Binary Options trading was launched for Metatrader 4 around year 2013, so MT4 binary trading is pretty new in the industry. But we see a huge demand for this form of trading, as our clients are asking for Binary Options expert advisors, and Zulutrade even has a trade copy section for Binary Options. You can get a free demo MT4 binary options account here.

Just look at the exponential and rising demand for binary options on Google Trends:

Prior to MT4 binary trading, Binary Options had close similarities with its gambling counterparts, especially those with fixed payouts such as a game of roulette. Furthermore, most of the binary option brokers out there do not offer any technical analysis tools, traders simply buy/sell off their mobile phones. It is no wonder binary trading has been thought to be a game of chance and quick riches.

But with technical analysis, the game for Binary Options has changed, for the better. In this article we explore a few golden rules towards sustainable and profitable binary option trading for forex.

STRUCTURE: Have A Trade Signal Strategy, Not Just A Money Management Strategy

Most of the people bragging about their success on Youtube Channels and social media are simply using money management; for example this guy boasts a $1,000 profit in 28 minutes. Money management is excellent and encouraged, because it provides some structure to risk management. However, you can further increase your chances of long term winning by narrowing down trading opportunities via technical analysis, or simply put studying price action on charts.

Some common methods are identifying overbought (red arrows) or oversold (green arrows) periods, periods that are trending with momentum, potential reversals from trend exhaustion, or candlestick price patterns. These trading signals provide you some structure in trade execution, if not you find yourself “lost” after awhile.

Don’t gamble or trade haphazardly or guess randomly. With structure in both money management and trade entry, you will be able to monitor your progress overtime and make improvements. At the very least, know whether your trading plan works or not.

FEEL: Observe Buying and Selling Pressure, Be Selective of Your Trades

Opportunities are plentiful, especially when you are monitoring 6 charts trading 60 second binaries, so be selective. You only need a movement as small as 0.00001 to win 85% on 60 second binary options.

Use candlesticks and watch the market to have a sense whether the market is experiencing upward or downward pressure. A simple way is to do this is to display Candlesticks on your Metatrader 4. After you receive a trading signal, watch the buying and selling pressure.

Buying Pressure is seen when either:
• Black candle turning into white candle

• Black candle shortening

• White candle lengthening

Selling Pressure is seen when either:

• White candle turning into black candle

• White candle shortening

• Black candle lengthening

Do not ever “catch a falling knife”. For example if you see extremely strong selling pressure do not simply enter a Buy trade thinking that markets will reverse. Wait for some visible buying pressure, before entering a Long trade. Conversely, wait for some selling pressure, before entering a Short trade.

To increase your chances even further, establish buying/selling pressure first, then wait for a retracement AGAINST you, then enter – this way you get in at a better price level. Of course sometimes the retracement does not happen… but it’s better to be safe than sorry.

Objective: Know How Much You Want to Make and Stop

Trading is like a sport, its taxes our minds, bodies and emotions. Everyday, humans have a limited amount of discipline and willpower. Which is why after a bad day at work, we would rather grab a delicious meal than stick to a weight loss diet.

We all know Binary Options can provide returns of 85% per trade. Let’s say you start with a trading capital of $1,000 and over a series of trades you made $50. This is already a 5% return for the trading session – you should pat yourself on the back and rest for the next day. When we do not have objectives, we end up tiring ourselves and that increases the chances of trading mistakes or emotional trading.

Here is a recent trading example from a client we can learn from, starting with just $1,000 he traded his account up to over $4,000,that’s a whopping 300% return.

Thereafter he got overconfident and greedy, increased his risk per trade to abnormal levels. It only took a few losing streaks to wipe off his gains. The MT4 performance graph above and below are the same account from this trader.

It will be helpful to write down your rules on a notepad so that it keeps your emotions in check. Very often when we have a winning streak we start to deviate from risk management and trade larger investments. When we lose we also try to trade bigger to make up for the loss. These are some common mistakes with emotional trading.

To conclude, include structure, feel and objectives in your binary trading. If you have more helpful tips please comment below so everyone can benefit!