Best binary options trading strategies
Best binary options trading strategies for beginners:
Trend intraday strategy with Alligator and RSI indicators.
Intraday scalping on turbo options inside the channel with Bollinger Bands.
Trading on fundamental analysis.
Trading on simultaneous signals from oscillators RSI, CCI, stochastics.
No one can sit in front of their screens and monitor the markets and trading trends 24/7. To make trading easy and time-efficient, this article by TU will teach you about the best binary options trading strategy. There is no one strategy that is right for everyone. You can find out which is best for you by reading this article.
Start trading Binary Options right now with Pocket Options!Binary options strategy | Explained
Binary options reduce all trades to "yes" or "no" decisions. The parties involved make predictions about whether an item will cost more or less at a particular time. You either earn or lose the money you have invested; there is no other option. This is why it is called a "binary" strategy.
You should know that you do not own any assets through binary options. Because contracts often expire every hour, binary options trading can also be used for short-term strategies.
It is imperative to have a binary options strategy, especially for beginners. This is because, since it is a very volatile market, it is essential to have guidance and procedures to protect yourself from losses. Using tried and tested strategies are vital to earning a maximum return.
Are binary options good for beginners?
As a beginner you can trade with a demo account without any risk, and this allows you to learn about market volatility and risk. Additionally, demo accounts are free, so there is really no reason not to use one to improve your skills. In addition, binary options allow you to start trading on a real account with a minimum deposit of as little as $10, with a minimum bet of $1. At the same time, you should take into account that up to 90% of newcomers to this market lose money.
Best binary options strategies for beginners
A wrong prediction can cost you your savings. So, here is a list of ways to use binary options to lower the risk and increase the return. Despite being tried and tested, these strategies do not guarantee a 100% profit. When you invest in binary options, you should only invest what you can afford to lose because there is a higher risk involved. Some strategies might work for you while others might not, so you must test them through trial and error.
1. Follow the trends
Following the trends is the most common strategy employed by most traders. It is about tracking the price trends of the asset you are interested in trading. This is because asset prices are associated with the trends in the market. Even though it looks like one of the most accessible strategies, it is not as straightforward as you think. This is because the prices move in a "zig-zag" pattern instead of the usual up or down pattern. Usually, a flat line means you should move on to another asset, while a rising line means prices are going up, so you should keep the asset. It is one of the safest strategies and does not give as much return as riskier trades.
2. Follow the news
This is usually a good fit for your first plan. If you keep up with the news about your asset, you can figure out how it will trade. Following the news is a lot easier than doing technical analysis, so it's great for traders who are just starting out. After you choose your asset, look at the news online, on TV, on the radio, and in the newspaper. Follow tech companies and you'll be able to tell when they're about to make an announcement. If a company is about to release a new product, you can buy options and wait for the profits to come in once the product is released.
3. The straddle strategy
Along with the news strategy, the straddle strategy is also used. Straddle trades should be made before that important announcement we talked about in the last section. After the announcement, the price of that asset might go up for a short time, but you'll need to buy an option that predicts the price will go down again. Once that price starts to go down, you'll have to call a different option and hope the price goes back up. Basically, you use trend swings to make money no matter how much the price of the options you choose changes.
4. The Pinocchio strategy
This strategy is a lot like the last one because a trader has to bet against the trend. If the price of an asset has been going up, the trader should buy an option with the hope that the price will go down. Keeping this in mind, the trader should choose an option based on the expectation that the price of the asset will go up if it is in a downward trend. Check your candlestick chart to see if the market is bearish or bullish at the time. This is shown by whether the candle is light or dark. If the wick is going down, you should buy a call option. If the wick is pointing up, you should instead buy a put option.
5. The 60-Second strategy
The 60-second strategy is focused on trading binary options with a one-minute expiration. All you need to do is a technical analysis to figure out what prices will be at the time the binary option expires. This is a good strategy because more trades can be made when the expiration is less than a minute than when it is an hour or longer. Also, this strategy is easy for people who are just starting to use it.
