Trading Strategies

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Any trader whether a beginner or expert should implement trading strategies into his every-day plan. Trading strategies can be learnt and practiced and can make a real impact to the returns the trader seeks. In this section we have given you the most profitable and simple binary options trading strategies working its way from beginner to advanced.

Trading Strategies - Beginner

Money Management Introduction

Introduction to Money Management for all levels of trader You’ve got to be in to win it that’s for sure. But at the same time you have to have a strategy to manage your funds, we call this money management. How much should you trade with each time? What should you do if you have a losing streak? The idea is that you should keep your capital for as long as possible and ride the storm. By the way the same is true if you’re killing it in the markets. If you’re winning trade after trade don’t get brash, stick…

Fundamental Analysis in Binary Options

Fundamental Analysis in Binary options It’s important to understand the difference between technical analysis and fundamental analysis. There are always arguments over which school should be used. Today we’ll be learning the basics of Fundamental Analysis in Binary Options. Fundamental Analysis is the study of an asset by taking into consideration all the internal and external factors that have the ability to influence its price. These internal and external factors can be varying levels of data, ranging from company data to global events. Many events are interrelated, affecting the price of different assets and the different asset classes. It would…

Why Trade Binary Options?

Binary Options- Should I? There are many reasons why more and more people from all walks of life are trading binary options. Simplicity – Just yes or no type investment decisions are all you need to make, meaning anyone can trade the financial markets in an uncomplicated fashion. Trade in All Conditions – Binary Options offer trading in all conditions – it doesn’t matter if the markets are rising or falling, a binary trader can profit any market conditions. In fact, the more volatile the markets, the more profit opportunities as large swings in price create more chances to for…

Market Conditions – Bulls and Bears

Before you start investing in the financial markets, you as an investor have  situational awareness about the various market conditions existing around you. You must learn about what kind of market conditions that you will face and learn how they change.  Market Conditions That Affect Your Trading The financial market is a very dynamic market. The conditions that are ideal for a certain type of market condition could very well easily change the next minute to conditions that are more suited for another type of market condition. Hence, it is not surprising to find a market that is moving within…

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Trading Strategies - Intermediate

The Forex Multiple Time Frames Strategy With Binary Options

For this trading strategy you will need a decent charting software and some patience. Although trading with multiple time frames is not a new concept among traders in the forex circle, it is relatively unheard-of among binary options traders. Because binary options are normally traded with a relatively short time period, many traders choose to disregard multiple time frames trading. They think this trading system is not suitable for short term instruments like binary options. However, losing sight of the bigger picture can often result missing clear signals for probable market entry points. Multiple Time Frames Trading System Explained The…

Identifying Trend Reversals

The trend is your friend is an oft-repeated maxim of trading, and a lot of binary options trading strategies hinge around identifying a trend and trading with it. Of course every market is volatile, and every trend comes to an end. So, what do you do when trend ends? Knowing when to get into the market is an essential skill, but getting out at the right time is just as important. With binary options, it’s a little easier to know when to get out, because they expire at a fixed time. But, if you are following a trend, how do…

Scalping: Binary Options Strategies

In Cowboy movies, the word scalping holds a sinister meaning but in the world of online financial trading, it is a trading technique used by traders to skim profits from the financial markets. The main idea behind this trading technique is for traders to open a market position and close it within minutes once they have pick up just a few pips in profit. If we were to draw an analogy to this form of trading then it would be filling a bucket up by drip feeding. Because of their success rate traders can make thousands albeit at a slow…

A Great Binary Options Strategy- Long Box Trading

To become a successful binary options trader, one doesn’t need to be a rocket scientist. All it takes is some basic mathematical skills and a mind that is capable of making straight forward analysis. For the Long Box trading strategy, a trader will be concerned about buying simultaneous purchase and selling of a call and put options with identical strike prices and expiration times respectively. The strategy is normally adopted by traders when the options are underpriced in comparison to their expiration values. In other words, the trader can lock in profit immediately if the premiums paid for the call…

Money Management – Stop Loss and Profit Taking

Stop Loss and Profit Taking is for the intermediate and advanced traders Before beginning to trade in the financial markets, you must have your money management strategy sorted out first. This involves allocating sufficient trading capital and deciding how much money that you are willing to lose. You also need to devise a proper trading strategy that allows for a realistic risk to reward ratio using stop loss techniques and take profit. Ideally, the risk to reward ratio should be one where the profit level is at least three times that of the amount you risk. That mean to earn…

Risk and Bet Size – Hedging and Stop Loss

Risk and Bet Size- Hedging and Stop Loss is for the intermediate trader Risk vs. Reward: Trailing stop loss is used by investors to ensure that their risk to reward profile remains the same even after the market has moved higher. Compared to the fixed stop loss, the trailing stop offers one key advantage. It continues to protect an investor’s trading capital even when the market drops. At the same time, because of is trailing feature, the investor is able to maximize his profit potential without having to sacrifice his risk protection level. To understand the concept better, let us…

