To trade the binary options market properly, a trader must acquire specific tools. Some of these tools are free, while others must be purchased commercially.
Acquiring these trading tools helps a trader to improve the trading process and make as much money as possible from the market. This article will introduce you to the 18 best trading tools for success with binary options.
Here is an overview of the 18 best Binary Trading Tools, which are essential instruments for binary options traders:
- Chart Pattern Detection Instruments
- The autopivot calculator
- Charts
- Demo Accounts
- Chart Pattern Recognition Tools
- Extend, also known as rollover
- Early close feature
- Double up feature
- Open charting platform
- Auto-trading
- Market analysis on a daily and monthly basis
- The financial calendar
- Trading signals
- Resources for learning
- One-on-one coaching
- Binary Options Martingale Calculator
- Binary Options Money Management Calculator
- Binary Options Profit Calculator
Below is an overview of the most important tools and instruments for binary options trading:
1. Chart Pattern Detection Instruments
One of the essential trading tools for any binary options trader is a chart pattern detection tool, which helps the trader identify chart patterns on a chart correctly. Many forms of binary options trading rely on predicting the direction of the asset, and patterns are used as a good indicator of how a price will move. Will the cost of an asset rise or fall after a period of consolidation, or will the trend continue or reverse completely? This information is available to the trader at little cost through various chart patterns.
Instead of spending hours studying and memorising chart patterns, tools are available that can instantly spot them. These tools can predict the strength and duration of chart patterns on the time frame they appear on and can be used as a foundation for determining the expiry times for trades.
Trading tools like these are available on the market, such as Autochartist, Schwab StreetSmart Edge Pattern Recognition Software, and similar programs from TradeKing-Recognia.
2. The autopivot calculator
The Autopivot Calculator is a free tool, but its value is immeasurable. It automatically identifies and recalculates the three primary levels of support and resistance each trading day. It presents these levels in a clear, colour-coded format, eliminating potential confusion regarding positions.
The importance of accurate support and resistance levels cannot be overstated in the trading world. These critical benchmarks can determine the future direction of asset prices. Yet, despite their importance, many traders overlook a valuable tool designed to pinpoint these levels: the autopivot calculator.
Understanding these levels is paramount whether you’re involved in range trading, breakout trading or a simple up/down trade. Many traders only realise their importance when these levels disrupt their trades. You can overcome these challenges by incorporating the Auto Pivot Calculator into your trading strategy.
Given that this tool is free and widely available online, there’s no justification for its omission from your trading toolkit. Not only does it plot the three critical support and resistance points, but it also updates them daily. This ensures clarity and precision in your trading decisions, allowing you to navigate the market confidently.
3. Charts
Interactive charts visually represent market movements, allowing traders to identify patterns, trends and potential opportunities. Without having various charts available, traders are left to navigate the turbulent waters of the market by intuition alone, akin to flying blind.
Surprisingly, many binary options brokers don’t offer good charting functions, leaving their traders disadvantaged. However, there’s a solution. Platforms such as MT4 give you access to many assets commonly traded in the binary options market. By signing up with an MT4 broker, traders can take advantage of these interactive charts for free.
A prime example of a platform that understands the importance of comprehensive charting is Quotex. This binary options broker offers charts for various assets, from stock indices and commodities such as gold and silver to individual stocks and currencies. With Quotex, traders can be sure that whatever asset they choose in the binary options market, there’s a detailed chart to guide their decisions.
(Risk warning: Your capital can be at risk)
4. Demo Accounts
It is impossible to overstate the usefulness of binary options demo accounts. If a trader can’t make all the mistakes he needs to make, he’ll never learn how to trade the market as Thomas Edison did. Obtaining a free binary options sample account is, ironically, tough. Binary options brokers either don’t have it at all, or if they do, they either limit its ownership or only provide it to traders who deposit money into a live account.
Quotex is a binary options broker that offers free demo accounts. Traders can register with Quotex and use the demo account to practise trading or analyse market assets.
These four tools are the best binary options traders can have, yet they are not the only ones used.
5. Chart Pattern Recognition Tools
Chart pattern recognition tools are among the most important trading tools that every binary options trader must have, as they help show the asset’s direction. Success in several types of trading in the binary options market depends on defining the direction of the asset, and chart patterns show precisely that. Will the price of an asset go up or down, will it continue a previous trend after a period of consolidation, or will it reverse completely? Several chart patterns can quickly put this information into the trader’s hands.
