Okay , on my view, there are a few important basic things
you must know.
1.
What is the good time to trade ?
2.
What tools to use ?
3.
What is the risk you want to take
4.
Follow by Money Management
Before we even start
to discuss with the above points. We start off as which broker to choose. To
find a right broker, the first thing comes to me is that I want to find a
reliable broker.
From my experience and finding.....
Non-reliable broker
·
Online support and other mean of support is
always lagging, sometime bring you round the garden and still not getting an
answer to your question.
·
You will find expire time lagging, where a
profit trade become a loss trade
·
The broker is not certify by any professional
body
·
The broker may have limited assets to trade, and
the expire time for each asset is limited.
A reliable broker should be the opposit of the above
point.
·
Search the internet for "regulated binary
options" , you should see many report about which broker are being
regulated. But DONT just trust their word, everyone up there say they are
regulated, but actually is a scam.
·
ASK them who is the regulator ? Ask them for the
regulator cert number so you can check with the relevant regulator website to
make sure is not a scam.
·
Personally, I am using Banc de Binary
(www.bbinary.com), they are the biggest binary company currently, and they just
got the regulated by many big reputable bodies
·
Read this - Banc De Binary is a Financial
Services Company authorized and regulated by the Cyprus Securities Exchange
Commission (CySEC) under license no. 188/13 and is registered with global
regulatory authorities including the FSA, FSB and other EEA financial licensing
bodies.
·
I had run a check on the company background and
all their statement are true.
Okay, let's come back to touch some basic on trading....
1. What is the good time to trade ?
As all here know that Forex market is open 24 hours a day from 5pm EST on Sunday
until 4pm EST Friday
Different time section will have different trading methods,
you CANNOT use the same method of all time frame.
Asia trading time 00:00 EST is the start of Asia trading
time, personally I love to trade at this time frame, reason being the market
movement is slower, and the price movement is more predictable, 80% of my
winning trade are from this time frame.
After the Asia time, will another major market open is the
Europe time (14:00 EST), this market is moving much faster and if you are a
season trader, you still can trade on this timeframe. After that follow by the
U.S. market which is the most people trade on this time frame, but personally I
don't suggest you trade in U.S. time frame as the market is VERY hard to forecast
unless you are very experience trader, otherwise trust me ... STAY OUT at this
U.S. time frame.
The good news is, if you are from Europe and U.S, that means
is your night time when Asia market open, then you can start trading without
affecting your day time job.
2. What tools to use ?
If you are serious into learning trading, you must have a
live chart in front of you. Some internet webpage does give you live chart, but
those data from the webpage are normally have time gaps from a few seconds to
even half a minutes or greater, this is NO GOOD at all for binary trading as
you may know that price moves very fast , just a few seconds the price might
already moves away far.
Personally , I open a demo account with www.iamfx.com (100%
free), after you open the demo with time, they will show you how to install a
program call Meta Trader Ver 4 (in short everyone call it MT4).
Once you have install the software, you will have live data
feed right in front or your computer screen, then I will show you how to use
some very useful indicators to forecast the price movement.
GO AHEAD TO APPLY THE 100% FREE DEMO FROM www.iamfx.com (Or
any other broker who can provide you free data feed from MT4).
3. What is the risk you want to take ?
This is a personal question... please bare in mind, don't
over commit yourself, trade with the money you can afford to loose. I am not
saying that you will lost all your money in Forex, but if you have the mind set
saying that this amount of money you can afford to loose, then you mind will be
more relax during trading time, and you can be more assure that your entry is
more accurate. This is my personal experience.... the more you worry , the more
pressure you are, the more you loose because you don't have a clear mind to
read and understand the market.
4. Money management -
let say you open an account of USD1000 .
my personal advice is that don't use more then 1% of your
money for each trade
1% of USD1000 = USD10
For these simple guideline, you need to make 100 loosing
trade in a row to burn your account, but that is not likely to happen since you
will have many winning trade along the way.
Of cause, some time you may use more then 1% of your margin
, maybe 5% to even 10% to do hedging, that we will talk more about it later
when we do live trading.
Just a simple
motivation calculation (But is highly feasible)
Just give you a simple calculation - USD10 (1%)... if I win, I will have USD17.5 (that's USD7.5 Nett
profit).
If I trade 4 hours daily (Asia time 00:00 to 04:00 EST), and
each hour I have 3 trades, then my daily profit will be USD7.5 x 4 hrs x 3
trades = USD90 per day
Profit per day is USD90
Multiply by average 22 trading days in a month - USD90 x22 =
USD1980
Now you see the BIG PICTURE ? with USD1000 , I can make a
NETT PROFIT of USD1980 in just one month, that's almost 200% profit.
So the following month, you withdraw your initial investment
of USD1000, and keep the profit of USD1980 in the account for trading.
then the following month you trade with 1% of USD1980 which
is USD19 per trade, and Nett winning will be USD14 per trade, using the same formula
of 4 hrs daily trade with 3 trade per hour.....
At the end of second month, you account will have a Nett profit of
USD3696
So the third month you withdraw your the amount of USD1980
(i.e. this is the amount you keep in your account at the start of the second
month), and use the profit of USD3696 you generated from the 2nd month trading for
the following month trading.
So you can see the BIG
PICTURE now ? every month you are taking out the profit of the previous
month as your "salary" and keep the profit for the next month
trading... In no time, you will grow your account REAL BIG. It's no joke, if
you see my blogs (http://goodbinary.blogspot.sg/), I have attached 4 very
recent trading results to show you that my methods work.
The next big question ... The above calculation is base on
if you win all the trades, but how do you recover from loosing trade ?
Answer : Remember we
use only 1% of the margin for each trade, if we ever loose a trade, we will
need to think of a way to recover our lost.
Method one - After the loosing trades, if you are already making money for the day, I may just take a smaller profit and call it a
day. Don't gamble if the market is not good.
Method two - Hedging, if I loose USD10 in this trade,
I put USD15 or a little more in the next trade, so if I win, the profit will
recover the earlier lost
Method Three - As mention, we only trade 4 hours
daily, and the Forex is running 24HRS, we might want to extend our trading time
for another 1 hour to make a few more trades to recover the lost.
NOW... here is the important parts, we are not gamble here,
we don't just keep double our investment in order to recover the lost... we
have tools, and good tools which is the MT4 Software....
With good indicator, the accuracy is around 80% - 90% , I
will show you how to read the chart, once you master the chart, it's almost not
likely to loose more then 3 trades in a roll... so if 1st trade is USD10, then
Second is USD20, 3rd will be USD60 (Total max investment down for any loose
trade recovering is USD90) , that's about your average 1 day profit. If you are
still not able to recover the lost, then DONT CHASE the market, call it a day
and come back tomorrow.
Golden Rules -
1.
Always put small trade, this will give you long
lasting power and also have more "spare money" if you need to do
hedging
2.
DONT Chase the market, if for any reason you
have a bad day, just call it a day and come back tomorrow.
REMEMBER - In
order to win big, you must first learn to accept small loose.
If you cannot accept small lose, then stay out from Forex /
Binary
That's all for now.... remember the thing you need to do now
is to apply a free demo from www.iamfx.com and install MT4 on your computer.
