In this article, we aim to find the best books on binary options, and recommend the trading books that we believe are the best on the subject. Whether you are a beginner looking for the basics, or an advanced trader looking for an in-depth strategy, we have a book for you.
The binary options sector has at times attracted a lot of misinformation online, fortunately the problem has not blown the printed word in the same way. Most books written on the subject are honest and describe binaries accurately. There are of course some books that are better than others, and below we highlight the books that we think are best for traders at certain points in their trading journey.
Suggested reading
Binary Options: Fixed Edge Financial Betting – Hamish Raw
Hamish Raw is perhaps the leading writer on this subject. This book was written some time ago when binaries were first made available, but is still one of the clearest explanations of how binaries work in practice.
In this book, the simplicity of binaries is one of their greatest strengths; From the start, he is keen to show that anyone who bets on a sporting event with fixed odds, such as a football match or horse race, is exercising a binary option – albeit under a different name. The premise then is that binaries provide an easy-to-understand way of putting market knowledge to work – in a limited risk milieu.
From here the author then explores the range of ‘bets’ (or trade types) that can be made and the meaning of ‘the Greeks’ – ie time, volatility and price – which ultimately drive the value of the bet.
Without writing binary options off as just a ‘bet’, this book simply uses the easier to understand ‘fixed odds’ process to speculate on the outcome in a relatively simple way and demonstrate how these ‘digital’ financial instruments work in practice.
Binary Options Unmasked – Anna Coulling
For those just hearing about binaries and considering exploring the subject further, this book is well worth a look.
“ Are Binary Options for Me? ‘:’ A simple question, but as mentioned above, with large amounts of inaccurate claims, ‘make money’ online headlines and misleading statements online about the risks associated with this form of trading, it can be difficult to answer.
Written from an open-minded perspective – but with a critical eye, Anna Coulling’s book offers a “balanced and considered view” of the sector. It offers early stage advice on how to use digital options and then gives some basic trading strategies. The book is also very good at pointing out the “traps for the unaware”: the various tricks dishonest operators use to trap novice traders under false pretenses.
In general, the view is that binary options as a concept are full-fledged trading tools, but they can also result in quick losses if they are not understood or used incorrectly. This book will help readers stay on the right path.
Generate Daily Income From Financial Markets: A Beginners Complete Blueprint Of Binary Options Trading – Sid Bhattacharjee
Aimed at beginners, this book offers a personal and pragmatic view of binaries as a trading tool.
It contains information about the different markets that can be traded, and also contains sections on how to get into the right frame of mind for trading. One important topic, or trading tool provided, is the ‘4-week plan of action’ for new traders. It offers advice on choosing a platform, advocates for a trial run or a demo account before trading with real cash.
Cards for candlesticks for dummies Russell Rhoads
This hugely popular series of books provides an excellent ‘entry level’ introduction to almost every topic imaginable. Many readers have come across For Dummies books in the past. With simple texts broken down into bite-sized chunks and plenty of diagrams, this series of manuals always delivers.
In addition to this topic, there are others in the series that will help. These include technical analysis for dummies and currency trading for dummies. Dedicated exclusively to candlestick charts, this volume is a good read for anyone who may struggle to make use of the specific area of analysis.
Candlesticks are an information-dense, very useful way of identifying trends, providing traders with details on the opening and closing prices, highs and lows, and overall range – often over very short time frames. This is a key element of the knowledge base of any trader – especially binary traders.
This guide explains how a candlestick chart is constructed and how to read it. It shows how to look at bullish and bearish markets, how to avoid false signals and where to combine these indicators with a variety of others. Our Charts page also explains the basics of candlestick charts.
Understanding Business News: How to Interpret Stock Market Announcements – Rodney Hobson
Almost all the best binary options trading platforms will offer alerts, so market news is posted directly on user platforms. These updates may include news regarding specific companies, perhaps annual results, share buying activity, mergers and earnings announcements.
For those who may not be familiar with how markets and businesses work, it is easy to label this type of data as ‘noise’. Still, these regular reports and formal announcements can serve as great signals for binary options trading; not least because stronger or weaker than expected numbers of these corporations can in themselves cause large declines or gains in asset prices. Some may even exceed their direct share price, and this affects commodity or forex prices. As an example, the Google tax issue with Ireland had ramifications in all kinds of sectors.
So how can traders ensure they make sense of these events? The book provides a thorough foundation. Although the main points apply to UK companies listed on the London Stock Exchange, the broad principles will apply to global stocks across indices around the world.
The book provides background on how, when and why companies are legally required to release certain data. It will then go on to provide an overview of all the routine disclosures expected of companies. It also provides a jargon buster which is very useful. Obviously, the book shows you what kinds of announcements are likely to affect the stock price – and in what direction.
These books deal with binaries and digital trading in an open, honest and transparent way. If a book gives a quick ‘get rich quick’ marketing or a suggestion that binary trading is an easy route to profit – give it a miss. Binaries are a form of trading just like any other; they must learn and understand. Hopefully, our recommended books can help our visitors do just that.
Binary trading e-books
eBooks, like some of the online marketing, are inundated with misinformation. Although several brokers have written particularly good, informative e-books, they are mostly written for users of a specific platform. This is more of a ‘How to’ guide than a general look at the subject.
So there aren’t too many independently written ebooks that offer an unbiased view of the industry. When looking at strategy, shorter e-books become very useful, but as an introduction to binary options as a whole, they generally fall below the level of published books.
We therefore recommend that those who wish to learn the subject look for ‘real’ books, or download electronic versions of the recommended titles above, rather than searching the web for e-books. If we find an e-book of sufficient quality, we will of course publish it here.