Best Advice for Trading Binary Options

Jan 30

Best Advice for Trading Binary Options

“Best Advice for Trading Binary Options”

 Y  ou like the idea of binary options. You have a firm belief in yourself that you could be a great trader and you could make decent profits from this enterprise.

Whether you will or not, regardless of how excited you are at the prospect of making a living out of binary options, no newbie should be without my ‘been there, tried that’ no-nonsense fact sheet. Do yourself a favour and read what an beleaguered and tormented binary options trader has to say first. After all, I have been doing this full time for three months already and you can benefit hugely from my veteran advice.

All my advice for trading binary options is free, won’t cost you a penny, I have no affiliate link to provide, I don’t recommend anyone and I don’t even want your friggin email address!

Rule number one.   Don’t take a bonus.

Let me say that again – DON’T ACCEPT ANY BONUSES! There’s no such thing as a free lunch and the same applies here. In most cases, when you take a bonus you have to trade the volume of that bonus 30 times or more before you are permitted to withdraw any funds – And that includes your original deposit.

Let’s say you deposit $2,000. Let’s say the broker platform is generous and offer you a ‘free’ $2,000 bonus on top of that making your account a grand $4,000 before you even start. Small print dictates that you must now trade a volume of at least $60,000 or more before you can withdraw a single cent from your account (including your original $2,000 deposit). The chances of you surviving a $60,000 trade volume are very slim – That’s why the brokers offer you the bonus.

The same goes for ‘free’ insured trades (where you can place a free trade that, should you lose, you get it refunded ‘on them’) – Like I said before, there’s no such thing as a free lunch and neither do you get ‘free’ trades – Same principle applies. Let’s say you lose your $1,000 trade and they ‘refund’ it – You still have to trade a volume of at least 30 times before you are allowed to withdraw any funds. Ie. $30,000 worth of trade volume. It’s another lock-in scheme.

If you really want a bonus, why not trade the $60,000 volume of trades first and then ask for your bonus? – Then you can at least withdraw immediately afterwards!

Do yourself a favor – Don’t lock in your money and tie yourself to a broker.

Footnote – (over one year on and more lessons learnt… 18th April 2014) – Actually, some bonuses can be okay. I am currently with Stockpair, the best broker I have found after trying many, many others. Stockpair have a unique way of dealing with bonuses – They have two types. The bonus where they ‘give’ you cash after making a deposit. This is not added to your trading balance yet. It is separated from your deposit money (trading balance) and you can’t trade with it, but you can still see it under your account settings. This enables you to make withdrawals whenever you choose on your original deposit, all-the-while, your ‘bonus’ cash has a volume amount that shows up next to it and must be traded before the funds are released into your account (trading balance) – I MUCH prefer this method of bonuses. (Watch out if you take the ‘risk free’ bonuses though, because if you lose those trades, you cannot make a withdrawal until you have traded the volume of the refunded cash to your balance – Well, you can make a withdrawal, but those refunds will be cancelled if you haven’t made back the volume).


Rule number two.   Practice with a demo account.

No platform openly advertises demo accounts, but that’s not to say they don’t offer them if you ask. Most will expect you to open an account and deposit some cash with them before they will allow you to have a demo account. That’s okay – Go ahead and do that (just don’t accept any bonuses). Exercise good discipline and don’t start using your real live account until you can prove to yourself that you are able to win consistently with your demo account.

Some platforms where I know they offer a demo account are, 24Option, TradeRush, Banc de Binary and GOptions. Others probably will too – just ask before you open with them.

Do yourself a favor – Lose with their Monopoly money, not your own hard-earned cash.


Rule number three.  Learn and adopt good money management skills.

Don’t open a $2,000 account and start placing $500 trades. Your account will be wiped out in no time. The best tried and tested method is to never place a trade that is more than 5% of your total account capital and never expose more than 15% in open trades. So if you have a $2,000 account , no trade will be more than $100 and you would never have more than three trades open at any given time.

Some of the brokers offer different options as the trades are running. For example, you might be able to ‘close’ (sell) the trade, or ‘roll’ it over if it’s currently out of the money – Or you may even be able to hedge the trade if it’s not going as expected. It would be tough to manage your open trades if you had more than three running.

Do yourself a favor – Get into the habit of adopting good money management from the start. Which brings me to…


Rule number four.   Don’t be greedy.

