The Advanced Binary Options E-Book From SuperTraderTV

Transcription

1 The Advanced Binary Options E-Book From SuperTraderTV

2 Welcome to SuperTraderTV's Advanced Binary Options E-Book This easy-to-use e-book will take the complex topic of Binary Options and make it simple to understand, so that all traders, at no matter what level, may benefit. This manual and the learning resources at SuperTraderTV.com combine to become a force for any trader to benefit from and reach their trading goals.

3 Table of Contents The Advanced Binary Options E-Book... 6 Introduction to SuperTraderTV...6 Trading Psychology...7 Introduction... 7 The Myth of How the Brain Works... 7 Symptoms of an Emotional Trader... 8 Trade Rationally... 8 The Challenge of Online Trading Habits of Successful Traders... 8 Important Rules that will Help You Psychologically... 9 Summary... 9 Winning tactics...9 The 4 Goals of Trading... 9 The Trap of Winning Trust Yourself Over the Experts Summary Technical Analysis Introduction Doji Patterns Shooting Star Morning Star Evening Star Breakaway White Soldiers Bearish Engulfing Bullish Engulfing Piercing Pattern Dark Cloud Cover Hanging Man Hammer Summary Organic Trading System...14 Organic Trading System Stages...15 Stage I Market Orientation Stage II Forecasting Process Stage III Time Optimization Process (When to Trade) Stage IV Money Management System (How Much to Trade) Fundamental Research and Analysis Market Participant Activity Organic Trading System Panels...16 Market Outlook Panel (MOP) Direction Forecasting Panel (DFP) Time Optimization Panel (TOP) Signal Generator Panel (SGP) Conclusion...18 Resources...19 Risk Disclosure...19

4 6 of time, but our focus is simple. Give traders the most fundamental and up-to-date information about the markets, teach them how to interpret the information, show them what it all means and ultimately guide them on how to channel the knowledge into a smart trading strategy. We know as well as anyone that the world of Binary Options can be scary and unforgiving, which is why we started this company and wrote this manual. We realize that while there are many resources with reading material on the subject of trading Binary Options, there is no one out there who takes traders by the hand, shows them how to trade with live shows and real market conditions and helps them to learn to make wise trading decisions. We hope that we can assist you as much as we have assisted so many other traders who are on the same trading journey. 7 Trading Psychology The Advanced Binary Options E-Book Welcome to the advanced Binary Options e-book. In this manual we take your trading education to a whole different level. We will review some of the basics, but then we will get in to more complicated terminology and strategy in order to help your trading. We will also present our revolutionary Organic Trading System to you so that you can get the most out of your trading. Introduction to SuperTraderTV Welcome to SuperTraderTV, your Binary Options Trading sidekick. We know that while some may believe that our name sounds a bit exaggerated, we believe that our name is a perfect description of what we do. The name SuperTraderTV conveys the essence of who we truly are. We believe that our company is a type of superhero in an unjust world. The world which we speak of is a world in which traders, who have little to no basic knowledge about the financial markets or Binary Options, continue to trade and continue to lose their money. The world does not have to be this way; SuperTraderTV is here to help. Introduction To become a skilled trader you must learn to control your emotions. There will be times that your emotions will try to take over, but you must learn to trust your logic and trading education in order to be successful. In this chapter we ll teach you habits of successful traders and how to gain positive trading psychology. The Myth of How the Brain Works There are those who will tell you that in order to make logical trading decisions, the left side of your brain must dominate. People will tell you that thinking with the right side of your brain will cause you to make rash and emotional decisions. Modern research has shown that while certain thought processes and brain activity may occur on one side of the brain, we make decisions with both sides of our brain. Our 2 brain hemispheres are in constant communication. To become a successful trader, understand that you cannot suppress trading ideas, but you must embrace them and choose which ideas will work the best. If we were to state the purpose of our company in one word it would be knowledge. Our goal is to provide traders with a strong foundation of Binary Options knowledge and education. That s all. Of course, the way our traders get to the point we want them to ultimately reach takes a lot

