Binary Options Strategy

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Best Binary Options Strategies

Jay Hawk
Contributor, Benzinga

Invest With TD Ameritrade – Now Commission Free

Invest With TD Ameritrade – Now Commission Free

Open an account with Benzinga’s best online broker, TD Ameritrade. $0 commissions on online stock, ETF, and option trades plus award-winning platform and customer service.

Binary options offer financial markets speculators an easy way to trade with limited downside risk. Unlike the underlying assets themselves that have potentially unlimited trading risk, binary purchases generally require a fixed price or premium to perhaps receive a given payout.

A major advantage of using binaries arises from eliminating the risk of order slippage that can occur in especially volatile markets. Not all binary option types suit all market views, so it makes sense to study what each type has to offer.

Before trading binaries, choose a reputable binary option broker and work out a binary strategy that remains a winning strategy on a consistent basis.

Quick Look: The Best Binary Options Strategies

  • Directional or Trend Trading
  • Swing Trading
  • Range and Range Breakout Trading
  • News Trading
  • Candlestick Pattern Trading

Table of contents [ Hide ]

Overview: Binary Options Strategies

The key elements of your binary options trading strategy should include:

  1. The type of binary option used
  2. When to use it
  3. The amount to trade
  4. Your exit plan.

You will also want to determine what the best binary options type will be for your particular trading style and objectives.

For example, many binary option brokers will provide pricing in up/down, one or no touch, boundary and double one or no touch binary options. Each of these types can suit a particular directional view.

What Makes A Great Binary Options Strategy?

As most experienced traders will tell you, the binary option trading strategy you choose paves the way for your eventual success or failure. In general, a great binary option strategy will be one that involves a trading method or which generates a signal that makes your binary option trades consistently profitable.

Some of the best binary option strategies operate in very short time frames suitable for short term expirations of one minute to one hour. Other strategies might focus on forecasting end-of-day or end-of-week levels that correspond to daily or weekly close binary expirations.

Any great trading strategy consists of one that works in practice to generate respectable profits given the time invested. Also, test a strategy in a demo account and have a sound money management strategy to complement your trading signals.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

The sections below will discuss some of the more popular trading strategies that binary option traders use. You can also combine some of these strategies or create your own from a combination of technical trading signals.

Strategy 1: Directional or Trend Trading

When an asset’s price or an exchange rate generally moves in one direction or the other within a given time period, a trend exists in the direction of the overall movement.

If the market value moves upward and makes higher highs in the process, it forms an uptrend. Conversely, if the market generally declines and makes a series of lower lows, it creates a downtrend. Trends can show up on charts on any time frame, so binary option traders can usually trade them effectively. The schematic diagram below shows what uptrends and downtrends look like.

Those who trade trends with binary options generally overlook small swings in market valuation. Instead, they put their attention on discerning the overall directional move within a particular time frame using technical analysis techniques and indicators.

Trend trading involves taking fewer positions for bigger gains than most other trading strategies, so commissions usually seem minimal. A trend trading strategy seems appropriate to use with high-commission brokers that offer a wider range of binary products and asset classes.

A popular trend trading method, which virtually all binary options brokers offer, involves the use of the call/put binary option. A call binary option pays off if an asset’s price ends up higher than its strike price after a set period of time. A put binary option pays off if the value finishes lower than its strike price.

Trend traders can also use the riskier, but potentially more profitable, one-touch binary option. This involves predicting a target level that you expect the market will reach within the trend to achieve a payout once that level trades.

Some trend traders even use a combination of both binary option types. This generally costs less than using call/put binaries and helps them increase potential profits if their directional view pans out.

Strategy 2: Swing Trading

Instead of trading the overall trend, you could achieve higher gains by trading each swing in an asset’s value as it moves up and down in a non-linear fashion. Such price swings also tend to occur in predictable patterns and proportions. This can give savvy binary option traders an opportunity to profit.

While trend traders tend to ignore these market fluctuations by focusing on the overall direction, swing traders nimbly switch directions to profit from them. Swing traders tend to trade more often than trend traders, which can increase transaction costs.

Swing trading also involves having a good sense of market momentum. This requires you to reverse positions when market trends wane, while holding positions in the direction of the trend while the trend remains strong.

As a swing trader, you have several chances to use binaries to benefit from a trend and its various corrections, instead of just holding a binary option position in the direction of the trend. Since these swings tend to be of a shorter-term duration than the overall trend, you can often position for them using binary options.

For example, you could buy a call binary when a downswing occurs within an upwards trend in anticipation of a subsequent move higher. In another scenario, you could purchase a put binary when an upswing materializes in a downtrend, since the market might then reverse and continue its overall move lower.

Furthermore, you can buy a put or call binary when the market looks respectively overbought or oversold in anticipation of a counter-trend correction.

Strategy 3: Range and Range Breakout Trading

Range and range breakout traders consist of those who identify trading ranges and attempt to profit from them. Trading ranges occur when a market fluctuates within upper and lower boundaries.

If you plan on employing a range trading or breakout strategy, you will tend to use boundary binary options. In boundary binaries involve setting an upper and lower value that you expect the market will remain between by the time the option expires.

Alternatively, if you wish to trade a breakout of a trading range, you can instead use an out boundary binary option. This lets you set a range with boundary levels that you expect the market to trade outside of at expiration.

Strategy 4: News Trading

Fundamental traders sometimes rely on key news releases to create market volatility they can profit from. When a news outcome improves on the market’s consensus, the result seems favorable for the asset or currency affected. This typically leads to a higher market valuation. Conversely, when the result disappoints the market, a negative effect on valuation tends to occur.