Greed is probably the greatest downfall of most traders. Where most make the mistake of chasing and concentrating on the money, they will lose faster than those who concentrate on getting the strategy right first. If you place small (even smallest) trade amounts first, learn your craft, learn how to trade the news, learn technical analysis – Slowly, softly, eventually, you will succeed.

The most successful traders are those who started small and worked out strategies that best suited their personality. The money will come later, don’t worry about that so much in the early stages.

Do yourself a favor – Binary Options is not a ‘get rich quick’ scheme. It takes hard work, research, emotional detachment, persistence and a lot of patience to become a long-term successful trader.


Rule number five.  Use a professional charting system.

All the brokers offer you a basic chart from which to trade – It is far from sufficient. Get yourself a free MT4 demo account to view real-live charts – Or use one of the many excellent websites that offer free charts like Netdania. Learn about candlestick charts and different time frames.

Do yourself a favor and give yourself the best chance of success with independent trading charts.

Footnote – (over one year on and more lessons learnt… 18th April 2014) – I have found that OANDA or ThinkOrSwim offer the best and most accurate independent charts – Especially if you are trading 60-seconds or other very short term trading. If you check ‘Show Average Pricing’ on OANDA charts, the price will almost exactly match the pricing on your broker. If you use MT4, it isn’t as easy to work out, but I still use MT4 for knowing my fib points and support and resistance points and use OANDA to get exact pricing comparable with my broker.


Rule number six.  The broker is not your friend.

Sad, but true – Get used to it. The broker is your sworn enemy – He wants you to lose, it’s in his job description. You trust a broker to give you winning signals? Good luck with that. Examples where there are brokers who do that are TradeRush and Banc De Binary. Both of those major brokers with give you an account manager to ‘help’ you with signals. They offer free lessons – A little like a casino that offers you free coffee at the roulette table whilst candidly suggesting ‘red’ might be the next colour for the ball to drop into.

Broker analysts and account managers are not there to help you to win, they are there to help you (eventually) to lose. Remember, brokers make their money from your losses, that is a fact they don’t like you to know. The quicker you develop a mistrust for these brokers, the healthier your account balance will become. And this is why they don’t like you to know that they profit from losing clients… Just because there is a huge conflict of interest between helping you to win and you profiting, long term, from their signals – And that they are in the business of profiting from client losses!!! The two just… kinda… don’t work, ya know?

Yes, in the short term they may help give you that taste for success and profit. But at the end of the day, they are more interested in your credit card deposits – A healthy deposit for you is money in the bank for them – Eventually, no matter how long it takes, they are counting on you losing it all.

It’s why they offer bonuses that lock you in – It’s all about you making that deposit and keeping that money there, in their account!

Do yourself a favor – Learn how to trade on your own or within a group of friendly other like-minded traders like you. Heck – I might even let you join our group if you ask nicely!

Footnote – (over one year on and more lessons learnt… 18th April 2014) –  Actually, I was a little harsh here. I’ve come to like some of the brokers out there and the people who are trying to get you to deposit. No matter what they say though, they still earn from your losses, they are nothing more than betting shops really. Some will tell you they do profit when you win because they make money from the volume. I think this is because they somehow sell on the risk to a third party who accept the profit/loss risk and in return pay a set amount for traded volume (a bit like how insurance works).


Rule number seven.  Don’t invest in robots, bots, automated trading systems, automated signal providers, automated anything!!

Folks, they don’t work – Trust me. If I learn of one that works, for real, I would be the first to pass it on to you here on CogBay – I will, I promise! Out of personal curiosity, I have managed to trial most of them. They’re weak and designed to make money – for their creators and affiliates, not you!

Seriously, I’ve seen it all. I know it’s frustrating, I know you want that all-singing, all-dancing, money making machine that is the answer to all your problems… Sadly, it doesn’t exist.

You will make money from serious hard graft and intelligent application to the markets.

Footnote – (over one year on and more lessons learnt… 18th April 2014) – I still firmly believe this to be true. But most of you will ignore this advice and learn the hard way anyway!! 😉


Rule number eight.  Be careful of scam brokers and false signal providers.

Folks, they are out there and even particularly astute people who are not usually naïve (and I include myself in that category) have been scammed and conned into handing over money. Stick with the large brokers and avoid the small-timers. Remember that any broker can open a brokerage for as little as $12,000. That’s not enough capital to stay in business if they have early winning clients.

Most are okay and will be able to pay out withdrawal requests, but not all brokers are created equal!

