the price movement of a currency pair, stock, cryptocurrency , ETF or other asset on the chart, and if the position closes in positive territory, your profit will be up to 90% of the invested amount. If the forecast does not come true, then you will lose everything you invested in the deal.

The main reason binary options are so attractive is that you can start trading with as little as $5. Brokers provide a trading terminal in which the minimum transaction amount is only $1, and if you win, you can actually get from 50 to 95%. In this case, all you need is to correctly predict where the price will move (up or down). For some traders, these are very interesting conditions for starting to master the financial market, especially if you can take a training course in binary options.

Sometimes in trading the word “guess” is used when it comes to price, but it does not quite accurately reflect the essence of the action, since it implies pure chance and luck. However, the trader’s job is to make a competent forecast of the direction of price movement, which has a high degree of probability. In this case, the number of successfully closed positions will be much higher than 50%, which will allow you to make a good profit. This is exactly what you can learn by taking binary options training for beginners for free.

How much time you will have to spend learning binary options depends on the psychological qualities of the person, their hard work and perseverance. It’s worth warning right away that there are no super-indicators or winning strategies that will provide huge profits in a couple of hours without any effort on your part.

Training: How to Start Trading Binary Options

After you have opened a real account, you need to select any asset, for example, a currency pair, and guess in which direction the rate will go and where it will be after a certain time interval (expiration).

If you believe that the price will go up, press the Call button, and if you think that the price will go down, press the Put button.

Example: Let's take silver as an asset. We assume that in 5 minutes the rate will increase, so we buy an option for $100, that is, press the Call button. Possible profit from the option – 80%:

If the price turns out to be even slightly higher than the initial values, we will receive $180 back to the account, that is, our investment of $100 and $80 in profit. If the forecast was wrong, we would have lost $100.

As a result, in binary options you can earn a crazy percentage in a few minutes. But it is worth understanding that such good profitability is also accompanied by a high risk of losing the entire investment. Therefore, in order to have as many successfully closed transactions in binary options as possible, training for beginners is simply necessary.

What you Need to Learn When Trading Options 

The trader spends most of his time watching the movement of quotes on the chart. It is not always convenient to carry out analysis in brokers' trading terminals, so to start learning binary options for free, you can install either a separate terminal (for example, MetaTrader 4), or use a live chart (for example, the TradingView platform), on which you can work with indicators and other technical instruments and view price movements on different timeframes.

To cover everything at one glance, it is recommended to open a brokerage chart on one side and a third-party live chart on the other:

To analyze the binary options market during training, it is better to choose a candlestick chart. It is the most informative and comfortable for visual perception. A candlestick consists of a “body” and a “shadow” and shows the price movement within the timeframe. The “body” shows the opening and closing levels of the price, and the “shadows” show the highs and lows reached by quotes for the corresponding time interval. In addition, by the color of the candle you can understand whether the price has risen or fallen compared to the previous period:

Best Time to Trade Binary Options

Trading on the binary options market is available 24 hours a day on weekdays, that is, except Saturday and Sunday. And some brokers even conduct trading 7 days a week using special quotes. However, it is definitely not worth opening trades at any time of the day or night. There are periods of best trading, and every trader who has been trained in binary options trading tries to stick to them.

To operate effectively, the market must be active. The highest activity and increase in volumes occur when trading sessions of major world exchanges intersect. This is the most favorable time for trading, which a beginner who is learning binary options needs to take into account.

Information such as opening and closing times of world exchanges should always be kept at hand. Below you can see the schedule of trading sessions:

When two world exchanges are open simultaneously, price movement activity increases sharply and volatility increases. This is exactly what is required for successful work. In a calm market, opening trades is more risky, especially not for those who start learning binary options from scratch.

The most favorable period for trading in GMT+2, ascending:

1. From 3 am to 9 am (Australia + Japan);
2. From 11 a.m. to 12 p.m. (Europe + Japan);
3. From 16:00 to 19:00 (Europe + America).

The greatest revival occurs during the work of the European and American stock exchanges. You also need to be prepared for impulsive market movements when important economic news comes out, which you can track in the economic calendar . All this will be more clear after completing the binary options training course.

What days of the week are preferable for trading?

Monday is the day when the market awakens and gradually begins to “sway”. It is better not to open trades early in the morning.