One of the major risks involved in trading such news events consists of stop-loss order slippage. Requotes and/or market order execution delays can also result in a serious unanticipated loss for a trader. These issues seem especially likely to occur even with reputable brokers in the volatile or “fast” markets surrounding a key news release.

Using binary options to trade the news can eliminate this execution risk completely and make a news trading strategy much safer. Still, it pays to keep in mind that news trading outcomes remain quite unpredictable due to significant variation in the size and duration of news-related moves.

Depending on what you expect to occur, these possible binary option alternatives could fit into a news trading strategy:

  • If you expect a large move in either direction by expiration, you can buy an out boundary option. This pays off if the market ends up outside the specified range upon expiry.
  • If you expect a large move in either direction shortly after the news release, you can buy a double one-touch binary that pays off if either trigger level gets breached before expiration. The trigger options used in this strategy will often have a very short time until expiration, such as 60 seconds, to maximize returns and minimize cost.

If you observe a large move shortly after the news release and you expect a retracement to follow, then you can buy a call binary if the market fell after the release or a put binary if the market rose. If the market does indeed snap back, then buy a put binary once the correction higher seems to wane or a call binary if the correction lower starts to fade.

Assuming both options have the same strike price, the goal of this news strategy involves legging into a long binary straddle position that has a 100% chance of paying out no matter whether the market rises, falls or stays the same.

Strategy 5: Candlestick pattern trading

Candlestick charts display some well-defined patterns that technical analysts often consider to have predictive value. While a detailed discussion of how to trade based on candlestick formations seems outside the scope of this article, an excellent book to learn about with the subject in detail is Japanese Candlestick Charting Techniques by Steve Nilson.

An example of a candlestick pattern you can use in binary option trading: if you observe a gap on the candlestick chart under normal trading conditions, then it may indicate a future move in the direction of the gap.

For example, if the market gapped higher, it would suggest purchasing a binary call option. A gap to the downside would indicate buying a put binary.

Final Thoughts

Binary option strategies can only get you so far, since your broker and various other factors can also impact your success. Selecting a suitable trading partner from among the best binary option brokers for your trading style and strategy contributes another key element to a winning binary option trading plan.

Binary Option Robot

Overview

Binary Option Robot – How Does it Work & How to Start?
Read 100% Objective & Detailed BinaryOptionRobot Review
Minimum Investment, Returns & VIP Account – See Below!

Details

Broker Binary Option Robot
Official Website URL www.binaryoptionrobot.com
Support Types Live Chat, Phone, E-mail
Payout 84%
Free Demo Account Open FREE Demo NOW
Deposit & Withdrawal Methods VISA, Mater Card, Maestro, OK Pay, Neteller
Number of Assets 70+
Overall Score 9.4/10

Full Review

Binary Option Robot is a 100% Free automated trading solution that requires no software download and makes Forex and CFDs trading possible from every point of the globe. Unlike many other auto trading systems on the market, this one needs to be set up only once and then it will start handling all trades on your behalf. This is a safe and secure trading software that gives you the unique option to define the risks parameters for each trading session. Binary Option Robot is compatible with the trading platforms of the best brokers, who are offering maximum performance and high winning rates.

Review Verdict: BinaryOptionRobot is NOT a Scam

How to Use Binary Option Robot?

Earning significant daily profits with the help of Binary Option Robot is easy. This is thanks to the fact the system gathers historical data from previous years, which is processed by a highly sophisticated algorithm that calculates the probability of assets price movements at any given moment. The software is integrated with the trading platforms of seven Forex brokers. You can open an account with one or all of these Forex brokers just by registering with BinaryOptionRobot. There are no fees and you can start trading immediately.

No Download

Users do not need to download and install any additional files to their devices in order to start trading with Binary Option Robot. The system is fully browser-based so it is easy to navigate and use.

How to Start?

To start trading Forex with the help of Binary Option Robot, just visit the company’s website and go to the Open Account section. There you must enter your contact details and choose the currency that you would like to open an account in (the available currencies are: USD, EUR, GBP, CAD, and AUD). Once you finish the registration process, you are taken to the Dashboard of your account where you have to choose one or more Forex brokers to work with. To register with one of them, just click the green Open Account button. You don’t have to go to the broker’s platform – everything happens in the nicely designed Dashboard of the Forex robot.

Each time you log into your Binary Option Robot account you will see the latest promotions by the featured brokers. Keep in mind that there are special terms and conditions when you accept a bonus or a promotion from a broker, so it’s best to visit the broker’s website and familiarize yourself with the terms and conditions that apply.

Apart from trading, your personal account page is also the place where you can change your contact details, review your trading history, and manage your Forex robot’s settings, including the tradeable assets, the investment per trade, the maximum daily trades, the daily loss stop and the reverse trading feature.

Returns

Current members of the Forex trading platform state that they can easily earn around $500 per day with the help of the system. This means that it is able to deliver real results to its users by earning significant daily income on their behalf.

The access to the Forex auto-trading solution is absolutely free of charge. Still, to start trading you have to fund your account with some trading balance. The minimum deposit depends on the broker that you want to open an account with.

In general, this amount is 250 USD or EUR. Usually there is no limit for the funds that you want to invest in Forex trading.

Is BinaryOptionRobot a Scam?

