The

Secret free edition

Trader
Tips and tricks on trading
binary options and forex

Basic knowledge for newbies

Binary Option Sheriff

 The Secret Trader
INTRODUCTION

The Secret Trader is a comprehensive education on the secrets of trading. Whether you
want to become a professional Binary Options Trader or a Forex Trader – Education is
the only secret to your success.

The Secret Trader is aimed at rookies, newbies, and freshmen! This E-book is a complete
university education in simplified form! It is designed to help you acquire, skills, knowl-
edge and lets you on secrets that will turn you into a successful trader. But without the
heavy jargon!

Starting from the basic steps for beginners, the Secret Trader will walk you through high-
er levels of education with unbelievable tips and tricks which make trading as easy as
ABC.

How do we define a successful trader? In order to qualify as a superstar trader you

will need to be on this level of achievement

a. Execute Clever Trades

b. Win the Trades
c. Go back to “a”

You will start this E-book by going through the Elementary Level. Gradually we change
your uniform to the Intermediate Level. Once you qualify from the Intermediate Level,
you are ready to go to Advanced Level.

What you will manage to achieve by going through this E-Book is the biggest secret of all.
It is your financial success and liberation.

Each lecture is visualized with real life trading that makes it practical for everyone seek-
ing the Secret of Trading to understand.

Congratulations!
You have just set yourself into the secret journey of Trading Success.

Mariella Sheriff

Copying of this material is forbidden. Copyrights: Binary Option Sheriff 2016

Welcome to
Sheriff University
The Sheriff University has been created for traders to use and acquire
skills, information, extensive knowledge that will help them become suc-
cessful traders in the binary markets and even in forex. The principles
for trading are the same both for Forex or Binary Trading. The method in
which the trades are executed may be different however the principles
remain solid and the same.

Free live trading videos and strategies

Take advantage of getting access to free live tarding material

on our You Tube channel. Not only will you learn how to use
different platform but also you can copy same strategies we are
presenting during live trading session. Subscribe to Sheriff You
Tube Channel.

How to join?

To get access to all existing and upcoming lectures simply

subscribe here by leaving your name and email address.

I’M JOINING
 INDEX
The Secret Trader Content

PART I NEWBIES
What are Binary Options and how does Binary Option Trading differ from Regu-
lar foreign Exchange Trading? 1
Why Trade Binary Options? 3
Quick Start Tutorial for trading Binary Options 5
Forex Market Analysis – 3 Types of Market Analysis 9
Trending Market for Binary Options 12

PART II INTERMEDIATE
Support and Resistance Levels – 15
The Ten Commandments 18

BUY FULL VERSION OF

THIS E-BOOK
What are Binary Options and how does Bina-
ry Option Trading differ from Regular foreign
Exchange Trading?
Binary Options are a very easy way of Trading Currencies, Hot Assets
like Gold and Oil and other assets such as Shares – because the me-
chanics of their operation is so simple.
The word Binary in Itself means that it is
a base-2 numeral system. It may sound
complicated but actually all it means is
making a choice of up and down – this is
your Option. And there is not much else to
it in terms of mechanical operation of the
Binary Option platforms. Okay, so perhaps
this is an oversimplication of Binary Option
Trading, but we shall go into more detail
immediately. So you are faced with a ques-
tion.Will the EURO rise against the USD
Dollar in the next half an hour? That is the
question.
If you are watching this currency pair and
you think that the Euro will rise you will
take what is called a “Call” Option and if
you think it will fall you will take a “PUT”
Option for the amount which you would
like to put at stake. Depending on the
Binary Option Platform or broker you use,
it can just be an UP and DOWN Button or a
CALL and PUT button. Eg., 24 Option have
an interface with the UP/DOWN Button
which is very easy to operate for beginners
whilst TOPOPTION have a CALL/PUT but-
ton.
Let us for the sake of the argument, as-
sume that you have a lot of cash to spare,
and that you will wager a $100 on this
trade because you feel it in your bones
that the Euro will be rising steadily in the
next half an hour and therefore you take a
CALL or UP option.
What happens in the next half hour, is that
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according to how the market will move,
you will know whether it has moved in
your favour or against your direction. If
let us say, you took your call option, when
the rate was at 1.1111 – this is called your
STRIKE PRICE and the market swings up
and down for a couple of minutes but
eventually steadily climbs to 1.1122 – at
the end of the Half Hour, which is your
Expiry Time – you will win your stake. Clap
your hands and shake your booty… you
are IN THE MONEY or ITM as the lingos like
to say.
How much will you win?
Well different brokers, hand out different
payouts, or a percentage of your invest-
ed capital but let us say on average they
would be paying you 75% of your staked
investment. In this case you would be get-
ting $175 since the market moved in your
favour. Hurray.
If however, you were wrong and the Euro
dropped to 1.1100 within that half hour,
then you would loose all of your original
staked cash deposit of $100. Good-bye
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Copyrights Binary Option Sheriff 2016
Margaritas at Sunset because you are OUT
OF THE MONEY, or OTM for the Gurus.
Ouch burnt fingers – your bones don’t feel
that great anymore, and you start thinking
of your money Management. (Check this
out in Nappy Stage)
dedicate their lives to studying the market,
give you signals over a facebook page on
which options to take.. Hey check it out,
and it is actually for FREE.

