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Binary Options Books
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.
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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.
Understanding Company News: How to Interpret Stock Market Announcements – Rodney Hobson
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.
Top Five Books About Binary Options
To any beginner, trading binary options, be it the process of opening an account or placing an order, would look quite simple. On the contrary, any experienced binary options trader would vouch for the fact that trading binary options is as complex (if not more) as trading vanilla options. There cannot be any ifs or buts in the strategy employed thereby making it quite difficult to achieve consistent returns.
Even though large financial institutions have been using exotic options for a long time, an ordinary retail investor had very little access to this form of investment vehicle. Thus, a beginner may not have heard most of the financial jargon used in this form of investment. So, it becomes all the more important for an aspiring binary options trader to equip himself technically before entering this lucrative (OTC) market. In this regard, apart from the free material offered by most of the binary options brokers, a trader should spare some time to read at least a handful of noted binary options trading related publications written by renowned authors.
The following is a partial list of books suggested for both beginners and professionals to gain a head start in this profession.
Exotic Options Trading by Frans de Weert
The book titled exotic options trading was authored by Frans de Weert who worked as a trader in Barclay’s capital. The book shares the practical knowledge acquired by the author during his tenure in the investment firm. The author had succeeded in his primary intention of providing option traders, economics students and interested individuals the necessary tools to understand exotic options. Additionally, the book serves as a manual for a trader to manage price and risk of both simple and complicated exotic options.
To succeed trading in binary options, a trader should be able to quantify the risks associated with each and every kind of binary options contract and the levels at which the Greeks change sign. The book precisely provides an answer to the same. Each and every kind of binary options contract is approached from four different angles namely:
- Reason for investor demand for a particular binary options contract.
- Risk behind a binary options contract and its impact on the pricing.
- Best way to hedge the Vega and Gamma exposure embedded in a binary options contract.
- The skew exposure for a binary options contract.
Through a systematic approach, the risk is assessed and the trading strategy is determined for every kind of binary options contract in this book.
The book not only discusses conventional options, digital options, barrier options, cliquets, quanto options, outperformance options and variance swaps but also structured notes embedded with exotic options.
The book deals with numerous real life examples of trading different kinds of options contract. Thus, a trader will have no doubts in applying a suitable mathematical formula for a particular scenario. All the options Greeks and between them are explained in a clear manner with charts. However, in order to understand the subject, a trader is expected to have basic knowledge about the option Greeks.
Additionally, the author has set aside a separate chapter for volatility skew (difference in implied volatility between , and options). A professional may be well aware of the fact that volatility skew is quite difficult to quantify but has tremendous impact on the value of binary options.
The book suits both beginners and professionals who wish to have an knowledge of exotic options and it’s pricing. The book covers of options trading. For someone who wish to have a commanding knowledge (theoretical and practical) about binary options or options in general this is a must read book.
Binary Betting by John Piper
The book is written by the UK based author John Piper. He is an accomplished derivatives trader who participated in the market actively in the mid 80’s. In an effort to share his trading experience spanning two decades, the author started the newsletter named “The Technical Trader” in 1989. The author describes his approach to market as “” (meaning — understanding the mind of the market). Among several other books published earlier on, the notable one is an introductory book on binary betting. In his book, the author insists that success in binary betting depends on the ability to take trades when news is released.
The book is divided into two parts. The first part consists of three chapters which deal with personal likes and dislikes of the author, theoretical approach (points to remember – money management, entering at cheapest price etc.,) to binary options trading and different kinds of bets available for trading. The theoretical approach explains four different kinds of strategies namely:
- Buy near certainties
- Buy very cheap
- Buy low and trade the position
- More complex strategies.
The author discusses all the methods in detail along with three different approaches (systematic, indicator based, opportunistic) to them.
The third chapter gives practical examples for financial bets including up/down, barrier, one touch, and high/low options.
From the perspective of a wannabe binary options trader, part II, which is all about trading strategies, is the most important part in the book. The trading strategies section teaches a trader to make entries in such a way that there is no need to place a stop loss order. The techniques also ensure that a trader will make money even if he gets the trend wrong. However, the author warns that not all trades will be successful. A success rate of more than 70% is quite easily achievable by following the strategies. The second part of the book also teaches a trader to capitalize on the news based price movement.
The book is a treasure cove for traders who have ample basic knowledge about binary options but struggling to create a profitable trading system.
How to Trade Binary Options Successfully by Meir Liraz
The book was written by multifaceted author Meir Liraz. Apart from being a writer, the author is an entrepreneur, small business management expert, binary options trading professional and a personal finance specialist with over 31 years of experience. To his credit, the author has 12 publications covering trading, business and finance. The author has adopted a approach to cover the basic concepts about binary options trading. More importantly, a full chapter (critical factor for binary options trading success) has been dedicated to enable a trader to identify the thugs in the binary options trading business.
There are totally 10 chapters in the book. As discussed earlier, the first chapter cautions about fraud brokers in the business and suggests techniques to identify them. The second chapter explains what binary options are and history behind them. The third chapter describes the choice of inputs (type of asset, investment, expiry time and variety of trade) available to a trader before entering a trade. Within the trade varieties , the author explains how to execute an above/below, touch and barrier option trades. The chapter also explains the process of extension and premature closure of a binary options contract.
