In order to trade the binary options market properly, there are certain trading tools that a trader needs to acquire. Some of these tools are free while others have to be purchased commercially. The purpose of acquiring these trading tools is to enhance the trading process and trying to pull in as much money as possible from the marketplace.
Live Charts and Tools at BinaryOptions.com
- Candlestick Charts for Euro/USD, USD/JPY and GBP/USD
- Economic Calendar Tool
- Commodities Prices and Quotes
- Auto-Pivot Point Calculator
What are the other main tools which make a difference to the Binary Options Trader?
1. Chart Pattern Recognition Tools
Chart pattern recognition tools are one of the most important trading tools that every binary options trader must have. Why? This is because success in several trade types in the binary options market will hinge on being able to define the direction of the asset, and chart patterns show asset direction. Will the price of an asset go up or down, continue from a prior trend after a period of consolidation or reverse totally? There are several chart patterns that can put all this information in the hands of the trader very cheaply. Now instead of stressing the trader by requiring him or her to go learning and cramming the chart patterns, there are tools that can help traders to identify chart patterns in an instant. It does not end there. Some of these tools are able to predict the strength and duration of these patterns, and also identify the time frame charts on which they form, providing a basis for expiry determination.
There are several of these trading tools on the market. Some of them are Autochartist, Schwab StreetSmart Edge Pattern Recognition Software and similar software from TradeKing-Recognia.
2. The Autopivot calculator
This is one free tool that shockingly, many traders still do not use. Prices of assets respect the key levels of support and resistance, and these points serve as reference points for whatever the price of the asset will do next. Whether it is a range trade, a break out trade, or a simple Up/Down trade contract, a trader may only realize the importance of these key levels of support and resistance when they start messing up his trades. Save yourself all this trouble by getting an autopivot calculator.
This tool is FREE and widely available all over the internet, so there is no excuse for not having it in your trading arsenal. It plots the three points of support and resistance and recalculates them every new trading day in color-coded format so that there is no confusion or ambiguity whatsoever on where these points are located.
Most binary options brokers have no charts for their traders. Without charts, it is impossible to conduct any kind of technical analysis. Charts tell the trader pictorially what is going on in the market and without them, the trader is trading blind. You need a source for interactive charts if you are to succeed in the market.
An easy, free way of doing this is to get access to an MT4 broker that offers majority of the same assets traded on the binary options market on their platform. A good example is FXCM’s MT4 platform. This broker has charts for all the asset types you can think of: stock indices, gold, silver, stocks, currencies, etc. This ensures that no matter the asset you want to trade on the binary options market, there is a chart that will meet your needs.
4. Demo Accounts
The importance of demo accounts can not be over emphasized. Where else can a trader practice strategies and make all the mistakes he needs to make so that like Thomas Edison, he can discover all the ways not to trade the market? The irony is that it is a very difficult task to secure a non-obligatory binary options demo account. It is either binary options brokers do not have it at all, or those that do either put time limits to their ownership, or only offer it to traders who commit money into a live account.
One broker stands out in giving unlimited, non-obligatory binary options demo accounts: Betonmarkets. If you cannot find demo accounts anywhere else, please sign up for a demo account from this broker and use it.
These four tools, while not an exhaustive list of tools that can be used in the binary options market, represent the best four tools a binary options trader can have.