For Binary Options you will win or lose

even with just a fraction of a pip move-
ment up and down. Now if you don’t know
what pips are, we will discuss this in Teeth-
ing Problems.
One thing that you will start calculating
immediately, is how many times you can
play the currency or stock market, in order
to have financial gain.

Let us assume that you will continue play-

ing the market with a $100 cash invest-
ment per trade, and that the Percentage
Payout is for $75.
If out of 10 trades you loose 2 trades, then
you loose $200 but your make $75 on the
other 8 trades. This will total $600 in prof-
its less the $200 loss, and you will collect a
neat $400 in net profits. Not too bad or a
few trades just pushing a YES OR NO BUT-
TON, right?
Wrong. If you have a 7/10 win rate with
the same currency pair and with the same
amount staked per trade and pay out, you
will make $225 – not as great but hey, we
are still making money right?
Wrong. If your win rate falls down to a 6/10
with the same variables, you are suddenly
down to just $50… This is starting to be-
come tricky… and with a 5/10 win situation
you are actually losing $125.
So what are you going to do??
Looking into the glass ball to make your
best bet is not an option. Luckily, there are
mentors and an even better solution. You
could be doing this job with people who
know what they are doing, because they
have studied how the market will react.
One Manual Trading Signal group that I
would definitely recommend is Michael
Freeman’s Manual Trading Signal Group.
Here a bunch of bright young people, who
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GOLDEN WORDS
Few words of advice before we go any fur-
ther on education.
1. Binary Option Trading is not for every-
one. You can loose a lot of money, espe-
cially if you are not level headed and pre-
pared to understand what you are doing.
2. Never invest more than what you are
prepared to loose. Check this out on our
money management.
3. Go with Binary Option Traders that are
regulated and which will offer you a DEMO
ACCOUNT once you open an account with
them.
4. Practice only on DEMO ACCOUNT or
PAPER MONEY until you consistently have
a minimum of 7/10 win rate.
5. Follow others who know what they are
doing. You don’t have to go this alone. It’s
more fun making money with plenty of
others
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Copyrights Binary Option Sheriff 2016
Why Trade Binary Options?
This post will analyse the advantages of Trading Binary Options over
Forex Trading There are plenty of advantages for Trading Binary Op-
tions even over Forex Trading – although they are based on the same
market principles. Here are some of the benefits and advantages of
trading Binary Options.
Trade Binary Options – Simplicity in Exe-
cuting Trades
Binary Options have taken the market by
storm because of their simplicity to exe-
cute. The Binary Options Brokers provide
easy to use platforms. The day trader has
only got a few choices to make
Choose the Trading Asset eg., currency
pairs, Indices, Stocks and Top Commodities
Choose the Time Frame within which to
trade. Generally speaking, good brokers
offer from 60 seconds trades to 5 minute
trades, called Turbo Trades. Then offer
classic trades which range from 10 minute
expiry all the way to end of day. The trad-
er has to choose from any of the expiries
available.
Choose the direction of where the day
trader thinks that the price will go. Gener-
ally this will be UP/DOWN or BUY/SELL
Execute the trade for the value chosen.
This again may range from $1 all the way
to $25,000 for any single trade, again de-
pending on the Broker.trade binary op-
tions.
Watch this video why trade binary op-
tions or continue reading.
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Trade Binary Options with Calculated
Risk
The day trader can exercise Risk Manage-
ment by knowing exactly the potential of
his loss and maximum earnings BEFORE
setting up the trade. The value of the trade
is the maximum amount of loss that can
be experienced by the trader if the trade
ends OTM or Out of The Money. Unlike
Forex Trading, there is no leveraging and
therefore a trader is not exposed to poten-
tial losses greater than his risk value. Like-
wise, the potential profit if the trade ends
ITM or In The Money is known at the outset
by the payout given by the Broker.
Trade Binary Options with No Commis-
sion or Middleman.
The day trader does not have to pay any
clearing fees, government fees or bro-
kerage fees. The Broker makes his profit
from the difference between the value
of the trade and the pay-out by netting
out against other traders who have lost a
trade. Trade Binary Options on a market
that runs 24 hours a day for 5 days a week.
Anywhere you may be in the whole wide
world, you do not need to wait for a spe-
cific time to trade. The Stock exchange in
Australia is the first to open on Monday
morning (which is still Sunday afternoon
in the USA). To know what your Time Zone
is vis-à-vis other countries you may check
this out HERE. The binary options and
forex trading market never sleeps. It only
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Copyrights Binary Option Sheriff 2016
The Trading Market cannot be manipu-
lated
The Forex and asset market is such a huge
market that no one entity can manipulate
it. No central Banks, not even politicians
have the ability to move the market. The
market moves only on the Market Senti-
ment. Trading can be enhanced or avoided
during volatile periods whenever there is
an Economic Update.
Trade Binary Options because of High
Liquidity
Trade Binary Options using Trading Tools
The Binary Options Industry like the Forex
Industry is aided with tools which arrive in
a variety of forms such as signal software
and auto traders. These tools will give you
signals and may even auto-trade on your
behalf with varying success. Choosing a
legitimate signal software system or auto-
mated trading is crucial to your success.
The market is inundated with scam soft-
ware systems, and we recommend that
you due your due diligence and always
check out our Recommended Signal soft-
ware systems as well as our Hall of Horrors
in the Blacklist page.

