Professional Documents
Culture Documents
Course
5 Introduction
ww
53 Conclusion
54 Acknowledgement Page
55 References Page
56 Glossary
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Introduction
In Binary Options, although it is an easy to In addition, trading in the Economic News
understand and put into practice market, it is a mystery to many, but we will teach
is not that simple to have consistent results. you how and when to do it, as well as how
The road to becoming a successful and to protect yourself from its influence.
independent trader is long and full of
obstacles. We will also teach you one of our main
strategies for Binary Options, step-by-
So, we welcome you to this dynamic and step, so that you can start putting your
exciting world with this Binary Options first trades properly. It's a simple and
Course that will help you take your first easy to understand strategy, adapted to
steps in the right direction. beginners to put it into practice. I hope
Focused on to those who are just starting you're as excited as I am!
out, or who, for various reasons, have not
yet managed to conquer their space, we To finish the course in the finest way
are sure that the knowledge we will pass on you will also have totally free access to a
with this e-book will help you improve your Telegram channel with Binary Options
results. Signals.
R u le s a n d D is c ip lin e
In this initial chapter we'll talk about Rules, Discipline and
Emotional Control. The solid foundation for any trader, in any
market, starts here.
This chapter has 20 issues, where each one talks about a different
rule.
Rule Nr.1
N o u r is h m e n t
It is fundamental that when we are
The intense activity of a trader requires a operating, we have our body with enough
lot of attention, concentration, capacity of food.
analysis and quick thinking.
Firstly, we need to make sure that we
Science explains that, of all the energy we have the efficiency to operate with
produce, 25% is consumed by the brain. concentration and with all our capacities
at the maximum level.
For this reason, we should never operate
hungry, or without enough food in our On the other hand, it is important to avoid
organism. that at the moment when we may be
having an operation, the fact that we are
If you intend to start operating in the hungry may lead us to make some mistake
morning, it is important to have a good because we are, for example, thinking
breakfast before operating. about food.
If you prefer trading between meals
or later at night, it is important to eat Never forget, a Trader never operates on
something first. Even if it is something an empty stomach.
light: a fruit, a cereal bar, a yogurt.
Rule Nr. 2
Clear Head
On the days when we are not fit, we Simply by breaking this rule.
should not negotiate. Either because the On a particular weekend, he had an
day went wrong at work or at school, argument and separated from his
or because we had an argument with girlfriend and the following Monday he
someone, or simply because we are went back to the operations to try to
worried. forget her.
It's important to have a high morale and Not only hasn't he forgotten his girlfriend,
confidence to get good results. but he's also
ended up losing all the profit he had
Usually when the day starts going wrong, obtained.
the whole day goes wrong, just as when it
starts going well, everything goes well. The reason for the loss is simple to
In trading it's the same, the positive understand. He was emotionally unstable,
mentality will attract positive things and and that's half the way to loss.
if the emotional and psychological part is This example serves to demonstrate two
down, on this day probably it will attract things:
negative things.
First, we must respect all the rules.
To give a more practical background, I will Sometimes we think there are more
give the example of a student who took a important rules and others are less
training about 2 years ago. important. But in fact, all 20 of these rules
This concrete case shows why it is that I am addressing are equally important
important to have a clear head, without and cannot and should never be broken.
any bigger problems or concerns. Second, if there is something that affects
our emotions and our psychological, it will
He took the course and started probably affect our operations.
negotiating, having excellent results in the
first weeks. The separation of this student and his
girlfriend ultimately demonstrates that. If
In 15 days, he increased the amount of his you're not emotionally balanced, you don't
account by 40%. operate. Come back tomorrow or when
But in 2 days, he lost everything! you're better.
R Nr. 3
Rule Nr.4
Tiredness
Trading activity is very tiring. Not in capacity and the discernment to make
physical terms, but in emotional and the right decisions in our daily trading
mental terms. sessions.
Besides requiring great level of That's why we should operate only 2 hours
concentration, analysis and quick at most, per day.
thinking, trading involves all the emotions Exceptionally, we can trade more than 2
of those who deals with money. hours on certain days, that is, whether it's
a holiday, or a day off from work, etc.
Either because of the gambling
component (of losing and winning), or But even on these days - which are the
because we deal with the loss and gain exceptions - we should always operate a
of money, the trading activity becomes maximum of 2 hours in a row and then
very burdened from an emotional point take a 1-hour break. In this interval we
of view, and that is not always easy to deal should leave the computer, if possible, get
with. some fresh air and before returning to the
And besides, while operations are open, activity we should eat something.
our adrenaline is at its peak.
Do not forget: a maximum of two hours
All this, all together, causes a wear and a day, to avoid too much fatigue which
tear that if not managed correctly, we then ends up preventing good results and
can reach a level where we don't have the tranquility in the long run.
Rule Nr.5
Trader’s Profile
Our personality, characteristics, tastes and A person in that situation may begin to
ambitions influence our choices and our doubt their capabilities, but in reality, it
results. may be the strategy that doesn't fit them,
although it fits the friend.