Footnote – (over one year on and more lessons learnt… 18th April 2014) –  I don’t normally like to give endorsements because I’m always sceptical of them myself, but I can’t resist in this case. My highest recommendation after trying over a dozen different platforms/brokers is – And they don’t even pay me to say that! The pricing is honest, they don’t employ margins to screw you on entry/strike price and expiration – Spotoption brokers do, which is why I don’t use them anymore. They have excellent pay out within a few days of requesting it (I have earned over $20,000 in clear profit from them so far and have withdrawn nearly all of it), and they do a wonderful bonus scheme that doesn’t tie your hands from making withdrawals whenever you like… Oh, and they have a cashback scheme!!! Show me another broker that does that!

Recommend a signal provider? Errm… Me!! Check out ‘Cambridge Phoenix’ for more information.



  1. George Asante /

    I think your advice is very helpful and it must be shared with all new traders.

  2. Andy M /

    The advice you shared here is absolutely spot on! These are lessons I have learned myself and I hope that other traders who read your post take the advice to heart.
    One of the worst offences that binary options traders can make (and even saavy traders make) is risking far too much of their account on any one trade. In regular forex trading, most educated traders know that trading 5% of your account balance is the very most anyone should consider for a single trade and THAT is very aggressive trading. But for some reason, and I’ve heard this multiple times, BO traders routinely trade 10-20% of their accounts PER TRADE and say that because BOs are different, you NEED to trade that way. Aaaah! Rubbish! Sound money management is sound money management; have patience.
    Thanks again for an excellent post!

    • admin /

      A lot of time has passed since I wrote this post early last year. Some of my thoughts have changed slightly, but overall, the advice still stands for the most part.

      I’m going to go ahead and edit the post – Leaving the original intact, but placing a footnote under some…

  3. Thanks again for this post. I have read them before but ignored almost all of them but coming back to the post, I agree with all. My experience in trying things–brokers, autmated trading, etc are all similar to yours. Now I want to learn to trade with sound money management tips.I hope new aspiring traders read your post and stick them on the wall for reminders.

    By the way, how can I join your trading group?That would be kind of you & would be really grateful.

    • admin /

      Hi DOI,

      Actually, since writing this post, the small trading group I had has disbanded somewhat. Many of them don’t trade anymore. I have persisted and now it is my living. In fact, I provide signals now for others on my ‘Cambridge Phoenix’ service.

      • wow, its a small world.I actually subscribed to your signals through signal push a few days ago.Can’t say of the performance yet but can put a good word for you when tested.I have discovered that your signals come late in the evenings, well using UK time. Good luck and I hope your signals help me until I learn to trade :)

        • admin /

          It is a small world! There are two services, but I recommend the Phoenix over the regular (original) service. I got caught out this week because I wrongly assumed Good Friday (today) was a normal trading day. I hate finishing a week on anything under 60% !!

  4. Yea, have been to Cambridge signals website several times and was not too impressed with the actual performance.Then subscribed to Cambridge phoenix based on Sinalpush ratings. Did not know that both are by same owner.Thanks

    • admin /

      Yes, the regular service (15M+ signals) were not quite as profitable for me or clients, but the 60-seconds is much better and the one I profit consistently at. Hopefully you will enjoy that too in good time! You can also learn about my trading style from examining the signals/trades you are sent and cross-examining them on your charts.

  5. Jonathan /

    Wow! Learnt something today. There are signal services/bots approved by watchdog ( Are they unreliable?
    Well, I will gladly check out your signals. BUT how much is the service and can I use it on an independent broker of my choice? Or do I have to use ONLY any of your recommended broker as other signal services do?

    • admin /

      I have no knowledge of that website, so can’t help you there. You can find out about the signal service by going to either or clicking on the link to the right which takes you to signalpush, I think. The signals cost $99 for a month and you get a 60% ITM ‘insurance guarantee’ with that. You don’t have to use the recommended broker, you can use your own if they’re compatible with signalpush. But it’s recommended for reasons which are technical, in so much that there is less chance of ‘slippage’ when trades are auto-copied. And by the way, I’m completely independent of Stockpair. They are the best around at the moment in my humble opinion. I did use Beeoptions before, but they use spreads. I’ve withdrawn thousands in profits from Stockpair, so I do trust them.

  6. Virak /

    Your advice make a lot of sense to me. I would like to subscribe to your signal. How do I do that?

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