In order to trade the binary options market properly, there are certain trading tools that a trader needs to acquire. Some of these tools are free, while others must be purchased commercially.
The purpose of acquiring these trading tools is to improve the trading process and try to make as much money as possible from the market. In this article, we will introduce you to the 18 best trading tools for binary options success.
Here is an overview of the 18 best Binary Trading Tools which are essential instruments for binary options traders:
- Chart Pattern Detection Instruments
- The autopivot calculator
- Demo Accounts
- Chart Pattern Recognition Tools
- Extend, also known as rollover
- Early close feature
- Double up feature
- Open charting platform
- Market analysis on a daily and monthly basis
- The financial calendar
- Trading signals
- Resources for learning
- One-on-one coaching
- Binary Options Martingale Calculator
- Binary Options Money Management Calculator
- Binary Options Profit Calculator
Now that you have a good overview, we will look at all these tools and their benefits in detail.
Below is an overview of the most important tools and instruments for binary options trading:
1 – Chart Pattern Detection Instruments
One of the essential trading tools for any binary options trader is a chart pattern detection tool, which helps the trader to analyze chart patterns correctly. Many forms of binary options trading rely on predicting the direction of the asset, and patterns are a good indicator of this. Will the price of an asset rise or fall after a period of consolidation, or will the trend continue or reverse completely? This information is available to the trader at little cost through various chart patterns.
Instead of putting traders under unnecessary pressure by requiring them to spend hours studying and memorizing chart patterns, tools are available that can instantly spot these patterns. There’s more to come. The strength and longevity of these patterns and the time frame charts on which they appear may be predicted by some of these methods, providing a foundation for expiry determination.
Trading tools like these are available on the market. For example, there’s Autochartist, Schwab StreetSmart Edge Pattern Recognition Software, and other similar programs from TradeKing-Recognia.
2 – The autopivot calculator
The Autopivot Calculator is a free tool, but its value is immeasurable, as it automatically identifies and recalculates the three primary levels of support and resistance each trading day. It presents these levels in a clear, colour-coded format, eliminating any potential confusion regarding their positions.
In the world of trading, the importance of accurate support and resistance levels cannot be overstated. These critical benchmarks can determine the future direction of asset prices. Yet, despite their importance, many traders overlook a valuable tool designed to pinpoint these levels: the autopivot calculator.
Whether you’re involved in range trading, breakout trading or a simple up/down trade, understanding these levels is paramount. Many traders only realise their importance when these levels disrupt their trades. By incorporating the Auto Pivot Calculator into your trading strategy, you can get ahead of these challenges.
Given that this tool is both free and widely available online, there’s no justification for its omission from your trading toolkit. Not only does it plot the three key support and resistance points, it also updates them daily. This ensures clarity and precision in your trading decisions, allowing you to navigate the market with greater confidence.
3 – Charts
Interactive charts provide a visual representation of market movements, allowing traders to identify patterns, trends and potential opportunities. Without having various types of charts available, traders are left to navigate the turbulent waters of the market by intuition alone, which is akin to flying blind.
Surprisingly, many binary options brokers don’t offer good charting functions, leaving their traders at a significant disadvantage. However, there’s a solution. Platforms such as MT4 give you access to a wide range of assets commonly traded in the binary options market. By signing up with an MT4 broker, traders can take advantage of these interactive charts for free.
A prime example of a platform that understands the importance of comprehensive charting is Quotex. This binary options broker offers charts for a wide range of assets, from stock indices and commodities such as gold and silver, to individual stocks and currencies. With Quotex, traders can be sure that whatever asset they choose in the binary options market, there’s a detailed chart to guide their decisions.
4 – Demo Accounts
It is impossible to overstate the usefulness of binary options demo accounts. If a trader can’t make all the mistakes he needs to make, he’ll never learn how to trade the market as Thomas Edison did. Obtaining a free binary options sample account is, ironically, tough. Binary options brokers either don’t have it at all, or if they do, they either limit its ownership or only provide it to traders who deposit money into a live account.
Quotex is one binary options broker that stands out for providing unlimited, non-obligatory demo accounts. If you cannot locate any other sample accounts, please open a demo account with this broker and test your trading strategies there.
These four tools are the best a binary options trader can have, yet they are not the only ones used.
