Digital Options Trading Strategy

Successful binary trading and binary options strategies go hand in hand. A trading strategy is a plan on why, when and for how long a trader will take and keep a position. These trading strategies should use derivatives to accomplish initiating risk and are more commonly found in the binary options market. The options market allows a trader to take multiple asset classes to initiate risk for a particular view. The most commonly used binary options strategies are collar, covered call, market conditions, money management, defensive put and straddle.Try them out for yourself and choose the best binary options strategy for your needs, also are you not limited to use just one of These strategies, feel free to combine them for even better trading results!

Collar A collar or a risk reversal is when an investor buys a call and sells a put or vice versa. The main goal of this binary options strategy is to offset the cost of premium for the option that you purchasing by selling another option. If the investor completely offsets the premium from the option purchased, the collar is referred to as a costless collar. A collar is a profitable strategy and benefits the investor in that he does not have to pay out a lot of money on premium and also the risk on implied liability is greatly reduced.

Covered Call A covered call strategy or a call writing binary options strategy is when an investor or trader sells a call option with a view to enhance his portfolio earnings or to mitigate the portfolios risk profile. It is also defined as a call sold on an instrument that is currently owned by the investor. This binary options strategy is used for three main reasons

( 1 ) the investor will benefit by receiving income from the premium of a sold option

( 2 ) a portfolio will be protected from a market falling, and

( 3 ) to mitigate the downside risk of the market. This option also gives the buyer the right, but not the obligation, to buy the undering instrument at a specific price on or before a specific date.

Market Conditions The markets can be trending, range-bound or volatile and evaluating the particular market condition can be the difference between a successful trade and a losing trade. A trending market moves in a one direction over a period of time and the trends are classified as secular ( for long term time frames ), primary ( for mid-term periods ) and secondary trends ( for short-term periods ).

If the financial instrument is trending higher, the market is called a bull market trend and if trending lower, a bear market trend. A range bound market on the other hand is when a financial instruments moves up and down in a narrow range. The range bound market occurs when supply and demand for a financial instrument is equal. A volatile market occurs when a financial market moves quickly in one direction.

Traders look at the VIX (volatility index) to measure if the market is volatile or is going to be volatile. Bull trending markets have low volatility while bear trend markets have high volatility levels. A trader should examine the type of market a financial instrument is currently experiencing to determine the type of position to take.

Money Management The ability to manage risk appropriately is one of the most important tools of successful trading. Money management is a defensive concept that keeps you trading daily. It uses two concepts trade size and stop placement. A stop placement does not address the question of how much capital should be allocated to a position. This strategy allows merchants to form an alternative method to protect their investments.

Protective Put Protective Put allows the investor a full hedging coverage. The investor is protected from a breakeven point down to zero. The buyer has privileges of owning several stock holdings. He can also sell his stock on strike value before its expiration date. In this strategy, the investor is the option buyer.

Straddle This is an investment where the trader buys both a put and a call at the same strike level, with the hopes that the straddle will make up for the premium invested. Overall, investors who are interested to learn about the binary options strategies find it very easy to trade because they can predict if you are right or wrong, when you will have a bull or a bear market and if you can trade multiple times with the same Asset.

What is SSL (the "little padlock")?

SSL ("Secured Socket Layer") is a protocol used to encrypt the communication between the user's browser and the web server. When SSL is active, a "little padlock" appears on the user's browser, usually in the status line at the bottom (at the top for Mac / Safari users.)

This assures the user that sensitive data (such as credit card numbers) can not be viewed by anyone "sniffing" the network connection (which is an increasing risk as more people use wireless networking).

Common web site owner questions about SSL:

How do I get the little padlock on my site?

