Tools Needed for Today’s Binary Options Trader

Every soldier going to war must be properly armed, and while no bullets are fired in the financial markets, it is a combative market. The financial markets are a zero-sum arena; what is made and lost by traders in the market is from within the market players and not from outside. Profits made are generated from traders who have lost money.

Since the market is a combative one in a figurative sense, it then follows that those who have superior firepower in the market will obviously have greater advantages than those who use smaller calibre weaponry. So as the number of traders in the binary options market increases, so is the competition for the trading profits in the zero-sum market.

To be able to survive the battle in this front, the trader must be armed with the tools that will ensure success. Here is a list of some of the trading tools that today’s binary options traders should have in their kitty.

Basic tools that are a must for every trader

There are areas of the world where these general tools are in abundance and are therefore taken for granted. But in many places of the world where binary options traders are located, some of these tools are expensive to acquire and not readily available. These tools are hardware directly used for trading, and include:

  • Smartphones and tablet devices
  • Broadband internet facilities.

Why do binary options traders need these tools? Smartphones and tablet devices are very handy for taking trades on the go. You can imagine being in the restaurant and seeing a very good trade opportunity. This is where the trading app of your broker comes in readily to enable you pick up some quick trades when away from your trading stations.

The use of broadband internet ensures that pricing and news data can get into your platforms very quickly. You also need fast internet connection to ensure that your trade orders are executed in a timely fashion, especially when one single pip can make all the difference between success and failure.

If you live in an area where power supply is not constant, such as in various parts of Africa, Latin America or Eastern Europe, you will need to ensure you have a solar-powered laptop so that you can always have your trading station up and running with energy which never goes to sleep. Once you have got the basic tools, it is time to move on to the specialized tools.

More advanced tools

Under the advanced tools, you will need access to the following:

  • MT4 trading platform (or similar software, ie. ThinkorSwim)

Interactive Charts are a necessity for every binary options trader. Many binary options platforms do not have charts that can be used for meaningful technical analysis. Most of the charts found on these platforms are simple line charts which cannot serve to tell a trader whether the chart will go up or down, nor do they support line studies or the placement of indicators which many traders use as part of their technical analysis. Therefore, the trader must either get charts from established Forex platforms, or get them from third party providers.

  • Access to market moving news

Many trades will require access to market moving information.A classical example is a news release regarding Alcoa, which signed a deal with Ford Motors for orders or its aluminium product for car parts. This deal will obviously open new opportunities for Alcoa and bring in new business for the company. Such news will please investors and therefore a quick analysis of the stock asset will point to only one direction: UP. A binary options trader who traded this news on market open would have profited from it as the 1 hour opening candle opened at 9.35 and closed at 9.69. Access to a news server would have made this possible, so an MT4 platform with a news server is quite useful. If you are able to afford subscription fees for premium news servers such as those from Thompson Reuters or Bloomberg, these will do just fine as well.

  • The Economic News Calendar

The Economic News Calendar points to specific news releases as well as the date and times of release of each news item. Think of the Economic News Calendar as an event planner. It helps the trader plan trades around news events. The scheduling of each news event also helps the trader know when not to be in the market if his trading system does not include news.

  • Indicators and Expert Advisers

Indicators have gradually come into the mix in terms of what tools traders can use to execute trades either manually or automatically. These indicators come in different forms, but some of the popular ones are designed as MT4 bridges and are connected to MT4 platforms and built to communicate with the web-based platforms. There are also versions of indicators which are strictly web-based and are built as browser extensions to connect with the web-based platforms.

So in a nutshell, if you are a trader wishing to start off in binary options with the right tools, you should have the following:

  • A trading desk which has been setup with two laptops or two desktops with visual display units joined together. One should be used for analysis and the other used for trade executions.
  • A broadband internet modem, preferable a 4G network if your country has started to operate on this band.
  • A source of uninterrupted power supply if you live in a country where power outages are frequent.
  • A smartphone or tablet device with a memory of at least 2G RAM or even higher if possible to increase the speed of your processor. Of course the broker’s trading application should be downloaded and setup on the device.
  • A news service.
  • Charting software
  • Indicators
  • A trading strategy which works

Why Choosing The Correct Binary Options Broker Is So Important

Binary options or digital options, that they are also regarded as, are one of the most profitable investment opportunities currently available to anyone in almost any situation. Where as “stock trading” was always seen to be a rather exclusive sector for the highly educated, cash rich investor the introduction of binary options has blown that theory out of the water. In 2008 new market regulations sent the binary options industry rocketing into the public eye. Due to the high potential returns, the ease of use through modern technology and the short term investments binary options are certain to rival the big boys of the market investment world!