5 8 Symptoms of an Emotional Trader Important Rules that will Help You Psychologically 9 The symptoms of an emotional trader all emanate from hope and fear. When one begins trading and loses a large sum of money but they continue to trade, this is hope. Hopeful traders rely on luck and don t evaluate their mistakes. When one feels a heaviness in their chest while trying to take a position, but is unable to trust their trading knowledge, this is fear. Fearful traders will lose one position and will shy away from continuing. Both hope and fear are emotions that are dangerous for traders. They weight a trader down and prevents them from becoming emotionally intelligent traders. Trade Rationally The definition of rational is to do something based on reason or logic, and this applies to trading as well. To trade rationally requires one to follow logic and reason. If you have a logical reason to take a trading position then that s rational. A good way to know if you are using logic and reason is to see if you can explain to someone else why they should take the same trade as well. If you are able to then you probably have good reason to take the position. The Challenge of Online Trading Online trading usually requires one to open an account with more money than they will actually use in one trade. This can be a challenging situation because without feeling the cash in your pocket, it s very easy to forget that you re trading with real money. Therefore, it s important to remember that the money you trade with is coming out of your pocket, and that you should never place more money in your trading account than you re comfortable with. 7 Habits of Successful Traders Now here's a summary of our seven habits of successful traders: 1. They understand the true realities of the markets. 2. They re responsible for their own trading destiny. 3. They only trade with proven methods. 4. They trade in correct proportion to their capital. 5. They understand how to manage risk. 6. They follow long term trend and don t lose sight of the forest. And 7. They keep trading in perspective. Here are some important rules that will help your trading psychology. First, learn the rules and foundations of trading that we will provide you with. Second, make sure you re not trading emotionally. Third, make sure you don t spend too much time sitting and trading. The only way to gain perspective is by taking a step back. And fourth, learn from your wins and from your losses. Summary In this lesson you ve learned that our brain makes decisions as a whole, you ve learned the symptoms of an emotional trader, you ve learned the importance of trading rationally, that online trading is a challenge, and you ve learned the 7 habits of successful traders. Winning tactics In this chapter we'll discuss how to acquire a winning strategy for Binary Options. It's important to keep in mind that whether you are new to Binary Options, or you have a lot of experience trading, there is always room to improve, and we are sure you will improve your skills with us. The 4 Goals of Trading Before trading it's essential to come up with a list of trading goals. Obviously, we'd all love to be successful, but if making quick money is your only goal of Binary Options, then you need to take a step back and re-assess your motivation. All expert traders have goals and it's important to get into that same mindset in order to ultimately become one. 1. Make it about the climb: The first goal should be to change your goal from being profitable to growing your trading skills. Remember that profit does not come easy, so if you plan on making a few quick trades and making all of the money you'll ever need, you could be fooling yourself. 2. Set boundaries: Come up with rules for yourself and stick to them. You need to decide how you'll enter the market, how you'll exit it, and how you'll manage risk.

6 10 11 Don t regret winning small amounts. If you stick to your education and trade with our minimal risk strategy, you won't fall in to this trap. 3. Not making a trade can be as important as making one: Making a trade is always tempting, but sometimes a trade opportunity is simply not available. If your training and logic are telling you to hold off on the trade, then listen to yourself. 4. Migrate towards simplicity: A mistake many traders make is that they migrate towards more complicated markets and trades. It makes them feel more professional and often causes them to lose money. Stick with the markets and strategies you know and you ll gain more from it. The Trap of Winning Don t regret winning small amounts. If you stuck to your education and you made a small profit, don't regret that you didn't risk more money on the trade. You stuck to rules and chances are that you ll continue to be profitable. A trap that many investors fall in to is that even though they are consistently winning small amounts, they get used to the small winnings and without noticing, progress towards more risky trades. If you stick to your education and trade with our minimal risk strategy, you won't fall in to this trap. Trust Yourself Over the Experts If your trading education is telling you that an asset is headed in one direction, but you hear experts and read articles of investors telling you the asset is headed in the other direction, trust yourself. If your education is telling you something, this is not just a hunch, but is the correct way to go. Summary In this chapter, you've learned the ways to acquire a winning tactic. You learned the 4 best goals of trading, a trap that winners often fall into, and that if your trading foundation is telling you something different than the news, you need to trust yourself over the articles and shows. Technical Analysis 103 Introduction In this chapter you ll learn about a variety of advanced technical analysis candlestick patterns, and how to interpret the market movement based on them. The more you learn, the more you'll practice identifying them. And the better you get at identifying them, the more profitable you'll be. Before we begin, it's important to understand that Japanese candlestick patterns can be identified with 1 candlestick but with no more than 5 candlesticks. Doji Patterns A Doji pattern is identified with one candlestick, and is defined when the asset's opening price is the same as the closing price. There are 3 main types of Doji candlesticks: Long legged is where shadows are long on both sides of the body. It indicates indecisiveness in the market. Gravestone is where the body is under a long shadow. This indicates a bearish asset. And Dragonfly: Where the body is above a long shadow. This indicates a bullish asset. Shooting Star This is a reversal pattern that can be viewed over 2 candles. It indicates a bearish outlook. It's identified where candle 1 is green, and candle 2 is red with an opening above candle 1's closing, and a closing below candle 1's closing. Morning Star This pattern is viewed over 3 candles, and indicates a reversal. It's identified where candle 1 is a long red, candle 2 is a small red, and candle 3 is a long green that closes somewhere near the middle of candle 1. This pattern shows a reversal to a bullish movement. Evening Star This pattern is also viewed over 3 candles, and indicates a reversal. It s identified where candle 1 is a long green, candle 2 is a small green, and candle 3 is a long red that closes somewhere near the middle of candle 1. This pattern shows a reversal to a bearish movement. Breakaway This pattern is viewed over 5 candles, and indicates a reversal. It's identified where candle 1 through 4 are one direction, and candle 5 is large and in the opposite direction. 3 White Soldiers This pattern is viewed over 3 candles, and indicates a bullish trend. It's identified with 3 green candles in a row, where each consecutive candle closes higher than the previous candle s closing.