In the binary options there are different
strategies, indicators, types of operations, So, I'll use a soccer player to show the
expirations, etc. importance of the trader’s profile.
Imagine Neymar Jr. He's one of the best
Since we are not robots or machines, our Forward players in the world.
profile ends up influencing the choices
of strategies, types of actions or different Now let's imagine that I am now his coach
expirations and it is important to make the and tell him to play as a defender.
choices that best suit our profile.
There is no automatic way to find out Do you think he'd still be one of the best in
what our profile is. No online test to know the world?
what is our profile.
To understand what our profile is, we have Certainly not, because his profile is to play
to test various strategies, types of options in the position where he plays, although
and expirations. he trains with the defenders and knows
the rules to defend, he has the profile and
When you find what you believe that is the characteristics to play as Forward.
the best road for you, you go ahead and
try to specialize. Then it's all a matter of training and
improving, and in his case this training
Many people want to follow a strategy and improving as a Forward has made him
because their friend uses that same one of the best in the world.
strategy and makes money. But
sometimes it adapts to the friend's profile, But it all started with placing him in the
and so he gets results, but it doesn't adapt position that was most suitable for him,
to our profile and so we can't get results. according to his profile.
Rule Nr.6
Rule Nr.7
Evolve as a Trader
This rule talks about the importance of That's why it's important that we evolve
continuing to study, learning and evolving in the same way that the market has and
in order to become a better trader and get continue to learn to be better and better.
better and better results. Ability to adapt is also necessary for this
constant evolution.
Many times, people take a course or have
a good strategy and think it will work Improving and perfecting your knowledge
forever. is fundamental to have the ability to,
They think they don't need to continue throughout time, keep achieving better
learning, to evolve. and better results.
Nothing could be more wrong!
Always try not lose your "evolution train",
The market is always evolving, every year it such as the very evolution that the market
behaves differently. shows.
A good strategy today, in 6 months or a
year, may not work anymore.
Rule Nr. 8
Rule Nr.9
Risk Management
This is one of the most important rules. However, values far above this 3% are
Risk management is key to managing loss already a high risk.
accounts. I will give you two examples to explain
Risk Management, where I will use a $250
Many people calculate their operations account, using a strategy with Martingale
from a gain based point of view. and getting 3 consecutive losses at most.
Let's now look at the second example, From a mathematical point of view, I have
where instead of the 2%, we would no margin of maneuver, I am going to be
operate with an initial percentage of obliged to win on this day.
4%. And in this sense, we were going to
have an operation starting with 10, then Because if I lose again, I would run out of
20 and then 50, again all lost operations. money in the account and then I would
The total of this loss would be $80. And only have two possibilities.
we're already talking about a loss on our Either deposit more, or give up, obviously.
account of 32%. The secret and importance of risk
management is for you to learn how to
Let's imagine, as in the previous example, manage your bankroll in a correct way,
that the next day we would have the same to prevent the value of the balance from
loss again. In the total sum, that's $160 reaching this level of loss in such short
lost, which subtracted from our initial time, and to put it under enormous
deposit of $250 we'd only have a total of pressure, eventually leading to the
$90. ultimate and total loss.
What is the difference in the two scenarios
presented? This way, for a risk management that is
As the image below explains, in this correct, you should not lose more than
second example, when I started my about 15% of you bankroll daily, this is for
third day of operations, knowing that small accounts, and if we have to talk
my balance is only $90, I would have about bigger accounts (over 1000$ for
additional pressure because on this day I example) our maximum loss should not
realize that I no longer have any margin of exceed about 10%.
loss.
Rui Oliveira
Rule Nr.10
In a trader's life there will always be good Often it's their lack of discipline or lack of
moments and bad moments. There will emotional control that causes the losses.
always be days when everything goes well
and days when everything goes wrong. More important than blaming something
There's no way to avoid that. or someone is to look at what happened
No trader always wins, as no trader always and learn from it. Analyzing and improving
loses. is the key.
It's fundamental to accept a good day, as it Also in gains it is necessary to know how
is to accept a bad day and in the following to manage emotions, keep calm, focus and
rules I'll approach more how to behave in maintain your feet on the ground.
both situations.
But always bear in mind that the ability to Whether it's a good day or a bad day,
accept and understand the victories and with wins or loses, it was just another day,
defeats is very important. tomorrow will be a new day, with new
opportunities to make money.
As an old saying goes: "He who doesn't
know how to lose doesn't know how to We must always maintain balance and
win either." discipline on either a good or a bad day. If
we achieve this, the losses will always be
Many of the traders facing a bad day recoverable and the profits will always be
blame the broker, the market, the strategy greater in the long run.
or the (lack of) luck.
Author Unknown
Rule Nr.11
Rule Nr.12
Rule Nr.13
Objectives
In the previous rule I already addressed At the end of the month we analyze the
the need to have goals. Now I will explain results and decide to keep, raise or lower
in more detail why and how to create the goal for the following month.
them.
