Trading King - how to become a millionaire E-Book

Dr. Goldmann

• Herausgeber: Ebozon Verlag
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2017

Seitenzahl: 104

Beschreibung

This book contains detailed successful trading strategies that can be proofed with original trading results of the broker and thus confirm that frequent profits with binary options are possible without any problems even out of your living room or office or any other place with an internet access. Binary options trading can be a lucrative and highly profitable source of income for you. With the right strategy and the necessary know-how, you can now proceed to make immediate profits. Trading novices learn in this book risk and return clearly to define and you also will learn everything you need to dominate the trade successfully. You will get taught the basic knowledge of making money with trading binary options and how to place your first profitable trades and to secure high profits. For beginners and experienced traders alike the author is offering online trading seminars or even entire trading sessions. Trades placed with the author's strategy will achieve a verified average daily profit of about 2% of your trading capital. Do not miss out your chance to benefit from these profits right now!

Leseprobe

5th edition August 2017

Copyright © 2015 by Ebozon Publishing

a brand of CONDURIS UG (haftungsbeschränkt)

www.ebozon-verlag.com

All rights reserved.

Cover design by Ebozon Publishing

Cover picture: Pixabay.com

Book design/layout/coversion by Ebozon Publishing

ISBN 978-3-95963-436-6 (PDF)

ISBN 978-3-95963-434-2 (ePUB)

ISBN 978-3-95963-435-9 (Mobipocket)

ISBN paperback 978-3-95963-437-3

All rights reserved in all media. No part of this book may be reproduced or transmitted in any form by any means, electronic or mechanical (including but not limited to: the internet, photocopying, recoding or by any information storage and retrieval system), without prior permission in writing from the author and/or publisher.

Dr. Goldmann

Trading King

how to become

a millionaire

Binary options

What is a binary option?

A binary option, also known as a digital option or an all-or-nothing option, is one where the trader has two positions to decide between: will the value of an asset go up or will it go down over a set period of time? Depending on whether the trader is correct or not, the payout is a predetermined price or nothing.

For example, if a trader assumes a position that the value of gold will increase in a given period of time, and it is correct, he wins a fixed payout. If the value of gold drops however, the trader loses the entire amount of the investment. It does not matter if the asset exceeds the original price, the strike price, by $1 or $100: the payout is the same.

Binary Options are a new and exciting way to trade the financial markets. Prior to the introduction of online binary options trading, traders had to open accounts with brokers offering the currencies, commodities or stocks in the individual markets. So invariably, traders who wanted to trade all these assets had to create multiple accounts to do so. In 2008, an SEC (Securities and Exchange Commission) ruling meant that binary options were no longer limited to being traded on an exchange. Online binary trading was born.

With online binary options trading, a trader can trade currencies, commodities, stock indices and stocks all from one trading platform. Trading online binary options aims to make money from taking a position in one of two possible outcomes. The trader only needs the outcome to be in his favour by just one pip to be able to make money. This is unlike other markets where profits earned are a direct consequence of the trade size and the number of pips gained.

What are the gains that online binary trading has to offer? Why is there so much noise about it in the marketplace?

Reduced Risk – Part of the appeal of online binary options trading is the reduced risk profile of this market. In other markets, traders have to contend with margin requirements, slippages and other broker or platform issues that affect the market outside the market conditions. In online binary trading, 80% of the traps that hurt all traders are all gone. No more stops, no more bad exits, and most of the bad emotions are gone!

Flexibility – The binary options market is a one-stop shop to trade financial assets across several asset classes. This means that traders are not stuck in one market. If a market is non-performing, the trader can simply switch to another asset. The trader can also choose between several trade types instead of the regular buy/sell trade mechanism.

Pay Structure – The pay structure of binary options trading is one that can give the trader magnified returns. For instance, a typical trade with an expiry of 10 minutes can give a trader up to $100. Such a short expiry allows the trader to effect this trade up to 10 times a day if need be. Even a success rate of 7 trades out of 10 would give the trader more returns than if the trader was in any other market. Of course in other markets, it is virtually impossible to get this same rate of return from many trades placed in a single day without taking excessive risk. With payouts of up to 80% on asingle trade, the binary options market allows a trader to make profits that outperform profits on other markets when the risk factor to such trades are considered.

Accessible to All – Online binary options can be accessed by everyone. A typical ECN forex broker will demand $25,000 to open an account. A commodity or options broker will demand even more. Average earners who can only afford small amounts for trading are therefore locked out. In contrast, a binary options trader can start with a much smaller amount, and can gradually build up his portfolio as he gains experience in the markets.

Although binary options are one of the simplest forms of financial trading, they cannot be traded successfully without you understanding the characteristics of their underlying assets or the impact of economic factors on their price. Therefore, it is essential that you and novice traders fully understand them before investing too much of your hard earned capital into your trading account.

Binary options give the novice trader a way to trade in multiple global markets such as the foreign exchange, stock, stock indices and commodities markets. Within these markets are hundreds of different types of assets. For example you can trade all the major currency pairs. This means that you have to know the characteristics and personality of the various currency pairs as well as the correlations between currency pairs and other assets.

