Learn How to Trade Binary Options!
Binary Options have been around for a while now but recently (since 2008) have been a hit among the new traders. They were originally introduced as Digital Options and basically, binary means 2 values and in the case of finance mean up and down. This series will be dedicated to teaching the logistics of Trading Binary Options, the in’s and out’s along with various Binary Options Trading Strategies.
Since Binary Options are derivatives (rely on underlying assets), the lessons outlined here may overlap with other series. Especially the case with Forex since that is the market that I focus my attention on because I find it easier to use Forex as the underlying asset for Binary Options Trading compared to other markets. Thus, the lessons here will give you the ability to trade Forex Binary Options.
It doesn’t take a genius to realize how flawed the binary options industry is nowadays. Internet marketers have destroyed the markets by flooding it with misleading information and products. Doing a simple search on Youtube or Google will yield 100′s of binary options scams. I couldn’t stand by and watch, as more and more traders were being misled on a daily basis. So I’ve made a series of binary options educational videos here at Financial Trading School to help new and old traders alike.
As you’ll soon realize after watching my videos, I’m not here to bullshit you or waste your time. At the same time however, I’m not here to hold your hand, trading binary options is a hard task and is not fit for everyone. All of the videos I’ve provided are free of charge and are uploaded on Youtube, so you can watch them at your leisure anytime and anywhere you want. All of the lessons are taught from a neutral standpoint, what you do with the information is up to you. This is where the hard work comes in, you’re expected to put in the effort to figure out. Don’t worry too much though, I provide plenty of chart examples to illustrate the theory.
Below you’ll find the complete index of all my lessons in the Binary Options (BO) series. Simply click on the course code to watch the lessons, also please take note of the pre- and co-requisites. I hope the videos help you as you venture into the world of Binary Options.
PS: Some of the lessons were taken from my original How to Trade Binary Options series from Financial Trading Journal, so you might see some overlap in content.
Binary Options 100 Series
Like in university, intro courses cover broad topics within a discipline and that’s exactly what the Binary Options 100 series is for. Within the 100 series, you’ll learn about the basics of binary options, logistics of how things work, mechanics of trading and basic strategies that teach you How to Trade Binary Options.
Keep in mind that this is the 100 series, so it’s intended to be “easy” since it’s only the intro series. The more complicated strategies and aspects of trading will be covered in the 200 and 300 series, while all of the “higher level thought processes” will be saved for the 400 series.
BO101 – Introduction to Binary Options (Updated Jan 16th, 2013)
Explanation of what binary options are, how they work and where to Trade Binary Options, basically just a general overview for the industry. In a nut shell, these are digital options trading the directionality of the underlying asset using fixed trade sizes set to expire within a fixed time frame.
BO102 – Recommended Brokers (Updated Oct 20th, 2013)
Recommended Brokers here: http://www.financialtradingschool.com/binary-options-brokers/
Demo Accounts here: http://www.financialtradingschool.com/free-binary-options-demo-accounts/
No Deposit Required Demo Account
BO103 – Recommended Charting Platforms
Just a short clip on which charting platforms to use for their respective instruments. I get this question all the time from my students, so here you go!
Co-requisites: GT109, GT110, GT111, GT112, GT113 and GT115.
BO104 – Break Even Ratio
This is probably the most common yet also misunderstood concept of Binary Options Trading. You need to know the break even ratio in order to know what percentage of trades you need to win to profit.
BO105 – Initial Newbie Strategy
This is the newbie strategy that I used back when I started Trading Binary Options. Pretty simple concept, got it from Dog’s thread on HotStockMarkets.
BO106 – Chart Timeframes
Not sure what chart timeframes you should be looking at? This should explain the topic of picking the appropriate timeframe to look based on your expiry times.
BO107 – Pinbar Candle Sticks
Pinbar candle sticks have a small body with a long wick on one side, used primarily to spot reversal patterns. I go over some chart examples here from my newbie days.
BO108 – Doji Candle Sticks
Doji candle sticks have a small body with a long wick on both sides, used primarily to spot new directional patterns. I go over chart examples from my newbie days here as well, although not as many.
BO109 – Engulfing Candle Sticks
Engulfing candle sticks come in pairs, where the current candle stick is bigger than the previous candle. Like Doji’s and Pinbar’s, these are used primarily to spot reversal patterns. A few of the chart examples involve the MSM strategy, which at this point in time, I don’t have the video revamped yet. So please refer to Ep 9 – MSM Strategy in my old “How to Trade Binary Options” series
Take Small Trades to Extend Your Demo
BO110 – Price Spreads
New traders are often concerned with the difference in price between charting platforms and brokers. In this lesson, I explain that it doesn’t have to be a concern and the logic behind why.