Because the binary market is so enormous,

it is also extremely liquid. A trader can exe-
cute a trade at the touch of a button. Hav-
ing said this, choosing a legitimate broker
and ideally a regulated one, is quintessen-
tial for pay-outs and withdrawals.

Trade Binary Options with Low Deposits

to Entry

The minimum deposit required to set you

off as a Binary Options trader can be as
low as $50 dollars, but is generally deter-
mined by the individual broker and an
average the minimum deposit required to
open a new account would be in the tune
of $250.

Trade Binary Options on a Free Demo

Accounts

Learning trading can be painless when

opting to trade on a DEMO ACCOUNT.
Most binary brokers will open a separate
demo account once you have funded your
account. However some brokers such as IQ
OPTIONS give you the possibility of open-
ing a DEMO ACCOUNT without needing to
fund an account.
Practice to build your skills with demo
accounts and free charting systems. Net
Dania offers excellent charting services for
free. Forex Factory also gives you news and
updates on their Economic Calendar.
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Quick Start Tutorial for trading Binary
Options
So you want to join the Bandwagon and Trade Binary Options to make
a quick buck right? Wrong. Trading Binary Options requires work and
dedication. It is a legitimate way of making money online and can pro-
duce substantial profits – but if you do not follow professional advice
–Trading, will potentially wipe away your capital – and very fast.

Here is a Quick Start Tutorial into Bina-
ry Options Trading
Choose a Recommended Broker with an
option to a Demo Account. Paper Trades or
Dummy Trades are the first steps you need
to take BEFORE committing your capital to
Trade Live.
Start off with Trading Classic Binary Op-
tions.
Choose an asset you would like to Trade.
Eg., A currency pair like EUR/USD
Speculate on the direction in which the
pair will move ie., UP or DOWN.
of your verdict take the profit pay-out.
Pay-outs can vary from as little as 65% of
your Trade Stake or even as High at 90%
depending on the asset you choose and
your Broker.
Sounds Simple Yes? Actually placing Trades
on Binary Option platforms is a No Brain-
er.Forecasting the correct direction is the
difficult part.
In order to Trade Profitably, a Trader needs
to Have a Trading Strategy.

What is a Trading Strategy?

Money Management. A Trade should never

Decide on the Time Frame for the Trade.
Time frames can be from as short as 5
minutes to 60 minutes. Once the Time is
Expired – your position is automatically
closed.
Hit the CALL/PUT button. Some Brokers
use the keys UP/DOWN and others may
use HIGH/LOW
Wait for the duration of your selected time
frame and if the pair move in the direction
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represent more than 5% of the Trader’s
entire capital.
The Three legged Monster ! A trader needs
to decide whether he is going to trade
Trends, Sentiment or News – heck it start
getting complicated!
A Trader will determine whether to let a
loosing Trade Go, or persist. Will he double
up his staked Trade value in order to re-
cover his losses ?
Although the Martingale Strategy works for
some, this is a very risky style of trading
and may fast crumble your investment SO
BEWARE.
As a new Trader you may be thinking
BORING!! SHOW ME THE MONEY FAST. If
this is your thinking, we suggest that you
either leave this site for a Poker Game, or
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Copyrights Binary Option Sheriff 2016
be more safe and go back to your 9.00 –
5.00 Job. If you are still interested in mak-
ing money online, you have to swallow
the hard pill and get a basic knowledge of
Trading
This Tutorial for Beginners will focus on
Trend Trading and Demonstrate some
simple Basics that are used by Experts with
repeated Success.
WHAT IS A TREND ?
Trend analysis is the study of Price Move-
ment. If you are Trading on a 15 MINUTE
EXPIRY, you need to be looking at a 30
minute chart to see how the Currency Pair
or Asset has been behaving. And we don’t
mean whether it is being good or naughty
– but whether the trend is generally high or
low. The past performance of the asset will
theoretically determine how it will move in
the short term future. Kindof History Re-
peating itself!
Here we see a 30 Minute Chart. Every red
or blue bar represent how the price moved
every 30 minutes. Clearly the pair have
been on a downtrend. –Which direction
likely will you Choose if you a taking a 15
minute Trade? Up or Down? If your choice
is Down, you will have chosen well and
probably profited from your strategy.
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Not sounding as complicated anymore?
Trend Trading is very subjective – but it is
one of the Pillars of Trading Analyses. If
you wish to have access to FREE CHART-
ING you may visit www.NetDania.com and
launch Net Station.If New to Trading – Arm
Yourself with a Good signal Software –take
out the pain out of your procrastination
and Trust Experts to do the Analysis for
you.We recommend Mike’s Auto Trader as
a Great Tool to help you with your Trading.
Read full review and download it here.
Final Word of Advice from the Binary Op-
tion Sheriff.
Binary Option Trading exposes you to risk
of loosing your capital. Trade with Caution.
That said, if you carve your way into Educa-
tion and arm yourself with the Right tools,
it can be very lucrative.
Note of caution: Auto traders and signal
software systems are tools to be used in
your trading tool kit. Used properly they
produce positive results if they are legit-
imate Bots, and linked with LEGITIMATE
BROKERS however, all trading exposes
you to risk of loosing your capital.If new
to trading we also recommend social trad-
ing. Copy trading is the best way to trade
if you are a Newbie. Follow the signals of
live traders on the Social Group on Face-
book and enjoy safe trading by opening a
FREE DEMO ACCOUNT. Contact us on the
subscription form for more information if
you are interested in learning how to trade
with the best.
6
Copyrights Binary Option Sheriff 2016
How to start gaining binary options?