The Binary Option Robot is absolutely legit and reliable. The interface of the system is intuitive and easy to navigate, which enables traders to get familiar with its features quickly. The auto-trading software has numerous customizable settings, which allow for maximum control over the way trades are executed and that gives investors the opportunity to achieve optimal results and the best possible return on their investment. To help traders with the configuration of the preferences, the Binary Option Robot provides a tutorial guide, which explains in-depth what each setting means and how to use it. This makes the trading process easier and accessible to traders with various levels of proficiency.

Review Verdict: BinaryOptionRobot is NOT a Scam

Binary Option Robot Features

The Binary Option Robot stands out among other auto trading solutions with some major advantages. In addition to the automated trading system it also provides trading signals and traders can choose from several signal sources, which allows for great flexibility. Another unique feature enables you to set the level of risk you are willing to take, which minimizes the possibility of losing funds.

The fully automated trading software provided by the Binary Options Robot is also extremely time-saving as it executes the trades on your behalf even when you are not online. This way it does all the work, while you can relax and enjoy yourself.

Binary Option Robot VIP Account

Binary Option Robot offers a free VIP account to any of their customers who want to refer a friend. For each friend you refer to their website you will get 2 months extension of the VIP period.

This gives you access to otherwise “locked” features, such as the four levels of risk and the expiry times of the options that can be traded with the robot. Also keep in mind that each time the friend you have referred to Binary Option Robot, both you and him/her will get your VIP period extended by 2 months.

Customer Service

The support team of Binary Option Robot is really responsive and competent. Users can easily get help in case of any troubles or questions they may have. The service is available 24/7 which means that you will have no problems while placing your trades.

Conclusion

Our research shows that Binary Option Robot is a reliable and 100% safe Forex robot. It is a good software for anyone who does not have the time or the financial knowledge to trade manually. In any case, the experts at Top10BinaryRobots.com recommend that you always trade Forex with care as this is a high-risk endeavor.

If you prefer, you can Proceed to Safety and choose a trusted Forex robot, by visiting our list of approved automated Forex trading solutions.

Best Binary Options Trading Strategies That Work : Complete Guide

I am sure you have heard or read that you could make a ton of money trading in binary options. That’s true. Unfortunately, it is not as easy as some reviewers or affiliates of binary options brokers would want to put it. Some even make you believe that you can just stumble upon binary options and start making profits right away. Nothing can be further from the truth. Those who get involved naively, most likely end up losing their hard-earned money. Many of these binary options broker adverts just want to get you on their platform and get you to deposit your money.

So, what does it really take to make profits from binary options trading? First, we believe that binary options trading is a legit form of trade and you can make money from it. In order to make money, you have to know your trade. The same goes for binary options trading. We always advocate for trading with a strategy. Trading with a strategy means you are in control of your investment, and significantly reduces the risk of losing it. On the other hand, trading without a strategy is more like gambling. In as much as there is an aspect of luck in binary options trading, winning is more of a strategy than luck. You will certainly lose your money if you treat it like gambling.

IMP NOTE:

Now Get Real Account with as little as $10. And start trading the BINARY OPTIONS, FOREX, FX OPTIONS & CRYPTOCURRENCIES at one platform. Click To Open Free Demo Account | Click To Get Real Account In $10 (Updated July 2020)

My Recommended Brokers

Many people are always wondering about how to master binary options trading. It is estimated that less than 5% of the people who get involved in binary options trading make a profit. A majority, if not all, of those who lose, probably get into binary options trading with no clear strategy. You’ve probably read somewhere that anyone can trade in binary options. While that is true, it does not mean anyone can profit. I have no prior experience with financial and stock markets, you should probably take time to learn a thing or two before staking your money. Those who put in the work, and adopt a robust strategy most likely than not end up in profits. 5% of millions of people around the world is still a large number of people. So, yes there are a lot of people making money from binary options trading.

So, what are the strategies that you can employ to ensure you end up on the profits ends? There are several tries and tested binary stock options strategies that are commonly used by binary options traders. These are actually binary options strategy that works. You need to understand how these strategies work, for you to be to employ them effectively. We seek to educate and put you in a better position to trade in binary options successfully. We are going to look at various strategies that you can employ in binary options trading. It is important to mention that whatever we publish here should not be taken as a blueprint to making money on any platform. We seek to help you understand the concept behind the strategies. The actual actions to be taken depend on the financial market charts. We are going to divide the strategies into three categories.

  • Money Management Strategies
  • Trading Strategies
  • Analysis and improvement strategies

The strategies are employed in the above order if you are starting as a newbie. You need to have a money management strategy to ensure you don’t run out of trading funds. Trading strategies are the actual strategies of engagement with the financial markets. Analysis and improvement strategies ensure the trading strategy you have adopted is sustainable and it keeps winning trades for you.

Tag along and let’s show you how to how to build a trading strategy on the binary options.

1) Money Management Strategies

Money management is a necessary strategy for anyone trading in binary options. It is the top binary options strategy. It is a basic but very essential strategy. It is employed together with one, or a couple of the other strategies. Money management strategy helps you leverage your money to make the most of a binary options trading winning strategy while keeping the risks to a minimum. The money management strategy is employed in two ways.

(i) Risk Management

As a new trader, you will obviously have no confidence in your strategy and skills. You are basically in an experimentation phase. Unfortunately, experimentation is the only way to test where the trading strategy you have adopted works. You may have to do so with real money on some binary options broker platforms. As such, your main focus in this phase is not only to learn, but also to reduce the rate at which your balance is depleting. You will most likely lose more trade than you are winning.

