WARNING: If you don’t know what you are doing then both Forex and Binary Options are just gambling. You can however lose your money much faster with Binary Options due to their bad risk:reward, speed appeal, and one-click interface. Please learn as much as you can before putting any money on the line and always demo your trading plan first.
Getting to Know Binary Options
Knowledge is power as always and if you are interested in binary options then there is no need to dive in without learning as much as you can first. Once you complete this series of lessons you will know exactly what binary options are, how to trade them, and the math behind what it will take for you to profit consistently. If you are new to trading then it is strongly suggested that you go through the Forex Basics and Trading Strategies lessons before moving on here. Binary options will only be gambling to anyone who is completely new to trading, don’t believe the get rich quick hype, just try to take it slow and enjoy the massive amount of help you will find here at ElectroFX.com!
So What Exactly are these Binary Options?
Binary options in their basic form are just a different way to trade the Forex Market. They do however require the same chart reading skill set to trade them profitably. There are several different types of trade that you can take with binary options and a theme of trading platform simplicity applies to them all. The different types of trade will be discussed in a later lesson and don’t mistake trading platform simplicity for making trading easy. Learning a trading platform is just one small part of trading and if you have trouble understanding MetaTrader4 or NinjaTrader, then trading binary options eliminates the need for you to do so. With binary options you are able to profit from price fluctuations but you must still understand the risks vs rewards, the trading platform simplicity comes with the price of lower returns against your risk. You need to understand that and still make sure you have a solid trading plan, you must still be 100% certain and confident that what you are doing is profitable. Their are always pros and cons with everything and binary options are no different. These lessons have been put together to help you understand them all.
Why Binary Options are so Popular
Binary options have grown in popularity due to how easy they are to operate, there is no complicated software and it is basically a one click action to enter and exit your trades. The exit is actually automatic since all you have to do is decide what type of binary option trade you wish to enter, then click a button and that’s it, you either win or lose from there.
This is definitely very appealing to those who don’t want to learn any complicated software and/or those who are just not that good with computers. The fact that binary options are extremely easy to trade from a functional standpoint is widely promoted all over the internet, and it really is as easy as pushing a button, what is not so widely promoted is that in order to be profitable you need to push that button at the right time consistently and you also need to combine that with a little mathematical logic. The ability to read price action and order flow will help you push that button at the right time, understanding the numbers game can help make the odd loss irrelevant and use probability to your advantage.
What Will These Lessons Teach You?
The main goal of these lessons is to prepare you for binary options trading and prevent you from gambling. Your introduction to reading price action and order flow was covered in the Forex Basics and Trading Strategies lessons so make sure you don’t skip them out. It may not all apply to binary options but none of it will hurt you, everything explained in those lessons will be executed at high speed with the way you will be taught how to trade binary options here at ElectroFX.com. The big difference is in the math and also in how different types of broker allow you to make your trades, that is what this group of lessons will also make very clear .
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