When to trade binary options ? Trading sessions that keep

you in the money ITM.

Knowing WHEN to trade Binary options is ney Session Opens first, followed by the
quintessential in keeping you IN THE MON- Asian Sessions or the Tokyo session. The
EY. If you are a new Trader, you are proba- big boys then start Trading a couple of
bly asking why should it matter? The Mar- hours later, and this is the London Session,
ket is Open 24 hours a day – right? Wrong! followed by New York Session which is
The first maxim to keep in mind as a new the last session and blends again into the
Trader, is that you want to trade when the Sydney Session.
markets are Trending not when the Market
is ranging. A Trending Market offers you a Since Europe and the US have a Summer
perfect opportunity to prepare your strate- and a Winter Time Frame the Down Time
gy, take your Tools From the Tool Box, and Sessions vary from summer to winter.
Trade. You can Trade successfully when
the market moves UP or when it moves SUMMER SESSION – APRIL TO OCTOBER
DOWN but you cannot WIN trades when Time Zone EDT GMT
the market is moving sideways. Sydney Open
Sydney Close 6:00 PM
3:00 AM 10:00 PM
Recommended highly profitable auto- 7:00 AM
trader. Tokyo Open
Tokyo Close 7:00 PM
To understand the best time to trade, 4:00 AM 11:00 PM
a Trader needs to understand the time 8:00 AM
frames of Different Trading Sessions all London Open
over the world. London Close 3:00 AM
12:00 PM 7:00 AM
4:00 PM
New York Open
New York Close 8:00 AM
5:00 PM 12:00 PM
9:00 PM
Watch this video with live trading or con-
tinue reading.
WINTER SESSION – OCTOBER TO APRIL
Time Zone EST GMT
Sydney Open
In a 24 hour day trading can be broken Sydney Close 4:00 PM
down into four major sessions. The Syd- 1:00 AM 9:00 PM
6:00 AM
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Tokyo Open
Tokyo Close 6:00 PM
3:00 AM 11:00 PM
8:00 AM
London Open
London Close 3:00 AM
12:00 PM 8:00 AM
5:00 PM
New York Open
New York Close 8:00 AM
5:00 PM 1:00 PM
10:00 PM
BEST HOURS OF THE DAY TO TRADE
As can be seen from the grid above – there
are times when the sessions overlap – and
these are the busiest time frames for Trad-
ing Binary Options. Since there is more
volume of trading, the market will reflect in
stronger trends.
best time to tradeThe European Session is
the session which usually provides most
movement and as with a great TV Series,
this is when their ratings or liquidity are
peaking.
The overlap between the Tokyo and Lon-
don session is the thinnest – at the end
of day of a long Tokyo day the Japanese
traders are thinking of their sushi whilst
the slow English Traders are contemplat-
ing their Earl Grey. As liquidity dries up,
the movements on the markets become
very slow – and this becomes a lazy time
for trading. If you are a Newbie and you do
not avoid this time – you will find that an
Option you have taken may scarcely move
from the original price. A very risky situa-
tion.
On the other hand the London and New
York Overlap is when all the drama en-
folds. You can literally feel the energy from
the force of trading. This is when you can
see some big price movements in the mar-
ket.
A careful watch for Economic Calendars
is very advisable. If there is any important
news to be announced, you may want to
avoid trading if you are a Newbie. News
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affects market movement in a completely
different manner from a Trending Market.
Establish What kind of Trader are you in or-
der to see which style of trading suits your
personality.
News Announcements = Volatility =
Opportunity = Risk
The ForexFactory Calendar gives you a
complete forecast of the upcoming News
Announcements and the strength of their
impact on the markets.
http://www.forexfactory.com/calendar.php
Note also that towards the end of the Eu-
ropean Sessions EU Traders may be closing
their positions whilst the US Traders will
be contemplating lunch and not on their
best trading behaviour – this can reflect in
a choppy market.
BEST DAYS OF THE WEEK TO TRADE
We have established that the busiest ses-
sion to trade in is the London Session – but
there are also days of the week which are
particularly better to trade in than others.
Understandably the slowest date and time
of the week would be Friday Afternoon.
As most Traders are busy planning how to
enjoy the spoils of their week’s profits, this
time frame becomes particularly sluggish.
The slowest and absolute time to avoid
is the Friday Afternoon of the US Session
since all other Sessions will have closed,
and the US Traders are the only players in
the field.
Mondays are the slow start for the week,
with Traders reminiscing over their lovely
weekends – so until strategies are planned
for the coming week – Monday mornings
are relatively slow and probably nervous
hours for most sessions. Once again it is a
time frame to be avoided particularly if you
are a Novice Binary Options Trader.
Best days of the week would be Tuesdays,
Wednesdays and Thursdays, when every-
one’s adrenaline is pumping.
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Copyrights Binary Option Sheriff 2016
Forex Market Analysis – 3 Types of
Market Analysis
There are three types of Forex Market Analysis which can both
apply for binary options as well as for Forex markets. These are
Technical Analysis, Fundamental Analysis, and Sentiment Analysis.
In this post we are going to understand each type of analysis and
understand how each and everyone one of them is pertinent to
learning how to make money online trading binary or forex.