My Recommended Brokers

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice

The Kelly System is a risk management system that is renowned among trading and gambling circles. The general rule of the system is that you should never stake more than 5% of your remaining balance. The underlying argument is that, in the experimentation phase, you would rather stake small amounts since you are more likely to lose most of the trades

Another way of exercising risk management is placing a call and put options in concurrent trades. Let’s say you are working with a 1-minute binary options trading strategy, and you have placed a call option. At the 30-second mark, you realize it’s not going the way you had predicted. 30 seconds is still a long duration is short term binary options trading. To minimize the risk of losing, you could place a put option for 30-minutes. There are two scenarios here. You could win one trade and loose the other, or win both trades. The probability of losing both trades in such a scenario is almost zero. Let’s say your broker offers 90% profit on both trades and your stake was $10.

  • If you win one trade and lose the other. You will get a payout of $190 on the trade won, and lose $100 on the trade lost. You had staked a total of $200. It means in total you have lost $10. You would have lost $100, had you left the first trade to complete and be wrong.
  • If you happen to win both trades. You get a payout of $190 on both trades. You will end up with $180 in profits.

In the scenario above, you would have risked a small amount to win a big amount. That’s the whole essence of risk management. The goal is to control the depletion of your remaining balance as you seek a working strategy. You do not want to lose all your initial deposit when you probably have no other money to deposit.

(ii) Compounding

Compounding still concerns itself with the remaining deposit in your account but is employed when you have found a winning formula. When you find the binary options winning strategies that you are confident in, you employ the compounding strategy to take maximum advantage of the winning trades of are making. The concept of compounding is quite simple. The amount staked keeps going up as you continue winning. It means the winnings will keep going up too. Compounding is more like the Kelly system but in the reverse direction. Businessmen call it plowing back the profits.

To clearly understand how compounding works, let’s explore a hypothetical situation. Assuming you have $2000 and you are working medium duration trades; say one week. You place five one-week trades and stake 10% of the deposit on each of the trade. Recall the compounding is employed when you have found a winning strategy. You can therefore disregard, the rules of the Kelly System. You will have staked a total of $1000. Assuming you win all the trades at the end of the week and your broker pays 90% profit. You will close the week with a balance of $2900.

One the second week, you keep the same strategy. You will have staked $290 on each trade. The total amount staked will be 1450. If you again win all the trades, you will have a new balance of $4205. The trend will go on as long as you are winning your trades.

The cue to use compounding is when finding a working strategy. Therefore, we need to look at the other strategies you can employ together with the money management strategies to ensure you turn in profits. Money management is a fundamental skill for any binary options trader. As a trader, you have to know how to leverage your money two get more profits. At the same time, you have to know how to protect yourself from losing it all.

2) Trading Strategies

The trading strategies are a structure of how you will be placing your trades. As mentioned above, doing thing haphazardly with no clear plan will have you losing your money thick and fast. Trading strategies help you have a clear picture of what your trades look like. Trading strategies are basically based on two aspects. The instrument or asset you are going to trade with, and the duration of the trade.

(i) Assets/Instruments

These can be stocks, indices, cryptocurrencies, currency pairs, or commodities. You choose to trade in one or a couple of the assets you are comfortable with. If you are a beginner, stocks are always a good place to start. Information about stocks is more readily available as compared to that of the other instruments. If you have one particular instrument whose financial market you understand well, that’s where you want to start.

There isn’t much one the assets, you go with the one you understand best. If you don’t understand any, check all of them and find one that’s easy for you to understand. The back in trading strategies stops with the trade duration.

Trading strategies are classified into three categories as far as the trade duration is concerned. They are;

  • Conservative Long-Term Strategy
  • Semi-Conservative Strategy
  • Aggressive Strategy

Let’s explore them one after another.

Conservative Long-Term Strategy

This strategy, as the name suggests, involves conservative trades. The target for this strategy is 1-2 almost sure trades per day. The concept is to wait for sure signals and employ money management to capitalize. You then keep the trend going and grow your capital. It is the best binary options trading strategy for beginners. The strategy will allow you to grow your capital slowly but sure. The idea is to ensure you do not burn yourself out before you even start trading. As a beginner, you may not have enough experience to interpret the charts correctly. You have to wait for the right moment to strike.

For instance, let’s take the case presented in the chart below. It is a perfect case to use the ZigZag’s two last points. You then draw a Fibonacci in between them guided by the trend.

You draw your Fibo line from point one to point two for a descending trend and vice versa for a rising trend. Therefore, the target is 161.8 projection level.

A fully valid signal should have a retracement of between 50-88.6. The higher the retracement climbs, the stronger the signal gets. In the instance depicted by the photo above, the retracement occurs close to the number 2 on the top left corner.

To give yourself the best chance, you need to be patient until all the 3 factors coincide. Follow the following rules when making your judgments.

  • Wait until the Fibonacci projection reaches level 161.8
  • Wait until the value of the chart is 8 or more
  • The expiry times should be between 5 and 20 minutes

You the employ money management strategies to minimize risks, or scale up your profits. Notice the duration involved here is a bit long (not very long because you can engage in trades running for months). As mentioned in the beginning, you only need 1 or 2 trades in a day. If you win the first, I’d suggest you don’t try another. This strategy will allow you to avoid losing your capital as you experiment and learn.

Semi-Conservative Strategy

You probably already guessed how this one goes. It’s just an upgrade of trade aggressiveness from that exhibited in the conservative strategy above. The durations are shorter and make more trades per day. You kick it up a notch higher when you start getting comfortable with your predictions. Strategies help you get rid of emotions while trading.

A lot of the aspects of the semi-conservative strategy are quite similar to those of the conservative strategy above. There are a few differences though.

