Beat Binary Options

Beat Binary Options

Winning Financial Betting Strategies for Today’s Markets

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Drew Kasch

© 2014-2019 Andrew Kasch

All Rights Reserved.  No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise without prior written permission of the copyright holder.

Disclaimer and Terms of Use: The Author and Publisher have strived to be as accurate and complete as possible in the creation of this book, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet. While all attempts have been made to verify information provided in this publication, the Author and Publisher assume no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. Any perceived slights of specific persons, peoples, or organizations are unintentional. In practical advice books, like anything else in life, there are no guarantees of personal results.  This book is not intended for use as a source of legal, business, accounting, medical, or financial advice. All readers are advised to seek services of competent professionals in the legal, business, accounting, medical, and finance fields. Furthermore, what works for some people may not work for others. Following the advice given in this book may result in unintended consequences in your life and the author and publisher assume no responsibility for that. Pursue the contents of this book at your own risk.

Problem gamblers should seek professional help and stay the heck away from online betting and trading sites. No system or strategy will work for problem gamblers, anywhere, anyplace – including binary options sites.

Table of Contents

Forethought

Introduction

What Sites to Trade At

The Challenges: Why It's So Hard to Win Consistently

The Solutions: How You Can Beat the Game

Site Orientation and Wager Type Analysis

Directional and Non-Directional Trading Tactics

Choosing a Market and Strategy

Strategy #1: Mastering the Intraday Breakout

Strategy #2: High-Odds Big Picture Positioning

Strategy #3: One-Touch Reversal

Strategy #4: The Index Straddle & Range

Strategy #5: Price Tracking for Value

Developing Your Binary Options Business Plan

Onward and Upward to Real Trading

About the Author

Forethought

In the nine years since the first edition of this book was published, there have been many changes in the fixed-odds binary options landscape. Most of these changes have ultimately been positive for the trader, as competition from an ever-widening pool of brokers creates value for the player that just wouldn’t be there otherwise. The opportunities for personalizing a winning strategy and using it as a springboard for trading success have never been better.

In this fourth edition, much-needed updates and revisions were made to the five core trading strategies, some of which were in response to different maximum payouts for certain types of wagers. In addition, important new sections have been added. The goal is to teach the reader how to find high-odds trading setups in any market – and, correspondingly, how to finagle the best possible edge at the binary options sites by identifying the wager that holds the most value for the situation.

Please note this book is specifically about trading fixed-odds binary options (European style, non-U.S. regulated). There are plenty of sites where U.S. citizens can play these, but let the reader be aware that we will not be addressing the CBOE-regulated, 0-100 style options contracts in this work. We’re talking One-Touch bets and the like here. Sometimes this type of trading is referred to as financial betting.

Truth be told, beating binary options is easier than being a winning trader at a traditional broker. This is because the amount risked is built into the trade right at the outset. That means you are automatically disciplined to obey your stop-loss points, which are determined by the size of your bet. Do you realize this eliminates the sole reason most failed traders blew their accounts out? There’s no way for one bad trade to get away from you and end your career.

It is entirely possible to start with $100 and build it into $10,000 over time with this style of trading. I said possible, not easy. Once binary options are mastered, the trader can then graduate to traditional brokerage accounts, make a few adjustments, and continue to compound wealth. The valuable lessons in risk-control learned while trading binary options will (hopefully) then keep the trader from becoming derailed by a devastating loss in any single trade. This book will help you make the transition to traditional broker accounts as well.

Developing the skills taught in the following pages will allow you to join the ranks of the elite few. Not just the small percentage of players who actually win at trading binaries, but those fortunate and wealthy professionals who trade for a living.

Introduction

There is nothing quite so satisfying as closing a winning trade. Ironically, this is exactly what causes many traders to eventually fail. The winning trade is addicting. It makes us want to put on another trade right away, and maybe fudge on our entry set-up requirements just a bit, so we can have that feeling again. Ah, that feeling! It conjures up images of quitting our job and buying a big house in the harbor with a boat dock. We can even calculate how wealthy we will become in just a few short years by adding a compounding effect to the percentage gain we just made.

