Step 4. Research Binary Trading Strategies
Any options trader that has been in the market for a minute knows very well that a handful of good binary options trading strategies can make significant profits and help traders get out of uncomfortable trading scenarios.
However, if you have not learned any trading strategies yet, don’t waste your time on expensive workshops. You also shouldn’t jump into the market without any knowledge of trading strategies. Instead, take the time to do your own research. Research is key when it comes to binary options trading, and you have a lot of time to start trading. In fact, we would recommend opening a demo account (more on that later) to implement some of the trading strategies we’re going to cover in this guide.
The Pinocchio Strategy
This strategy involves betting against any current trends on purpose. If a particular asset is seeing a much more upward trend than usually, then someone using this strategy would then place an option under the notion that the price will fall. With this in mind, you will use a specific option fully expecting the asset price to go up when the asset is seeing a downward trend.
This is a great strategy for beginners, but only if you take the time to understand the asset itself. Do your research and study the news to really get a good idea of the trajectory of the asset. This is the only way you’ll be able to make the right decisions and predictions and thus, the most money. Implement this strategy by examining your chart to identify if the market is bearing or bullish. When the candles a pointed down, place your call option. If it points up, order a put option.
The Candlestick Pattern Strategy
Implement this strategy only after you get a good grasp on how to read asset charts in the market. Candlesticks are quite useful and really show how assets move over time. The underside of the candlestick is its lowest price, and its top is its highest hit price. By examining the opening and closing costs between these ends, you can start seeing different patterns over time. This will reveal potential movements in the future, which you can then predict and place a call or put option. Basically, you’re studying history to establish future choices.
Fundamental Analysis Strategy
This strategy is well known among professional traders. This strategy is designed to help you get a better grasp of the nature of an asset. You will simply perform a very in-depth review of everything related to the asset. From there, you will need to place a very low-risk trade to see what will happen. Once the trade hits its expiration date, you’ll be able to see if the asset is profitable or if you should look into something else. If your prediction is wrong, that asset might just be a bit too volatile.