The prices should stay between the support and resistance levels, and this is the only strategy that can be used. This strategy can work when prices are less likely to change quickly. With this plan, you can make money quickly, but you can also lose money quickly. This risk can be lessened in part through technical analysis.
6. The 5-Minute strategy
The 5-minute expiration trading strategy is another one that is very popular among people who invest in binary options. Trades with a 5-minute expiration date still have the same amount of volatility as trades with a 60-second expiration date, but the overall trend is more clear, which makes your predictions more reliable. The 5-minute binary options strategy, like 60-second techniques, depends on technical indicators, particularly candlestick charts. You should look at them every minute to get the most accurate information.
7. The Hedging strategy
The hedging strategy for binary options, also called "pairing”, is to buy and sell the same asset at the same time. By "playing both sides," a trader can keep losses to a minimum because they will win something no matter what. This strategy comes from betting, where you "cover" possible losses by putting money on both teams. With this strategy, traders can get rid of many of the risky and uncertain parts of trading binary options. Also with this method, it's important to figure out how much profit you'll have at expiration in each case so that you don't lose money. This isn't always possible; it depends on the bid and ask prices and the payout percentages for each broker. If you are interested How use price action to trade binary options read the Traders Union article.
How to start trading binary options for. beginners?
There are multiple steps involved in the trading of binary options. You can read them below to make the trading process easier for yourself.
Step 1: Educate yourself about binary options
You can't successfully invest in anything without understanding the process of how to make money from using it. Trading binary options might look easy, but many people lose money if they step into it without thinking about it properly. There are multiple binary options. Therefore, it is vital to learn about several of them.
Step 2: Predict the market trends
Once you know the binary options that exist, you should make predictions about those binary options. These predictions include predicting whether the prices will increase or fall.
Step 3: Pick the market
The next step is to decide which market you want to trade in. This involves looking for a market with opportunities that align with your trading plan. Moreover, such markets should also engage your interest.
Step 4: Select a broker
Once you have decided upon the market, you need to look for an online binary options broker who will trade for you in those markets. You will need a broker that works for clients in your country. Moreover, that broker should be willing to work for the assets and demands you are interested in. They should also have a good platform for the trading of binary options as well as reasonable prices.
Binary Options Copy Trading - Best Strategies & PlatformsStep 5: Open an account
The next step is to choose and open a binary options trading account that fits your trading needs and the amount of money you want to put in it at the start. Your broker should have enough initial funds from you to cover any premium associated with purchasing a binary option.
Step 6: Select a price and expiry time
A strike price should be set where there is a chance that something will happen and where the risk you are taking is reasonable. Also, you should look for binary options with an expiration time that you are comfortable with based on how you trade or what your trading style is.
Step 7: Start trading
After you have chosen your strike price, you can buy and sell your binary options. To increase your chances of success, you should develop a binary options trading strategy that works well with your plan.
Best binary options brokers
FAQ
How can I learn about binary options trading?
You can learn binary options trading through a demo account if you are a beginner with little to no knowledge about binary options trading. You won't have to put your own money at risk. Instead, you'll be given some virtual money to trade, so try out different strategies, and find the one that works best for you.
What happens to the money when you lose?
The money of individuals that predict the binary option incorrectly is lost to them, but it goes to individuals whose predictions were accurate.
Which is the best binary options strategy?
No one strategy fits all. In this article, the TU has mentioned multiple plans that may or may not work for you. Through experimentation, you will learn which strategy is best for you.
Which binary options brokers are the best?
Multiple brokers trade binary options. Some are PocketOption, IQ Option, Binary, ExpertOption, and Binomo. Each has its pros and cons. Some might work for your asset classes and your market of interest, while some might not. Therefore, it is important to conduct proper research before selecting one.
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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.
Over the past four years, Alamin has been working independently and through online employment platforms such as Upwork and Fiverr, and also contributing to some reputable blogs. His goal is to balance informative content and provide an entertaining read to his readers.
His motto is: I can dream or I can do—I choose action.
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.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
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). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.