Monday, May 20th, 2013 by Tim Lanoue
The aim of today’s article is to give any beginning, or non-profitable trader, 3 detailed protocols necessary to make money with online trading. The article will focus on the following aspects: price action trading pattern, risk reduction methods, and binary options trading signals, which are simply the best ways to make money with online trading. If you stick around to read the rest of this article, I promise you that you will become a better online trader!
Price Action Trading Patterns
There are literally 1000’s of different trading patterns to ensure profit and for traders to make money when it comes to online trading, however, what many fail to realize is that the only trading pattern they really need lies with price action trading. If you can master price action trading pattern, then you can without a doubt become a successful trader. There are many variations that be used to help trade price action successfully, however, for the sake of time today we will only discuss support and resistance levels, which are the fundamental of the study of Price Action Trading Pattern.
In the beginning, price action trading may seem very unclear, uncut and confusing. However, with time it becomes much easier and you will see just how powerful of a tool it can be. The main pattern I use when price action trading is what we call support and resistance levels. A support level is where we see price “bounce” from one level and goes off in the opposite direction. Resistance levels on the other hand is where we see price climbing higher and higher, however, it is unable to break a new high and bounces off the upper level and goes in the opposite direction. To trade the breakage of a support level we first must wait for the following criteria to be met: must wait for price to “bounce” off a level, then we wait for price to do its first initial break with a downward movement, next we wait for price to retrace its way back above the support level, and finally we wait for price to break that support level again and as soon as the candle closes we place a PUT trade. To trade resistance levels on the other hand we wait for price to climb higher and higher, waiting until it “bounces” off an upper level then immediately after the candle closes below the resistance level we place a short term PUT trade.
Risk Reduction Methods
Just like everything in life, there is danger with online trading, but if you follow the methods below you will become a better and more successful online trader. The most important and most often abused risk reduction method we will talk about is money management. The abuse of money management without a doubt can destroy trading accounts. With that in mind we need to limit the percentage of our trades to a maximum of 10% of our account balance. An example, is if we have $1,000.00 in our trading account, our maximum trade amount should account no more than $100.00 (10%).
Choose a reliable binary options broker
Next method would be to look at the various brokers and see which one has better payout percentage. The more percentage payout available to you, the smaller amount of risk you have. An example of this would be TradeRush and Cedar Finance, TradeRush averages 72% payout per trade and offers 10% returns if your trade is wrong. However, with Cedar Finance, their average payout is 75% and a 0% return rate if your trade is wrong. So the total percentage offered by TradeRush is 82%, while Cedar Finance is 75% so it is clear to me that the better binary options broker to go with would be TradeRush. Based on a comparison we have made TradeRush is ranked 3nd based on Alexa.com and is one of the most reliable and profitable brokers.
Make money with Binary Options using Signals
The last method we will discuss is to wait for a good set up. Do not enter a trade simply because you think the price will go up or down by pure intuition. Wait for price to show itself then once a trend is set in stone wait for good entry points. Try not to rush your trades due to the eagerness of wanting to make a few quick bucks. Many traders are turning to binary options signals services. Riding with professional trends is a great way to leverage on professional, proven success.
Online Trading Signals Services
There are a huge amount of binary option signal sites, however, which one is the best for you? Look for signals providers that offer a track run of their previous trades and if possible try to find ones that have screen shots because it is really easy to fake results when it looks like an excel document. Many people will not take the time that is needed to do their research before joining a signal service, so I must tell you, please do your homework! One of the best things about a signal service would be that you the trader don’t have to do the hard part, which is finding a trade to enter! The only thing you have to do is wait for notifications and enter your trade, it is as simple as that! Our site is dedicated to promote only the best of the the services and to ensure the quality of our signals services listed on our site please provide us with your feedback with any signals company.