To get the little padlock, your site must have an SSL Certificate from a Certificate Authority. Once an SSL Certificate has been purchased and installed, it provides three things:

  1. The ability to show a page in "Secure Mode", which encrypts the traffic between the browser and the server, as indicated by the "little padlock" on the user's browser.
  2. A guarantee by the issuing Certificate Authority that the domain name the certificate was issued for is indeed owned by the specific company or individual named in the certificate (visible if the user clicks on the little padlock).
  3. An assurance that the domain name the certificate was issued for is the domain name the user's browser is now on.

Once obtained, the certificate must be installed on the web server by your web host. Since your web host also has to generate an initial cypher key to obtain the certificate, very often they will offer to handle the process of obtaining the certificate for you.

My web host has a "shared certificate" that I can use. Should I?

It's still fairly common for small sites to use a shared certificate from the host. In this circumstance, when a page needs to be shown in secured mode, the user is actually sent to a domain owned by the web host, and then back to the originating domain afterwards.

A few years ago, when SSL Certificates were quite expensive (around $ 400 per year), this was real attractive for new sites just getting their feet wet in e-commerce. Today, with a number of perfectly functional SSL certificates available for under $ 100 (exclusive of installation, etc.), it is a lot less attractive. Since your user can look at the address line of his or her web browser and see that the site asking for the credit card number is not the site he or she thought they were on, the cost savings is probably not worth the risk of scaring off A sale.

What's the difference between the expensive SSL Certificates and the inexpensive ones?

Usually, mostly price. Some expensive certificates have specific functions, such as securing a number of different subdomains simultaneously (a "wildcard" certificate), but the effective differences between basic single site certificates are very slight, despite the wide range of prices:

The encryption mechanism used by all of them is the same, and most use the same key length (which is an indicator of the strength of the encryption) common to most browsers (128 bit).

Some of them ("chained root" certificates) are slightly more of a pain for your web host to install than others ("single root" certificates), but this is pretty much invisible to the site owner.

The amount of actual checking on the ownership of the domain varies wildly among sellers, with some (usually the more expensive) wanting significant documentation (like a D & B number), and others handling it with an automated phone call ("press # 123 if you 'Ve just ordered a certificate ").

Some of them offer massive monetary guarantees as to their security (we'll pay you oodles of dollars if someone cracks this code), but since it's all the same encryption mechanism, if someone comes up with a crack, all e-commerce sites will Be scrambling, and the odds of that vendor actually having enough cash to pay all of its customers their oodel is probably slim.

The fact is that you are buying the certificate to insure the safety of the user's data, and to make the user confident that his or her data is secure. For the vast majority of users, simply having the little padlock show up is all they are looking for. There are exceptions (I have a client in the bank software business, and they feel that their customers (bank officers) are looking for a specific premier name on the SSL certificate, so are happy to continue using the expensive one), but most e -commerce customers do not pick their sellers based on who issued their SSL Certificates.

My advice is to buy the cheaper one.

I have an SSL certificate – why should not I serve all my pages in "Secured" mode?

Because SSL has an overhead – more data is sent with a page that is encrypted than a page that is not. This translates to your site appearing to run slower, particularly for users who are on dial-up or other slow connections. Since this also increases the total amount of data transferred by your site, if your web host charges by transfer volume (or has an overage fee, as most do), this can increase the size of your monthly hosting bill.

The server should go into secure mode when asking a user for financial or other sensitive data (which may well be "name, address and phone number", with today's risk of identity theft), and operate in normal mode otherwise.

Setting Up a Studio for You

With the new Nikon D7100 digital camera, you would expect to be able to turn your hand to almost anything. This versatile and flexible camera is designed to excel in all areas of photography. So, once it is out of the box, many new owners will be rushing to take portraits and still-life images in studio conditions. Obviously, if you can, you should always try to shoot in natural light – particularly if you are shooting portraits. If that is not feasible, the pop up flash can usually provide the necessary fill-in, or you could use you flash gun, carefully placed and fired remotely. In most circumstances these tools will help you to get a decent result. But a time will come when you decide you need more control and at that point you will want a studio set up.