Binary options can be traded 24 hours a day 7 days a week. However there is also some facts that you must know about the digital market industry. You must not go into the industry blind. A current knowledge of the market and trends is paramount to obtain a high return on your investment. This is exactly why choosing your broker is an important decision to make. We help to find which of the top brokers are the most professional and reliable.

24option.com are one of the market leaders within the digital options world. Established since 2010, they are regarded as fairly well established as the market has only really been in the public eye since 2008. Operating out of Cyprus, as with most, but with offices in London they have, from our opinion, a great understanding of the clients needs and offer an excellent customer service. The platforms themselves need to be simple to use. If the trading area is confusing or daunting to the new trader this is likely to not encourage repeat business. 24option.com use a very basic platform for their clients. Not only does it need to be basic to the everyday man but it must also be reliable in its performance. The last thing a trader wants is to lose money due to platform software being unprofessional and prone to problems. Binary option platforms require no program downloads and are entirely web-based. They are not restricted to the home or office either as you can now trade with 24option.com through your smart phone whilst on the move.

The amount and variety of assets on offer to trade is also a very important factor to consider whilst deciding on your platform to partner with. 24option.com offers over 65 assets throughout the currency, stock, indices and commodity classes. You can also decide in what way you wish to carry out your trade. 24option.com allows you to trade using above / below, one touch and boundary. These are the 3 most common forms of trading play and vary regarding profit percentage depending on the length or gravity of your prediction.

The way in which a binary options platform deals with the withdraw of account funds should always be investigated. The process must be basic and rapid as this would always encourage any client either experienced or novice to revisit the platform and trade again in the future. That at the end of the day is the reason to be involved in trading in the first place.

So always review and read as much information regarding a platform to partner with. Remember the internet is a wonderful tool to use so take full advantage of it before embarking on your binary options journey.

Binary Options And Trading Software

Trading binary options is a rather new but one of the simplest investment strategies. You don’t have to be a finance guru to make some extra money, however, you still need to know what you are doing. Let’s look at the basics involving binary options trading and how to get started.

What Are Binary Options?

Binary options, or digital options as they are also called, are options that only have two outcomes. You can either make lots of profits or lose it all. When you are trading these options, you need to predict whether the asset will go up or down during a certain time limit, you don’t really need to buy the asset. Some of the better known assets to trade are Equities (stocks) or Forex (foreign exchange).

There are two types of binary options you can invest in:

1. Call Options – this should be bought when you think the price of the asset will go up.

2. Put Options – this should be bought when you think the price of the asset will go down.

All binary options have an expiration time, which is usually quite short ranging from minutes to up to a month. Usually people trade with 1 hour or less options. This time limit is also one major benefit of this kind of trade – you can make money fast. Then again, if you don’t know what you are doing, you can also lose it fast.

Binary Options Trading Software

One way to stay safer, trade faster and hopefully make more profits is to use good binary options trading software. Using this kind of software has a lot of benefits.

First of all, the platforms are usually very easy to understand and use. Also, the software gives you all the real time market information you need to make your decisions and predict whether the asset will go up or down.

Most providers let you set up a demo account for free so you can practice before spending any real money, or they give you some money to practice with. It’s not rare to get an up to $300 start-up money for free to play around with and get a hand of the process. You can learn some strategies and develop your style without losing any of your own hard earned cash. From the software you get tips and tutorials to help you and give you support, all you need to do is sign up and download it or in some cases, just use it in your browser or on a mobile device.

By using binary options software you also get access to option signals that help you decide how the price of the asset will fluctuate. Still, it can’t do everything for you. You need to learn the ropes and find out how this market works, how to follow trends and which kind of strategy will give you the best outcome.

How To Choose The Right Software

If you are just a beginner, you need to choose a broker/software that is the easiest to use and understand, one that puts their clients needs first and provides great customer service. It needs to give you all the stats and signals to make your investment decisions easier.

The broker you choose also depends on what kind of assets are you interested in, for beginners it’s recommended to look for short term options involving forex. This is probably the easier to predict and understand.

Last but not least, the software you use must have fast and secure payment and withdrawal options – after all, you are in it to make money so you must be able to withdraw your funds quickly.

Conclusion

Investing is never easy, however, trading binary options has made it much more attainable for the average Joe. So if you are interested in learning the trade, find a good binary options software with a demo account and maybe some start-up credit to get you going.

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