The fourth chapter talks about the advantages and disadvantages of trading binary options. The fifth chapter provides important tips for risk management. The sixth chapter explains the need for a trading system and the importance of technical analysis with a brief introduction about moving average and relative strength index. Additionally, the chapter also insists how important it is to have a charting facility with data. The seventh chapter deals about the capital requirement and percentage allocation (per trade) for binary options trading.
The eighth chapter is dedicated to the basics of technical analysis (identifying support and resistance with moving average, drawing channels and the different kind of price representation on charts. The chapter preceding the last one deals about the process of creating a trading system with various indicators such as RSI, Williams %R, MACD and moving average . The last section in the chapter nine explains the concept of news based trading. The tenth chapter provides psychological and general trading tips, which should be kept in mind to succeed in the binary options trading.
The book is primarily intended for beginners who are looking for an introductory guide to binary options trading. However, after going through the book, a professional may feel that the position of the chapters (or some part of it) should be interchanged for better understanding of the concepts. For example, the description about price representation on a chart (bars, candles, lines etc.,) should have come earlier. Similarly, the pros and cons of binary options trading should have been provided at the last.
Strategies for Directional and Volatility Trading by Alex Nekritin
The author Alex Nekritin is a professional trader with more than a decade of experience in Forex trading. Additionally, he is also the founder and president of a Forex introducing brokerage firm. He is known for his skills in risk management and trading system development. He is also the author of a popular spot Forex trading book.
The author has written the book with both beginners and professionals in mind. To a beginner, all the basic concepts including the difference between exchange traded options and OTC based options are explained diligently. On the other hand, the first few chapters will act as a refreshment guide for a professional trader. The later chapters include graphical illustrations and real life trading examples, which will make grasping of complex concepts easier.
The book consists of seven parts and sixteen chapters. The first two parts, which include three chapters, explain the basics of binary options trading. The last chapter also describes the manner in which a trader should read the option chain. The third part begins with a detailed discussion on vanilla options. The author then proceeds to discuss about expiration of binary options and the mechanics of a binary options short trade. The fifth and sixth chapter explains the manner in which trades are executed and settlement is done at expiry. The seventh chapter provides practical examples of how binary option trades are made.
The fourth part of the book deals extensively with trading strategies. While the chapter eight teaches how to select strike price and take advantage of the price volatility to enter a long/short trade, the chapter nine explains the option Greek ‘delta’ in detail. The next two chapter switches back to trading strategies based on support, resistance and news.
The fifth part of the book teaches the process of developing and testing a binary options trading strategy. The chapter thirteen in the fifth part of the book deals with emotional aspect of trading. The next chapter offers suggestions about risk management and positions sizing.
The sixth part of the book describes the process of managing a trading account. This includes an study about diversification, reinvestment, management of draw down and tackling a series of losing trades. The final part teaches the manner in which a trader should cut down losses, select assets which revert to mean and perform analysis to confirm the trend.
The book is ideal for both beginners and professionals who wish to have an knowledge of binary options trading.
Binary Options Trading Strategy by Pascal Pierre Zambou
The author Pascal Pierre Zambou’s main aim of writing the book is to provide traders with a single trading strategy which could be employed at all times. The author also cautions traders that using multiple systems would only aggravate losses and not increase profits. Thus, a reader of the book can very well understand the reason behind dedicating a book for a single system using four indicators.
The book straight away goes into the trading strategy without explaining the basics of binary option trading. However, there cannot be any complaints as the author categorically says that the book is intended for those who are in search of a proper trading system. At the outset, the author says that the proven system is valid only on 5-minute charts. The author then begins to explain the strategy by giving a detailed description about the four indicators (RSI, Bollinger Bands, moving average & slow stochastic oscillator) used in his system. The details about each of those indicators are quite elaborate with numerous charts. In the final chapter the author explains with examples the protocol for entering a trade.
The book is suited only to those individuals who are in dire need of a workable trading system. Even though the book achieved its objective of providing a comprehensive trading system, the author could have made the publication more attractive by including more details about binary options trading.
Those who wish to take binary options trading as a profession should seriously consider reading the books listed above. It will not only clear the doubts that may arise during trading but also assess each trade in totality. Such a process will enable a trader to raise the level of performance at a rapid phase.
Binary Options Books 2020
Trading binary options can only be profitable if you pay a lot of attention to educating yourself about the market. Yes, we live in the era of tablets, phones and all sorts of smart gadgets. But when it comes to binary options trading, none of these pieces of technology will ever replace the good old way of studying by picking up a binary options book to read. Many of the trading topics covered by these books are still relevant today. Reading and studying binary options books is one way to enhance your knowledge of the markets. Traders who have actually studied the market structure and all that is contained within this structure actually come to the market front better prepared than those who did not.
We can better understand this by taking a cue from the military. Before any mission is undertaken, a missions briefing is done. That way, soldiers are very clear of the mission objectives and how they can be attained. It is the same thing with binary options. The information from educational resources are like the briefing notes. With them, you can determine your strategic objectives in the binary options market and set about achieving them. Arming one’s self with information obtained from binary options books is a step towards achieving trading proficiency.
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