5 – Chart Pattern Recognition Tools
Chart pattern recognition tools are one of the most important trading tools that every binary options trader must have, as they help to show the direction of the asset. Success in several types of trading in the binary options market depends on being able to define the direction of the asset, and chart patterns show exactly that. Will the price of an asset go up or down, will it continue a previous trend after a period of consolidation, or will it reverse completely? There are several chart patterns that can put all of this information into the trader’s hands very cheaply.
Now, instead of stressing the trader by requiring him or her to go learn and cram the chart patterns, there are tools that can help traders to identify chart patterns in an instant. It does not end there. Some of these tools are able to predict the strength and duration of these patterns and also identify the time frame charts on which they form, providing a basis for expiry determination.
There are several of these trading tools on the market. Some of them are Autochartist, Schwab StreetSmart Edge Pattern Recognition Software, and similar software from TradeKing-Recognia.
Some brokers offer simply a few trading options or none at all. Others may provide you with various tools that allow you to take greater control of your trades. I recently spoke with a representative from a binary options website who said that very few of their customers used the tools they provided.
Those who used them were more likely to succeed, whereas those who did not were more likely to fail. Other great tools for trading binary options can be found here.
Check with your broker to see whether they have them.
6 – Extend, also known as rollover
The extend / rollover feature allows you to alter the expiration date of your deal and can extend your position beyond the original expiration time. It’s a terrific option if you’re looking to ride out your gains for as long as possible. There are times when it makes sense to stay in your trade and take advantage of all the opportunities that present themselves. In the end, the most dangerous and challenging portion has been completed.
7 – Early close feature
The Early Close feature is best used towards the end of the night as it allows you to exit a position before it expires. Basically, you can’t go wrong with this broker’s tool. Close a losing trade before you lose all your money. You can also do this if you’re trying to get out of a profitable trade that you think is going in the wrong direction. It is possible to make a small profit or even break even instead of losing money. In some cases, Take Profit and Stop Loss can symbolize an Early Close.
8 – Double up feature
The double-up feature allows you to increase your current investment in a particular position twofold. Keep in mind that you could lose and win twice as much if you’re not careful, so utilize it only when you’re sure that you’re making the right decision. Your self-esteem needs to be bolstered for a good purpose. For example, your trade may have crossed through and retraced off crucial support or resistance levels. Make sure to use a good double-up strategy for binary options trading!
9 – Open charting platform
An open platform will help you perform the technical analysis contained in this updated chart. Some brokers offer this feature to give you a complete picture of the circumstances of the trade.
However, I strongly advise you to get your hands on high-end charting software. Most of the charts on binary options websites marketed as “Open Platform” or “Chart Plus” are unsuitable for professional trading.
10 – Auto-trading
The auto-trading robot tool allows you to place trades automatically. As a result, you can leave the platform and let the software do all the work for you. If you don’t have a compelling reason to use auto-trading (and I can’t think of one), I advise against it. As a general rule, auto-trading is a losing strategy. For the best outcomes, keep an active hand in your trade.
11 – Market analysis on a daily and monthly basis
Daily and monthly market analysis is a summary of the most important financial news. Traders who use fundamental analysis will love this binary options tool. It allows those who use price action strategies to monitor reports as a reference point, but are often unlikely to make actual trades based on them. Use this to your advantage and give this tool a try.
12 – The financial calendar
An economic calendar or financial calendar can help you keep track of when governments around the world release important information. Here, the most volatile news tends to come from the United States. The calendar can also tell you when important speeches, such as the State of the Union, are scheduled to be delivered.
Markets can be affected by financial reports, speeches and other events. Use this tool to prepare entries if you trade accounts, or avoid report times if you don’t. Find out which reports are most likely to be profitable.
13 – Trading signals
Trading signals act like lighthouses, pointing the way to informed trading decisions and are therefore good binary options trading tools because they are not influenced by your own emotions. They are usually based on either technical or fundamental analysis and can be obtained directly from the trading platform or from external providers.
But beware: the market is full of fraudulent signal providers trying to lure unsuspecting traders into expensive subscription programs, so be careful where you are getting your signals from and ideally learn the trading strategies yourself so that you are able to generate your own binary options trading signals.
14 – Resources for learning
Large account customers may be offered a variety of educational resources such as eBooks, trading videos, webinars, and weekly training sessions, which help you to learn more about binary options trading. Don’t forget to do your research before using free trading materials. There are many more free resources available than those provided by your broker. Learn as much as you can about the market and how it works.