BO111 – Money Management
Now that the basics of trading have been covered, we can start worrying about Money Management and the logistics behind every trade. In this lesson, I walk through the various methods of Money and Risk Management while trading Binary Options.
BO112 – Forex Pairs
Although there are 4 different types of assets that can be traded using Binary Options, I personally prefer Forex and students who watch my lessons usually follow suit as well. The next logical question is, which are the “best” Forex pairs to be trading?
BO113 – News Trading (Part 1)
This lesson is placed in the 100 series for a reason. New traders often find the urge to trade around news release because they’ve seen the “aftermath” and think it’s easy to trade news. Well, it’s actually not, news is one of the most common causes to wipe a new trader’s account. I outline the reasons why things can go wrong before and after news release in this lesson.
BO114 – Trading Hours
Since Binary Options is a derivative instrument, you can only trade as well the underlying markets. If the underlying markets are bad due to volume issues or liquidity, then you’ll likely have a hard time trading as well. Thus, in this lesson, I go over the “best” trading hours for binary options.
Prerequisites: GT107 & GT116
BO115 – Trade Reactions
Regardless of having a good or a bad trade, you should know how to react so that your emotions don’t affect your next trade. Although this is a psychology lesson, it’s being placed here because it pertains more to Binary Options than it does to general trading. Speaking of which, it builds on content already presented in the psychology lessons of the GT200 series.
Binary Options 200 Series
Now that you’ve learned the basics from the 100 series, the Binary Options 200 series will dive into the intermediate topics now. The primary focus of the 200 series will be on Trading Binary Options using Price Action Techniques. Plus some of the lessons will elaborate on topics discussed within the 100 series.
BO201 – Fibonacci Retracements
Focus is on showing various chart examples using the Fibonacci Retracement drawing tool.
Wipe Out? Just Speak to Support to Top Up!
Price Action Techniques:
- BO202: Support / Resistance Levels
- BO203: Trend Lines
- BO204: Determination of Market Types
Price Action Factors:
- BO100 series: Candle Stick Formations
- BO205: Pattern Formations
- BO206: Chart Setups (aka The Big Picture)
- BO207: Expiry Times
- BO208: News Trading (Part 2)
- BO209: Hedging Strategies
- Many more to come in the future!
BO202 – Part 1: Intro to Support / Resistance Levels
Introduction of the 1st out of 3 price action techniques. Brief overview of what Support and Resistance levels are used for and the basic set up for the chart examples in part 2 and 3.
Prerequisites: GT110, GT202 – Part 1 and BO103.
BO202 – Part 2: Support / Resistance Bounces (Warning: Lesson is 70 minutes long)
Detailed explanation of how probability trading works for S/R level bounces along with the trade conditions and entries for the chart examples.
Prerequisites: BO202 – Part 1
BO202 – Part 3: Support / Resistance Breakouts (Warning: Lesson is 70 minutes long)
Experience Trumps Knowledge, Start Trading on Demo
BO203 – Part 1: Intro to Trend Lines
Introduction of the 2nd out of 3 price action techniques. Brief overview of what Trend Lines are typically used for and the basic set up for the chart examples in part 2.
Prerequisites: GT111, BO106, BO201 and all 3 parts of BO202
BO203 – Part 2: Using Trend Lines (Warning: Lesson is 54 minutes long)
Detailed explanation of how trending markets are traded using trend lines. Including how to connect the dots, probability trading, trade entries and angle of the trend lines. In addition, I outline the various stages of a trend: breakouts, pullbacks and continuation.
Prerequisites: BO203 – Part 1
BO204 – Determination of Market Types
This lesson explains the 3rd and final price action technique. Now that you’ve learned both techniques independently, it’s time to put them together to help determine the market type.
Prerequisites: All parts of BO202 and BO203.
BO205 – Pattern Formations
You MUST watch the prerequisite prior to watching this lesson. This lesson is unlike the others since it follows a “test” format whereby I have 2 slides: 1 chart without annotations and 1 chart with the annotated patterns. I pause between slides to give you time to guess the pattern that is found within the chart. Thus, to fully utilize this lesson, you should have the proper prep prior to watching this.