Understanding the Correlations

If you know the correlations whether negative or positive between currencies and commodities, or currencies and currencies, or currencies and stock markets, or even stock markets and stock markets, your knowledge of binary options will increase and you will have far more success in your trading.

For example, if you knew that the EUR/USD and GBP/USD currency pairs had a strong positive correlation and you were fairly certain that the GBP/USD price would rise, as well as buying a GBP/USD call you could also buy a EUR/USD call. On the other hand EUR/USD and USD/CHF have a strong negative correlation, so if you were confident that for example the price of the EUR/USD currency pair was going down, you may wish to place a trade on the price of the USD/CHF currency pair rising. So you could buy a EUR/USD “Put” option, and a USD/CHF “Call” option.

Commodity Correlation

There are also currency correlations with commodities. For example, the price of gold is positively correlated with the AUD/USD currency pair. When the gold price rises, the price of the AUD/USD currency pair generally rises, as well. Meanwhile, the USD/CAD is negatively correlated with the price of oil. If the oil price increases so does the Canadian dollar. So if you were confident that oil prices were rising and you intended to buy an oil binary option “Call,” you could also buy a USD/CAD “Put,” as there is a very strong chance that the dollar would fall against the Canadian dollar.

Stock Indices Correlation

There are also correlations between stock indices such as the Dow Jones and the Nikkei which are positively correlated. So if you were confident that the Dow Jones index would rise you would buy a Dow Jones “Call,” and, as the Nikkei index was positively correlated with the Dow Jones, you could also buy a Nikkei “Call” option. In addition, the Nikkei index is positively correlated with the USD/YEN currency pair so if you were confident that the Nikkei index was falling, you could buy a Nikkei “Put” option and buy a USD/YEN “Put” as well.

As you can see, the more you know about the underlying assets of binary options, their characteristics and their correlations, the better your chances of making very good profits.

Dispelling the Myths

Firstly, many people believe that trading binary options successfully is based on luck. This is not the case, although there are at times last minute extreme changes in prices. If you learn trading strategies you will be able to predict fairly accurately the price behaviour of an asset and thereby make a profit on your trades. You don’t have to be a financial guru to trade binary options. If you have the correct approach binary option trading can be a wonderful method of increasing your income. You just need to be positive and want to spend time learning about the characteristics of binary trading. Binary options were designed to be traded as a simple investment route compared to the other conventional markets such as the foreign exchange and commodities markets.

Anyone can trade binary options, however, it’s not for investors with a gambler’s mentality. A trader with a gambler’s mentality can lose a lot of money as all he does all day is mindlessly buy calls and puts. Predicting if the price of an asset is going to fall or rise within an hour is very exciting because in a moment the price can change due to economic news or some other information which can cause an asset to gain or lose in price.

Also many people think you need a lot of money to start trading options. This is also a myth. In reality, you can open an account with a respectable broker with very little money. With 24 Option, you can open an account with as little as $250. Meanwhile, brokers don’t ask you to pay commission fees either.

Most people think that trading binary options means sitting in front of your computer all day long buying or selling calls and puts and then being stressed out for days waiting for your option to expire while wondering if you predicted the right way or not. This is not the case as binary options are short term investments which on 24 Option’s platform include expiration periods as low as 30 seconds. So they are very short-term, stress-free, investments indeed.

Another popular myth is that before you start making money and become a successful trader, you must lose a lot of money while you are going through a trading learning curve. This is not true at all as a trade can be made on as little as $1, thereby allowing plenty of room for practice. In a nutshell binary option trading is simple and affordable and is fast becoming the investment of choice.

How to Choose a Broker

If you want to start investing in binary options, you will have to look for and choose an online broker that has a trading platform which supports binary options trading. A trading platform is a real-time trading system which is web-based, on which traders can conduct over the counter binary options trading.

There are many binary option brokers on-line, some of which are regulated and some of which are non-regulated. A regulated broker is a broker that follows the rules and regulations of the country in which it is based. For example a binary option broker in the United Kingdom could be regulated by the Financial Securities Authority (FSA). One of the key rules which regulated brokers have to follow is to use a trust account for holding clients’ money, whereas a non-regulated broker is not required to do that. This is not to say that you should not use non-regulated brokers as there are many that are perfectly safe to use, however, there are several criteria you should check out before making your decision as to which broker to use; whether it’s an un-regulated broker, or a regulated broker.

1. Look for a broker that offers a variety of assets.

You should find a broker that offers many different types of options covering as many stocks, currencies, commodities and indices as possible. A large variety of option choices will enable you to be flexible and have a good range of profit opportunities.

2. Make sure your broker also offers a variety of expiry times.

Quality Binary Options brokers offer sixty seconds, ten minutes, fifteen minutes, half-hour, hourly, daily, weekly and even monthly expiry times.

3. Simplicity and Reliability come first!