Three Types of Forex and Binary Market

Analysis If we have a look at the chart below on the
29th August the price of GBP/USD re-
There are three types of market analysis turned exactly to the same position it held
and there has always been a huge debate on August 19th! The support level held! If
as to which of the three is the better Forex we had plotted our Fibonacci Retracement
market analysis! Lines, we will have seen that the price re-
tracement was perfect. The price returned
Technical Analysis to its support line.
Fundamental Analysis
Sentiment Analysis

Let us be clear. There is no hard and fast

rule as to which is the better. A piece of
sound advice is probably that the three of
them combined together will give you the
best results in trading. If only one or the
other is used exclusively, it is pretty much
like trying to balance on one foot, rather
than having the stability of having both
feet on the ground!

Forex Market Analysis – Technical Anal-

ysis
Studying how the price moves in Binary
Trading and Forex markets is the best
description for technical analysis. A trader
who is able to look at historical price move-
ments and determine the current trading
conditions, will be best placed in making
trades based on how the price will poten-
tially move in the future. Theoretically, all
market information is described in price
movement. Therefore technical analysis in
Forex market analysis becomes a self ful-
filled prophesy of “history repeating itself”.
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So basically this is what the first compo-
nent of Forex Market Analysis, ie., Techni-
cal Analysis is all about. If the price held at
the support level in the past, it is bound
to travel back to the support level in the
future.
Traders are literally using historical infor-
mation to create the future. In real terms,
since many traders are looking at the same
support and resistance levels, they can
form an idea where the price will be head-
ing. One assumes that the price will find its
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Copyrights Binary Option Sheriff 2016
way back to its support or resistance level the Sterling against other major curren-
over a period of time. cies. The unexpected results from Brexit,
plunged the Sterling to a depth that had
Charts are the best and most visible way in not been witnessed since 1985! Sterling hit
which to visualise historical data. Therefore a 31 Year Low.
traders will be looking at historical data, ie.,
charts of different time values in order to
spot trends and patterns and of course this
will mean, that they can find a good trade
set up.

Naturally the more traders that there are

looking at the price patterns and signals,
the better the chance of the price fulfilling
its own prophesy.

Forex Market Analysis – Technical Anal-

ysis – Subjectivity

We cannot exclude the fact that technical

analysis which form only one part of the
Forex Market Analysis can be VERY subjec-
tive. Despite the fact that many traders will
be looking at the same charts, it does not
mean that they all agree at where the price
will be heading.

The valuable information set with technical

analysis is the concept that the price al-
ways returns to its support and resistance
at some point. Later, we understand how
using tools such as the Bollinger Bands and
the Fibonacci Tools, will help us get a clear-
er idea where the price might be headed,
and make some extra money online trad-
ing binary options or forex.
Forex Market Analysis – Fundamental
Analysis
Economic, Social and Political forces of
any country are crucial in determining the
strength and weaknesses of their respec-
tive currencies. For example as recently as
a few weeks from writing this article, we
saw the UK vote itself out of the European
Union after its Brexit Referendum on the
23rd June.
If we have a look at the charts below
we can see how the decision influenced
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Although it is very hard to evaluate all the
factors that affect the supply and demand
of a currency, we know for a fact that when
the economy of a country is strong, the
currency stays strong. When an econo-
my starts failing, its currency and related
assets start falling. If a country is in good
shape, and its economic and political tem-
perature are stable, then it is likely that
it will attract foreign investment. Foreign
investors need to buy the country’s cash
in order to invest in that particular place.
Hence the demand increases and so does
the cost of the currency. A good economy
will result in higher currency value, whilst a
bad economy will result in a lower curren-
cy value.
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Copyrights Binary Option Sheriff 2016
Another factor that is directly relevant to
forex market analysis and fundamental
analysis is interest rates. When a country’s
economy is strong, it is normal to see gov-
ernment increasing interest rates in order
to curb growth and inflation.
Alternately government lower interest
rates in an effort to stimulate an economy.
Such important decision made by Gov-
ernments can be watched by checking the
Economic Calendar. Knowing exactly which
newsworthy items to watch out for could
be an interesting way to either avoid disas-
ter when trading online, or to take advan-
tage of volatility.
Knowing what we already know about
Forex market analysis and technical analy-
sis, we already understand that combining
the two analysis together will give us a
better chance to trading profitably.
Remember that knowledge is power. Ig-
norance is failure. This could not be more
true in online trading.
Forex Market Analysis – Sentiment Anal-
ysis
As a trader you may have taken into con-
sideration all aspects of Forex Market anal-
ysis. You may have put your best charts
forward, plotted all your trading signals,
read all the news and the economic up-
dates, and set your perfect trade. However,
if you ignore market sentiment, you may as
well throw everything out of the window.
For example, yesterday on a commemora-
tion ceremony of 9/11 Hilary Clinton who
will be running for President in a couple of
months was overcome by heat and abrupt-
ly left the ceremony. Hardly an econom-
ic factor. But the market sentiment had
trepidation and you and sent shock waves
in the opening prices of Monday morn-
ings stock markets! The trepidation of her
health has resulted in much being written
about the potential effect of this on mar-
kets.
Note that this article is being written on
SN: 00161012 eBook: “The Secret Trader”
the 12th September 2016 and the article
by Brett Arends on Market Watch was
written just a few hours ago which proves
that market sentiment is a huge factor that
influences prices in general.
So finally as a trader you need to take all
this information into consideration. Al-
though you may feel it in your bones that
prices are going up, this does not auto-
matically mean that they will. If the gener-
al market sentiment is that the price will
drop, then it will drop. It is therefore very
important to gauge the market, to under-
stand whether it is a bullish or a bearish
market and include the perception of
market direction along with the rest of the
Forex Market analysis.
CONCLUSION ON MARKET ANALYSIS
One must remember that getting an ed-
ucation is the only way in which you can
make money online in the most active mar-
ket in the world – that of Forex or Binary
Options.
You must also remember that your educa-
tion will never stop. If getting an education
feels boring, we recommend that you stick
to your 9 – 5 job! Learning how to trade
requires commitment.
Choosing to trade in spite of having lit-
tle knowledge is only going to guarantee
disaster. Using only one of the three forex
market analysis is good, but using all three
sets of analysis will ensure that you have a
better chance of trading success.
11
Copyrights Binary Option Sheriff 2016
Trending Market for Binary Options