Goals are primarily for us to work in an There are two things to be careful about
organized way. They work as a path, as a with our goals: they have to be ambitious,
map. to make us chase them, to work hard and
By having a defined objective I already to have motivation.
know how many operations I have to do to Only then will we have results, because
get the profits I intend to have at the end only then will we really work to achieve
of the month, I just have to follow what is them.
defined.
But the goals also have to be realistic and
The daily objectives should correspond to appropriate, because if we have a goal that
a value between 2% and 4% of our balance is impossible to achieve we will surely be
and vary according to the value of the breaking rules to try to get it.
amount we deposit and our experience. If an objective is too high we will have
This goal is the same every day of the to operate with higher values, breaking
month. the risk management, or operating
many hours per day, breaking the rule of
Example: If this month we determine that tiredness.
our daily goal is $20, it will be $20 every
day. It won't be $20 today, $15 tomorrow In the end, breaking rules and an
and $25 the next day. It is set during this inaccessible goal will only result in the loss
month. of your capital and motivation.
Rui Oliveira
Rule Nr.14
Confidence
With confidence everything we do comes He knows that from the moment the
out better. This is something we all know trade starts to run, the result no longer
already. depends on him and that's why he wants
A trader has to have confidence in him, in to enter right away to free himself from
his knowledge, in his tools, strategies, in this tension and later put on the market
his Broker and the platforms. the responsibility of the loss, in case it
happens.
The lack of confidence prevents good
results and increases losses. The second way is to go in too late:
Especially in Binary Options, the lack of the lack of confidence makes him doubt
confidence has very negative results, at the moment of entry. He's not sure if
because everything is very fast, especially he's doing well, if that's the right moment,
when we operate in turbo mode or 60 and therefore ends up delaying the entry,
seconds, an out of time entry, even for a due to the constant doubt whether he's
few seconds, leads to a loss. doing everything right. The questions: "am
I doing good?"; "is this the right moment?"
The lack of confidence leads to losses in delay the entry by a few seconds, but
two ways: might be enough to lose.
The first way is to get in too early: In both cases the trader ends up losing
The lack of confidence leads to greater because he doesn't enter at the ideal
pressure. This pressure at the moment of moment. It's fundamental for you to be a
waiting for the best moment to put the confident person, in order to enter at the
operation is so great that the trader can't right moment.
stand waiting and enters early to free
himself from the pressure.
“ Estratégias
Lack
de taxaat
doubts
que alegam
of confidence
dethe
acerto
Rui Oliveira
entrynão
100 ou
will cause 90%
you
existem, é mentira!
moment.
Rule Nr.15
Humility
Just as lack of confidence is a problem, The problem with these negative phases is
overconfidence or lack of humility is an that since they come from a very positive
equally important problem. phase, they end up not realizing where the
error is and often the losses are very big,
Good times sometimes lead traders to lack even leading to a complete loss.
humility. They start to think that they are A trader should always work in a balanced
the best, that it's easy, that they can beat way, be it in the good moments or in the
the market, that their strategy or method bad moments.
is foolproof. Neither when you lose, you're the worst
trader in the world, nor when you win
Usually this leads them to lose discipline you're the best trader in the world.
and break rules.
And that, of course, leads to them losing One must be humble and always respect
money by going into a negative phase. the market and the rules.
Rule Nr.16
Being Strict
One of the flaws that many people have is This lack of rigor usually manifests itself
wanting things done our own way. in the 'roller coaster' of results, where the
We have some difficulty in following rules, balance goes up and down, but never
in being strict. manages to draw a consistent line where
A trader can't be like that. It doesn't fit the the rises outweigh the falls.
"more or less" attitude. Be strict with your rules, with your
The rules have to be followed 100% and discipline and with yourself.times.
not 90%. If we're not rigorous we won't be able to
The difference between 100% and 90% obtain results in the long term, because
sometimes is the difference between a we'll be making mistakes that will harm us
successful trader and an unstable trader and prevent us from obtaining consistent
who loses more money than he makes. profits.
Tools such as strategies have to be used in
the right way, respecting how they work. This lack of rigour usually manifests itself
And we have to do that every day, at all in the "up and down" of results, where
times. the bank balance goes up and down, but
If we're not rigorous it's impossible to never manages to draw a consistent line
obtain results in the long term, because where the rises outweigh the falls.
we'll be making mistakes that will prevent Be strict with your rules, with your
us from obtaining consistent profits. discipline and with yourself.
Rule Nr.17
Persistence
In life we have to be persistent to Throughout my long experience I've
overcome difficulties. And the trader's life known a lot of traders, and all of them, but
is full of difficulties, especially in the initial all of them without exception, ended up
phase. losing their accounts initially.
We all go through moments when things The reason they are still traders today and
don't go our way. making money is because they persisted
Persistence is necessary to continue. and continued to believe in themselves
and to work.
As I said in the previous lines, learning I, in the first years of trading, lost a lot
from mistakes, improving and trying of money, but I always believed that I
again is essential. would be able to have results, I just had to
improve, to continue learning and to have
The reason why it is said that 95% of more discipline.
people lose money on investments is
exactly because they lose the first deposit Most people, give up quickly blaming the
and give up. market or the brokers for their failure or
When in fact, it is normal to lose the first simply not believing in them and their
account. That's what I call the cost of ability.
learning.