Tuesday and Wednesday are great days to learn how to trade BO. At this time, indicators work well and you can make a fairly accurate technical analysis.

Thursday is also a good day to open positions.

On Friday after 19:00, if you have not completed training in binary options for beginners, you should not enter the market. Not always, but periodically the market at this time becomes very volatile and unpredictable before the close of weekly trading, and therefore sharp impulses in any direction are possible.

What option expiration time should I choose?

Expiration is the deadline for the trade to close when the option is automatically closed. Choosing the right expiration period is very important to achieve a positive result. Typically, traders open options with durations ranging from 30 seconds to 4 hours.

When starting to learn binary options, beginners often confuse “expiration” and “timeframe”, although these are two completely different concepts.

Timeframe is a trading period, that is, a period of time that is used to group quotes on a price chart. In other words, this is the time during which a candle is formed on the chart.

Expiration is the time interval after which the position will be closed. In other words, this is the life of the option. It is selected at the time of purchasing the option in the broker's terminal. One of the components of successful trading is matching the expiration time to the working timeframe. That is, you should not open a 30-second option on an hourly chart.

Let’s take a 5-minute timeframe as an example – here one candle is formed within five minutes, reflecting the movement of quotes. The shorter the time frame, the more difficult it is to predict the price direction. A 5-second timeframe can only show a completely unpredictable chaotic market movement:

As part of our free binary options training, we will tell you in more detail which time frames are best to analyze the chart at different expiration times.

But it is immediately worth noting the basic rule of a trader - to open trades in the direction of the trend. This increases the percentage of successful transactions. A trend is the general direction in which a price has been moving for quite some time. In order to understand where the trend is moving, you need to open a chart with a longer time frame.

For example, when trading turbo options, we use a minute chart to open positions, and a 30-minute or hourly chart to understand trend movement. Similarly, for timeframes of 5-60 minutes, we look at the trend on timeframes of 4 hours or 1 day.

Expiration 60 seconds

To trade options with such a short expiration period, a time frame of 1 minute is used. In this case, it is not easy to predict the price direction, so it is better for novice traders not to open such transactions. Although with experience you can also make a good profit on them.

Expiration from 5 to 15 minutes

When opening options with such an expiration date, you need to keep in mind that the price may reverse before the deal is closed. Therefore, it is important to determine the turning point, for which the 5-minute time frame is best suited.

Expiration 30 minutes

For those who are learning binary options from scratch, it is best to open positions with a 30-minute expiration. The only thing you should take into account is important economic news, the release of which is announced in advance.

How to Start Trading Binary Options Strategies for a Beginner

The process of buying options in its design and result resembles betting in a casino, so a beginner can be deceived by the apparent simplicity of the game and begin to randomly open positions up and down, hoping for luck. However, this understanding is fundamentally wrong. Binary options are a market trading tool. In order to make money in the market, a trader must determine for himself a set of general rules for entering a trade and follow them in all situations. Otherwise, it will not be trade, but a child’s game of “heads” and “tails.” There are a great variety of trading strategies, but in order to choose the best one, you need to try them in action. Let's first consider two simple strategies that will help a beginner learn from scratch in the binary options market.

Trading Strategy Using the MACD Indicator

The MACD indicator combines the properties of a trend indicator and an oscillator. It is used both to determine trend trends and to detect the moment of price reversal. MACD is built on two lines (moving averages MACD and signal) and is presented on the chart as a linear indicator and a histogram.

To start trading, you need to install the MACD indicator on the chart. You can do this by opening the “Indicators” tab and selecting MACD. The signals that the indicator will give will help you find an entry point into the market.

How to use binary options strategy to teach beginners? This is not difficult. If the MACD line crosses the zero level in the upward direction, and both lines also intersect, we open a Call trade. In the opposite situation, when the MACD line crosses the zero level from top to bottom, open a Put position:

Trading Strategy "Pinocchio"

This trading option is based on candlestick analysis. “Pinocchio” (or “Pinbar”) is the name given to a candle that has virtually no body, but consists of a shadow that looks like the long nose of a wooden man.

The origin of the name of the strategy is clear, and if you remember the old fairy tale, the nose of the wooden man grew larger if he deceived someone. The same principle applies to this strategy - if a “Pinocchio” candle is formed as the market moves, then the price begins to “lie” and will soon turn in the opposite direction.