7 12 Bearish Engulfing This is a 2-candle-reversal pattern that indicates a bearish trend. It's identified when candle 1 is green and candle 2 is red where its opening is higher than candle 1's close, and its closing is lower than candle 1's open. Bullish Engulfing This is a 2-candle-reversal pattern that indicates a bullish trend. It's identified when candle 1 is red and candle 2 is green, where its opening is lower than candle 1's close, and its closing is higher than candle 1's open. Piercing Pattern This pattern is a bullish candlestick reversal pattern, and it s made up of 2 candles. It s recognized when a bullish candle closes above the middle of a bearish candle. Although the bullish candle doesn t close higher than the bearish candle s open, it s still considered a reversal pattern. Dark Cloud Cover This pattern is considered a reversal from a bullish movement to a bearish one. It s defined as a 3 candle pattern, where candle 1 is green, candle 2 is long and red but closes below the mid-point of candle 1, and candle 3 is a small red candle that confirms the negative movement from candle 2. Hanging Man This is a candlestick pattern that is considered a bearish reversal, and comes at the end of an uptrend. It s defined as a red candle that s open and close are at the top of the candle, and it has a long leg under it going to the down side. Hammer This is a candlestick pattern that s the opposite of the hanging man. It s considered a bullish reversal, and comes at the end of a down trend. It s defined as a green candle that s open and close are at the bottom of the candle, and it has a long leg above it going to the upside. Summary In this chapter of you ve learned how to identify many types of patterns. You ve learned how to recognize bullish candlestick patterns, bearish candlestick patterns, and trend reversal patterns. Understanding how to spot these patterns and, more importantly, how to translate them into possible trading activity, can go a long way towards helping you to take more profitable trades.

8 14 Organic Trading System Organic Trading System Stages 15 Organic Trading System (OTS) is the study of market action through the use of Organic Data Panels, for the purpose of forecasting and timing future price trends. The building blocks of Organic Data Panel analysis are the Fundamental data, the market participant sentiment and the basic concepts of trends: support and resistance levels, price averages and percentage retracements. Each Organic Data Panel component holds a piece of the Big Picture. Organic Trading System is an unprecedented, new paradigm of trading technique that utilizes a combination of essential resources of market data, which are harmonically coordinated, in order to enable traders a relatively fast, simple and easy way to decide which side of the market to be trading from the Buy side or the Sell side. It enables traders to identify entry and exit points how and when to act. It is a great way to identify high probability trading setups and make mindful and informed trading decisions in the financial markets, before making a market commitment. The use of the next generation, revolutionary, Organic Trading System allows traders to gain confidence, increase probability of success and trade with full flexibility and control on the execution process and the money management system. Organic Trading System provides a platform of comfort and confidence for traders around the World. The following stages are the trading foundation pillars upon which every trade rests. A trader should take under consideration the whole mechanism, in order to increase his or her probability of success. Stage I Market Orientation At this stage the trader measure the fundamental sentiment and the relative strength of the market they would like to trade compared with performance of the major markets, in order to get a better sense of the market positioning. Stage II Forecasting Process This stage contains thorough and comprehensive market research and analysis, where a combination of several different approaches is applied in a way that can all fit together into one complete system. Stage III Time Optimization Process (When to Trade) At this stage, the emphasis is placed on the trade entry timing. The timing is a key factor in real trading activity, especially in the Binary Options and Forex markets. Traders can be on the right direction of the market and still lose money. Placing a trade at the right time makes the difference between a win and a loss. Our time optimization panel indicates when trades are close to a technically sound entry point (with price interruptions as closest to zero as possible). Our time optimization panel synchronizes the market cycles by utilizing a unique blend of short-term momentum indicators in conjunction with trend forecasting technical factors, to help traders accurately time the entries and exits and optimize the potential outcome. Stage IV Money Management System (How Much to Trade) Money management system helps the trader to determinate how much to invest in each trade (BUY or SELL). This is a process that every trader should plan in advance before executing an actual trade. This stage is in accordance to the traders expectations and the risk level they are willing to take. Every trader must have money management system, or basic rules, which can provide on paper positive statistical Reward to Risk ratio. This is an essential factor in the active trading journey, and can be the actual difference between success and failure. Fundamental Research and Analysis Our research team analyzes large amounts of fundamental data in order to provide a bottom line print for the major markets.