Instead of stressing whether or not a chart pattern is identified correctly, these tools help traders instantly identify trading patterns and help traders make decisions faster. Some of these tools can predict the strength and duration of these patterns and determine which time frame they are formed on, 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.
Some brokers offer just a few trading options or none at all. Others may provide various tools to help traders take greater control of their trades. Statistically, traders who used these tools to make trade decisions had a higher success rate when trading than those who did not.
Check with your broker to see whether they have them.
6. Extend, also known as rollover
The extend / rollover feature allows you to alter the expiration date of your deal and can extend your position beyond the original expiration time. Riding out your gains for as long as possible is a terrific option. Sometimes, it makes sense to stay in your trade and take advantage of all the opportunities. In the end, the most dangerous and challenging portion has been completed.
7. Early close feature
The Early Close feature is best used towards the end of the trading day as it allows you to exit a position before it expires. You can’t go wrong with this broker’s tool, as it helps traders close a losing trade before they lose all their money. You can also do this if you’re trying to get out of a profitable trade, but it may go in the wrong direction. It is possible to make a small profit or even break even instead of losing money. Sometimes, Take Profit and Stop Loss can symbolise an Early Close.
Traders can use this function to close out their trades automatically while they go on with their daily lives once their asset hits a certain price level.
(Risk warning: Your capital can be at risk)
8. Double up feature
The double-up feature doubles your current investment in a particular position. Remember that you could lose and win twice as much if you’re not careful, so utilise it only when you’re sure you are making the right decision. For example, your trade may have crossed through and bounced off crucial support or resistance levels. Make sure to use a good double-up strategy for binary options trading!
9. Open charting platform
An open platform will help you perform the technical analysis contained in this updated chart. Some brokers offer this feature to give you a complete picture of the circumstances of the trade. This allows traders to see their asset’s price movements over different time frames and gives them a clearer picture of how volatile an investment is.
It is strongly advised for traders to use high-end charting software. Most charts on binary options websites marketed as “Open Platform” or “Chart Plus” are unsuitable for professional trading.
10. Auto-trading
The auto-trading robot tool allows you to place trades automatically. This means that traders can pre-program their trades, leave the platform, and let the software do all the work for them while they go about their daily lives. If you don’t have a compelling reason to use auto-trading (and I can’t think of one), I advise against it.
As a general rule, auto-trading is risky as you cannot watch the price move and make any decisions if you notice that the price is not moving according to how you would like it to. For better trades, it’s better to key in your trades personally and be actively involved in making them.
11. Market analysis on a daily and monthly basis
Daily and monthly market analysis summarises the most important financial news. Traders who use fundamental analysis will love this binary options tool. It allows those who use price action strategies to monitor reports as a reference point but are often unlikely to make actual trades based on them. Use this to your advantage and give this tool a try.
(Risk warning: Your capital can be at risk)
12. The financial calendar
An economic or financial calendar can help you track when governments worldwide release important information affecting financial markets. Here, the most volatile news tends to come from the United States. The calendar can also tell you when essential speeches, such as the State of the Union, are scheduled to be delivered.
Markets can be affected by financial reports, speeches and other events. Use this tool to prepare for possible asset price fluctuations, or avoid trading during report times if you don’t. Find out which reports are most likely to be profitable.
13. Trading signals
Trading signals act like lighthouses, pointing the way to informed trading decisions and are, therefore, good binary options trading tools because your emotions do not influence them. They are usually based on technical or fundamental analysis and can be obtained directly from the trading platform or external providers.
But beware: the market is full of fraudulent signal providers trying to lure unsuspecting traders into expensive subscription programs. Be careful where you get your signals from, and ideally, learn the trading strategies to generate your own binary options trading signals.
(Risk warning: Your capital can be at risk)
14. Resources for learning
Large account customers may be offered a variety of educational resources, such as eBooks, trading videos, webinars, and weekly training sessions, to help them learn more about binary options trading. Don’t forget to do your research before using free trading materials. There are many more free resources available than those provided by your broker. Learn as much as you can about the market and how it works.
15. One-on-one coaching
One-on-one coaching is one of the best tools a trader can have, helping you get expert knowledge quickly and tailored to your needs. Some brokers offer this service as an additional benefit. In the same way that trade signal services, accessible methods and other resources can be incorporated into your trading strategy and plan, one-on-one instruction should also be used.
