10 Tools For Success
Are you familiar with the trading tool provided by your broker? Some brokers only provide a couple of trading tools, or none at all. Others may give you a number of different tools which give you more control over your trades. Recently I spoke with a representative of a binary options online website who told me that hardly any of their customers took advantage of the tools they offered. Those who did tended to be the winners, and those who ignored the tools tended to be the losers. Here are some common binary options online tools. Check to see whether your broker offers them:
- Rollover, also known as Extend. This is a tool that allows you to “roll over” or extend your position beyond the original expiry time. With the tool, you choose a new expiry time for your trade. This is a great choice if you want to ride out your profits. When you think you see a trend developing for example, it makes sense to stay in your trade and pick up all the profits you can. After all, the hard part, the risky part—is over.
- Early Close. This is one of the most useful tools a broker can give you. With early close, you can get out of a position before the expiry time is up. You might use this to close out of a losing trade before you lose it all. Or you might use it to get out of a winning trade that you believe is reversing on you. That way you can take partial profit or break even, instead of losing. Sometimes you may see Early Close represented by two different tools, called Take Profit and Stop Loss.
- Double Up. With this tool, you can double your existing investment on a given position. Keep in mind this can double your losses as well as your wins, so only use it when you feel very confident that adding to your position is the right thing to do, and never use it arbitrarily. You need to have a reason for the boost in your confidence. Perhaps your trade has passed through and retraced off of a key support or resistance level, for example.
- “Open Platform” or similar. This is an enhanced chart that shows you a larger, more detailed display and may even include tools for technical analysis. Some brokers provide this to give you a better look at the context surrounding a trade. I recommend however that you download your own charting software and start using something truly advanced. The majority of “Open Platform” or “Chart Plus” style charts on binary options online websites still are not really adequate for serious trading.
- Auto-trading. With auto-trading, you are able to deliver a set of instructions to the platform, and then walk away while the software trades for you. I recommend steering clear of auto-trading unless you have a really good, specific reason to be using it (and personally, I can’t think of any). Auto-trading tends to equate to “auto-losing.” Stay involved with your trading for the best results.
- Daily and weekly market analysis. This is usually a short blog a website produces each day or week to summarize events in the financial world. This is most helpful for fundamental analysis traders. Technical analysis and price action traders might reference the reports for context, but probably will not trade using them. Read more here.
- Financial calendar. A financial calendar can tell you when important reports will be released by the governments of various countries. US reports tend to cause the most volatility. The calendar may also tell you when important speeches will take place, like the State of the Union Address. Reports and speeches and other events in the financial world can move markets. If you trade reports, you will find this tool useful for planning entries, and if you do not, you may find it helpful for avoiding report times. Find out which reports may be the best to trade
- Trade alerts or signal services. Sometimes if you have a larger account, certain binary options online websites will give you subscriptions to trade signal services and alert you when opportunities arise. You may find these services helpful or not, depending on how you trade. I recommend you strive to understand how signals are generated before you use them, and if you do use them, to do it manually and not using auto-trading. You may want to find a way to integrate signals into your own trading method, instead of relying on them completely. Remember, traders who stay involved in their own trading are most successful.
- Educational resources. eBooks, trading videos, webinars, weekly training sessions and so on are sometimes offered to clients with large accounts. Take the fullest advantage for free trading materials, but do not forget to do your own research. There are a lot more free resources out there than those your broker provide you with. Learn everything you can about trading.
- One-on-one training. This is another great resource that some brokers provide. Like trade signal services, free methods, and other resources, though, you should strive to integrate what you learn through one-on-one training into your trading method and plan. If what you are told does not fit in with the method you are developing and the understanding you have developed, then don’t use it. Not every financial expert is really an expert, and even those who are cannot necessarily help everyone. Great advice for one trader may be useless to another, and vice versa. It comes down to your trading personality as much as the expertise of your mentor. Not every mentor is right for every student.
Binary options trading can offer you a consistent, reliable income, if you make the most of it. Don’t rely on chance any more than you have to. These trading tools help you to take control over your trading and your financial life (except for auto-trading, which I recommend you avoid). Ignore the best of these tools to your own detriment. Use them intelligently, and you will get far more value out of your trading account, and you will also make a lot more money (and lose a lot less, which is equally important). Work them into your trading system, test any changes you make, and write down how you will make use of these tools in your trading plan.