9 Economic health is the underlying force of supply and demand. It is reflected in market action by supply and demand shifts, presenting bullish or bearish psychology of the market Market Participant Activity Market Participant activity is a sentiment indicator, designed to present how investors and traders act and feel about the market. It is derived from actual trader positions and professional traders opinion. The sentiment indicator presents the current market tone and participant psychology. It helps traders understand how factors, such as price-action, macroeconomic conditions and geopolitical events, influence market's future activity. Market participants' activity enables traders to estimate the likelihood of a current market trend continuation or invalidation. Organic Data Panel is an Organic Trading System (OTS) application, presenting the big Picture. We will now take a closer look at each of the panels that make up the Organic Trading System. Organic Trading System Panels Market Outlook Panel (MOP) This panel is designed to present the status of major currencies, the S&P 500, Gold and Crude Oil. One aspect of this status is the fundamental sentiment and our proprietary economic momentum rank. Another aspect is the strength of each market compared with the strength of the other markets in this panel. Direction Forecasting Panel (DFP) This Panel consist of different components, which contain market data as follows: Fundamental our research team processes the relevant data and presents it in three variations: Bullish, Neutral or Bearish. Relative Strength The strength of one market relative to another market. This ranking is based on the market relative strength compared to the performance of other markets. Market Participants' Sentiment How investors and traders act and feel about the market, it is derived from actual trader positions and professional traders opinions. The market participants' sentiment is presented in three variations: Bullish, Neutral or Bearish. Flow of Funds The funds fluidity and movement inside/outside the market in three variations: UP, FLAT or DOWN. Major Trend A perspective on market main direction and presents it in seven variations: Extremely/slightly Bullish, Bullish, Extremely/ slightly Bearish, Bearish or Neutral. Intermediate Trend This component reflects the market behavior in the last three months and presents it in seven variations. Minor Trend This component reflects the market behavior in the last four weeks and presents it in seven variations. Supply/Demand this component presents the level of interest in a certain market and presents it in three variations: Overbought, Neutral or Oversold. Volatility - this component measures the movement of the market and gives us a sense of vibration. Daily Pivot Points Intraday market support and resistance levels, by calculating the previous day's high, low and closing prices. Daily Support and Resistance Levels Intraday market support and resistance levels, made according to our calculation of market prices. Strategy Takes under consideration all the relevant data and presents the most suitable strategy to be used under the current market conditions. There are three possible strategies: Breakout, Momentum and Range. STTV Bottom line this component, by definition, gives the bottom line of the market bias and presents it in three variations: Bullish, Neutral or Bearish. Time Optimization Panel (TOP) This panel presents five indicators, each one consisting of three time frames (slow, medium and fast). These indicators calculate the market real-time price, thus enabling us to spot the most suitable time to place a trade. For example: if, according to our forecasting panel the bottom line is Bullish and our time indica average conditions, then, this would be the right time to place a BUY trade. Signal Generator Panel (SGP) A Signal is an indication that a market price has come into focus and now is a suitable time to take action. It defines a price level that should provide a decent trade opportunity. All of our signals are based on each asset's average price level. Upon applying these measurements under differing market conditions, a signal will be generated: Pivot Signal Measures the market daily pivot support and resistance levels.

