In this article we will talk about binary options strategies that will help you win more trades and more money. For long term profits it’s vital to use some strategy, even if it’s just a basic one. The goal here is to increase your winning percentage.
Every trader need some strategy to be successful with binary options trading, because simply guessing the market direction without using specific patterns and statistical evidence, is not a good idea if you are looking for long term profits.
Learn how Binary Options Trading works?
Binary Options has an all or nothing aspect. Trading binary options is simple and very easy to learn, because there are only two possible outcomes (that’s why it’s called binary): you can either win or lose money. With the introduction of 60 seconds binary options, there is a very good chance to make a lot of money, or to lose it all in a very short period of time. At the moment you can pick 60 seconds, hourly, daily or weekly, contract expiration.
Bascially you just have to predict the direction of the market. Will the price be higher in 60 seconds than it is now? Or will the price go down? You have two options: if you think the price will go higher then you select the “CALL” option. If you, however think the price will go down, then you select the “PUT” option. That’s it: two outcomes, two options.
Lets take an example to better understand it: The gold price will be higher than $1300, today at 12:00. There is payout of 85%.
If you think that the gold price is heading towards this direction and the price will be higher, then you select the CALL option and you purchase this contract for $100.
Now it’s 12:00 and you were right, the gold price reached $1301, therefore it’s higher than $1300. You made a trade with $100, and the payout was 85%. That means that you win $185, from which 85$ if profit. So you almost doubled your money. Always make sure you don’t sign up with a scam broker – Binary Options Tested has a great list with blacklisted brokers and signals.
What Assets are available in Binary Options Trading?
Most binary options brokers let you trade these 4 assets: stocks, commodities, currencies/Forex and indices. There are usually 100+ assets to trade.
- Stocks: Will the price of an apple stock go up or down?
- Commodities: Will the price of Gold go up or down?
- Currencies/Forex: Will the EUR/USD target price go up or down?
- Indices: Will the DOW JONES go up or down?
Best Binary Options Strategies for Beginners
Please note that, due to the nature of binary options, no strategy will guarantee that you win every time, and there is no perfect strategy in trading. Even the best and most experienced traders say that there is no secret, magical way which can predict the future and guarantee your success.
There are however a few strategies that can work most of the time, and you can make a lot of money with them. Fact is, you will lose money with every strategy, but obviously you need a strategy that wins you more money than it loses. You need consistent income generation on the long term. Short term, luck plays a major role, but over time (long term), this factor becomes less and less dominant.
What is High Volatility Trading?
Trading binary options with high volatility assets is not recommended for beginners. High Volatility financial trades are very risky, but are often very rewarding. Be very cautious with this type of trading.
What is Low Volatility Trading?
If you think that the market is flat and has low volatility, then it’s usually a good idea to trade binaries that are in the money according to Nadex. The reward is often low, but at least you can be more certain that you make some profit.
Use Binary Options Signals
Some experienced traders have developed their own systems, called binary options signals. What these do, is to give you ideas, based one statistics, on which direction the market will go. Some of them claim to have ~70% success rate. We have tested these signal providers, and you should carefully pick them, because some of them are known to be pure scams.
Use Binary Option Charts
The Binary options brokers already have charts integrated in the system so you’re probably asking why you would need any addition charts? Unfortunately the charts provided by binary options brokers don’t have important features that can be found in other charts. For example candlesticks charts and not included. Having additional features is very important for your binary options strategy.
Paid vs Free Charts: after checking some of the providers we have found out, that there is no real difference between the paid and free charts. Both have pretty much the same features, so it’s a waste of money to go for the paid charts.
Free Charts are available are:
- Investing.com – One of the biggest names in the online finance industry. Investing.com is a popular and trusted source of financial information. The only down side of this site is that they are not offering any live commodity charts.
- FXempire.com – Another big name in the industry. They have some great free charts that can help you with your next trading movements and actions.