A Trending Market is one where the price of a currency pair, an asset,

or an index moves in one direction. The trend can either be upwards
or downwards.

Trending Market Downtrend and strong movements in one direction

If we look at the chart below we recognise
that we are looking at a market which is on
a downtrend. The zig zags along the way
are called retracements, meaning that the
price pulls back a little bit and goes some-
what against the market trend.
in order to trade safely and either gain
some pips in Forex or have the direction
you chose in Binary Options end up in the
money. The stronger the movement in one
direction, the more chances a trader has of
concluding a winning trade.
Therefore having a trending market, clear-
ly moving in one direction is a much safer
market than a quiet market which is slowly
hovering around the same price range.
This is called a ranging market. A ranging
market offers no opportunity for trading
either Forex of Binary Options. In Forex
you are not gaining any profitable pips in a
ranging market, and in the Binary Options
the direction will keep playing around an
ITM and OTM every couple of seconds. A
very risky situation indeed.

Charts on exhibit are courtesy of NetDania.

Trends also have what are known as the

“higher points” in an uptrend also called
the “higher highs”, and the “lower points”
in a low trend marked with “lower lows”.
When opting to trade Binary Options or
Forex using a trending market, it is ideal
to pick strong currencies. These are also
known as liquid currencies because they
are traded heavily. Major currencies would
include, Dollar, Euro and Sterling.
You may be asking why should one pick a
liquid currency? The answer is very sim-
ple, and that is because you need volatility
12
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016
Trending Market
Another Great indicator to use when trying
A ranging market usually occurs before a to establish whether you are looking at a
trading session (early in the morning) or trending market is by using Simple Moving
after a trading session (late the afternoon Averages or SMA as it is also known.
and evenings) Days of particularly slow
performance would also be Monday morn-
ing and Friday afternoon, where traders
are either too sleepy after a weekend, or
too tired after a heavy week. News and
Economic updates are also rarely an-
nounced on Monday mornings and Friday
afternoons, therefore presenting no excite-
ment in the market.

How can a Trader benefit from a Trend-

ing Market?

Apart from watching the charts like a hawk

and tracing lines with your eyeballs, you
can also make use of tools. One such tool
is the Average Direction Index Indicator
also known as ADX in short.
This indictor or tool uses a value between
0-100 to measure whether a price is mov-
ing strongly in one direction and therefore
showing a trending market or whether it is
slow and sluggish and exhibiting a ranging
market.
If the ADX is showing a value which is high-
er than 25, then you are already looking at
a trending market with strong trend move-
ments. Naturally, any value higher than 25
indicates a stronger trend. One must bear
in mind that the ADX is only measuring the
strength of the trend. It is not a direction-
al indicator. Therefore the ADX does not
recognise whether the trend is upwards or
downwards. It only measures the volume.
This may be a little bit more complicated to
use because you will need to select differ-
ent periods for the SMA in order to get a
clearer picture.
The periods chosen here in our example
are 10, 20 and 50 period and plotted on
the chart. As we can see the three lines fan
out. When the 10 period SMA displays on
top of the 20 period SMA, and the 20 peri-
od SMA leans on top of the 50 period SMA
then you have a confirmed uptrend.
On the other hand if the have your 10
period SMA displaying below the 20 peri-
od SMA, which lies even lower than the 50
period SMA, you have a confirmed down-
trend.