  • You can trade at either, 161. 8 or 127.
  • The price needs to be in the red zone
  • Place 4-6 trades in a day. We suggest you don’t go all the way to six when you have won three trades.
  • You should not trade for more than 6 minutes with level 127. Normally, level 127 is a consolidation level where buyers all sellers are drawn to the trend to increase liquidity. The price usually continues in the direction of the trend for the next three candles. A 5 min binary options trading strategy is your best bet here.

Remember to employ money management strategies. If you get it right, your capital should grow a bit faster than in the conservative strategies.

Aggressive Strategy

This is a high risk, high returns strategy. We suggest you have a clear understanding of what you are doing before trying this. It is prudent that you be patient and grow your capital with the semi-conservative strategy, to a point where you are trading with profits.

If you carefully look at the photo below, you will notice it has 9 price cycles.

Now, replace the zigzag indicator parameters with 2,1,1. Notice you can count over 41 short-term cycles. Yes, this is a short-term strategy with the potential to increase your money fast, but it has high risks. Every price cycle is a Fibonacci sequence with a high low retracement projection reverse. Take a look at the image below.

  • The Fibonacci line, drawn in light blue, is drawn from point 1 to point 2. The 1 and 2 points represent high and low respectively. All you need is to wait for the retracement, which can occur either as a wick, or a full candle. Notice the white box marked 3 and the green candle underneath it.
  • Be keen on the trend and get ready for a signal when the retracement candle is accompanied by a red candle in the same direction as the trend.
  • The adjacent red candle closes underneath the open of the green retracement candle, though it does not go to the value chart level 6. It does not go to the regression channels inner band either. Take this as the first breakout candle. It is marked by a blue rectangle. Enter PUT for 10 seconds before this candle closes. Note that the next candle will be bearish, with a probability of 90%. The PUT action is marked with 3 PUT on the chart.
  • The next candle will close under the 100 Fibonacci level, although it does not reach the 127 level. This means it terminated under the low point of the current trend. Enter another PUT 10 seconds before the candle shuts, since it will be accompanied by a bearish candle or even 2-3 bearish candles. These candles have to reach the Fibonacci level 161.8. The action is marked with 1PUT on the chart.
  • The final bearish candle will hit the Fibonacci level 161.8 and value chart level-8. It will also hit the outline of the red zone. You should now place a CALL

Every price cycle within 3 points has an average of 3ITM trade setups during normal volatility trading circumstances. It is important that you trust your gut too. It is best to ignore a signal and wait for the next one if you feel something is off about it. An experienced trader will be able to strike a balance between being confident and fearful. Too much of either is detrimental. This is arguably the best binary options trading strategy if you can get it right. It is a binary option a powerful short-term trading strategy.

You can learn this steps and rules by heart. Unfortunately, they still do not guarantee winning trades by themselves. That’s where analysis and improvement strategies come in. They come in to improve and boost the trading strategies. If you can successfully combine both trading and analysis strategies to comes up with a robust personal strategy, you will certainly make profits trading in binary options. Let’s dive in an take a look at analysis and improvement strategies.

3) Analysis and Improvement Strategies

Having looked at the money management and trading strategies, let’s explore the analysis and improvement strategies. Up to this point, you will notice that there is still a part where luck is left to take the mantle. You still got to sit back and hope all goes well. The analysis and improvement strategies come to reduce that feeling of worry and uncertainty. Note, not eliminate but significantly reduce. There are three categories of analysis strategies. They are;

  • Overall Performance Strategy
  • Technical Analysis strategy
  • Trend-based strategy

(i) Overall Performance Strategy

The Overall performance strategy concerns itself with the well-being of the company or commodity behind the instrument you choose. As mentioned earlier, it is important for you to be informed about the asset you choose to work with. Whether you are working with stocks, currencies or commodities, you need to know how the physical trade and business happens. These factors culminate in the performance assets performance on the money markets.

This is a great strategy for beginners too. You can conveniently combine it with the conservative long-term trading strategy. Let’s assume you are working with Amazon stocks as the asset. You need to keep up with the general performance of the company. Everything that happens to the company as a far as its operations are concerned will be reflected in the assets trend in the financial markets.

For instance, during the festive season, you expect more sales on Amazon than any other time. You could speculate that the stocks of Amazon will be up in that period. Such generalized speculations are best suited for long-term trades that go up to months long. If you can get access to the financial books of the company, you will be in a better position to speculate on the behavior of the asset in the short term. This strategy should be used as a support strategy, especially for long-term trades. It may be looked at as the binary options news trading strategy too. It may not be of much use if you are an aggressive trader.

(ii) Technical Analysis Strategy

The technical analysis strategy involves analyzing the financial market charts for patterns and using indicators to speculate. The strategy needs you to keep a keen eye for price fluctuations and be able to recall these patterns in the future. Technical analysis can be practiced in two ways. They are;

Patterns

The patterns of the asset you are trading with on the financial chart is arguably one of the most versatile strategies. It can be employed with any of the trading strategies discussed above. Pattern traders spend time documenting the patterns of price movements. If they notice a similar pattern in the future, they can refer to their documentation and predict the movement of the asset. Pattern trading needs you to be very keen as it can be misleading. Pattern trading is a great strategy for newbies too. They can use it as part of their trading strategies. This is where you can employ a 30 min binary options trading strategy.

Indicators

Indicator trading is arguably one of the easiest strategies of trading. You act on the prompts of various indicators developed by industry professionals. Indicators such as MACD, ADX, CCI, and stochastics are used to provide trade signals. However, the indicators are do not work for you. They only prompt you of the possibility of a profitable trade. These indicators are developed using the same strategies as discussed above. You can use them as a reference point after deciding on a certain trade based on your strategy or test their prompts with your strategy.