It’s best not to use anything that doesn’t match the trading strategy you’re working on or the understanding you’ve gained. Not all financial experts are helpful; even the best can’t help everyone. The best advice for one trader can be utterly meaningless to another. Your mentor’s knowledge is essential, but how you trade matters. Every student has different needs, and not every mentor is a good fit for everyone.
16. Binary Options Martingale Calculator
Our Binary Options Martingale Calculator is designed to help you determine the ideal amount to invest, especially when recovering from a setback. This tool is specialised for binary traders using the Martingale strategy and allows you to enter the trades and profits associated with your broker. You will get a detailed breakdown of the necessary martingale steps based on your input within a few seconds.
Did you know that the attraction of a martingale approach can come with unwavering risk? Our estimator’s intent is to support risk management so that informed decisions can be made about this critical factor in trading practice.
17. Binary Options Money Management Calculator
Our Binary Options Money Management Calculator aims to help you determine the correct investment amount for each of your trades so that you can take your money management to the next level. By entering details such as account balance and risk percentage, this intelligent tool will output the optimal trade amount suitable for a single binary options transaction, tailored just for you.
Whether you are an adventurous or cautious trader, you can customise our Money Management calculator to suit your unique needs during your next binary options manoeuvres.
18. Binary Options Profit Calculator
Finally, to help you keep track of your profits and losses, we introduce our Binary Options Profit Calculator, which allows you to enter your investment amount, your broker’s return and the number of winning and losing trades to instantly calculate either total profits or losses for you.
Like a digital ledger, our Binary Options Profit Calculator will help you eliminate miscalculations and track your overall trading performance more efficiently, whether you are new on deck or already routinely exploring the high seas of the trading market! It can be a natural ally when making informed decisions on time-sensitive horizons. Try our tool out – you won’t regret it.
Binary options trading can earn you a steady, predictable income. Avoid putting too much faith in random events. With the help of these trading tools, you can assume control of your trading and your finances (except auto-trading, which I recommend you avoid). If you don’t, these tools will be used to your detriment.
Who Offers the Best Binary Options Tools?
Regarding providing top-tier binary options tools, Binaryoptions.com stands out as a premier choice for traders seeking to enhance their trading experience.
Whether you’re a beginner learning the ropes or an experienced trader looking to refine your strategies, our tools cater to your needs, ensuring you have the resources to make informed decisions. With Binaryoptions.com’s tools at your disposal, you can navigate the complexities of binary options trading with greater ease and confidence, optimizing your chances for success in the dynamic trading landscape.
Conclusion – Use binary options tools!
Binary options trading is a great way to make money, and these top 18 tools can help you be more consistent. Traders looking to earn a quick buck in the market might consider binary options viable. It allows you to trade various assets, and your earnings could even be increased with the help of a reputable and trustworthy broker.
To get the most out of your trading account, you should use these tools to their fullest potential (and lose a lot less, which is equally important). Write out how you want to use these tools in your trading strategy and test any changes to your system before implementing them.
(Risk warning: Your capital can be at risk)
Other essential tools for Binary Options trading:
Frequently Asked Questions:
What are the essential trading tools for a binary options trader?
Essential trading tools for a binary options trader include chart pattern recognition tools, the auto-pivot calculator, interactive charts, and demo accounts. These tools help you predict asset direction, identify key support and resistance levels, conduct technical analysis, and practice trading strategies.
Why are chart pattern recognition tools important for binary options trading?
Chart pattern recognition tools help you, as a trader, determine the direction of an asset. As you probably know, all binary options trades rely on predicting the asset’s direction. Chart patterns provide a clear indicator of this. Tools like Autochartist and Schwab StreetSmart Edge Pattern Recognition Software can instantly spot these patterns and predict their strength and duration.
How can a demo account tool benefit binary options traders?
Demo accounts are invaluable for binary options traders. They allow them to practice strategies and make mistakes without risking real money. They provide a platform for traders to learn and refine their trading techniques. While obtaining a non-obligatory binary options demo account can be challenging, brokers like Quotex offer unlimited, non-obligatory demo accounts for practice.
What are some advanced tools available for binary options trading?
Advanced tools for binary options trading include features like Extend (rollover). It allows extending the position beyond the original expiration time. Another one is Early Closure, which permits exiting a position before expiration. The Reversal doubles the current investment. There is an Open Platform for enhanced charting. Auto-trading, Daily and Monthly Market Analysis, the Financial Calendar, Trading Signals, Learning Resources, and One-on-One Instruction exist. When used correctly, these tools can enhance trading strategies and increase the potential for profits.