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TRADE JOURNAL

Before you begin to trade, be sure to have a trade journal where you record all your binary options trades.Doesn't matter if you trade on paper or real account. Discipline and precision plays a very important role intrading, that’s why a trade journal will help you to be more organized.

A huge advantage of having a journal is that you can analyze your results and draw conclusions. Whatassets you can predict more accurately and on what timeframes. You will gather a lot of useful informationthat will be useful for your future trading. At the same time you will know what was your trading forecastbased on, and how confident you were executing the trade.

What to write in the journal:

The asset you are trading

Date and time of option expiry

The trade size

The time of buying an option

The level of buying an option

The level of option expiry

Your forecast (Call or Put)

The result (Profit/Loss amout)

What your forecast was based on

Lesson 5 - Binary options trading time

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That's basically all the points that must be noted. You can customise this list as you prefer. Mostimportantly do not be lazy.

NOTEBOOK FOR STRATEGIES

In order to trade successfully you must develop your strategy. Below there are some strategies that youhave to test and adjust for yourself.

In order not to get lost in a variety, get yourself a notebook where you will write down strategies,indicators, and shapes you have used for analysis: for example Pinocchio - looks like reversal pattern. Afterthe formation, buying an option in the opposite direction of the long shadow... and so on.

Whenever you start trading, in front of your eyes must be clear rules like: if the price approaches the upperBollinger Band, then I buy a put option with an expiry time at the close of the next candle. Such approachwill help you avoid additional psychological stress. You will be more confident and accurate, which is veryimportant for successful trading.

CHOOSING THE EXPIRY TIME

All beginners ask the same question, what is the best timeframe for trading, in other words how to choosethe expiry time. The answer is quite simple: higher timeframe means higher accuracy of the forecast andlower probability for the market noise to mislead you.

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Use 5, 15 or 60 minute timeframe for chart analysis if you decided to trade 1 hour or 30 minutes options.

In any case, it’s your decision. Because depending on experience and psychology different traders will tradedifferently on different timeframes. Choose your approach, don't rush and test your strategies.

QUANTITY OF STRATEGIES NOT ALWAYS MEANS QUALITY

Let’s look at another misconception. To be more specific, we will look at the Holy Grail or 100% winningstrategy. Forget about this kind of strategies, they do not exist. There are strategies that give advantageover the market, but this also depends on you. There is a fact: one person can have excellent results,while another constant losses. That’s why don't be tempted to use all strategies and indicators available,don't rush and watch your temper. No one had good results when rushing; this is the road to nowhere.

It does not mean that testing should be abandoned and its not necessary to learn something new. At thestart, beginners should only use simple strategies, which will be described below. Pick a strategy, test andtweak it for the couple of weeks. Check the results, because few loosing trades don't mean anything. Youshould understand this strategy and trade it without any doubts and psychological stress. Even a dozen oftest trades will not show you an objective picture and will not give you reliable statistics. So the rules are:chose one strategy and test it, don't forget to write down all your results where you'll have statistics ofsuccessful trades.

WHAT IS THE BEST TIME FOR TRADING

You can trade binary options from Monday to Friday. On weekends mostly one touch options are available.

One of the most difficult days to trade is Monday and Friday.That’s why you should not start trading Monday morning.Wait for the afternoon, when market will settle. Tuesdaymarket usually reverses or bouncing of strong support orresistance levels. On Wednesday, after the bounce a strongtrend might be dominating. Thursdays usually trend continuesfor a short time and also might find a strong support orresistance levels. Follow the market on Friday, there might be

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either strong rally, or consolidation, and if you see that it’snot your day, just relax.Let’s talk about Forex currency pairs;because beginners prefer trading this asset class and someachieve very good results. This information is important forthose that prefer to trade intraday. If you choose optionswith the expiry time of 4 hours, 1 day or 1 week, then youcan skip this information.