Binary options brokers normally have these indicators on their platforms. Once the indicator is never enough for you to act on. You need three or more indicators showing the same signal to have better chances of winning a trade. Normally, it quite difficult to have the indicators showing similar signals at similar times. As mentioned, these analysis strategies are supposed to be a support system for your trading strategies. Acting on the prompts of the indicators alone is always a bad idea.

(iii) Trend-based strategy

The Trend-based strategy is a highly technical strategy. It is an advanced binary options trading strategy. It is actually the most analytical of the three categories. The strategy involves keeping in tabs with the trends of the financial market charts. The strategy is almost similar to the trading strategies, only that it is a generalized strategy. The trends-based strategy is very versatile. You can use it with any of the trading strategies. The trends-based strategy is employed using particular analysis software. One of the most popular analysis software of the Trend Channels. The software allows you to draw trend lines over the peak prices of the asset you are working with, which then form the basis of your analysis.

The Trends channels allow you to draw lines of best fit over the most peak points both above and below the chart. These trend lines give you a better picture of the area you are working with at that particular time. The strategy is best suited for aggressive traders. The markets no matter how volatile, do not change abruptly. The trends lines can either form parallel, converging or diverging patterns. The most ideal situation is when they are parallel. It makes it easy to trade.

The concept is simple. You expect the chart to touch one line and turn back towards the other line. All you got to do is master the time it takes from one line to the other. Let’s take that the chart is moving towards the upper line. You wait until it touches and starts moving towards the other line. Place a Put option at that point and select a duration that is not more than two thirds twice the duration taken to move from one end to the other. The assumption is the chart will take the same amount of time to go and come back, you can, therefore, estimate where it will be by the time the trade ends. A 60 min reversal binary options strategy with the trading channel is very common.

Timing is an important skill while employing the Trend-based strategy. You need to be able to match the trade duration and the point at which you place your option. Give the chart some time to confirm the trends lines too. Keep on the lookout for a new line of fit for the peak positions on either side. The trends-based strategy is certainly one of the best binary options strategy.

Conclusion

Evidently, there is a lot you need to do if you have any hopes of becoming a binary options trader. Unlike other binary options trading strategy reviews, we do not sell a notion that it easy to profit trading in binary options. We assert that it is possible, and remain adamant that you should have a strategy up your sleeve. Just to recap what we have been through. You need to practice the money management strategy at all times. Choose your trading strategy depending on how experienced and comfortable you are with the binary options strategy. Finally, choose an appropriate support analysis strategy. We have outlined the 3 binary options trading strategies for beginners.

These combinations mean that different traders have different strategies. The discussed strategies are more like frameworks, of coming up with a strategy. In reiteration, the above information is not a blueprint for making profits on any binary options platform. However, if well implemented we do not see you wouldn’t have a reason to smile. You are the master of your own trading strategy. You have to learn the various guidelines by heart so that you can apply them when the circumstances call for it. After some time, you will find yourself with a robust and winning formula. There are many binary options trading strategy forums that you can visit in a bid to sharpen your skills. You will get useful binary options trading tips and strategies.

How To Trade Binary Options Successfully: Complete Guide

Maybe you feel you are now ready to start trading in binary options, and you are excited. Everyone who is getting involved in binary options trading wants to profit from it. You want to know how to master binary options trading. Many will get involved because they have been told they can double their money quick. Unfortunately, that’s not always the case. In fact, many of the best getting involved in binary options trade end up losing and quitting the trade altogether. Many binary options brokers will not tell you this, because they profit when the traders lose. Regardless of how many trading tools, strategies, or round-the-clock financial markets are available, many traders do not achieve the success they wish for.

IMP NOTE:

Now Get Real Account with as little as $10. And start trading the BINARY OPTIONS, FOREX, FX OPTIONS & CRYPTOCURRENCIES at one platform. Click To Open Free Demo Account | Click To Get Real Account In $10 (Updated July 2020)

The fact that most people do not profit from the trade has not kept people away from it though. More people continue signing up on binary options brokers’ platforms hoping to make some money there. It is estimated that only 5 percent of the people who get involved in binary options trading profit from it. Five percent might sound like a small figure, but bear in mind we are talking about millions of people around the world. There is, therefore, a good number of people profiting from trading in binary options. So, what does it take to profit from trading binary options? What do you have to do to know how to trade binary options profitably? Our hope is that this article can help you successfully trade binary options. Let’s dive in and explore.

We are going to divide the plan on how to trade binary options successfully into two.

1. Basic Steps – this step with show you how to start binary options trading.

2. Strategy

Basic Steps

These are basic steps that you should take to ensure that you are set to trade binary options successfully. These are steps that should be employed by everyone seeking to trade in binary. Please note that these steps do not guarantee winning results, but they will certainly go a long way in ensuring you get the results that you desire. We are going to look at six common steps (assuming you already know what binary options are and how binary options brokers work). Let’s get to it right away.

6 Basic Steps to Successful Binary Trading

1. Choosing the Appropriate Broker

Why do you need a broker to trade binary options? You can only trade in binary options through a binary options broker since the capital threshold for the main market is very high. It is estimated that there are over 400 binary options brokers around the world currently. These brokers have different services and, therefore, the broker you choose plays a huge role in your success as a trader. Some of these brokers are actually scammers. Always go for a reputable, licensed and regulated broker. Your success as a trader depends a lot on the resources and features offered by your broker. Some brokers will offer educational materials and resources while others won’t. You need to get a reliable and trustworthy broker. Keep in mind that the brokers make a profit when you lose.

