To succeed in any business you need have good trading strategy. The following article will share with you the binary options trading strategy.
1.Manage trading position:
In binary options trading, investment amount each time does not exceed 5% of the capital. By doing this you can reduce losses and have more opportunities to add trading position to win profit. Note the risks, learn to place orders with fewer positions, so can make you not too worried when conducting transactions.
2.Transaction time strategy:
Binary options are taking shares, indices, forex and the most typical commodities globally as underlying assets to conduct transaction. Each week the transaction time is about 6 days. You must learn to wait, each day justto grasp the trend several times is clear enough.
3.Trading plans when single-sideband trends:
In all actual transactions, a commodity, certain indicators tend to continuously increase or decrease by a factor that affected the market. This is the single-sideband trends we have just said. So we must place orders immediately following the trend, the trend increase place increase orders, and the trend decrease place decrease order. In binary options trading, single-sideband trend is opportunity to make money is relatively high, of course, the market is always the protagonist, without the absolute winner, do not forget the first thing, pay attention to manage investment position.
4.Fence trading strategy
Through fence trading strategy while in binary options trading, you can get the safest way to trade — win more than loss.
In a transaction:
You analyze in the next one hour, EUR / USD will rise to resistance level 1.50059 from 1.30000 and has revised down. You place a buy (increase) to invest $ 1,000 at 1.30045. Results indicators gradually increase your will. When nearly to the level 1.50059, with obstacles and move downwards, you place an order to sell (decrease) to invest $ 1,000 at 1.50057. At that time there 15 minutes before it expires, you wait until expiration.
Index fell, the expired price was 1.40048. Calculated follow fixed wins interest rate of 80%, this time transactions you will receive a revenue: $ 1,000 (1 + 80%) + $ 1000 * (1 + 80%) = $ 3600, profit is $ 1600. The worst result, expire price is higher than 1.50059, or less than 1.30000, ie not at prices between 1.3000 ~ 1.50059. So your revenue is: $ 1,000 * (1 + 80%) = $ 1800, will lose 10% of capital. Little loss and win more. This strategic transaction is very positive.
5.Reverse trading strategy:
For example, if today has the event affect unusual market volatility, or have important meetings data etc … You do not rush in ordering increased or decreased transactions. Unusual market volatility is temporary, we have to wait and find out the upstream of the market. After half an hour even for an hour, the expected impact will gradual disappear, market return fair. At that time we can transact at the reverse level. That strategy called the reverse strategy.
Hopefully the binary option trading strategies above will be useful for you.
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