Trading Strategies Intermediate

These intermediate trading strategies are for investors who have been trading binary options for a while and would like to increase their arsenal of trading strategies. This includes Stop loss, draw down and money management tips.

The Forex Multiple Time Frames Strategy With Binary Options

multiple time frames strategy

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…

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Identifying Trend Reversals

trend reversals 2

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…

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Scalping: Binary Options Strategies

scalping on the EUR/JPY

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…

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A Great Binary Options Strategy- Long Box Trading

Binary Options Strategy Intermediate

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…

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Money Management – Stop Loss and Profit Taking

Money Management

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…

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Risk and Bet Size – Hedging and Stop Loss

Trailing stop loss- Risk

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…

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Draw Down

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…

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Collar Strategy – Protective Options

Collar strategy

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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