You decided to try trading. Whichever instrument you choose – CFDs or Binary Options, having a unique approach to analysis of financial markets is That is why binary options trading strategies are your main weapon. There is a big set of such strategies, if you want to succeed, you must actively learn and apply the ones that you like and seem promising. Begin training with simple trading strategies for newbies. It should be recalled that binary options and CFDs are a bit of a part of the vast and complicated mechanism – the financial market, which is not so chaotic and random as it may seem, but this market operates with certain patterns that can be used to make better predictions in CFDs and binary trading.
The result of the option is directly dependent on the general situation in the market and the specific current price for a particular asset. Only by applying certain trading strategy, trader can trade successfully and as a result, earn on his investments.
Remember that any strategy, even seemingly win-win, does not work ideally all the time. The loss is possible and you can lose money, but, more importantly, do not lose all at once. Allowing the possibility of episodic subsidence of capital, you should not put all the money into one trade or underlying asset. It is very risky and reckless. Ideally, you should have the funds, at least for ten investment. Such a reasonable and prudent attitude towards deposit called funds diversification. Let the idea of diversification has never leaves your mind.
Five Minutes Strategy
This strategy is uncomplicated, would say even an elementary simple, and it is ideal for beginners who have no experience, no serious capital on deposit. It does not guarantee one hundred percent of success, but its probability, according to conservative estimates, is close to eighty percent. During the day, you can use it repeatedly, increasing thus your small capital unless, of course, you are quite reasonable, and good luck will not turn away from you.
Five Minutes strategy is based on the fact that many brokers allow you to buy options on their extreme extent – in five minutes before the expiration. All you need is to rummage around the assets in the market and find one that is stable and growing for a long time or, conversely, decreases. Do not forget to trace its maximum value, which, for sure, this time may be a turning point for the trend, and reached a historic high, trend likely will change the motion vector to the opposite.
Appropriate Trend for 5 Minutes Strategy
The principle of the Martingale is considered to be less risky when trading binary options. Martingale principle is based on doubling the following amounts, if the previous trade failed. That is, if you lose $100, you have to trade again with an amount of $200. If you lose $200, it is the time just to put $400. You should double your trading amount as long as you win, otherwise all the previous trades to turn very significant loss.
Learn more about martingale strategy in following articles
Therefore, to apply the principle of Martingale in its purest form, relying solely on luck, is very risky. You should find the currency pair, with a clear up or down trend of price movement. It is logical to assume that this trend will not change in the near future. You should use this temporary stability. It is more reliable to trade binary options by Martingale principle using binary option indicators. Binary options signals already give you a chance to win, and using the principle of Martingale you will greatly increase it.
15 Minutes Strategy
You should track an asset on 15 minutes timeframe, if we see three or more consecutive candles of the same color, let’s wait for a rollback. We should buy binary option after 2 minutes hoping for rolling back. For example, we see that three white candles closed, new candle opens and it goes in the opposite direction – the price decreases. We wait two minutes to make and fix it rolled back and buy Put binary options with a term of expiration at the close of the current candle i.e. after 13 minutes. Buying an option is still recommended in the case when the bodies of three candles together make up more than 15 points.
Example of Pattern Needed
Triangles are different, but they all show the imminent breakthrough price. Some of them – are rising, portend the imminent increase in prices and a break up, but falling triangles, on the contrary, are harbingers of its likely fall. Accordingly, traders have to trade on an increase or decrease of the price when you see that the chart has formed the corresponding figure.
In an uptrend, price movement forms the ascending triangle. To see it, trade should visually draw two lines through the points of resistance and support. Resistance line (higher) must be horizontal and support line is located at an angle thereto. It is obvious that in a downtrend, traders have to look for a downward triangle. In descending triangle, support line is horizontal, resistance line disposed at an acute angle to it – on sinking maximum points.