Any one of us can be a trader, but we'll all
We all make mistakes initially that usually have losses at an early stage. Persistence is
lead us to lose the initial account. what will divide those who one day reach
The secret is to learn from these mistakes successful traders from those who have
and improve with them. failed.
“ Estratégias
It's normal toque
de taxa
the de acerto
so-called
Rui Oliveira
alegam
lose 100account,
your first
não cost
learning
ou 90% it's
existem,. é mentira!
Rule Nr.18
Patience
This is one of the characteristics that all A player does not do that, he wants
traders should have. to have fun and will always "create"
Patience is what distinguishes traders operations, even if they are not good, even
from players. if they make him lose money, because the
A player aims to place trades and have fun. goal of the player is adrenaline, it is to get
When a player is trading he has to find a "kick" out of trading.
trades, whether good or not. He can't and
doesn't want to wait an hour for a good On the contrary, a trader doesn't look for
opportunity. fun, he looks for money, and for that he
has to wait for the best opportunities, the
A trader has to know how to wait for the ones that really make him earn money.
best opportunities to enter the market.
A trader trades to make money and not So, a trader knows that he has to be
to have fun, because it's not a game for patient and wait for the right moment.
him, it's not a fun. Of course it's ok that we
traders like to trade, after all, liking what If you are patient: excellent!
you do is very important. But fun isn't, and If not, you must find a way not to get
can't be, the main goal. There are days or “played” by your impatience, for example
moments when the market is simply not when you find that you don't have any
good for trading. So you might as well not entries soon, simply close your platform
trade and come back another time or just and come back later.
be patient and wait.
Rule Nr.19
Experience
No matter how many courses you take, no important, but the knowledge we acquire
matter how many books you read, there is in our daily life is also fundamental to
always knowledge that only with practice improve and perfect what we learn.
and experience you will be able to achieve.
Therefore, in the initial phase, after
Even if someone explains everything finishing this book or some other course, it
to you in detail, much of the essential is essential to operate as much as possible!
learning will only be obtained when you On the one hand to put the acquired
get your "hands dirty", when you start knowledge into practice and on the other
practicing, when you start negotiating. hand to improve this same knowledge,
because every day we end up learning
In the same way that a doctor with 2 years something new.
of experience is very possibly a better
doctor than on the first day of work, a The international scientific community for
trader with 2 years of experience is also Psychology has no doubts when it says
better than when he finished his course, that "deliberate practice involves attention,
than when he started trading for the first essay and repetition and leads to new
time. knowledge or skills that can later be
developed into more complex knowledge
The experience in this function, as in all and skills". And they say that "practice
the others, is fundamental. There are lots is necessary, if not sufficient, to acquire
of details about trading that we will learn specialist knowledge". 1
over time. Even if we take the best courses
available, we will never be able to learn Of course, it is essential not to forget the
everything and much of the learning is rules. At this stage when we have gained
also done through practice. experience through practice, it is very
important to work with discipline so that
The theoretical knowledge we acquire good principles are rooted in our way of
in courses, books, guides, etc., are very acting.
Regra Nr. 20
Consistency
Consistency is a trader's ultimate goal. No The market is the operation of binary
wonder I left it to the end, because it is the options, brokers, platforms. It is knowing
ultimate target. the inherent risks, the profit potential, the
To be consistent is to be able to have types of operations that exist.
positive results on a regular basis, to be
able to obtain an extra income or even The Tools are all that help us to trade.
to achieve the much desired financial They are the indicators, the strategies, the
freedom in the long term. economic news.
I remind you once again of the importance
How do we get there? How can we be of respecting the tools and using them
consistent? properly. The incorrect use of tools
prevents consistent results.
Through the trading triangle.
But what is the Trading Triangle? The Trader, who is you, is the basis of this
triangle. It is you who ultimately plays the
It is the sum of the 3 sides of a triangle most important role, no doubt.
(please see image in the next page) that is
composed by: The Trader has to know how to manage
1. Market emotions, frustrations, yearnings and
2. Tools euphoria. The Trader has to learn to use
3. The Trader and respect the rules and have discipline,
and do that, every day.
“ Estratégias que
Consistency
dethe
of taxaTrading
alegam 100
is achieved
de acerto
Rui Oliveira
ou 90%
through
não existem, é mentira!
Triangle.
Rule Nr. 20
But we don't stop there, because nobody With this rule we finish the course
said that this world of online trading was module that refers to rules, discipline and
easy. emotional control.
Then it's necessary to add persistence, I hope you enjoyed it and that above all
patience and of course, experience. you understood the importance of these
And the sum of all this, of all this rules in your success as a trader.
knowledge, is what allows us to obtain Follow all these rules daily and I guarantee
consistency. that a good part of the work is done.
Tra d e th e
E c o n o m ic N e w s
In this chapter we will discuss the importance of Economic News,
how to protect from its influence on the market and how to operate
successfully on the basis of that same News.