10 Intraday Extreme Signal Measures the market average daily movement Support/Resistance Signal A measurement of key support and resistance price levels. Percentage Retracement Signal Measures market percentage retracement levels. Trend Signal Calculates an asset's average price. Price Deviation Signal Measures the market daily trend support and resistance price levels. Conclusion One of the main reasons why trading Binary Options is so popular is because you can easily enter and exit the market. It can be a simple way to make money without having to put in much effort, but only as long as you understand the how to read, understand and interpret the market. Binary Options pays a fixed amount to traders, which is unlike some other options which may pay varied amounts. With Binary Options a trade can end without being worth anything. If the asset expires in the money, the trader gets a fixed pay which is pre-decided. This amount is not fixed when trading some other types of options. You might feel uneasy by the idea of using Binary Options for day trading. However if you truly understand Binary Options, this knowledge will act as a partial hedge, and give you the opportunity to profit. If the call and put options are used wisely, it can reduce the chances of risks to a great extent. So if the execution of a binary option is done properly then the chances of earning double profits increases considerably. In this way there are many benefits of utilizing Binary Options to get some extra money out of your investments. A well planned binary trade like other hedging strategies will have a great impact on the risk taken against your total holding. Deciding whether to hold back or not depends on various factors. One should rely on the news and many other sources that will help to analyze the future of the market. The Option is in your hands! As you can see, there are many ways to profit with Binary Options, and this was just a small taste. Binary Options gives you numerous ways to make money in any market and in any direction. You do not need to wait to have a bullish or bearish market outlook in order to be successful. All you need is to know what to look for. Make sure you pay attention before an important economic event or print is due out. Remember, that in order for an asset to make a large move, there usually needs to be a motivator. One of the most reliable motivators for large moves, whether up or down, is economic events. Does this pique your interest? Do you want to take advantage of these and other profit opportunities? We invite you to look at SuperTraderTV s educational videos and live shows. SuperTraderTV offers up-to-theminute educational content and live broadcast trading for you to take advantage of. SuperTraderTV takes the guesswork out of Binary Options trading because we teach YOU how to do the research and make it easy to understand what you re looking at. Whether you're new to Binary Options or a semi-professional, you'll move through each trade step-by-step as we take you by the hand and lead you on a path towards your trading goals. Resources Read market news at sites such as Reuters.com, Bloomberg.com and finance.yahoo.com. See the upcoming news and events at forexfactory.com Look at asset futures via finviz.com/futures.ashx. Risk Disclosure Binary Option trading and/or Forex trading carries a significant level of risk, and may not be suitable for all investors. Before deciding to invest in Binary Option and/or Forex you should carefully consider your investment objectives and level of experience. You should be aware of all the risks associated with Binary Option trading and/or Forex trading and seek advice from an independent financial advisor if you have any doubts. You should only trade with money that you can withstand losing, and you should never trade under the assumption that you cannot lose the funds you trade with.

11 20 None of SuperTraderTV.com or any of its officers, directors, employees, other personnel, representatives, agents and/or independent contractors is, in such capacities, a licensed financial advisor, a registered investment adviser or a registered broker/dealer. None of SuperTraderTV.com or its personnel gives investment or financial advice or makes investment recommendations. Nothing contained in SuperTraderTV.com broadcasts, on its website or in its written materials (the "Content") constitutes a solicitation, recommendation, promotion, endorsement or offer by SuperTraderTV. com and/or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors, of any particular security, other investment product, transaction, investment and/or trading. The Content is provided for informational purposes only and it is subject to change at any time without notice. SuperTraderTV.com and/or its officers, directors, employees, other personnel, representatives, agents and/or independent contractors shall not be held liable for any loss or damage, including without limitation to, any loss of funds and/or loss of profit, which may arise directly or indirectly from use or reliance on the Content. Make sure you pay attention before an important economic event or print is due out. Remember, that in order for an asset to make a large move, there usually needs to be a motivator. One of the most reliable motivators for large moves, whether up or down, is economic events. Does this pique your interest? Do you want to take advantage of these and other profit opportunities? We invite you to look at SuperTraderTV s educational videos and live shows. SuperTraderTV offers up-to-theminute educational content and live broadcast trading for you to take advantage of. SuperTraderTV takes the guesswork out of Binary Options trading because we teach YOU how to do the research and make it easy to understand what you re looking at. Whether you're new to Binary Options or a semi-professional, you'll move through each trade step-by-step as we take you by the hand and lead you on a path towards your trading goals. Thank you!

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