INTRODUCTION
Training Modules
MODULE 1—WHAT ARE BINARY OPTIONS
Binary options are investment tools that allow traders to “bet” that price is going to move in a particular direction over a specified time period. That time period can be as short as One Minute or as long as One Week.
Unlike “real” options, where you have the opportunity to actually purchase the asset that is the underlying source of the option, Binary Options simply allow you to trade based on price movement without any requirement or availability of asset ownership.
So if you think the price of Oil will move up by the end of the week, you can purchase a Put or Buy option on Oil. If you are correct and Oil ends the week up in price from where you bought your option, you’ll earn a set percentage return. What you won’t be able to do is buy that barrel of Oil for your original option price. There are no “real” assets involved here. It’s just a market of traders predicting Price Movements.
Binary Option Trading allows you to pick a time frame (1 minute up to 1 week) and “place a bet” that price will move either Up or Down from the current price when your bet is placed. When your chosen time frame has expired, the price at expiration is compared to the price at the time your trade was placed. If you are correct, you get back the amount you invested PLUS an additional amount that normally runs from 71 to 85% (so if you place a $100 trade that the EUR/USD would rise in price over the next 15 minutes and you are correct, you collect anywhere from $171 to $185).
The beauty of Binary Options is you only have to be right by 1/10th of a Pip. So you don’t need price to move 20 or 30 pips in order to eke out a small profit. If you were correct in your forecast that price would move up, all you need is 1/10th of a single pip movement in your direction and you collect a whopping 71%
return.
MODULE TWO—HOW TO TRADE BINARY OPTIONS
Unlike Forex trading, where you normally need to download a trading platform and load up your favorite indicators, trading Binary Options is done directly from the broker’s website, and requires you to only click on a couple of buttons in order to have the trade processed.
While each broker has their own style, the steps are pretty much the same from one broker to the next. Watch the following short video to see how simple it is to place a trade.
MODULE THREE—A WINNING BINARY OPTIONS TRADING SYSTEM
All trading is a form of gambling. Stocks, bonds, forex, precious metals, you name it, when you decide to trade in that arena you are doing nothing more than gambling that you are going to make money.
When you think of gambling, I’m pretty sure that Las Vegas is the first thing that pops up in your mind. And why not? Las Vegas is the undisputed gambling capital of the world.
But what a lot of people don’t understand is that the visitors in the casinos of Las Vegas and elsewhere are the ones doing the gambling. Nearly ALL games offered in a casino are structured so that the House has a fixed advantage that will, in the long run, result in the House making money and the player (the gambler) losing money. Craps, roulette, Keno, slot machines, baccarat, all have the odds stacked in favor of the House.
The exception to this rule is Blackjack. Due to the fact the game is based on an ever-shifting stack of playing cards, there are times when the odds of winning shift in favor of the Players. Smart blackjack players know how to “count” the cards to determine when that favorable shift occurs, and then they bet accordingly.