Binary options trading strategies

Where to start? How to trade Binary Options?

 

Since the main principle of binary options trading is to predict the direction of the asset prices, the trader’s primary task is the correct choice of the underlying asset. If you are an experienced trader and feel comfortable on the financial market, then choosing an asset will hardly be a problem for you – choose the one you are most confident about as this essential choice directly affects your future profit.

For those who just start getting to know what binary trading is I would recommend studying the market first. Carefully follow the financial news and markets behavior for a week or even two, and then choose the assets that behave in the clearest way to you and those which behavior is successfully predicted by the market analytics most of the times.

Before you make any financial prognosis is extremely important to study the market situation, to understand the levers that make the assets prices go up and down. Educated approach is a key to your financial success when trading binary options.

Another very important aspect of binary options trading – choice of the expiry time of the binary option. When trading binary options investor chooses the time by which he thinks his prognosis will be correct. Most common expiry times in binary options trading are: the end of the hour, day, week and a month.

If investor chooses the end of the hour or the end of the day expiry times he becomes an intraday trader. Day trading has number of its advantages and disadvantages. One of the most obvious advantages of the trading is an opportunity to get a fast profit. Nevertheless, if you choose it, you need to remember that if you are aware of the price growth for the certain asset in a long-term perspective it means that by the end of the next hour or even a day the price can still go down even if the upper trend is expected. My personal opinion is that the day trading is much more risky that a trading with expiry time end of the week or end of the month. But of course if you choose last two expiry times in case of the correct prediction you will only get your money in the end of the week or in the end of the month, which makes it a little bit less exciting than getting 75% return in 1 hour.

And last, but definitely not the least advice from a personal experience: until you feel comfortable on a binary options market don’t risk big amounts of money. Once you feel confident in what you are doing and know enough information only then move forward and gradually increase your investments as the logic is simple: the higher investment is the higher the payout is.

Successful trades to you all!

On the page For beginners you can read detailed information about how the binary option trading process goes and what are the steps that you need to do in order to start trading binary options.

 

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