If you are setting up your studio at home, the ideal scenario is to have a room specifically put aside for your photography. It should have plenty of space, a high ceiling and be at least 5 meters long. Paint the walls a color that does not reflect too much – black is ideal, but if you have to share the room, then gray would be OK. Cover the windows with blackout material to ensure that the light can not get in and also cover the doors to prevent further contamination. Ideally you only want to have the light that is under your control to be effecting your images. You will also need a good supply of electrical sockets.

Having closed out all external light sources, you can decide what lighting you want to have in your studio. Lighting falls into two categories – continuous or strobe. Continuous also has two options, either tungsten or fluorescent. Tungsten is very popular for portraititure because it gives good skin tones. It is naturally a ‘warm’ light, both in light and temperature (this can be a problem, if you make your subject sit under them for a long time). You would also want to use tungstens if you were shooting video.

Fluorescent lights have a more sterile white light with a blueish hue. They are often used for stock shots ad still-live photography, because it is felt that the colors are more accurate. Of course, it is up to the photographer to choose which he prefers. White balance, in the D7100′s settings will be able to rectify most light settings, but, as you are in charge of your lighting, it would be better to set the lights so that the subject appears as you want to see it. Relying on in-camera correctives is just another think to try to remember and sooner or later you will be cursing your memory and catching up in Photoshop.

The one great advantage of continuous lighting is that you can actually see how the subject will appear in the picture in real-time. This means that you get the lighting right and can then confidently address other variables like content and composition. With the strobe, you are sometimes not sure if the flash fired or not. In many ways continuous lighting is a lot easier, and I would recommend that you start with this. However, when you need to photograph something or someone and give the impression of movement, or freeze them in action, you will have to use strobe lighting.

Although strokes are more difficult to set up, they give the photographer bit more flexibility. The power of the flash can be increased or reduced to suit the photographer’s needs. This means that the photographer can design his lighting around his shutter speed requirement. Obviously, if the subject is moving and you do not want blur, you will need a fairly fast shutter speed. Once mastered, strobe lights are a great way to get the images you want. However, because they operate on a burst, they sometimes take a while to recharge.

If you start off with a couple of lights, the easiest way to set them up is with the soft box at the front and the spot at the back. The soft box emits a softer more even light that is easier to meter against. The soft box should be 6 feet away from the subject, near the camera. The other light should be at least 3 feet away from the back drop so that it gives an even background. I would advise getting some barn doors for the back light, so that the light does not spread where it is not wanted. Always set your trigger up to the front light and ensure that both lights fire at the same time. Most lighting systems have slaves built into them these days.

I usually begin a shoot on a standard 1/125 at f8 with an ISO set at 200. This gives me enough flexibility to change things around gradually if I need to. Most studio lenses operate comfortably at f8 and the shutter speed will catch most fluid movement. If you find the lighting a bit flat, move the soft box out wide to get some more definition and shadow, but always be aware that more shadow can be very unflattering, particularly if the subject has an angular face or large nose. I always start by getting the standard shots done – the full length, half-length and then move in tighter for head and shoulders or portrait. By the time you want to try something more interesting your model will have relaxed and you will have become more confident in the equipment and you abilities.

How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $ 's, etc., etc., etc. If you are asking this question, congratulations because you are ahead of most. All of us have been there at some point.

I must warn you …. What I am about to share here for free is what "gurus" across the nation charge thousands of dollars for in weekend seminars. The "secrets" disclosed are going to seem pretty simple because quite frankly, there are no secrets. The methods used here have been done for centuries and there is no real reason to complicate them. Let's apply these principles to see how fast someone might become financially independent without betting the farm.

Realize that everyone has wildly different starting points and different financial goals. For this series of articles, we assume that an individual has access to at least $ 15,000 liquid capital (or home equity) to start, is at least breaking even with their current income income expenses, and has decent credit to obtain financing. Note there yet? …. See the footnote below.