Draw Down

Draw Down is for intermediate and advanced traders and is a key concept A draw down happens when a trader’s investment capital is reduced after a streak of losing trades. It is measured by the difference between the peak of one’s invested capital (equity capital) to that of a trough in one’s invested capital.     For Example: Let’s us assume that you started off with $100,000 invested capital and at the end of the trough cycle, you lost $50,000. This would mean that you lost 50% of your initial invested capital. In this case, $50,000 would be considered your…

Collar Strategy – Protective Options

Collar Strategy is for more intermediate traders In the trading of financial instruments, you will always run the risk of losses whenever the market does not react or perform as anticipated. To help you minimize this risk, you can use a trading strategy commonly known as a “collar strategy”. It involves reversing your risk by purchasing a call option and selling a put option or purchasing a put option and selling a call option. As mentioned earlier, a collar trading strategy is used when you want to recuperate some of the transactional costs of a purchased option. This can be…

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Trading Strategies - Advanced

MACD & Bollinger Bands Binary Trading Strategy

This strategy is an expansion of the MACD trading strategy. While the MACD is used for indentifying the prevailing trend, this strategy adds the Bollinger bands as an additional indicator for a trade trigger in order to minimize the likelihood of a false signal. Although the MACD indicator is reasonably reliable, it is not without its shortcomings. One of its shortcomings is the fact that a wild price swing can result in prices varying significantly for the market trend. Another shortcoming of the MACD is because the indicator is a lagging indicator. And because of this lag, the MACD is…

Interpreting the MACD Indicator for Binary Trading

While the concept of binary options trading is a simple matter, to get ahead, a trader must be able to formulate an effective trading strategy on his own. In this article, we will take an in-depth look at how we can use the Moving Average Convergence Divergence (MACD) technical indicator to further our trading advantage when trading Call/Put binaries. Analysts generally use the MACD indicator to help them understand the magnitude of the momentum in the market. The MACD uses the relationship between a shorter moving average of prices and a longer moving average of prices to discern the momentum…

The Gamma Scalping Strategy for Expert Binary Traders

The binary options gamma scalping strategy is an advanced trading strategy for experienced binary options traders. Only traders who are extremely knowledgeable and well capitalized should ever consider using the gamma scalping strategy. Delta & Gamma Gamma is a Greek term used to describe the rate of change of a financial option’s delta as compared to the price of the option’s underlying asset. Delta or “hedge ratio” in financial trading refers to the ratio of change of an underlying asset price as compared to the option’s price. For example of an option has delta of 0.75, this mean for every…

The Pivot Bear Trading Strategy

  Pivot Point Bear strategy is an excellent strategy not only for risk control when trading binary options but also can be used as an indicator or monitoring tool. Traders are advised to familiarize themselves with this strategy so they it will provide them with a powerful tool in their arsenal of trading strategies What Are Pivot Points? By definition, pivot points are a type of technical indicator that is used by technical analysts to verify the primary market trend over a range of different time frames. It is essentially a point derived from the average of the previous day’s…

Using Channel Identification in Binary Options Strategy

Traders dream about stumbling across an asset trading in a channel. It has all the advantages as trading with the trend, but also provides a bunch of signals which make trading really profitable. Channels are often hard to identify and carry a risk of breaking unexpectedly, which is why they often aren’t discussed in many binary option strategies. But when they do appear, they can give the opportunity for substantial profit in a short time, which makes them worthwhile to discuss. A channel is basically when the market get’s confined between two trendlines. There are several reasons for why the…

Binary Options Fence Trading Strategy

The Binary Options Fence Trading Strategy is designed to help traders reduce the risk of investment through the use of binary options. Basically, the strategy requires the purchase of two (2) option contracts on the same asset. This is because the trader needs to cover both sides of the market. Hence, he buys both “Above” and “Below” contracts to “fence” in the prices of the asset in between the strike prices of these two (2) contracts. With this strategy, the trader is able to reduce his investment risk and also profit from the market even without really having to choose…

Fibonacci in Binary Options Trading

 Fibonacci and Binary Options is for the advanced trader The Fibonacci retracement tool is one of the lesser used technical indicators in market analysis, but still forms one of the best and most accurate strategies to accurately predict where prices are heading to. Retracements are a regular part of trading. They happen all the time which means a trader needs to know how to use retracements to their advantage. This is where the Fibonacci retracement tool comes into play. The tool plots 5 horizontal lines on the charts which relate to 5 possible areas in which the price might retrace….

Straddle Strategy

Straddle is for advanced traders   The straddle is a trading strategy which involves the simultaneous use of put and call options with the same strike price and expiration date. The straddle is a good trading strategy to adopt if you as an investor believe that the price of an underlying asset will fluctuate significantly but are unsure as to the direction of the fluctuation. For the straddle to be a profitable strategy, several conditions must be fulfilled first: The price fluctuations must occur within a short term period. The price swings must be significantly large. There is an increase…

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