13
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016
In order to get a reconfirmation of whether the indicators which can establish confir-
a trend is clear, it is always best to look at mation of the trending market as opposed
different charts values. Looking from a five to a ranging market.
minute chart, to a fifteen minute chart, and
all the way to an hour chart, can give you a If you are new to trading we recommend
confirmation on the trend. that you open an account with a Regulat-
ed Broker and receive a DEMO ACCOUNT
Naturally, if you are trading Binary Options, which will help you trade safely and with-
you need to be looking at charts with a out any risk exposure, until you have es-
lower time frame than if you are looking at tablished a winning pattern.
Trading Forex. The difference is that if you
are trading Binary on a ten minute expiry, We also recommend that you learn trading
then you should be looking at the 5minute, by joining a social trading group. We can
10 minute charts, all the way to 15 minute offer you an introduction to Mike’s Manu-
charts. But looking at 1 hour charts will not al Signals Group of Facebook with a 5000
give you the information you need to see subscriber base. Follow the best traders by
because the time frames are too far away copying their trades with an 80% success
from the time you will take your trade. rate. Drop us an email from the subscrip-
With Forex, if you are looking at trading tion form for a free introduction.
end of day, then need to be looking at lon-
ger term charts, starting with an hour and
going all the way to 12 hours and daily.
There is no doubt that understanding
what is a trending market is imperative in
trading binary options and forex. We have
established that we do not want to trade
during a sluggish and sleeping market
which is called the Ranging Market as this
Watch this chapter on You Tube
is considered the “No Man’s Land” market
and will not give us direction or profits.

Click to open

Remember also to check the Economic

Calendar for Economic updates, which may
upset a trending market, and deliver price
spikes that would upset the confirmed
trend.

We hope that this post has helped you with

understanding the basics on clearing iden-
tifying a ranging market as well as selecting

14
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016
Support and Resistance Levels –
Trading Tips
Support and Resistance levels have to be the keywords for best used
concepts in Binary Options trading. Even if everyone has their own
idea on how to measure support and resistance levels, there are some
rules which cannot be denied.
What do Support and Resistance Levels
look like on a Candlestick Chart?
If you look at the screenshot from a live
trading session above, you will see that
there is a clear zig zag pattern. We see
that the assets are climbing up. When the
assets are climbing this is called a BULL
MARKET. When the assets are sliding
down we call this a BEAR MARKET.
Remember Bulls are the fighters. They
are fighting to rise higher. They are strong
and aggressive. A rising market is a Bullish
Market
Bears are protective. They are strong and
they will try to keep their ground. One rip
from the Bulls horns and they are done! A
sliding market is a Bearish market.
There is never a clear rising to the stars, or
a staircase to hell. What we see in a Trend-
ingSupport and Resistance levels - trading
binary options .
SN: 00161012 eBook: “The Secret Trader”
Market is a clear rise or a clear fall, but in
the meantime we have what are known as
PULL-BACKS. Pull backs are reactions from
bears and bulls fighting to gain their foot-
ing. Whoever prevails in the end, will set
the trend. When a trending market moves
up and then pulls back, the highest point
is called the “Resistance level” whilst the
lowest point reached is called the “Support
Level”.
As the market soars upwards, we see new
support and resistance levels being cre-
ated continuously. As such the old Resis-
tance becomes the new Support on the
next flight of steps upwards. The reverse
happens when the trending market is a
slipping for falling market.
Watch video explaining Support and Re-
sistance Levels in an easy to comprehend
way.
How to Plot Support and Resistance Lev-
els in Trading Binary Options or Forex?
The first thing to bear in mind is that sup-
port and resistance levels are NOT PER-
FECT NUMBERS. Many a time you will see
that the market will repeatedly “test” a new
support or resistance level, until it breaks
15
Copyrights Binary Option Sheriff 2016
out and sets a trend! Many times, the can-
dlesticks form shadows at the point where
they are testing the support or resistance
levels.
In the example shown, it is clear that the
market was being tested on the “support”
level. It seemed to be at a point of “break-
ing out” the previous trend. But in fact
it did not. What it was doing, was simply
‘testing’ the market.
How do Support and Resistance help us
with our daily trading?
Once we start becoming familiar with
plotting support and resistance lines, it
becomes clear very fast that we are dealing
with assets that are bouncing up and down
between support and resistance. In a situ-
ation where we do not have a “break out”
and we see the point that a currency pair
are touching the resistance point, we know
that we should take a “PUT” signal.
The assets will be heading down for the
next time frame until they reach their sup-
port level. Likewise, once the pair reach
the bottom of the rung, and unless there is
a price breakout, you can be assured that
the pair will be heading up again. Take a
“CALL” signal within the time frame of the
charts you are looking at.. and presto! You
are in the money.
SN: 00161012 eBook: “The Secret Trader”
How can we ascertain that support and
resistance have been broken?
We need to assume that we are working in
a “Trending Market”. One very important
thing to note is that we must always check
the Economic Calendar to ensure that
whilst trading in a trending market, there is
no influential news updates that may affect
the market. Although we do need volatil-
ity, we do not need a crazy market which
will fluctuate crazily from important news
updates. Trade whenever you are sure
that there is a comfortable trend, without
anything upsetting the current mood.
Understanding where the Support level is,
becomes a clear indication when it is safe
to trade. If we look at the chart here we
can clearly see where our support level it.
Consider it as a safety net, which is strong,
but which can break out! As long as it
remains strong on the pulleys and intact,
we know that we can go for gold and trade
upwards!
What are False Breakouts?
Think in Terms of Zones for Resistance and
Support. In our review for Chart Trading,
we examined how line charts give us a very
clear picture of where a trending market
is heading. A line chart does not give you
information of price entry or exit in a time
frame, but it clearly maps out direction.
16
Copyrights Binary Option Sheriff 2016
If there is a pull back or a knee-jerk, this is
very visible on a candlestick chart. But we
are not interested in the reflexes of the
market. Here we are interested in plotting
what is the INTENTION of the market !
If we look at the line chart below, we can
easily plot our support and resistance
lines. The chart looks like a fairy tale of
mountains and valleys, but it tells us a real
story of how we can take advantage of the
market and make money online!
When the levels break, you will need time
to study whether the break-out is due to
a economic update, where hell can break
loose, or whether this is forming a new
trend. If this is a new trend, take time to
study it, be reassured and it will be time for
the next round of ping-pong trading! Bina-
ry options can be lucrative and fun!
Looking for helpful software that will
provide you ready signals without doing
complicated market analisys ?

