From knowing how to read signals through to coming up with your very own strategy, even the most experienced traders can benefit from some outside input from time to time. While the best binary options brokers tend to offer hints and tips and dummy accounts for you to hone your skills, they’re not the only source of insight available.
Many of us resolve to ‘read more’ at various stages of our lives. So why not put that to practical use and settle down with a good binary options trading book? With this in mind, here’s some suggested reading…
Binary Options Unmasked – Anna Coulling
For anyone still tentatively exploring binary options platforms and still trying to make up their mind, this book is worth close attention.
“Is binary options trading for me?”: it’s a simple enough question, but with so much inaccurate information and ‘too good to be true’ assertions about the risks associated with this form of trading out there, it can be a tough one to answer.
Written from a critical yet open-minded perspective, Coulling’s book seeks to give a “balanced and considered view” of the market. It gives introductory advice on how to use these instruments and outlines some basic trading strategies. The book is also particularly strong on describing the “traps for the unwary”: the various tricks used by a handful of unscrupulous companies to lure novice traders on false pretences.
The view is that binary options in themselves are perfectly valid trading instruments – but they can also be surefire ways to lose money quickly when approached in the wrong way. This book can help you stay on the right track.
Binary Options: Fixed Odds Financial Bets – Hamish Raw
This book has been around almost as long as the binary options as a trading instrument itself, yet it remains one of the clearest explanations of how binaries work in practice.
For the author, the simplicity of binaries is one of their greatest strengths; right from the outset, he is keen to point out that anyone who bets on the likes of the Grand National or Kentucky Derby is taking out a binary option, albeit in a different name – that of a fixed odds bet. In theory therefore, binaries offer an accessible way to put market knowledge to work – in what ought to be a limited risk environment.
Using this as a starting point, he goes on to explore the range of ‘bets’ that can be placed and the significance of time, volatility and price (the ‘greeks’) in driving the value of that bet.
Far from dismissing the fact that binary options are, in effect, a form of gambling, this book is refreshing in that it embraces the language of betting to explain – in a relatively simple way – how this financial instrument works in real life.
Generate Daily Income from Financial Markets: a beginner’s complete blueprint of trading binary options – Sid Bhattacharjee
Aimed at newcomers, this book provides a personal and pragmatic overview of binary options as a trading instrument.
It provides information on the various markets available and also includes insight on how to get into the right frame of mind for trading. Particularly worth paying attention to is a “4 week plan of action” for new traders. It gives tips on choosing a platform, starting off with a trial run, before graduating to trades with real cash.
Candlestick Charting For Dummies Russell Rhoads
If you have ever needed a quick, no-nonsense overview of a complicated area, there‘s a good chance that you’ve reached for a For Dummies books in the past. With simple prose broken down into bite-size chunks and plenty of diagrams, this series of instructional manuals rarely disappoints.
Helpfully, the series includes a number of titles of interest to traders, including Technical Analysis For Dummies and Currency Trading For Dummies. This volume, dedicated solely to candlestick charting, is a good read for anyone who might be struggling to get to grips with this particular area of analysis.
Candlesticks are information-dense, highly useful means of identifying trends, providing traders with details of opening and closing prices, highs and lows and overall range – often over very short timeframes. They are a valuable part of any trader’s toolkit – including binary options traders.
This guide demonstrates how candlestick charts are constructed and how to interpret them. It shows how to identify bullish and bearish markets, how to avoid false signals and how to combine candlesticks with a range of other indicators.
It’s common for the best binary options trading platforms to offer alerts services, whereby market news is delivered straight to users’ smartphones. Frequently, this includes news relating to specific companies, such as annual results, share buying activity and profit announcements.
For anyone who is still unfamiliar with how markets and companies work, it’s easy to dismiss this type of data as ‘noise’. Yet quarterly reports and various other company news can act as valuable binary options trading signals; not least because stronger or weaker than expected numbers from big companies can in themselves trigger significant drops or gains in share prices.
So how do you begin to make sense of your stock market news feed? This volume provides a thorough grounding. Although the emphasis is on UK companies listed on the London Stock Exchange, the broad principles explained are useful if you are taking a position on companies elsewhere in the world.
There’s some good background info on how, when and why companies are required to divulge certain information. It also gives you an overview on all of the routine statements companies are expected to issue, explaining all associated jargon. Crucially, the book shows you what type of announcements are likely to affect the share price – and in which direction.
And finally, a further tip for reading around the topic of binary options: avoid anything which purports to be a surefire way to get rich quick. Make it a resolution to get to grips with your chosen market; it will serve you much better in the long-run.