One of the big attractions of using binary options for your financial trading is that you don’t need to access to the same degree of resources that might be used with other trading methods.
Jump to Resources –
The reason for this is that with a binary contract you only have to predict if the price of an asset will move higher or lower than the entry price by the end of the contract at the time of purchase. This makes analysis simpler rather than ‘simple’ for two reasons.
The first is that you don’t have to worry about profit targets or identifying stop levels as your closure is already determined by the end of the contract. Secondly the short expiry times on most contracts mean that it is easy for binary options traders to sidestep many of the major news releases that occur each day.
While it is easier to trade with binary options you will still have to carry out analysis and complete some basic checks before trading. If you don’t then you will quickly come unstuck.
Here is a list of some basic tools and trading resources for binary options that you can use to help get yourself up and started.
Given the short time frame involved, most binary trading strategies will make use of technical analysis to determine trade entries. The makes it important for you to have access to live charting software.
The charts provided on most binary options trading platforms are woefully poor. Really at best they should only be used as a quick reference when confirming your trade. To conduct proper analysis you need an accurate, live charting package which should meet the minimum requirement of being able to add some basic technical indicators to it.
The good news here is that there are a number of very good packages which you can make use of. Unfortunately it is hard to cover all the available assets that you can trade with just one package. Therefore if you are going to be trading on a range of markets then you will have to accept that you will need to use different providers for each. This is of course unless you are prepared to dig deep and shell out for a paid for solution.
For analyzing live market prices in the foreign exchange markets, MetaTrader 4 is as good as any package on the market. You will also find with some brokers you can also chart major commodities such as gold, silver, oil and even some of the major Indices.
This platform has excellent charting features as well as allowing you to use a wide range of ‘custom’ technical indicators and templates which you will readily find around the web.
You can download MetaTrader 4 from a number of Forex brokers by opening up a free demo account . Alternatively you can get access to the software directly from the MetaQuotes website.
In terms of stocks and Indices there are a number of different places you can go to find the best binary options trading resources. FreeStockCharts.com offers a good charting resource, giving accesses to US Indices, Stocks and Forex in one place. Another good free resource, though more basic are the Google or Yahoo finance pages.
Schedule Of Economic Releases
Most of the news released across financial markets is scheduled prior to announcement. It is therefore fairly easy to keep on top of when important news is going to hit the wires.
You can easily keep track of the timing of each releases by making use of a live economic calendar. These tend to be focused on the major news events such as Rate decision, GDP figures and Employment figures – essentially anything that is likely to cause the major markets to move.
If you are trading on individual stocks you will also need to keep an eye open for specific stock related news. Many sites such as ADVFN.com will allow you to track the latest RNS news releases and even let you set up news alerts for stocks you are monitoring.
Latest News Updates
Whichever market you decide to trade it is a good idea to have a broader view of what is going on in the financial markets.
A good example of this is non-Farm payrolls day, which occurs one Friday each month. On this day many traders prefer to simply sit out of the markets rather than risk being caught up in the volatility that can occur either side of the announcement.
There are various live market news feeds around the web. Here again Yahoo or Google are as good as any, as is Reuters. You can either visit these sites to view the latest events in the financial world or instead grab a few RSS feeds and have them delivered directly to your desktop.
It only takes a few minutes to check an economic calendar each day. If you do this and follow the news then you will have a good overall picture of what is happening in the markets. You can then focus your attention on the charts to find the trading opportunities to turn you into a binary options winner.