Check the most profitable automated soft-

ware of the year! Copy Buffett.

Watch video: Copy Buffett - Trading Update

$2325 profit in 8 days trading

Support and Resistance Levels –

Tips and Tricks

If the price “Goes through the Roof” what

was previously a “Resistance level” could
now become your new “Support level”. Al-
ternatively, if the price has “hits the bottom
and falls through” your old support level is
now your new resistance level.

If the price hits and bounces back from

the support and resistance levels several
times, it means that your bandwidth is
looking stronger. It is an area where ping-
pong is being played by professionals and
you can take advantage of this by playing
Call and Put between the support and re-
sistance areas.

17
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016
The Ten Commandments
Tips for Smart Trading
If you have been following our intensive course on binary options trading, it means that
you are serious about making money online. However, being the human beings we are,
it is very easy to loose the wood for the trees. Therefore for this purpose, we have pre-
pared a cheat list which you should refer to periodically as it will keep trading real.
Cardinal Rule 1: How much to Invest.
Never invest that what you cannot afford to
lose!
Cardinal Rule 2: Set Your Targets.
Targets are excellent guidelines to keep our
focus. When setting targets, we need to be
realistic. How much money would you like
to make every week? If you are not sure
what realistic is, then you need to remem-
ber Cardinal Rule 1. As with everything else,
trading exposes you to risk, therefore keep-
ing your risk-reward ratio sensible, will help
you set your targets. Remember targets can
always be revised!
Cardinal Rule 3: Never Stop Learning.
There is never a limit to an education, and
there is no limit to how much you can learn.
Keep abreast of articles and reviews, espe-
cially from real live traders who have experi-
ence and are successful.
Cardinal Rule 4: Be Disciplined.
This is probably the hardest rule to follow.
Emotions can wreak havoc on our trading,
and this is easily the easiest way to lose
your capital and your head. All traders lose
trades now and then. The minute you lose
two trades in succession, give yourself a
break. Sit off your chair. Leave the room
SN: 00161012 eBook: “The Secret Trader”
and your computer behind. Go for a walk!
There will be plenty of new trades to harvest
when you are fresh
Cardinal Rule 5: Commit to your daily
trading time.
Trading can start off being a lot of fun, but
can fray your nerves and make you weary.
Find the best trading time in your Time Zone,
and commit to a time frame for trading that
is in your comfort zone. Remember, trading,
is like going to the Gym! Daily practice will
see a fitter and more profitable trader. Over
trained will leave you without energy. Under
trained will leave you without profits.
Cardinal Rule 6: Separate your Emo-
tions from your Trading.
Again, as with Rule 4, this is extremely dif-
ficult to achieve. If you are a new trader
your best option is to trade on a demo
account. This will take off the edge of the
sharp adrenalin shots away from the stom-
ach. When you have practiced enough on
18
Copyrights Binary Option Sheriff 2016
Cardinal Rule 7: Ensure to have an
Exit Clause.
As with rule 2 – you need to set your target
exit clause. As a trader you will have good
days, and you will also have some bad
days. The market can be nervous, or you
may have slept badly the previous night.
Know exactly at what point you need to
stop trading. Failure to do so will only
deplete your account fast, and you will not
have the chance to recover your cash.
Trading is not a roulette game of choosing
red or black. The stakes are high against
you if you play that game since the pay-out
is less than 100%.
Cardinal Rule 10: Log your Trading.
Keep a diary of your daily trading.
Enter how many trades you took, how
many were winning and how many were
loosing, your starting balance and your
closing balance. You will learn a lot about
yourself and your trading habits!

Follow these very basic rules for trading,

and you will set yourself on a course of
success! Remember also there if you are
afraid to GO SOLO, there are great Social
Trading Groups where you can learn how
to trade and shadow professional traders

Cardinal Rule 8 – Learn when enough

profits are enough for one trading
session!

This Rule is the x-ray image of Rule 7. On a

good trading day, know when to take your
profits. Have a strategy of which amount
of profits to withdraw, and what balance
you will re-invest in trading

Cardinal Rule 9 – Learn your basics

like your prayers!

Learn how to read basic charting. Know

where your support and resistance levels
are. Know how to check the Economic Cal-
endar. Failure to do so will have disastrous
results. Remember that Binary Options

19
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016
 Congratulations!
You have just finished big junk of educa-
tion !!!
Now you know the basics plus some tips
and tricks about binary options/forex trading.
We hope this material will help you make bet-
ter decisions when placing trades. If you’ve
liked this ebook and want to continue trading
education subscribe to Sheriff University for
free lectures, strategies and live trading ses-
sions. We’d like to hear from you.

COUNT ME IN !

Stay tuned and subcribe Sheriff’s You Tube channel

to get access to live trading sessions and software
reviews.

20
SN: 00161012 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2016