My Recommended Brokers

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice

2. Start Small

Many people and the brokers themselves will tell you that starting with a demo account is the best way to get started. I beg to differ! However, Why? I mean you don’t have to stake your money with the demo account, so you get to learn slowly.

You see, most of these binary options broker accounts give you a virtual financial market on the demo account. They will not give you access to the real market because in the actual sense there no capital in your account. It’s more like learning to ride a bike by pedaling on a stationary bike. You could still start with a demo account if you are a complete novice, but don’t dwell on it a lot thinking you are learning a lot. It would be unfortunate for you to get involved in the real financial market thinking you know a lot only to end up losing a lot of money because you actually know nothing. My advice is to start with a real account, but start small. Start will small amounts.

3. Managing Risks

This is one of the most important, if not the most important, aspects of trading binary options. If you have no risk management skills, you might as well consider yourself to be gambling rather than trading. Risk management starts with the minimum deposit. Do not deposit money you don’t have. By that I mean;

  • Do not deposit money into a binary trading account when you have pending bills
  • Do not borrow money to trade binary
  • Do not deposit money that is not yours

You need to understand that you cannot solely depend on luck while trading binary. Traders who depend on luck do not last. Once you have your deposit on the trading platform, do not stake all you deposit at once. A general rule is not to use more than 10% of your deposit in a single trade. Chances are that you will lose a couple of times. Give yourself a chance to redeem yourself once you make a wrong prediction. Statistics show that a majority of the binary options traders join a platform, make the first deposit, fail to manage risks and loses all the deposit, then quits and never trades again. That brings me to the next step.

4. Keep the Emotions at Bay

People get carried away by emotions and take too many risks, or quit before they have really explored binary trading exhaustively. The same way you are advised to keep the emotions and attitude away from a workplace is the same way you keep them away from binary options trading because things are not always going to go your way. There are two emotions that are quite detrimental to your trading endeavors;

  • Fear- many people, will make people fail to make a lucrative trade because of fear. You counter fear by having a strategy and sticking to it. We are going to look at strategy next.
  • Greed – greed does to you the opposite of what fear does, but you still end up losing. Greed leads you to take too many risks. Again, it is tackled using strategy.

Keeps these two emotions, and generally all other emotions at bay while trading. Get a strategy and constantly focus on how to improve it. Once you have established a solid strategy, stick to it so long as its working.

5. Personal Discipline

If you do not have personal discipline, you might as well not think of getting involved in binary trading as well. Indiscipline and laziness will kill your dreams of successful binary options trading on arrival. You need to be able to handle high-pressure situations. They need to reason fast and reason logically. Also, learn to stay put even when things do not go your way. Things will fail to go your way a lot of times in your trading endeavors, especially when you are beginning. That’s why many people never make it out of the beginner phase.

6. You Never Know Enough

You can never know everything there is to know about binary trading. You will be shooting yourself in the foot the moment you start thinking you got the perfect strategy and you know it all. The learning never stops. Concentrate on constantly improving your strategy. That improvement will reflect on your winning strategy. Many binary options broker platforms require you to have over 60% winning rate to make a profit.

Strategy

The strategy is the magic word in any binary options trading space. Having a binary options trading strategy is your best bet if you wish to make anything trading in binary options. If you have no strategy for trading in binary options, you are basically gambling. Gambling with binary options has been proven not to be sustainable time and time again. Gambling with binary options is even worse than gambling on pure betting sites and casinos. At least you have the chance to win a jackpot and get life-changing money on the betting sited and casinos (they are rarely won though).

Strategies are based on the financial market behavior. To have a strategy, you need to have some analytical skills or employ a third party that can help you with the analysis. You as the trader relies on statistical and analytical data to analyze the financial market. This approach is usually a bit difficult for beginners to understand, and most of them end up quitting. The strategies developed through the analyses are the most reliable though. There are a lot of resources developed to help you understand the analysis process and the charts. There are no best days to trade binary options. Most of the trading platform run for 24/7.

Below are three of the most common approaches to coming up with a trading strategy.

1. Overall Performance Analysis Strategy

The asset you may choose to trade with is attached to a certain company. The operation of that company is going to have an effect on your trades with the selected asset. Therefore, you would want to concern yourself with the performance and attributes of the company. You need information such as; how the balance sheet of the company looks, cash flow status, income statements and more before you purchase an option.

Also, concern yourself with technical aspects such as employee and partners satisfaction. Generally, this strategy is based on observing the company of the asset you be trading with and the whole industry at large. They will help you make judgments about how their stocks are going to perform.

2. Technical Analysis Strategy

This is a popular and less complex strategy. It is employed by many successful binary options traders. This strategy involves studying and analyzing the past performance of a certain asset and using the findings to predict the future. Analyzing the past gives you a picture of the behavior of an asset in certain conditions. The findings will give you a certain level of certainty of what is going to happen if you anticipate the asset is going to experience similar conditions ahead.

Time is also a crucial factor in binary options trading. For instance, the best time of day to trade 60 second binary options, is during the day when there is a lot happening that effects the trend of the financial markets. During the day is the best time to trade binary options currencies. The is no best time frame to trade binary options though. It depends on how well analyze the previous trends at any given time.

This strategy does not concern itself with the intrinsic value of the asset. As a trader, you do not have to go through the financial statements of a company. There are trading tools used for the technical analysis such as moving average and Bollinger bands and many others. It is one of the strategies to trade binary options.