Trading using this strategy is not difficult, so it is provided for free when learning binary options for beginners. When the nose is pointing up, you can expect the price to go down further. And vice versa, if the “nose” is directed downward, it means that the quotes will go up:

You can open a deal immediately after the Pinocchio candle closes, or wait for the next candle, and if it is directed towards the Pinbar, buy an option in the same direction.

It should be taken into account that the Pinocchio strategy is applied during a trend movement. It will not work in a calm flat market.

The life period of the transaction (expiration) is from one to one and a half hours. It is better to open positions on a chart with a time frame from 5 to 15 minutes.

The Best Indicators when Learning Binary Options

In binary options trading, the best strategies are based on indicator readings that can be added to the chart in almost any existing terminal.

The most optimal indicators for binary options are:

• Bollinger Bands 
• Stochastic oscillator (Stochastic) 
• Relative Strength Index (RSI) 
• MACD
• Moving Average 

We advise you to carefully study how they work. At the very least, choose any two if you are starting to learn binary options from scratch. In general, it is better to use a single indicator, clearly understanding how it works, than to rush from one to another, from third to fourth, and so on.

The indicators mentioned above are present in any broker’s web terminal, and therefore finding them will not be difficult even for a beginner who wants to be trained in binary options:

Choosing a Binary Options Broker for Beginners

Beware of falling into a fraudulent company that enters the market with the sole purpose of collecting more deposits and closing. We recommend opening an account for training in binary options with brokerage companies that have been operating for many years and have large capital turnover. You can consider:

• Pocket Option is a modern broker that has been providing quality service for several years;
• Quotex is a new broker that has already proven itself among many traders;
• Binarium is a clear investment platform, deposit starting from $10, welcome bonus for the first deposit.

The Difference Between Binary Options and Forex

The currency exchange market at free Forex prices has existed for decades. Millions of people all over the world trade on it, including in Russia. Individuals take advantage of the opportunity to transfer money to trust management, and banks conduct foreign exchange transactions. Thanks to advertising, Forex is now known to everyone.

Forex trading is quite difficult for a beginner. You need to understand not only the functionality of the platform, but also learn how to correctly calculate stop loss and take profit levels. There is a danger of losing your entire deposit if there is a sharp jump in price, in the absence of stops. Therefore, it is better to start mastering trading terminals and tools by taking a binary options training course.

Advantages of binary options compared to Forex:

• There are no broker commissions;
• High percentage of profit from one transaction (from 60%);
• It is enough to correctly predict whether the price will go up or down, and there is no need to determine the level it will reach;
• A lot of trading assets (currency pairs, metals, commodities, etc.);
• Possible losses are limited by the size of the bet, while in Forex there is a risk of losing the entire deposit in one transaction;
• Simple free binary options training for beginners.

Advantages of Forex compared to binary options:

• Forex trading is most often carried out on the MT4 or MT5 platforms, which have a huge selection of graphical tools and technical analysis indicators. Binary options brokers organize trading on their websites, where it is not very convenient to carry out analysis and therefore you have to additionally install third-party programs;
• There is leverage, which can be used to open trades for much larger amounts (100-500 times more than the amount in the account).
• For those who are taking their first steps in trading financial instruments, learning binary options for free is the best solution and allows you to quickly get used to the market.

Also, even more differences between these types of trading can be seen in the table below:

How Difficult Is It to Profit from Binary Options Trading?

You should not trust advertising slogans that convince you that making money on binary options is easy. There is absolutely no point in paying money for someone else’s trading signals or buying secret strategies. Take free training in binary options and try to rely only on yourself, and not look for tips from advanced mentors.

To make a profit, 60% of binary options positions must be closed in favor of the investor. This can be achieved after the beginner begins to understand the processes that drive the market and the meaning of important economic news. After this, you should study the basic concepts of technical analysis for binary options and then start working with indicators for beginners.

Conclusion

Thus, those starting to work with binary options (training for beginners is free) should understand the basics of technical analysis and understand how to use indicators, the economic news calendar, and also practice opening trades with a minimum deposit.

Having failed many times (alas, without this it will not work), you will gain experience to form your own strategy, which will help you achieve real earnings and will only improve over the years. A positive result can be obtained within two to three months after completing the binary options training course, depending on your abilities, hard work and psychological attitudes.