A Novice Binary Options Trader's Adventure

Archives: Trading Tools

Useful Tools for Chart Analysis – Bollinger Bands

Bollinger Bands

Bollinger Bands are used on trader’s graphs as indicators to demonstrate market volatility. The bands incorporate a moving average line and two standard deviation lines. To analyse the trade movements using the Bollinger Bands, you have to see whether they are converging or diverging. A convergence suggests a reduction in volatility and a divergence suggests that an asset has become volatile, and is therefore likely to move price. They are important factors to assess in gaining an entry. You should include them on your trading graphs to check to see if the time is right for your trade.

Useful website: http://bollingerbandgenius.com/

Useful Tools for Chart Analysis: Fibonacci and Moving Averages

fibonacci

When I first started trading, I was looking at graphs and sort of just guessing trends – are they bullish or bearish, or flat? Guesswork is no good. You have to learn when to enter a market, when to get out and learn what the candlestick graphs are actually showing. In my research today, I found out about Fibonacci and Moving Averages. Both are useful tools to implement on your trading graphs as by understanding how to use them properly you will know when to enter the market. They explain almost perfectly the underlying trends on the graphs. Below are three good vides that are well worth watching. There are more good videos in the Video section of this site which you can access using the above menu.


The Importance of Charts

Japanese Candlestick Chart

I had been trading blind, really. I’d been following the trends on the brokers’ websites. These graphs aren’t detailed enough to analyse properly. After scouting around a bit I found the IBFX MT4 platform which was free to install. You get much more detailed graphs of the stock, which you can extend back in time and scale to whatever time frame you like. The graphs which are most useful for traders are Japanese Candlestick charts. As illustrated above, these charts comprise of little bars, either green or red, showing up or down and according to scale they show the stocks highs and lows for each scale unit.

Whatever platform you use for your charts, make sure you can draw lines etc on it, so that you can visualise the actual trends. As for analysing the graphs, perhaps the experts know far more than a mere novice such as myself. I needed to research what patterns to look for and I found this excellent Visual Training Guide from Fennelly And Co Ltd. It’s in pdf format and can be seen here http://media.wix.com/ugd/56d156_d58ad5d3f2bd4d4e84cbf60acbbd4a22.pdf

As you can see, it gets quite complicated. But now I guess, by putting these techniques into practice I can be on the way to generating my own signals. I’ll be on the lookout for flag and pennant formations. And be in the money, for sure!

I am a Robot


Well – what next? In my trawling the web I cam across the idea of automatic trading. Out there on the market there were robots that automatically controlled your trading platform and bet using their signals on your account. They were offering amazing payouts, and you literally had to do nothing. Just sit back and relax and watch your money roll in. It sounded a bit too good to be true but this was a cake I wanted in on.

I settled about the Binary Trading Robot from http://jvz8.com/c/134504/44001

It cost $47 with paypal and offered a 60 day money back guarantee if you weren’t satisfied. I had a good look and looking at the videos, it was clear that the site’s owner, Jerry Biener, had a huge profit showing in his trading account… Over a million dollars… I wanted in on the action.

I started setting the product up and to do so had to sign up to a new trading platform using the site’s links. I would need to invest more money to set this thing going. I set up with Trader XP and deposited £200 which was matched by a £100 signup bonus. I am still waiting for the accounts to be linked so cannot start trading just yet with the robot. I will let you know how I progress with this. I have read mixed reviews on the net about robots with many claiming it is a scam but also there are stories of people turning good profits. I do hope it works.

%d bloggers like this: