Basic drawings by a binary options trading artist

Alternating Gradient Pyramid - Binary Options Art

One of the side perks of being a binary options trader (aside from the money) is that you have a magical sweet spot of about 20-30 minutes during each trade where you need to be near the computer, but not actively on it. The ideal scenario during this time is to simply draw it away.

These following images where created by a person in the throws of binary options trading. Some of the imagery is rather bizarre and not really related to binary options trading, or perhaps it is.

Brain Synapses Of A Binary Options Trader.

One aspect that many people don't realize, artist have a hard time getting started on their works, and also continuing it till completion. By involving art in the process of binary options trading, no only is the artist trading binary options better, they are also drawing more, which evolves any artist to be better. Rather than focusing on their lack of recent artistic activity and lamenting the days when they could trade, instead they are exercising their artist skills while making good use of their time.

Down to the basics - binary option basics

I know that I have spent much time blogging here with tips and quips for trading binary options in a better and more uniform fashion, but I have gotten some letters from readers recently that show me that perhaps I need to explain what binary options are in greater detail, before I get into the nitty gritty of how to squeeze out more profits.

Binary options are trades which are made using the Black-Scholes formula and they basically let you invest on a very "Yes, No or Not Sure" type of decision making basis. For example on a high/low binary option, you have the choice if an asset will go up or down at the closing time 15 minute away, or you can simply not place any position. This binary aspect of the trading is what makes these options so unique. To properly learn how to trade binary options, you should just create an account and place bets of small money till you fully understand how the system works.

The Black-Scholes Flaw

Maze of Binary Options Choices

The Black-Scholes Valuation formula is unique in it's regard to how it calculates binary options for trading. It has several assumptions that are programed into the model and there-in lies the problem. One of the primary assumptions for the Black-Scholes model for trading binary options is that there is access to risk-free capital. For many years this simply meant that gov't bonds were needed to secure risk free lending for this portion of the formula. As of around August 2011, the US credit rating was lowered from AAA to AA+ - this lowering of the credit rating effect binary options in that now rather than borrowing at a risk free interest rate, they have to pay the higher interest rate of less-safe bonds. The trading of binary options goes on and functions as usual, but rather than using US bonds, they are using German, or European instruments.

Binary Options Trading Art - Maze of Fun Funnel

Fun Funnel Maze - Binary Trading Artwork

Maze of a funnel system, sort of like a pinched bulls eye. Made this while at the same time trading binary options online and utilizing my creative abilities to remain calm during busy trading periods. I think this little tip is one of the best ways to improve your game while trading binary options

A few people I have recommended this to have come back to me with questions about what to draw and how to better draw. While I do have some tips on that matter, they are missing the point. Its best to just draw what you enjoy so that you can remove some focus from the binary options trading, but don't over focus on the drawing as it can serve as too much of a distraction when you look at it that way.

Thanks to this source for the binary options trading art

Understand what are binary options.

There is an awful lot of information floating around the internet of tips for trading binary options. The thing is that while the information offered on such sites is accurate and true, it has to be used in conjunction with existing knowledge and experience with binary options trading, or the tips are not of much use.

To help you better use such tips for the next time you are trading binary options, you need to understand what is a binary option. We first need to take a step back and understand what is going on inside the computer's brain when you trade options on a binary platform.

The first thing to realize is that the system assumes that the market is frictionless and fractional, meaning they can buy and sell stocks with no commission, and that you don't have to buy an entire share, but rather a fractional amount of a share. These aspects are part of the Black-Scholes valuation formula and are the basis for trading binary options

Another aspect required by the Black-Scholes model is that it requires a risk-free ability to borrow money, meaning that there is no risk of loosing it, such as depositing it in a bank, and if the money is somehow lost it is insured etc, etc.

Cheat-Sheet for the Black-Scholes Valuation Formula

You don't need to know the algebra for the Black-Scholes valuation formula to make money from it, but you do need to understand it so that you don't make mistakes that cost you money. This blog-cheat-sheet will help you understand the basics for Black-Scholes, specifically the details needed to trade binary options.

First of all, the basics: Black-Scholes is a Nobel Prize winning formula that was created by Fischer Black and Myron Scholes - two very intelligent economists from MIT and Harvard. Fischer Black and Myron Scholes worked together at to create the formula after first working on the famous Capital Asset Pricing Model (CAPM), which was proven to not be as accurate for certain investments. They worked on the kinks and problems of the formula with Robert Merton for nearly 3-years from 1968 to 1971 eventually coming up with the Black-Scholes model which was eventually used to establish an investment fund that at first made some reasonable gains, but then lost nearly all of its value at a staggering loss of over $4,000,000,000 for investors. Since then it is not longer considered a long position investment and is primarily used by day-trader dealing in binary options.

Now you know, and the more you know, the better you will trade, so keep on reading.

Where to get more info on binary options trading history and background:

Fischer BlackCo-Founder of Binary Options Formula

As a seasoned trader of binary options, I often get asked about tips and recommendations. The problem is that I can't answer such a question with a simple answer, however, I can say with certainty that if you educate yourself on the matter, you will see stronger profits when you trade and you'll understand what you are clicking rather than just pressing buttons and hoping for the best,

The first order of business is that you should learn the history of binary options trading as well as familiarize yourself with the Black-Scholes binary options valuation formula.

Once you have mastered this information, then you'll be better equipped to read the graphs and understand which binary option trades are good trades and which ones are riskier. Such information is way more important than the short term "which stock is good" or "which way is the market headed" questions, who's answers have an expiration date of RIGHT NOW.