The U.S. Session is 13:00 to 22:00 GMT - Even with the minimal overlap in hours, this is a greatperiod to implement your binary options strategies. You can expect good volatility in any currencypair. This is because the US Dollar is the most traded currency in the world, so traders will alwaystrade during the US Session.

The Australian Session is 21:00 to 07:00 GMT - The New Zealand Session actually kicks off aForex trading "day". But the Australian Session is one of the four primary trading times for mosttraders, making these hours a good time to trade. Of course, the Aussie is a good currency to lookat during the hours that Sydney is open.

The Asian Session is 24:00 to 09:00 GMT - During this period, you can successfully trade,especially if you trade the Yen. USD/JPY is generally a good choice in this time frame. This periodis not as volatile as the US session or the European session, but it's possible to trade it andachieve good results.

The European Session is 08:00 to 17:00 GMT - This is one of the best periods to trade. Sincemost of the dealing desks of large banks are located in London, most major Forex transactions arecompleted during this time. During these hours you can implement a successful binary optionstrading method on any currency pair.

The European and U.S sessions are the most important ones in Currency Market. so you can trade between08:00 and 20:00 GMT and get good intraday swings almost every single day. See picture below.

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Between 13:00 and 17:00 GMT we have the U.S. and the European sessions open at the same time. This isthe best time of the day to trade. Volatility and volume is good in all currency pairs. Some of the mostimportant economic releases appear during this period, and this brings good opportunities for Binary Optionstraders too!

Trading Sessions DesktopGadgetThere is a convenientdesktop gadget – time of thetrading sessions. If you tradewith Finpari, you can requestit absolutely free from thesupport team of our broker.You will always know whatthe current trading session is.It looks like the one on theright:

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ECONOMIC CALENDAR AND NEWS TRADING

It is difficult to overstate the importance of the news impact on the assets price movement. Therefore it isnecessary to understand the information given in the economic calendar.

Some people use the news to design personal trading strategy. We'll talk about this a bit later. But thereare traders who prefer to be patient and wait for the perfect time. For those who only started tradingbinary options, it’s probably better to sit out.

First look at the screenshots below:

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As you can see, during the news release, the price of an asset makes large swings. Price extremes can beused as a local minimum or a maximum to buy an option.

This is the list of news that has a big impact on the market:

Changes in inventories of rawmaterials

Consumer Price Index

Interest Rate Decision

Unemployment Data

GDP Data

Retail Sales Index

Sales of new homes

Wage Data

Retail Sales

Pay attention to important news. They are marked in the economic calendar with three bulls. The news of amedium importance are marked with two bulls. And the low importance news are marked with one bull.

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Higher the importance of the news, higher impact it will have on the currencies.

When trading currency pairs, pay attention to the news that come out on both currencies. Within couple ofminutes after the news, you can see the result, or in other words how your forecast is different from theactual forecast. These figures are marked by three colors: green - the result is better than expected, red -worse than expected, black - as expected.

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For example: there is a news release at 14:00 on USD currency that is marked with three bulls. Around14:01 information will be automatically updated (if not, refresh page by pressing F5). And in the “Actual”graph you will see a green number, which means that the news are positive for the USD. This means thatthe USD got stronger and will start to grow. Obviously this will results in the EURUSD exchange rate to godown. It will also work for other currency pairs. If the news for the USD are negative, then EURUSD willrise. I think the idea is pretty much clear. I won’t go into details here, to leave you the opportunity tofollow some currency pairs and draw your own conclusions.

Considering such example, after the positive news release on the USD, the EUR/USD pair is expected to fall.Therefore you can get ready to buy a PUT option. Wait until the market retraces back, and buy an option.

In the next lesson we will look into few trading strategies and will try to find an optimal one for you.

Home work:

1. Start your own trade journal and a notebook for strategies

2. Find the most convenient time for trading and stick to it.

3. If you think that your trading strategy can work on the news, confirm that by making few testtrades at the time of important news release.

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Want to know more? Subscribe to my YouTube channel, where I publish useful videoexamples, how to trade binary options.

Sincerely,

Abe CofnasProfessional trader