A losing trade, on the other hand, can ruin our mood entirely. We tend to conclude that trading can't be beat as a feeling of resignation comes over us. We envision ourselves stuck in a dead-end job until our seventies and then scraping by on a tiny social security check, slowly bleeding away our savings until we finally die in poverty.

Successful traders manage to free themselves of these feelings on both winning and losing trades. All they care about is that their account equity grows steadily in the larger time frame. They treat trading as a business and completely accept losing trades as a necessary cost of doing business. Cultivating this attitude will be largely responsible for your success as a trader, regardless of the trading vehicles you use.

This manual will show you how to run a successful binary options trading operation and use it as a catalyst for financial freedom. You will learn a handful of financial betting strategies that can give you an edge, along with the optimal position sizing tactics that will allow you to maximize this edge. Most importantly, you will learn how to detach yourself emotionally from the outcome of any particular wager. Thus you will be able to treat the building of your financial security as a business – one that provides a clear vision of success and lets you sleep soundly at night.

Why Binary Options?

There is only one really good reason to be a fixed odds binary options trader: Because you currently don't have sufficient funds to operate a real trading account with a broker. A binary options account is simply a poor man's trading account. As such, it should be your goal to use it as a springboard to build up an account size sufficient for funding a real trading account, which you will then ultimately use to become wealthy.

That is the theme and objective of this book. Not just to show you a few tips and tricks for making winning financial bets, but to give you a roadmap for becoming wealthy in your lifetime starting with very little capital. Although the exact steps for locating, entering, and exiting winning financial bets may differ significantly from doing the same with a stock, options, futures, or currency trading account, the general principles are the same. If you can win at one, then you should have little trouble making the adjustments for succeeding at any of the others.

There is one notable exception to my assertion that a binary options account will outgrow its usefulness when your trading capital reaches a certain size, and it has to do with the Intraday Breakout Strategy taught in this course. This strategy may still be useful to you even after you have graduated to a brokerage-based trading account. There really isn't a tradable equivalent to the intraday bets that are offered on many of the binary options sites, because of their all or nothing aspect. For this reason, I still keep a binary options account as a supplement to my day trading activities. (The Intraday Breakout Strategy is only usable by those able to keep an eye on the market for most of the trading session. Don't worry if this requirement excludes you, as there are ample lower-maintenance strategies in the following chapters to ensure your success.)

Even so, the intraday breakout strategy does have its limitations once your trading capital has reached a certain point. This is mainly due to the proper risk control principles you will be employing. It would be great if we could compound our capital at a site like Binary.com indefinitely, but this would be foolish. Our funds are not insured there. They are reasonably safe at Binary.com, as this site is well-established and backed by Regent Pacific Group, a large financial company that is traded on the Hong Kong stock exchange. Even so, if you have $100,000 in total trading capital it would not be prudent to keep more than $10,000 there. One day they could suddenly declare insolvency and we would have no recourse. (Other binary options sites seem reasonably safe as well, including many that accept U.S. citizens – but none quite as safe as Binary.com.) So our ultimate wealth will not come from trading binary options. But many of us can use this account to get our financial well-being off the launching pad, going from say $500 to $10,000 or so, at which time it would be appropriate to start trading with a broker.

Of course, many brokers will accept a much smaller initial account size. Heck, $1,000 will get you a brokerage account trading equities, options, spot currencies, or even commodity futures these days. But is it wise to open a brokerage account with such a small amount? In a word, no. A high percentage of small accounts opened with brokers lose the entire balance very quickly. There are a number of factors working against small accounts, not the least of which is a higher commission per trade ratio. You are better off with a binary options account until you have $10,000 or more to work