Introduc tion
Im p o r t a n c e o f N e w s
I start this chapter by talking about the However, we continue to have news every
importance of the News. If the main day, and this news continue to influence
point of this part is indeed the news, it the markets and the ups and downs of
is important to make a small context to assets.
explain why the news is important.
Therefore, we cannot simply forget the
It is good to never forget that behind those news and focus only on our analytical
bars that go up and down all day long, strategies, as we run the risk of losing
there is a reason (or several, better said) trades at times when the news comes out
why they go up or down. It's not random. and the influence that these news have
And without doubt, the important on the market will cause our technical
economic news will affect the market. strategies not to work at that moment,
making us lose money.
In the early days of trading, traders used
the news (also known as fundamental Whether you are interested in learning
strategies) as a way to find the information how to trade in the news or not, you need
that would help them make the decisions to know what are the important news to
on how to trade the financial markets. the markets and how to act correctly when
these news come out.
Over time, analytical or technical
strategies have gained ground to
fundamentals, and today most traders use
analytical strategies.
H o w t o P ro t e c t Yo u r s e lf
fro m t h e Im p o r t a n t N e w s
To take a more defensive attitude, we are You will have to set the news schedule to
now going to learn to protect ourselves in your time zone.
times of important news, because these
news cause volatility in the market. The By entering the forexfactory.com calendar
problem is that the markets do not always site you go to the top right corner, where
react to the news as one would expect, you have the clock icon.
sometimes going in the opposite direction. Click on it. Then you have two ways to set
it.
Later on, it will be explained why the The simplest way is to click where it says:
market often reacts in a contrary way to "Match Automatically". It sets it to your
the expected outcome of the news. computer's schedule.
Now you just have to click on "Save
Because of the importance of the news, Settings".
the first thing a trader should do every
day before starting his trading session The other way to set it is to go to the same
is to look at his economic calendar and page that I indicated in the previous step
observe what important economic news is and look for your time zone in the list.
predicted for that day. Please note that the DST is the acronym
for daily saving time , so when it is
There are several economic calendars. summer time it should be ON and when it
I use the one from forexfactory.com, is in winter time it should be OFF.
because it’s simple to use and has only the
most important news. After choosing the time zone and the DST
you must click on "Save Settings".
If you want to access it now and follow
the steps for a simple but important
configuration that you need to do.
Then click on "Calendar", which is also at Each type of news has a different color.
the top of the page, in the center, to return
to the calendar. Grey, yellow, orange and red, with grey
This calendar has the days of the week, being the least important, to red being the
from Sunday to Saturday with all the news most important.
for the current week.
The only ones we're interested in are the
There are 4 types of news which are red ones.
represented by the colored icons as the
image shows: So what should we do?
We have to check the moment we are
going to start negotiating whether there
are any important news, those reds, during
the time we will be negotiating.
Let's pretend that today is Wednesday the 11th and now it's 6:00p.m.
We can observe that at 7:00p.m., in 1 hour, there will be important news.
We have to look at which asset this news will influence. We can see that it is the USD.
So, what we'll do is take a break on the Thus, if the market is influenced by the
trading session in all asset that have the outcome of the news, it does not harm our
USD. For example, EURUSD, etc. strategy.
We can continue to trade on other non- The pause of 15 minutes before is because
USD assets, such as EURJPY. in certain news the markets get a little
That means that 15 minutes before the nervous before the news comes out,
important news occur, we will stop becoming sometimes irregular and with
trading. In this example, being the news at random movements.
7:00pm, at 6:45pm we would stop trading And that could mean that we would lose
in the assets relative to the news, in this operations, even with correct predictions
example, in the USD. and analysis.
This is a 45 minutes break, which means The pause of 30 minutes after the news
that between the 15 minutes before the exists allows the market to stabilize, so
news came out and the 30 minutes after that our indicators and strategies can
it came out, we would not trade in these follow the new trend of the market after
assets of the news, which means this the news.
break would be between 6:45pm and
7:30pm, and the news would come out at
7:00pm.
H o w t o T r a d e in t h e N e w s
In the previous point we have learned not These 3 examples and others that exist
to operate on the schedule of important also explain why many traders in the past
news, because sometimes they create stopped trading on the news.
instability in the markets and their effect
ends up not having the expected outcome. However, there are still some news items
Often it happen that some news is good that are good for trading as the reactions
for an asset, but its price goes down rather from the market to these news are usually
than up. easy to predict.
There are several reasons why the markets So let's learn how to trade on the most
reactions go against the news results. important news.
Also the Tops and Bottoms; In general, we can say that, when the
which is the factor of the price being rate of the country in question rises, the
simply too low or too high, finding itself currency appreciates (the value raises)
close to historical highs or lows, therefore and when the rate falls the currency
losing its strength and not being able even depreciates (the value falls).
with the help of the news to continue in its
direction.
For example, if the American rate goes up, To be simpler, and following the London
the dollar values. In light of this example, time, it should end between 9:00pm and
the EURUSD would go down - because 11:59pm London.
the USD is on the right; but the USDCHF If your broker does not have operations for
would go up - because the USD is on the this time, it may be earlier, as long as the
left. operation has an expiration time of more
than 4 hours.
