Trading binary options is ideal for new traders. You get to trade for real money or open a demo account so you can start out small before getting into any high volatile binary trading. It is crucial that you learn to comprehend and implement various strategies if you want to trade with success.
You can use fundamental analysis and technical analysis to weigh in on your decisions. Whatever facts and trends you think will improve your return of investments you should acknowledge and implement. Another important skill is to be able to spot patterns and be able to act on it fast. If you get to ride a bullish uptrend you can make a lot of money.
When trading binary options you can benefit from stocks going up but also hedge when they go down. Some people might consider that it is immoral to invest in options hoping companies fail but ladies and gentlemen it is just business. If the market is overrating a company and you are able to realize this before the general population why not take advantage of this? It is a free market and you can count on the fact that the next man would not think twice.
To become a successful trader you need to get familiar with candlesticks, trend lines and other key terms used to put together a winning strategy. You can easily learn some basic strategies and improve your results and if you want to take it to a higher level there is always room for studying and educating yourself.
The best traders in the world were not born that way. Becoming successful is a matter of willingness to study and research to gain an edge in the market. You need to work hard and anyone with good work ethics can succeed. The more disciplined you are the better chances you have of playing the market and profiting in the long run.
Binary Options Strategies for Beginners
Binary trading attracts people from all over the world and spheres of life: students, business professionals, nurses, stay at home parents, entrepreneurs. It is hard to resist lucrative offers and trading opportunities provided by binary brokers, as binary options trading is a great way to make some additional income.
In order to trade as profitable as possible, traders must apply certain strategies. There are many strategies, some created especially for binary trading, and others that are present on financial markets for a longer period of time and only adapted to binary trading. Also, there are more and less complicated strategies. No wonder new traders find them hard to understand and distinguish easy ones from complicated ones.
Binary trading must be seen as an investment, rather than mere game, because binary markets as all financial markets have some specific rules and patterns that can help traders make more income. In this article, traders will learn about 5 easy strategies for binary trading.
#1. Diversification Strategy
How the binary options will end, highly depends on the situation on the market, market movements and current prices of assets. By applying a good strategy, traders can easily earn more money on their investments, but strategies also require organized approach and thorough analysis.
All traders must keep in mind that there is not a single strategy that can be applied all the time and in every moment. Also, it is important never to invest all the money at once, which is what diversification strategy is all about. In an ideal situation, traders should always have enough money to make 10 investments, and only invest a smaller amount of money in one trade. This way, it is easy to avoid losing higher amounts at once, and will be able to continue trading even when they make an unprofitable trade.
#2. 5-minute Strategy
This is an easy strategy that will be extremely useful to beginners. It doesn’t require extensive knowledge on binary trading and has a high rate of accuracy. The rate is not 100% but is around 80% which makes it very reliable for beginners. It can be used anytime and on any market, and if used properly, traders will definitely benefit from it.
5-minutes strategy is based on the premise that brokers usually allow entering the position up to 5 minutes before the expiration. In order to trade with this strategy, traders must find such assets on their platform. Then, it is necessary to take a look at those that have a steady going in one direction, either up or down. Traders must also find the maximum value, as this might be a turning point in trend movement. In cases like that, the trend will usually start to move in the opposite direction.
In this case, it is all about applying the right strategy at the right moment. So check out the expiry times, find a trend, find trading opportunity and make your profit!
#3. Martingale Strategy
Martingale is a strategy that is usually perceived as less risky. This makes it perfect for more conservative players who like to take slower, but more secure pace. This strategy is based on doubling up the investment in case the previous one failed. For example, the trader places $100 and loses, so next time he invests $200.
The same strategy can be used even in the case when the trader is winning, but keep in mind to avoid overtrading.
To apply this method properly, traders must first find an asset, let’s say a currency pair, that is clearly moving in a certain direction (up or down). Presuming that the trend won’t change soon, traders can take advantage of stable markets. Traders can also combine this strategy with various tools available with their broker, like market indicators. It is very important to always stay responsible and wait for the right trading moment. Never force trading, but keep the cold head in order to invest properly and profitably.
#4. 15 Minutes Strategy
When using this strategy, traders must follow an asset in 15-minutes timeframe. The chart applied should be in the form of candlesticks, as traders are looking for 3 candles in the same color, and then wait for a rollback. Let’s say that trader notices 3 closed white candles, and then one black candle.
Then, it is recommended to wait two minutes and buy a put option with expiration time at the closing of the current candle. Options can be bought also when there are three candles that make over 15 points. Learn more about candle patterns.
#5. Triangle Strategy
This strategy is somewhat different than the previous ones. It is based on searching for a triangle pattern on the chart before making a trade. Triangle pattern on binary options chart always shows the breakthrough price that is inevitable. There are different types of triangles: rising ones are showing an increase of prices while falling triangles show a decrease of price.
When using triangle binary options trading strategy, traders can trade based on increase and decrease of the price immediately after recognizing the pattern.
In the case of the uptrend, an ascending triangle will form. It can be easily seen if traders draw two lines with points of support and resistance. The resistant line is horizontal, while support line is placed at an angle. In the case of a downtrend, traders must seek a descending triangle. In that case, roles of lines are reversed and support line becomes a horizontal line.
By using these five strategies all beginner traders will be ready and prepared to trade no matter what the market conditions are. After perfecting these strategies, traders will be ready to learn more, and slowly try and research more complicated and advanced strategies.
Dual Stochastic Binary Options Strategy
For the analysis, traders often use the indicator called the Stochastic Oscillator. Often, for convenience, it is also called the Stochastic.
Stochastic is used most often in conjunction with other indicators. This is because the stochastic has small parameters and if you will use only it, you can receive a large number of false signals.
Stochastic with more parameters will show a delayed signal. That is why the stochastic oscillator is most often used to determine the beginning and end of the movement, taking into account the oversold area as well as overbought. For effectively work, besides using stochastic traders use other different indicators. Often traders use in conjunction another supplementing stochastic oscillator.
This is a classic case of the application of Stochastics used in the trading for a long time. The main positive feature of such a strategy – is its simplicity.
Two stochastic used by traders have different settings allow you to define two of the most difficult and necessary moment.
The timing of the option put and call purchasing, that is the point of buy and sell. In order to analyze the situation on the market you need to look at the chart, which displays the time period, such as graphs H4 or D1.
Slow Stochastic with the given parameters (21, 9, 9) is the main indicator. Consequently, the fast stochastic with the given parameters (9, 3, 3) will be secondary.
Of course, the most successful work with stochastic oscillators should observe different rules. When both indicators fast and slow are equally positioned in oversold territory – namely below thirty, the signal for the purchase is formed. In such a case it is necessary to purchase a call binary option. It looks as follows: solid line, painted in blue, crosses the line indicated by a dotted line (slow), rising from the bottom up and entrenched in the position reached. In such a case we would expect the candle to close, which happened on the formation of the signal. If the signal does not disappear, it is possible to implement a buying.
