The following are some basic, and not so basic, trading terms that you’ll likely hear as you enter the world of binary options. Call Option: An agreement between a buyer and seller that gives the buyer of the call the right to buy an underlying financial instrument at a specific price and time. In simplest […]
There are two main streams of thought when it comes to trading systems and strategies. There are those who believe an entirely rule-based system works best. There are others who believe a more flexible approach to trading is required, where guidelines are used, but not fixed rules. Then there are traders, like myself, who fall […]
I started my journey barely a year ago and had absolutely no trading experience. As many traders recommended, I began demo-trading. My goal was to show good results on the demo first and then start trading live. Unfortunately, there are limits to how much demo-trading can teach you. A demo account is a great place […]
I was at once pleasantly surprised, a little shocked and curious when I stumbled upon a binary options strategy on the SeekingAlpha website. SeekingAlpha is a large and respectable blog spot for investment and trading in the stock, options, commodities and currency markets. The mere fact that the article was hosted on such a site […]
The price breaks out in the direction you expect, and you jump aboard with a trade. Moments later the breakout has failed and you find yourself in a trade that is rapidly accelerating in the opposite direction. Welcome to bull traps and bear traps; terms used to describe an event where traders are trapped into […]
Even after a decade of a trading, I still do things some days that go against my trading plan and strategies. Sometime I take extra trades out of boredom, other times I skip trades, and other times I take all the right trades but fail to manage them properly. Regardless of what the problem is, […]
When monitoring price action, and using it to find and filter trades, understanding magnitude and velocity will likely have a great impact on your trading success (or failure if you don’t understand these concepts). These terms are simply used to refer to how far the price has run in a particular direction–magnitude–and how fast it […]
There is a subtle distinction between successful and unsuccessful traders. Successful traders don’t operate out of a fear of losing, while amateurs do. Do you want to lose? Likely not, but this is the wrong mind frame for trading in the first place. Trading not to lose means you haven’t fully accepted the risk of […]
As primarily a trend trader, my goal is to trade in the direction of the trend, by entering on pullbacks and then taking my profit on the next trending wave. The basic envelope strategy discussed extensively in my day trade articles attempts to capture such moves. The problem is that unless you are very good […]
I am a college student and started trading seriously back in 2010, so what I would like to do is put together a post for the younger traders out there as general advice based on my experience, including things I would do over again if I could could go back in time. This is geared […]