How to trade in this news: The image below shows an example with
Be on the lookout for the news and trade a rise in US rates where the 3 columns
right away, following the logic explained. represent:
If the rate goes up the currency goes
up, if the rate goes down the currency • on the left is the current value of the
goes down. Place an operation with an increase of 1.25%.
expiration time between 4 to 12 hours. • The center is the value that was
Ideally the expiration should be for the end predicted to be 1.25%.
of the day. • The one on the right is the old value
before the change which was 1%.
E x p la n a t io n a n d P la t fo r m C o n fi g u r a t io n
I will not deny, ITM is one of my favorite To explain and to put this strategy into
strategies. And I think you'll like it too! action we use the IQ Option platform,
as one of the required indicators is not
Some of the features that this strategy has available on the majority of the other
and that made me choose it to explain to Binary Options platforms.
you are:
1. It can be used at any time of the day (as If you want to try this strategy and you
long as there is no high volatility). don't use or know IQ Option, just follow
2. It works with any asset (we use it with the link, to know our honest opinion about
Forex pairs, such as EURUSD). the broker IQ Option.
3. The expiration time: 120 seconds (it is
turbo, but as it is for 120 and not for 60 Then on this same page you can register a
seconds, it is less dependent on luck free demo account at the brokerage house
factor). through the existing links or buttons.
4. Can be used with Martingale or not.
Before using Martingale, be aware of
your risks. Read more about Martingale
here.
5. It is easy to use and simple to
understand.
6. The success rate is really good if all
rules regarding ITM are respected.
E x p la n a t io n a n d P la t fo r m C o n fi g u r a t io n
If on the previous page you took the opportunity to open an account in IQ
Option and you are now opening the platform for the first time, it's normal
to feel a little "lost", with many doubts. To learn more about the IQ Option
Platform and make the initial configurations that are important, read the
article and watch the video there.
Awesome Oscillator:
E x p la n a t io n a n d P la t fo r m C o n fi g u r a t io n
Stochastic Oscillator:
E x p la n a t io n a n d P la t fo r m C o n fi g u r a t io n
Bollinger Bands:
E x p la n a t io n a n d P la t fo r m C o n fi g u r a t io n
After defining the indicators as I explained is, whether it's green or red, but it does
on the previous pages, I will explain the matter if it has a movement contrary to
rules that have to happen in order to put the last candle.
an operation.
When the 3 rules happen at the same
The charts should use 1-minute time (the candle breaks the Bollinger
candlesticks. You will have to go to the Bands and the Stochastic is at the limit
bottom left corner and click on "Chart of 92 (we go into PUT) or 8 (we go into
Type" and define for candles. Then, on CALL), and the AO candle is rising contrary
the icon immediately below "Candle Time to the previous candle, then we put an
Period" you choose 1 minute. operation. But we have to have the 3 rules
happening at the same time.
After this, pay attention to the rules you
must follow to perform an operation using a) The operations are for 2 minutes.
the ITM Strategy: We enter for 2 minutes because each
maximum and minimum Stochastic
1st Rule - The candles (don’t forget to use oscillation varies between 5 to 12 minutes
candles in the chart) must be touching or on average, so with 2 minutes if we use
breaking the Bollinger bands. If they are martingale, we have a total of 6 minutes to
in downward movement, touching the win an operation recovering the previous
red line, if they are in upward movement, losses. In the courses this rule is better
touching the green line. They can simply explained and can be applied in other
touch, or they can break the bands totally, strategies.
it is the same thing.
b) If we lose, we can re-enter with
2nd Rule - The Stochastic Oscillator must Martingale when the rules happen again
be at over-bought or over-sold values, (sometimes it's right in the next minute,
which means that the stochastic blue line other times it might take up to 5 minutes
must be touching the point 92 or point 8. for the 3 rules to happen again at the same
time).
3rd Rule - The Awesome Oscillator (AO)
candle must “born” in the opposite c) We can enter up to 3 times (one at
direction. If the candles were in an upward normal value and 2 more at Martingale).
movement, we must have one that starts If we lose the 3 in a row we stop and come
downwards, or the other way around. back only the next day.
It doesn't matter what color the candle
Binary Options
Signals
through Telegram
Telegram has become one of the most common ways to
send Binary and Forex Options signals. You will learn how
this system can be a valuable aid in obtaining more winning
trades.
B in a r y O p t io n s S ig n a ls
If "binary option signals" doesn't ring a Each signal comes with a label.
bell, I start by explaining what they are and Binary Options Signals look like this:
why many traders are looking for this kind "Name: Binary Signals: 5 Min. Expira. Time”.
of service.
Forex signals look like this: "Name: Forex
Binary Option Signals, which can be sent Signals."
via email, SMS or multiple applications, are
future directions to where the market will For the time being, and at the time this
move, based on analysis of various factors e-book was written, the signals on that
and indicators. channel were free.
