Binary Options – Strategies
Binary Options Trading lets the investor know prior to placing a bet the full details of what gains or losses can be expected before any investing any of their finances. There are actually two possibilities for the outcome of his investments:
In the case where the binary option closes in the money (winning trade), they will receive a fixed payment of between 60% to 85% ROI depending on the underlying asset that is being investing in and the platform being used to conduct the trade.
In the event that the binary option closes out of the money (losing trade), the investor will lose any money that they put into that trade, with the exception being if the platform being traded on offers a rebate % (money back on losing trades). Particular platforms will give 10% return on a losing trade.
Key Strategic Points
Support and resistance lines
Technical indicators
Current trends
Instinct
Support and Resistance can be seen through trend lines. Certain traders insist on in utilising pivot point calculations. The greater the incidence of a Support/Resistance level being touched and bounced off by price, the greater importance assigned to the particular level. In the event of a price passing a support level, said support level will then (in most cases) become a new resistance level. Contrarily, if the price passes a certain resistance level, it will likely locate support at the same level further down the line.
Technical Indicators are generally based on price, price, breadth, overlays, and chart types and concepts. Simplicity is key, there are an abundance of options available, wisdom and experience would usually opt for the least convoluted path. I tend to employ a basic moving average line with the addition of a few simple support and resistance lines, and then add a few other visual guidelines to highlight things such as price movement.
Current Trend are identified in the trade by two terms, either “Bullish” or “Bearish”, these terms describe ascending or descending paths respectively. Market trends are generally analysed and predict using a mix of instinct, analytical systems, using technical analysis, current price, and other indicators. A common practice is that of we participating in a “predicition”, whereby one focuses on foreseeing where the trend will be located, instead of concentrating on its current direction. In terms of Binary Option trading, this is quite simple. Observe the last four hours of price fluctuation. In the event that the price is on the rise, it’s identified as bullish. It’s bearish, if it’s been moving in the opposite direction and falling. All that does not fall under these two types is called ‘sideways’ or ‘static’. The trick to successful binary trading is to aim for the high or low price with respect of to the trend. Upward trends call for bets at the support price, downward for the resistance price. Anything else, make your play at the lowest or highest prices achievable.
Instinct plays a very important part in binary betting. Research and preparation is obviously of utmost importance if one is to make informed decisions, there are many useful predictors and indicators the understanding of which will help one make an informed decision. However, ultimately, a leap has to be taken, and that leap can only be initiated by instinct. Many trades might look good on paper, but can still fail, there is an further, intangible factor that plays a large part in the risks taken and making the right judgements. Analysis, predeterminers, trends, these are all necessary tools that help reinforce the ability to make a wise decision, however, the final call on whether something is worth a shot comes from somewhere else.
Become familiar with trends and their patterns, if you think that it’s likely to go up or down, go with it. Trust your instinct and follow it, it’s the biggest ally you have. Reflection is also a useful aid, if a past trade didn’t work out, or even went catastrophically wrong, go back and look at it and the events surrounding it and find out why. Learn something about the negative possibilities in order to avoid them happening in the future. Timing and composure is also important. Keep a cool head and don’t get carried away if things are going good, the impulse for recklessness is the downfall of many!