To understand how good and experienced a trader is, it is not always necessary to know dozens of strategies in option trading as well as multiple indicators and additional signals that will burst trader’s confidence etc.
At the starting point, this odd and excessive information can only harm and make inexperienced traders puzzled. The right beginning always starts with patience, learning basic rules and concepts and of course good strategies for option trading. That’s why this short guide is devoted to binary options strategies.
We will mention all simple yet effective trading strategies for binary options which are used even by professional investors. Remember, that every strategy is suitable for traders of different levels and deposits. Therefore, before trading any chosen strategy, it is highly advised to practice and test it with the help of demo account or broker with a minimum deposit of $1. After that, you will know which strategy suits all your needs and expectations.
News Binary Options Trading Strategy
The main idea of this particular strategy is – price changes based on macroeconomic figures. Such facts and statistics are always highlighted in different resources, for instance, TV news, official sites etc.
The main trader’s instrument in fundamental analysis is a financial calendar. The more news will be released at the same time, the higher the “splash” on the market will be. This trend is the most interesting for opening trades / deals and making money.
To minimize the risk and increase chances for high profits when trading binary options – it is extremely significant to stay focused. It is possible if a few trades with one piece of news are opened or in other words, diversify the situation. For example, paying attention to the currency, in case of news about US dollar, the movement in all currency pairs will be almost the same. And it is better to make sure, that there is no disagreement news among selected trading currency pairs.
Opening of Positions
The first variant when trading this concept requires a trader to have a complete control over the situation. It is needed to close losing positions at the right time, after which a trader should just wait to see income on the balance. When suitable news are found, a trader should open a few positions with 30 minutes expiration time in different directions 15 minutes before the news will be released.
After the news is released and the market reaction is clear, it is needed to close losing trades. For this, traders should just press the button “Trading Tools” in the list of opened trades.
Trading binary options according to the news doesn’t require wide knowledge in a sphere of financial markets and therefore stays one of the most effective and preferred by traders worldwide.