15 – One-on-one coaching
One-on-one coaching is one of the best tools a trader can have, helping you get expert knowledge quickly and tailored to your individual needs. Some brokers offer this service as an additional benefit. In the same way that trade signal services, free methods and other resources can be incorporated into your trading strategy and plan, one-on-one instruction should also be used.
It’s best not to use anything that doesn’t match the method you’re working on or the understanding you’ve gained. All financial experts are not created equal, and even the best can’t help everyone. Even the best advice for one trader can be completely meaningless to another. As much as your mentor’s knowledge is important, it’s how you trade that matters. Every student has different needs and not every mentor is a good fit for everyone.
16 – Binary Options Martingale Calculator
Our Binary Options Martingale Calculator is designed to help you determine the ideal amount to invest, especially when recovering from a setback. This tool is specialized for binary traders that use the Martingale strategy and allows you to enter the number of trades and profits associated with your broker. Within a few seconds, you will get a detailed breakdown of the necessary martingale steps based on your input.
Did you know that the attraction of a martingale approach can come with unwavering risk? This is why the intent of our estimator includes supporting risk management to make informed decisions about this critical factor in trading practice.
17 – Binary Options Money Management Calculator
Our Binary Options Money Management Calculator aims to help you determine the correct investment amount for each of your trades so that you can take your money management to the next level. By entering details such as account balance and risk percentage, this smart tool will output the optimal trade amount suitable for a single binary options transaction, tailored just for you.
Whether you are an adventurous or cautious trader by nature, you can customize our Money Management calculator to suit your unique needs within your next binary options maneuvers.
18 – Binary Options Profit Calculator
Finally, to help you keep track of your profits and losses, we introduce our Binary Options Profit Calculator, which allows you to enter your investment amount, your broker’s return and the number of winning and losing trades, to instantly calculate either total profits or losses for you.
With this data at your fingertips, like a digital ledger, it will help you eliminate miscalculations and track your overall trading performance more efficiently, whether you are new on deck or already routinely exploring the high seas of the trading market! It can certainly be a real ally when it comes to making informed decisions on time-sensitive horizons. Try our tool out – you will not regret it.
By taking advantage of binary options trading, you can earn a steady, predictable income. Avoid putting too much faith in random events. You can take control of your trading and your finances with the help of these trading tools (with the exception of auto-trading, which I recommend you avoid). If you don’t, these tools will be used to your detriment.
Conclusion – Use some of the best binary options tools!
Binary options trading is a great way to make money, but only if you apply these top tools. With the proper trading technique for your needs, you may easily make money. An investor looking to make a quick buck in the market might consider binary options as a viable choice. It allows you to trade a variety of various assets. Your earnings might even be increased with the help of a reputable and trustworthy broker.
To get the most out of your trading account, you should use these tools to their fullest potential (and lose a lot less, equally important). Write out how you want to use these tools in your trading strategy and test any changes to your system before implementing them.
Other important tools for Binary Options trading:
Frequently Asked Questions (FAQ) about binary options tools
What are the essential trading tools for a binary options trader?
Essential trading tools for a binary options trader include chart pattern recognition tools, the auto-pivot calculator, interactive charts, and demo accounts. These tools help you to predict asset direction, as well as identify key levels of support and resistance, conduct technical analysis, and practice trading strategies without risking real money.
Why are chart pattern recognition tools important for binary options trading?
Chart pattern recognition tools help you as a trader to determine the direction of an asset. As you probably know, all binary options trades rely on predicting the asset’s direction. The chart patterns provide a clear indicator of this. Tools like Autochartist and Schwab StreetSmart Edge Pattern Recognition Software can instantly spot these patterns, predict their strength and duration.
How can a demo account tool benefit binary options traders?
Demo accounts are invaluable for binary options traders as they allow them to practice strategies and make mistakes without risking real money. It provides a platform for traders to learn and refine their trading techniques. While obtaining a non-obligatory binary options demo account can be challenging, brokers like Quotex offer unlimited, non-obligatory demo accounts for practice.
What are some advanced tools available for binary options trading?
Advanced tools for binary options trading include features like e.g. Extend (rollover). It allows extending the position beyond the original expiration time. Another one is Early Closure, which permits exiting a position before expiration. The Reversal doubles the current investment. There is Open Platform for enhanced charting. There are also: Auto-trading; Daily and Monthly Market Analysis; the Financial Calendar; Trading Signals; Learning Resources; and One-on-One Instruction. These tools, when used correctly, can enhance trading strategies and increase the potential for profits.