When you use the right tools, your trading becomes much easier. There are virtually an infinite number of tools out there for you to choose from: ranging from charting packages, to trading robots, to signals services, to technical indicators, and to sentimentality indices. Once you start combining these and mixing and matching things, the sheer number of choices that you now have can be downright overwhelming. And to make things even more complicated, some of these work better than ever.
Your tools are only a means to get your desired ends, remember. For traders, the end goal is to make money, preferably a lot of it. It can be easy to become attached to a certain way of doing things, but if this method is holding you back from making money, then your tools might not be doing their job anymore. Most people are not big fans of change, but if change is needed to help you start making more money, then maybe you need to reconsider which tools you are using.
The Bare Minimum
To be a successful binary options trader, there are a few bare minimum tools that you must have in order to succeed. You need a real time charting package that can measure technical indicators. There are many of these out there, some are free and some are not. Spending money on your tools is not a bad thing if it will help you to make money. Your technical indicators available should be great, but you should not use all of them at once. Instead, you need to find two or three that work well together for measuring the particular asset that you are trading. There’s no specific formula of what works and what doesn’t, unfortunately. You will find that some degree of experience will help you to formulate an opinion here. Also be sure to take the timeframe that you will be trading into account. Different indicators are more helpful for 60 second options than they are one hour options.
You will also need some sort of way to get information on news and other external events. There are market related real time streaming services that you can subscribe to that will help here, or if you know of a top level website that you trust, you may use that. There’s a lot of freedom here to choose, you just need to be informed of the news and have a way to gauge trader sentiment that will follow that news.
Everything else after this is icing on the cake. Binary traders with a focus on the longer term will want access to fundamental information, such as balance sheets for companies, if they focus on stock trading. This is public information, and it’s all available for free online. Press releases, government announcements, and so on are all helpful, too.
Many traders consider using a trading robot or a signals service. Here’s the bottom line on these: they can work, but they’re not for everyone, and many of them do not do what they say they will. These can help you with your trading a lot, but even though they claim that you do not need any trading experience to use them (you don’t), that experience will be helpful because it will allow you to see whether or not the tool is getting you closer to your end goal. If you know that you can earn 10% returns over the course of a month, but your trading robot is only getting you 6%, then even though it’s doing what it says and making you money, your tool is not helping you like it should be.