Remember that you must analyze the
Usually each signal contains all the received signals before placing them and
information needed to place a trade. that the responsibility for the use of the
signals is yours, so you should always use
With the data you receive, you enter your them wisely.
account on the financial platform and
place the trade, respecting the directives Some questions you may have about these
that come in the signal that will usually kinds of signals:
be the asset to trade, the direction to take
(up or down) and time of expiration for the - "How much time do I have for using a
trade. signal?"
Naturally, the decision to place or not the That's almost like asking how long the
trade is entirely yours. You always have signal will expire. These signals work for 5
some time to analyze the market and minutes of expiration time, so you have to
decide whether to enter or not. act fast.
Currently, one of the most used ways to - "How many signals come in a day?"
send binary option signals is through It depends on the market and the
Telegram channels. conditions of each day. There may be 20
The channel below will send you not only signs on one day, and on the other there
Binary Options signals, but also Forex may not be any. On average there will
signals, which means you will receive be about 10 daily signals if the market is
Binary and Forex signals. normal.
B in a r y O p t io n s S ig n a ls
- "At what time can a signal arrive?" - "How do I set the expiration time?"
The system works from Sunday 22h GTM Since these Binary Option Signals work
to Friday 22h GTM. Thus, you can receive for 5 minutes, you should try setting an
a signal at any time between Sunday and expiration time to 5 minutes.
Friday. Some brokers allow you to set a fixed
And since these signals work for an expiration time of 5 minutes.
expiration time of 5 minutes, you can get Others, like the IQ Option, will provide the
it every 5 minutes (example: 2h05, 2h10, end of the 5-minute candle, which means
21h25, etc., etc.). the signal will be for 4 minutes and a few
seconds (since it takes at least 30 seconds
- "The incoming signal has a different for the signal to arrive and be checked by
time zone than mine, what should I do?" you).
Each signal shows the time of the server In this case, the ideal is to use a broker that
from which the signal is sent. Example allows you to set the end of the 5-minute
(Time: 2020.07.23 15:20). candle - as IQ Option does - and not the
This time is not important. The only thing fixed 5-minute trade.
you need to focus on is when it arrives at If you don't get good results with your
your Telegram. When it arrives, you need broker, try opening a training account in
to check the current asset price and the IQ Option and test it. You can open one by
price at which the signal went out (and all accessing this page and clicking on the
other checks, as already explained). registration link.
So, if you have just seen a signal that has
just arrived, showing time: 2020.06.23 - "What is the Signals Service Hit Rate?"
15:20, but your local time is 12:20, this is not It can vary a lot from day to day and from
important. person to person. This happens because
It's only important to have the the real winning factor is the way you
notifications activated, in order to know analyze the signal and place it correctly,
when each signal arrives and then analyze respecting the strike price, the expiration
it and put the order, if you decide to use it. time, etc.
B in a r y O p t io n s S ig n a ls
- "If I lose a signal should I use Martingale Click on the image below to open
on the next signal?" Telegram and join the Channel that offers
The use of martingale depends on you, but Free Signs. You need to have a Telegram
under normal market conditions there are account already created:
no more than 3 or 4 losses in a row and
therefore traders use martingale.
It is important to understand how
Martingale works and what your risks are.
Read more about Martingale here.
C o n c lu s io n
The course you have just completed is Keep the focus, keep the faith and the
another step in learning Binary Options. confidence that you are capable and you
will succeed. Keep believing in yourself.
Remember that in addition to knowledge,
discipline is important. All traders who are professionals today
went through this same beginning,
Know also that only with time, and a lot of with more losses than gains, with
practice you will get enough experience to failed investments, all this is part of the
know the market and how it works. process of evolution until you become a
professional.
This can only be achieved with hard work, Some of them took months and others
dedication and many hours of trading. years until they had the knowledge and
experience to get results in a consistent
It is normal in the beginning to have losses, way.
even if you do everything well, even if you
have a good strategy. But everyone has to work seriously, with
dedication and discipline.
All traders have losses in the beginning,
because this lack of experience leads you I hope that you are one of them and that
to make mistakes, even if you think you did in the future you can say that this course
everything right. helped you to become a professional
trader.
Don't be discouraged. Wish you a lot of success!
Acknowledgement Page
I want to take the opportunity to leave an I also want to leave a note of appreciation to
appreciation to all those who made this the various sources of inspiration that help
digital book a reality. me to be a better professional every day,
they know who they are!
To my family members and friends for
putting up with me. On the other hand, This e-book was developed and created
I would also like to thank the publishers, using resources from the following sites,
contributors who gave something, in some which I also want to thank:
way and sources of information. - Fullvector / Freepik
- HubSpot
- Pexels
- Energepic
- upklyak / Freepik
- Investopedia
References Page
The Binary Options Blog: Binary Options.
True or Scam? (2020). Homepage. Available
at:
TheBinaryOptionsBlog
Glossary
Below is the complete Glossary of Binary Beta
Options. A figure that indicates the historical
propensity of a stock price to move with
Get to know all the terms used in this the stock market as a whole.
market and what each one means.
