How To Trade Binary Options With CloseOption
The Trend Following and News Following strategies are the best choice for binary options trading beginners with CloseOption.
Binary options trading is intriguing and challenging, and mastering the art involves understanding and implementing efficient strategies. This article delves into CloseOption, a binary options platform, highlighting various strategies that traders, both novice and experienced, can employ. Whether you're just stepping into this trading arena or seeking to enhance your existing knowledge, understanding these strategies is pivotal to maximizing returns and minimizing risks.
What is a CloseOption strategy?
A CloseOption strategy is a blueprint that guides traders on approaching binary options trading on the platform. It's a pre-defined set of rules that informs a trader on what asset to trade, when, and how to trade. Following a strategy adds a systematic approach to trading and enhances decision-making, potentially leading to more profitable outcomes.
Top CloseOption strategies
The Trend Following Strategy
Widely favored in binary options trading, the Trend Following Strategy capitalizes on recognizing prevailing market trends. If the market rises, traders are guided towards a 'Call' option, whereas a downward trend suggests a 'Put' option. Particularly favored by beginners, this strategy is applauded for its simplicity and direct approach.
Following the News
With markets susceptible to the latest news, the Following News Strategy emphasizes staying abreast with contemporary events. This includes monitoring economic changes, company news, and geopolitical occurrences, aiding traders in forecasting market movements, making calculated choices, and securing rewarding trades.
Fundamental Analysis
The crux of the Fundamental Analysis lies in grasping an asset's worth. By evaluating diverse economic, financial, and other pertinent indicators, traders can discern if an asset stands overpriced or underpriced. This deep comprehension propels traders towards enlightened decision-making.
The Hedging Strategy
Flourishing amid market volatility nvolves initiating an opposite position to the primary one. For example, a waning “Call” option can be balanced by a subsequent “Put” option, preserving the trader from potential losses.
The Straddle Strategy
Designed around the essence of risk curtailment, the Hedging Strategy the Straddle Strategy encourages traders to lay both “Call” and “Put” options on an identical asset. This setup ensures profits from substantial price oscillations, irrespective of the price's ultimate direction
The Pinocchio Strategy
The Pinocchio Strategy draws its essence from 'Pin' bars or candles, marked by a petite body and elongated wick. Such configurations typically indicate looming price reversals, giving traders a golden opportunity to capitalize on these market alterations.
The Strategy of Using Candlesticks
Candlestick configurations are teeming with insights. By employing the Strategy of Using Candlesticks , traders delve into these patterns to predict imminent price trajectories. Deciphering these patterns, whether hinting at trend continuations or reversals, becomes an invaluable skill set for traders.
Which is the best binary strategy for beginners?
The Trend Following and News Following strategies emerge as top picks for newcomers to binary options trading. Both strategies are user-friendly and straightforward, making them perfect for beginners. The Trend Following strategy systematically tracks market momentum, while the News Following strategy emphasizes staying updated with major economic and global events. As beginners familiarize themselves with these strategies, they can build a solid foundation, gradually leading them to create customized trading approaches. CloseOption offers a binary option no-deposit bonus of $20 for a Live account and is participating in a demo contest, offering $3,000 for the winner.
Expert tips to improve your binary trading
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Have a trading plan. Design a clear trading plan detailing your goals, assets, and strategies.
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Choose your strategy: Stick to a chosen strategy to improve success chances.
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Risk management measures. Utilize tools such as stop-losses and take-profit levels
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Patience is key: Awaiting the right opportunities is crucial; impulsive decisions often lead to losses.
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Diversify your portfolio. Spread investments across various assets to minimize risks.
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Regular performance reviews. Periodically assess your trading approach based on past performances.
Is binary trading risky?
Indeed, binary trading possesses inherent risks due to the unpredictable nature of financial markets. However, traders can substantially mitigate these risks by adhering to a systematic trading strategy and robust risk management techniques. By continuously updating one's knowledge and closely monitoring market news, traders can improve their chances of achieving consistent profitability.
Expert Opinion
Having a clear strategy is crucial when trading on any platform like CloseOption. My recommendation would be to start with the Trend Following strategy. Its simplicity makes it a low-risk way to get your feet wet and gain experience following market movements. Pay close attention to identifying clear uptrends and downtrends on charts of different timeframes. Make note of how past trends have developed so you can spot the earliest signs of a continuation.
Once you feel comfortable with Trend Following, adding the News Trading strategy is a good next step. Watch for economic reports, company earnings, and other market-moving events. Having a sense of how certain news could impact the markets will help you place trades in the right direction. Don't forget that major political developments can also sway prices significantly.
Whichever strategy you use, sound risk management is essential. Consider starting with a smaller position size until you get the hang of things. And don't chase losses by overtrading - give each trade room to play out. Staying disciplined will serve you much better in the long run.
In my view, binary options are best suited for experienced traders who understand market dynamics and have refined their own strategy over time. For beginners, demo account is highly recommended for practice before trading real money.
FAQ
What is the most effective options strategy?
The top three options trading strategies are selling covered calls, purchasing DITM LEAPS, and selling cash-secured puts.
Which option selling strategy is most profitable?
The Call Ratio Backspread, involving selling calls and buying in-the-money calls, is considered the most profitable option selling strategy.
What is the most powerful trading strategy?
The Buy and Hold strategy is often regarded as the most powerful trading strategy.
Which strategy is most profitable?
In Forex trading, three notably profitable strategies are the Scalping strategy “Bali,” the Candlestick strategy “Fight the tiger,” and the "Profit Parabolic" strategy based on a Moving Average.
Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).