To start, what you need is to make your money grow while keeping your current income stream, and current expense level in place. I can not say this more plainly ….. To change your current financial path, you have to us your money and your time to grow additional income streams that increase wealth. There is many ways to do this but we are going to use investing in real estate as an example.

Now for beginners, here is the really bad news …… As an investor, you reap rewards by placing your money in HARMS WAY. You do everything in your power to minimize your risk but bottom line is that real investors make money by taking CONTROLLED risks. As investors get better, they learn how to make fantastic investment returns doing things that all their friends and relatives thing is crazy ….. However, they know exactly what risks are small in comparison to the potential Rewards.

One reason people really like real estate investing is leaseage; Ie, you can purchase an expensive property using 0-20% of your own money while financing the rest. So if you put 10% down for example, and then the property goes up by 20%, you have made a 200% return (ignoring expenses, taxes, etc. for simplicity). Of course this works in reverse … If the property drops by 20%, you have lost not only your original investment but have to come up with another 10% as well ….. Ouch!

For someone beginning, here is what I would suggest:
1) Look for an opportunity that will return at least 150% in 2 yrs or less;

2) Be mentally and financially prepared if the investment does not work out;

3) Have VERY good reasons why you do not think you will lose money …… You may not make as much as expected but you would rather not lose money at this stage.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan.

In our Mastermind Group, we are bringing out a land project (see related article Land Investing that appears to meet these criteria (each investor has to decide for themselves.) So let's say the purchase price is $ 150,000, with 10% down and another $ 3,500 In closing costs. With good credit, then the financing obtained would make the land payments for 2 years while waiting for growth.

Now let's say after you did your analysis, looked at what had happened in the past, looked at why you thought more and more people would want this property, etc., you decide that you think this property will average 20% / Yr escalation over The next 2 years. MORE IMPORTANTLY, you decide that barring a major meltdown in the market, you think there is little chance that you can not at least break even after 2 years.

So if you end up being right about the growth, then you might net a tidy $ 43,000 (before taxes) or so after everything is considered. After long term capital gains at 15% let's say, then you just picked up about $ 36,000 of the "market's money". That is money that if you take a loss on the next investment will not be nearly as painful as if you lost your original money. When you combine this with your original investment amount, you now have around $ 55,000 of operating capital for step 2.

Realistically, you can not predict how much you will make from the investment. When I invest, I try to establish in my mind what is reasonable. Frequently, I have been surprised to the positive and made much more than expected. Sometimes I have made less. The key being put to yourself in a low risk situation where you have a strong reason to believe the market will go in your favor.

To accomplish this first step, let's look at what you really had to do:

1) Had to be willing to put $$ in harm's way;

2) Had to educate yourself enough to evaluate the risk and the opportunity;

3) Had to find the opportunity or be in a position to have the opportunity presented to them;

4) Had to act.

I would like to comment on the education side. As a former professor, I have seen very smart people spend 1,000's of hours and 10,000's of thousands of dollars educating themselves to "earn a living"; This is a great move in many cases. On the other side, I have seen very smart people who want investing to be a major source of income but will not spend any time or any money educating themselves.

To me, this is a recipe for disaster. By the time we finish this series, you will see that with a few simple steps, implemented over time, many people can easily produce more money than their regular job. Tomorrowmore, many people will put 100's of thousands of dollars at risk but know almost nothing about what they are doing. If you chose the path of making your investment dollars grow steadily with time, I hope this does not end up describing you.

** Footnote: If you are not yet at that level, here is what I suggest. First, read Michael Masterson's book called "Automatic Wealth". This is an excellent book on how to quickly change your financial position while staying employed. Next, I would read Van Tharp's new book called "Safe Paths To Financial Freedom". Van uses a very different thought process from many and so adds a great deal of rounding. Like anything else, you will not agree with everything written in these books but they provide some great thought processes. When you have some capital and are cash flow positive, they come back and revisit this article.