BO206 – Chart Setups (aka The Big Picture)
I walk you through the steps that I use to set up my charts on a weekly basis for the FX Weekly Analysis found on my blog. This is equivalent to doing “homework” as a trader since it’s beneficial to be prepared prior to trading the markets.
Corequisites: GT110, BO106 and the Price Action techniques.
BO207 – Expiry Times
Previous lessons have always assumed that you should trade the closest expiry time and avoid trades for the next expiry time while being locked out for the current expiry. This lesson shows you how to count candles to determine when it’s “ok” to trade beyond the current expiry.
Test your Strategy Risk Free on Demo
BO208 – News Trading (Part 2)
This lesson is made for those of you who didn’t heed my warning in BO113: News Trading (Part 1). However unlike that lesson, this is placed in the 200 series. You’re expected to have prior knowledge of price action by this point (BO202 – BO204) to understand how to react to the markets. This will help when you’re trading around news release. For those of you who watched part 1 and immediately skipped to this lesson, at least watch the price action lessons first.
Prerequisite: BO113 & GT304
BO209 – Part 1: Hedging Strategies – Reducing Losses
This lesson continues on from topics covered in GT302: Hedging. Part 1 focuses on reducing losses where you’re already in your trade and you need to hedge yourself. These strategies are primarily geared for people trading longer than 10 minute expiry times. I explain how shorter expiry traders will have a hard time hedging their trades. Like in GT302, I walk through 3 scenarios where you can utilize hedging strategies.
BO209 – Part 2: Hedging Strategies – Reducing Risk Exposure
This lesson elaborates on the topic of “risk spreading”, which was presented at the end of GT303: Diversification. While part 1 focuses on reducing losses when you’re already in the trade, part 2 focuses on methods that can be implemented prior to entry. Note: Part 2 isn’t explicitly a substitute nor a complement to part 1, you can either use both alone or combined.
Binary Options 300 Series
Unlike the 100 or 200 series, the Binary Options 300 series will primarily focus on Binary Options Trading Strategies. This is basically what most people try to find as a new trader but I’ve placed these strategies in the 300 series for a reason. New traders often try to find the “holy grail”, the “one” strategy will “work” for them. What they don’t understand is, without a solid foundation, the strategy is meaningless.
From learning Price Action in the 200 series, you’ll soon realize that the majority of strategies discussed here is derived from Price Action Techniques. This is why I placed the Price Action lessons in the beginning of the 200 series since I view these as the “core lessons”.
BO301 – 60 Second Options Part 1: 133 Tick Charts
This is revamped 60 second options strategy video from Ep 1 of my original “How to Trade Binary Options” video series. The new additions include full details on how to set up your TOS charts to look like mine, which charting platform to use and also touch on the price differential/spread between TOS and the brokers.
US Division: https://www.thinkorswim.com/tos/displayPage.tos?webpage=paperMoney
Canadian Division: https://www.thinkorswim.ca/tos/displayPage.tos?webpage=paperMoney
Co-requisites: MetaTrader 4 – How to Add Tick Charts
BO301 – 60 Second Options Part 2: Price Action
This is a temporary placeholder lesson until I have time to make a full blown lesson with chart examples. For the time being, the method alone should suffice. In this lesson, I’ve outlined the method on how to trade 60 (or 30) second binary options using a price action approach. In a nutshell, just apply price action techniques on intra-minute charts.
Prerequisite: BO200 Series (Specifically: BO202, BO203 & BO204)
Trade on Demo before Trading Live
BO302 – Stochastic Oscillator (TBA – For now, refer to old “How to Trade Binary Options” series)
BO303 – Momentum, Stochastic, MACD Setup (TBA – For now, refer to old “How to Trade Binary Options” series)
BO304 – Heiken Ashi Smoothed (TBA – For now, refer to old “How to Trade Binary Options” series)
BO305 – Chris Floyd Bounce Mod (TBA – For now, refer to old “How to Trade Binary Options” series)
Binary Options 400 Series
The 400 series will contain advanced level topics, not suitable for the other series. You’ll only appreciate these lessons if you’ve been trading for a long time because to a new trader, these lessons may seem mundane. But to an experienced trader, this could be that extra edge that you need.
Furthermore, the lessons contained here will require you to have mastered the lessons in the earlier series. Some lessons will be completely brand new but for the most part, you can think of these lessons as the culmination of the earlier lessons.
BO401 – Time Sensitive Trades (TBA)
BO402 – Martingale Trading (TBA)