3. Basic Options Strategy

This is yet another popular strategy that every serious binary options trader should consider. It is fairly easy to understand. The strategy is based on risk minimizing the risks as much as possible. The strategy protects the trader from incurring complete losses, in case they make wrong predictions. Once you pick an underlying asset or currency pair; let’s say the GBP/USD if you notice the market is moving in a good direction you will place a call option, but you also place a put option on the other end on the same asset. The GBP/USD is the best currency to trade binary options.

This is how it works;

Say the currency options GBP/USD is currently at 1:4000 and you are anticipating that it is going to go up so put place a call option of $100 that expires in 10 minutes. You are offered a payout of 80% if you get it and a 10% cash back if you miss it. After the first five minutes, the pair is at 1:4015 which is okay but not convincing. Therefore, you put a put option of the same amount with an expiry of 5 minutes. The payout and cashback percentages remain similar.

So, what are the possible outcomes after the last 5 minutes?

Outcome One

You call option wins and the put option losses, or vice versa. You will have a total payout of $190. That is; the 80% profit from the win, and the 10% cashback loss on the other end. You end up losing $10 since you had staked $200.

Outcome two

You could win on both the call and the put options and get $360. Two wins of $180 each. It is nearly impossible to lose on both ends due to the dynamics of the market. Losing on both ends is only considered hypothetically.

In the scenario depicted above you the amount of loss risked if far less than the possible total possible win. It means if you were to put up three consecutive such trade pairs, then lose two and win one, you would still end up with a profit.

There are many more strategies that are employed. Successful traders use these combine the basic strategies to come up with their best strategy to trade binary options. You trade when you feel you have a leverage in knowing what will happen next to the asset you are trading with. There is no best time to trade binary options. Having a strategy is the way to go if you hope to make anything in binary options trading. It is the safest way to trade binary options.

Binary Options Trading Strategies

Trading with Binary Options

Binary Options, known also as Digital Options or All-or-Nothing Options are not new financial instruments, but thanks to the new technologies, these are now available to the public and present an easier and faster way to make money.

The Digital option term derives from the digital nature of electronic devices which have only two states of being, “on” or “off” as with digital options trading.

When you hold a digital option, you are either in an ―On‖ state indication which means you are in the money or in an ―Off‖ state implying you are out of the money.

The value of the payout (Some brokers offer up To 85% return) is determined at the onset of the contract and does not depend on the magnitude by which the price of the underlying asset moves, so whether you are in the money by $0.01 or $0.05, the payout that you receive will be the same.

Binary Options are sometimes called all-or-nothing trades, meaning that either you are In-The-Money (ITM) and you get the specified payout, or you are Out-of-the-Money (OTM) and you lose your traded amount.

Binary options trading are a fast and exciting way to trade the financial markets. The payout rate trading digital options is high in comparison to any other traditional financial trading.

From the buyer’s perspective, the main advantage of binary options trading is that the Risk taken is limited to the premium that the trader pays up front to take on a binary option position. So in above example, the Risk taken by the trader is limited to $100 in that particular position.

This benefit means that the binary options trader can feel secure in knowing that their downside is limited to their initial trade size. While they can still profit if their market view turns out to be correct, they avoid having to worry about stop loss order slippage or losing their trading discipline.

Furthermore, binary options are a simpler trading vehicle having a limited risk profile since they either pay off a fixed amount or they do not, depending on where the underlying instrument is trading at the binary option’s expiration.

Another advantage is that binaries can often be traded for shorter time frames (1 hour, ½ hour or even 15 min) via binary options trading platforms then are typically available for normal options offered by exchanges.

Several types of Binary Options can now be traded online using a variety of binary options trading strategies.

High/Low: The most commonly available binary options are “High/Low” also known as “Above” and “Below” or “Call/Put” binary options. Basically, a trader will receive a payout on a long binary option if the market is higher than the strike price of an above binary at expiration, or under the strike of a below binary.

Fr om the buyer’s perspective, the main advantage of binary options trading is that the Risk taken is limited to the premium that the trader pays up front to take on a binary option position. So in above example, the Risk taken by the trader is limited to $100 in that particular position.

This benefit means that the binary options trader can feel secure in knowing that their downside is limited to their initial trade size. While they can still profit if their market view turns out to be correct, they avoid having to worry about stop loss order slippage or losing their trading discipline.

Furthermore, binary options are a simpler trading vehicle having a limited risk profile since they either pay off a fixed amount or they do not, depending on where the underlying instrument is trading at the binary option’s expiration.

Another advantage is that binaries can often be traded for shorter time frames (1 hour, ½ hour or even 15 min) via binary options tradingplatforms then are typically available for normal options offered by exchanges.

Several types of Binary Optionscan now be traded online using a variety of binary options trading strategies.

High/Low:The most commonly available binary options are“High/Low”also known as“Above” and “Below”or“Call/Put”binary options. Basically, a trader will receive a payout on a long binary option if the market is higher than the strike price of an above binary at expiration, or under the strike of a below binary.

One Touch:Some online binary options trading platforms also offer“One Touch”above or below binary options that generate a payoff as soon as their trigger level trades in the underlying market… even before the expiration time.

Boundary:Another popular type of binary option is the“Range or Boundary”binary that is characterized by a range that is compared to the underlying market at the option’s expiration. Typically, an ―in‖ range binary pays off if the market ends up inside the range, while an ―out‖ range binary pays off if the market ends up outside the range.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Like this post? Please share to your friends:
How To Choose Binary Options Broker
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!:

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice