In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Read this Term or business, you must have a strategy to use in order to consistently be making money. Is binary options trading legal where you live? Click here for the full breakdown. If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling.

Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment. You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning. Strategies are generally categorized into two groups. These categories are;.

Start trading binary options now. This strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option.

In short, this strategy tries to look at the overall picture of the business they want to invest in their stock and at times the overall industry. This is a quite popular strategy in options trading.

It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset.

Among the tools used in technical analysis include Bollinger bands and Moving Average among others. This strategy is quite popular among options traders.

You will pick an underlying asset or currency that you are interested in and then if the market movement of the strike price is heading towards a good direction, say upwards, you place a call option.

At the same time, you will place a put option on the same asset. In the first 15 minutes the asset is at which is good so far. Sadly, the excitement of generating such profits produces a false sense of security leading to most of them subsequently suffering serious losses. Once this demoralizing trend sets in, many beginners start racking up a sequence of losses that they have great difficulty correcting.

The main reason that this occurs is that traders tend to become greedy after enjoying a positive run and start to overtrade by risking more than their equity can safely support. They also have a leaning to treat their profits in a more cavalier way than they do their own deposited funds. In addition, many novices try to combat losses by adopting the practice of increasing the position sizes of each subsequent new trade.

However, unless you have addressed and corrected the central reason for your failures, then all this action will do will be to accelerate your losses by larger amounts. This is a sure route to bankrupting your entire account balance quickly. If you were to experience or have experienced this depressing sequence of affairs, then you must realize that your hidden and most dangerous foe is equity drawdown.

This deadly parameter generates a negative compounding factor that impacts your ability to even just break even. If you study the above table then you will deduce that the impact of drawdowns is a compounding effect that can destroy an account very quickly. You will also notice that you will have to achieve profits that increase exponentially following each new loss in order to just break even. As the value of your account plunges, you will discover that recovery will become more difficult, if not impossible, should you persist in using the same strategy.

If you want to correct this situation, then you will need to take dramatic action. For instance, you must immediately stop applying your present trading methods. You must realize that you will have to apply patience and achieve a long sequence of consecutive small wins to emerge out of this mess. A capital drawdown strategy is one method you can deploy to counter these problems.

In contrast, many traders attempt to trade their way out of this difficult situation by opening new positions utilizing higher levels of risk.

However, by doing so they are merely risking more on trading strategies that have already been proven flawed. This is just another form of gambling and is prone to long-term disaster. Another erroneous solution is to inject new capital into your account. However, the wisdom of such an approach is very questionable because you would still not have found an answer to the central problem which is your inability to trade binary options successfully over the long haul.

Consequently, if you tried this solution, you would really just be placing additional amounts of your own funds at serious risk. Most experts recommend that you correct this problem by going back to the drawing board and designing a capital drawdown strategy.

By doing so, you will then throw any thoughts of swift profits out of the window and commence a new approach that involves increasing your risk level per trade in small incremental steps. Your new strategy will be aimed at helping you develop your skills and controlling your losses so that you can gradually recoup your original positions. The prime purpose of your capital drawdown strategy will be to counter the insidious problems listed above. Consequently, a Capital Drawdown strategy based on such concepts will eliminate the need for you constantly replenish your account balance.

Your strategy should also advise that if you do have to inject new funds into your account in order to stave off margin calls, then they must be minimum amounts. The main objective of your new tool will be to produce evidence that you can really attain consistent profits by implementing small well-controlled steps over an extensive period of time. In addition, your strategy must encourage you to develop your trading psychology so that you are not intimidated by the sight of a falling account balance.

Commonly followed values are 12 for simple moving average and two for a standard deviation for top and bottom bands. Contraction and expansion of the bands indicate reversal signals that help traders take appropriate positions in binary options. Overbought situations are indicated if the current market price is above the top band. While overselling is indicated when the current market price is lower than the lower band.

A challenge in binary options trading is correctly predicting the sustainability of a trend over a given period. For example, a trader may take the right position for an index, predicting it would hit 1, at the end of a five-hour period, but the level was achieved in the first two hours. Constant monitoring is needed for the rest of the three hours if the trader plans to hold the position until expiry, or a predetermined strategy should be executed like squaring off the position once the level is reached.

The technical indicators discussed above should be used for timely actions with constant monitoring. One major disadvantage with technical indicators is that the results and calculations are based on past data and can generate false signals. Traders should practice caution with detailed backtesting and thorough analysis for high-risk, high-return assets like binary options. Advanced Technical Analysis Concepts. Technical Analysis Basic Education. Technical Analysis. Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News.

Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. Calculating Probability. Wilder's DMI ADX. Pivot Point. Commodity Channel Index CCI. Stochastic Oscillator. Bollinger Bands.

They are sets of indicators or rules that allow you to have a plan to negotiate with Binary Options. This allows finding patterns in the market that facilitates decision making at the time of putting the operation. There are many different strategies, some work from the analysis of the charts with the help of technical indicators, others work with the help of the financial data and economic news.

The shortest Binary Options definition is to bet on the fall or rise of a price on financial assets with an expiration time. Contrary to other markets, like Stocks, we do not buy an asset, but we only bet on the price value of the asset we are trading. Binary options offer market players a great way to trade in the direction of an asset or the overall market due to their all-or-nothing character. in Investopedia. There is no number 1 strategy, the perfect one.

So all of this goes into the equation. The best thing to do is to have several strategies, and understand how the market works, in order to choose the best one to the present market conditions and time od the day. On this site, you will find several strategies to use in Binary Options.

We also have courses that complement the strategies. I think most of the readers who will read this article are because they are beginners in Binary Options. For this reason, I will only address some strategies, and try to explain as simple as possible.

I see that some sites speak of dozens of strategies, using 3, 4 and 5 indicators for each. I, being a trader for several years, I have difficulty understanding, I imagine someone who is a beginner in Binary Options …. Thus, the idea is to approach the main strategies of Binary Options in a simple way to understand and with few indicators, so that it is relatively easy for a beginner to understand and start practising.

If, after understanding how to negotiate, you want to move to more technical and complicated situations is up to you. I am of the opinion that sometimes the simplest is what gives us better results, as long as we do it the right way. Rule number one of the Binary Options Strategies — none of the Strategies that exist are infallible. Neither is bad… well, some are even more than bad, they are awful.

Usually, people like to test the Binary Options Strategies with demo accounts and then use real accounts. Many websites advise you to always test yourself in Demo Accounts, and only after seeing results work with a real account. I do so because when we test in Demo we are not afraid to lose because there is no real money involved, so we end up making decisions that will be different when we do it in real mode. Therefore, many traders have good results in Demo and then in Real Accounts that does not happen.

However, both situations test in Real Account or Demo Account have their advantages and disadvantages. It should be you choosing the best method to learn. When choosing a strategy you should exploit it to the fullest to become an expert and be able to make money. It is important to realize that there are days when a certain strategy does not work because the market is not acting in a coherent way.

These days it is better not to negotiate. Normally after 3 missed deals, the ideal is to stop and return the next day. If the situation repeats, you should try another asset or use a different type of time interval that you were using with this binary options strategy. It is a strategy that works for 2 minute expiration time, and one of my favorite strategies to trade Turbo Options or 60 second Options.

Learn more about the Strategy ITM. This Simple strategy works with few indicators and suitable for beginners who are still learning. It is the ideal strategy to start with because it is really simple to apply. Learn more about the Simple Strategy. News Trading Strategy or also called a fundamental strategy is a very old type of Strategy used in all other markets such as Forex or Stock Exchange. Learn more about the News Trading Strategy. The support and resistance strategy is very used in the Forex and Stock markets with very interesting results.

There are several automated trading systems algorithmic trading that are developed using the support and resistance strategy as their trading basis. Learn more about the Support and Resistance Strategy. The Trend Following is probably the strategy with the most followers or at least one of the most followed in binary options. Learn more about Trend Following Strategy.

At the risk of going against what most binary options websites and blogs claim, I say the 60 Seconds Strategy does not exist. What exists is a binary options type of trade, using existing strategies, with a very short time interval. Learn more about 60 Seconds Strategy. In addition to the binary options strategies, it is necessary to have other knowledge to be able to have consistent results in this market. It is fundamental to learn rules, to learn to have discipline, to have emotional control, in addition to all the technical knowledge in reading the graphs and indicators.

Only with a strategy, even if it is the best strategy in the world, I bet he will not be a successful trader. To learn more about courses that teach everything that is needed up to 6 strategies, rules, discipline, and emotional control. If you have any questions or suggestions about Binary Options Strategies do not hesitate to comment or contact me.

In addition to binary options strategies, other knowledge is required to have consistent results in this market. It is essential to learn rules, to have discipline, to have emotional control, in addition to all the technical knowledge in reading the charts and indicators. Only the set of all this knowledge leaves a trader ready to make money in a consistent and lasting way. It is a list of rules and indicators that works as a guide when you are negotiating in Binary Options. READ MORE HERE.

Factors such as the day, hour, the asset and much more influence is the strategies, therefore there is no such thing as a perfect strategy. There is, literally, hundreds of them. Some are more technical, others purely fundamental. Yes, here you have a brief list of the best Trading Strategies. Your email address will not be published. Binary Options Strategies. Home Category Binary Options Strategies Binary Options Strategies.

What are Binary Options strategies? Some work better in some market conditions. In this post, you will learn some of the most used and common strategies used in Binary Options.

Page Contents. binary options market trends. What are Binary Options Strategies? What is the Number 1 Strategy, the Perfect One? How Many Strategies Exist? Can I Have Some of the Most used Trading Strategies? About The Author. Gabriel Wagner Gabriel Wagner is a Financial and Economic Analyst who works with the BO Blog. During that time, he has written over analytical articles on technical and fundamental analysis, financial company valuations on this, and other sites and forums like investing.

com or forexfactory. He has also developed various trading strategies and programs for markets such as Binary Options, Forex, and Cryptocurrencies. His motto is to help everyone understand how financial markets work. Leave a Comment Cancel Reply Your email address will not be published. Is the market going🔻?

In this method, you decide what percentage of your capital you want to trade. First, it is better to get familiar with trading graphs and their trend on demo trading apps before trading your money in a real-time market. They also take into account major technical support and resistance levels, including previous highs and lows, as well as moving averages and moving average crossovers and others, to predict where the price is likely to halt momentum and rebound, or possibly accelerate further, if it penetrates through the respective price level. The straddle strategy is known among traders as one of the most consistent ways to make profits — even in a volatile market. Thus, the idea is to approach the main strategies of Binary Options in a simple way to understand and with few indicators, so that it is relatively easy for a beginner to understand and start practising. Logically, high-volatility indicators are the most closely watched, especially the ones released by the worlds top economies.

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