Bid Price
0-9 The price at which a potential buyer is
60 seconds – a type of binary options, in willing to buy from you.
which you should anticipate the movement
in a short term, 60 seconds after the Bid/Ask Spread
purchase option. The difference between the prevailing bid
and ask price. Generally, option contracts
A that are more liquid tend to have a tighter
Asset – An asset is anything of value or a Bid/Ask Spread while option contracts
resource of value that can be converted that are less liquid tend to have a wider
into cash. Individuals, companies, and Bid/Ask Spread.
governments own assets. For a company,
an asset might generate revenue, or a Binary Options
company might benefit in some way from Options that either pay you a fixed
owning or using the asset. return when it ends up in the money by
expiration or nothing at all. Read more
Ask Price about Binary Options.
This is the price at which a potential seller is
willing to sell. Break
Even Point- the price at which a particular
At the Money strategy neither makes nor loses money.
When an option’s strike price is the same as
the prevailing stock price. Bullish Options Strategies
Different ways to use options in order
profit from an upwards move in the
B underlying market.
Bear Spread
An option strategy that makes its maximum Buy To Open
profit when the underlying stock declines To establish an options position by going
and has its maximum risk if the stock rises long.
in price.
Glossary
C delta options offset each other to produce
Call Options a position which neither gains nor
Option which gives the holder the right to decreases in value as the underlying stock
buy the underlying security at a specified moves slightly up or down.
price for a certain, fixed period of time.
Derivatives
Cash Settlement A financial instrument whose value
Options which, when exercised, delivers the is derived in part from the value and
profit in cash instead of an underlying asset. characteristics of another financial
instrument. Examples of derivatives are
Close options and futures.
Period at the end of a trading day where
final prices for the day are calculated. E
Exercise
Contract Size To invoke the right granted under the
The amount of underlying asset covered by terms of a listed options contract. The
the option contract. holder is the one who exercises. Call
holders exercise to buy the underlying
Contract Neutral Hedging security, while put holders exercise to sell
A static hedging technique involving the underlying security.
buying 1 put option or selling 1.
Exercise Price
D The price at which the option holder
Day Trader may buy or sell the underlying security,
Traders who open and close option as defined in the terms of his option
positions or multiple option positions all contract.
within the same trading day.
Expiration Date
Delta The day on which an option contract
The amount by which an option’s price becomes void.
will change for a corresponding change in
price by the underlying entity. Call options Expiration Time
have positive deltas, while put options have The time at which an option expires.
negative deltas.
Expire Worthless
Delta Neutral When out of the money options lose all
When positive delta options and negative their value and expire.
Glossary
F Initial Margin Requirement
Financial Instrument This is the amount needed as available
A physical or electronic document that trading resources in your account in order
has intrinsic monetary value or transfers to open a position.
value. For example, cash, shares, futures,
options and precious metals are financial IPO
instruments. Initial Public Offering. Private company’s
first offer of stock to the public.
G
Gamma In-the-money Option
The rate of change of a stock option’s delta A put option that has a strike price higher
for one unit change in the price of the than the underlying future price, or a call
underlying stock. option with a strike price lower than the
underlying futures price.
H
Hedging Intrinsic Value
The process of placing a trade in order to The value of an option if it were to expire
reduce risk on other trades or assets. immediately with the underlying stock at
its current price.
I
Index Futures L
A futures contract on an index in the Lagging Indicators
futures market. Economic indicators that follow rather
than precede a country’s overall pace of
Indicators economic activity.
Data such as interest rates, inflation and
employment figures, which indicate the Last Day of Trading
strength and significant trends in a nation’s The last day on which you can open or
economy. close a trade in a particular market. The
last trading day is not the same as the
Inflation expiry date.
The rate at which the price of goods and
services rises within an economy. Leading Indicators
Economic indicators that change before
the economy changes.
Glossary
Leverage
A technique to multiply gains and losses. Option Writer
Most often used when buying more of an Also called the option seller, an option
asset with borrowed funds. (Also referred to seller grants the right to trade a security
as “gearing”) at a given price in the future.
Glossary
S Strike Price
Short The stated price per share for which
A sell position opened in the expectation underlying stock may be purchased or
that the market price in that underlying sold by the option holder upon exercise of
product will fall. the option contract.
Spread T
The difference between the buy and sell Technical Analysis
price of an asset. Analysis of a financial market by charting
its performance, using historical patterns,
Stop Loss Order and focusing on trends.
An order to close a position at a particular
level when the price moves against you. Trading Range
Range between the highest and lowest
Stop Order prices at which a stock is traded.
An opening or closing order to buy or sell
at a worse price to where the market is U
currently trading. Underlying Asset
The security or market on which
Straddle derivative prices are based.
Purchase or sale of an equal number of puts
and calls with the same terms at the same V
time. Volatility
A market that changes rapidly or suffers
Strangle from extreme fluctuations.
Buying or selling an out-of-the-money
put option and call option on the same
underlying instrument, with the same
expiration. Profits are made only if there
is a drastic change in the underlying
instrument’s price.