Having great success learning to trade Binary Options. Special thanks to Michael Freeman and his simple strategy here:
Novice 10 Min. Binary Options Strategy Today I'm sharing my simple 70%+ successful trading strategy which is based on Mike's simple trading rules. Binary options let you build a reliable income quickly on as little as $100 startup capital which can be charged to a credit card. It's important to avoid the scams in binary options so check them out on the
Binary Options Watch Dog. That's also where I read about Michael Freeman who is a trader who shares his expertise with the public for free. You can go to Michael's website and register with a for real binary options broker through him and you can join up with Michael's signals for free.
Since I registered with CherryTrade.com myself, I couldn't sign up with Michael for free. However he freely shares his strategies on his website as you can read for yourself using the "Novice" link above. If you, like me, are not much of a joiner you may be interested in what I've discovered so far using Mike's "Novice 10 Min. Binary Options Strategy" along with my two additional rules: trade only NY trading hours from 9 a.m-12 p.m.; and avoid trading if general market volume is low, like below 50 using the Volumes Indicator under the Volumes File in the Navigator section of the MetaQuote4 screen. I like the red and green bar indicator and don't really understand the others.
That aside, if you can tell when a yellow line crosses over a blue line (or in my case a pink line crosses over an aqua line) you can trade binary options with a 74% -77% win rate trading the 5 min., 10 min, or 15 minute options on currency pairs only, as per Mike's instructions. My results below are trading the EURUSD currency pair binary options only. First before reading Mike's instructions about which options to trade, I tried trading the 60 second and 3 minute options but that resulted in about a 50% success rate or should I say failure rate. Sure way to lose money trading binaries. Then I began trading the 5 min. and the 15 min. options on the EURUSD currency pair. Huge difference. With the 5 min. options I have a 27% loss rate or a 73% win rate. Trading the 15 min. options I have a 17% loss rate or a whopping 83% success rate trading New York trading hours only from 9 a.m.-12 p.m. Eastern Time Zone (i.e. 7 a.m-10 a.m.Mountain Time) which gives me an average of 12 trades per morning. Possibly the afternoon hours from 2-4 p.m.Eastern might also be lucrative but these remain in the testing stage as I really only want to trade 3 hours in the morning. Of course New York goes to lunch from 12-2 pm so stop trading at 12 Eastern unless you like to trade a flatish market. It just makes successful trading much more difficult for me so my advice would be to quit at 12:00 p.m. Eastern Time and be done with it for the day. Spend the rest of your day RVing, or hiking, or painting, or whatever.
I really like the free MT4 software. What a nice chart. Or you can use Free Stock Charts if you prefer . Mike likes them but you can only use them with the Firefox browser. My broker recommends using Chrome for their platform so that's what I use. So far I really like the MT4 charts the best. No ads on these charts and you download the software to your computer.
You can get the software from Forex.com here for free:
MetaQuote4. Once you download the software here's how I set up the chart. Click the New Chart Icon (its the one with the green plus mark on it on the left of the tool bar.Select EURUSD from the Market Watch window on the left side of the screen below the tool bar.
Now set the chart to 1 minute intervals. Click Charts, click Periodicity, Click M1 1 Minute.
I like Candlestick charts rather than bar charts but you can use either one you prefer. The chart style is available under Charts on the menu, select from bar charts, candlesticks or line charts in that window. Any will work but a line chart might get confused with the MA lines you're going to set up next so don't use a line chart.
Now set your two moving averages up. In the Navigator window select Moving Averages. A box will open. In the Period space set it to 3, MA Method set to Simple, Apply to set to Close, Style set color to Magenta (I can see this color on the black background and also when it crosses the solid candlesticks but you can use any color you can see). In the center space select the continuous solid line. In the last space select whatever width of line you prefer and can see. Click OK. If you don't like your MA lines then click on your chart's line a little box will open choose edit and make your changes when the MA box opens. Repeat this process for the second moving average line except set the Period space to 10 and make the color different than your first line's color. Your goal here is to make your moving averages your signal to buy an option and tell you which one to buy, either the put or the call. Once you have your chart set up you are ready to trade (paper trade for several days first so you get the feel of when to place your orders) Never trade real money until you've paper traded to make sure you understand how and when to place your orders. Keep track of how well you do on each trade including your mistakes. LOL! We all make them and usually they cost you.
For the software to work you must be connected to the internet. I use Verizon mobile broadband with an old fashioned 3G Pantech USB modem on my old Dell XP laptop. It usually works very well wherever I am as long as you have a signal. According to the tech guy at Verizon the 4G jetpack's speeds will just mess up the old XP computers so if you have an oldie like mine stay with the slower 3G modems. I bought 3 spares on Ebay for $10 as insurance in case mine goes kaput.
The object with binary options is merely to correctly decide which direction an asset price is going to move. That's what the moving averages are going to tell you plus when to buy your option. Only trade Currency Pairs for this strategy as I've never tried anything else, and I've only traded the EURUSD. Whenever the 3 MA line (Magenta in my case) crosses the 10 MA line (Aqua in my case) buy a 5, 10 or 15 min. EURUSD binary option in the same direction as the 3MA line is going. If it is crossing to go above the 10 MA line buy a call. If it is crossing below the 10 MA line buy a put. That's it. The option will expire in the money 74-77% of the time according to Mike Freeman.Do this every time the 3 MA line crosses the 10 MA line. I do this from just after the NY open at 9 a.m. Eastern Time until 12 a.m. Eastern. You might avoid trading on the day before a holiday since the markets are thinly traded and normally only open part of the day.
As long as the price of the stock, EURUSD, is above the price when you purchased your call option when the option expires you will win. In the same way as long as the price of the stock is below the price when you purchase your put option when the put expires you will win. Very simple. At CherryTrade.com The 5 min. options cost $5 and pay out $8.50 so the profit is $3.50. They don't seem to have the 10 min. options so I like the 15 min. options which cost $25 and pay out $45 if you win. When you lose, you will lose about 30% or less most or all of the time, you lose your entire premium of $5 or $25. Another thing the 5 min. time value begins when you purchase the option. The 15 min. binary options are different. They expire on the quarter hour. So you might buy a 15 min. option at 9:10 a.m. and it will expire at 9:15 a.m.. But it still costs $25 and it pays out $45 if you win.
Other brokerages may handle this differently. But you can check that out when you sign up. Be careful which brokerage you choose. Many of them are scammers so check out legit brokers through the Binary Options Watch Dog (link above) or sign up through Mike Freeman's website. He has several good brokers he's affiliated with and then you can also get his signals for free if that is of interest. Depending on which broker you sign up with you can fund your account with as little as $100. I went with CherryTrade.com which lets you start with $200 and you can use your credit card to fund it. $100 would afford you 20 $5 options trades, more than enough to build an income up on with a 70% win rate. Don't be afraid to look into binary options as a potential source of dependable income whether you are an RVer or not. It will cost you absolutely nothing to paper trade in order to see the ease of it and the financial potential for yourself.
USDJPY came to life right at 3:00 and it lasted until 4:00. Will trade this again during the Monday morning session which is 9:00 to 12:00 Eastern time. Here are the instructions for setting up the indicator in MT4:
