Trading Volume and Signals – Before entering the field, you need to know the two main parameters of binary options trading strategy. Let's take a closer look at these two parameters. And I will also introduce you to three binary options strategies.
1. The sign
The signal is a signal of market movement or price going up or down. It's like more intuition after looking at the trends happening around you. Signals are useful when determining the next move. It also helps to predict whether the price will be higher or lower.
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If you can't identify the signal, there is a specific way. Below, we will introduce some methods.
always get information
In general, trading is related to business and the market. So, to do a good deal, you need to have a good understanding of the stock market, industry news, and information provided by CEOs to the public. It all helps to predict whether the price of resources will go up or down.
About technical inspection
This is a way to get a good look at the trading chart in addition to market news. It's a more centralized approach. Read the chart carefully, analyze past events and predict the future.
There are many demo trading apps online, and you can practice and improve your forecasting skills. Once the brain gets used to the trading pattern, it will be easy to understand the trend of rising and falling prices.
2. Amount of investment
It is very important to determine the amount of money to trade binary options. If you are impulsive or mismanage funds, you will only lose money. Let's develop a fund management strategy to reduce risk with binary options. Here are two of the most widely used and trusted financial management strategies: the percentage-based approach and the Martingall approach.
Percentage based approach
This method determines what percentage of funds to trade. If you are a beginner, we recommend you to start with 1% or 2%. For example, let's say you have US$ 50,000 in your bank account. So I'm going to trade this 1% i.e. US$ 500. This is a way to safely manage funds and reduce potential risks.
About the Martin Gale Approach
This method is a bit tricky, and if you are inexperienced, it is risky. But it's good to know all possible approaches. Here, we will double the transaction amount after the loss in order to recoup the previous loss and make a profit at the same time.
With a wrong prediction, you will lose a considerable amount of money. Therefore, it is important to establish a specific binary options strategy to manage risk and funds. Below are some of the best trading strategies.
1. Trend follow strategy
This is one of the best binary options trading strategies for beginners. This strategy can be applied anywhere, regardless of trading volume or market. First of all, you need to study the trading chart and line pattern. You may notice that it usually proceeds in a zigzag pattern. It may seem like an easy thing, but you need to practice.
First of all, before trading money on the live market, it is better to get used to the trading chart and its trends in the trading demo program.
If you learn to read the pattern, it will be easier for you to predict whether the asset price will go higher or lower. However, this strategy is not very reliable in short trades. To apply this strategy, you need to study the chart and see the movement of the line.
If the line goes up, the price is going up and vice versa. If the line is stretching horizontally, look for other options for trading with bottoms.
It is important to have practical knowledge, practice on the binary options demo trading platform and have clear ideas.
2. Candlestick Strategy
In his 1991 book, Steve Neeson presented the binary candlestick formation strategy. A good trader must know how to read asset charts.
If you understand the pattern and the movement, it is easy to predict the next movement of assets on the chart. For example, there is a formation pattern on an asset chart called a candlestick. The pattern formed by the up and down lines looks like a candlestick.
The top line is the highest price called the mountain, and the bottom line is the lowest price called the valley. There are no specific formations for this strategy, but there are several formations to learn to identify and read to make a better deal.
To apply this strategy, you need to watch the chart and price pattern for a while. Then you will notice the repetition of various patterns. And you can use your knowledge and experience to predict whether the line will rise or fall.
It is a popular strategy among binary options traders. As the name suggests, this strategy takes advantage of asset price movement over the past 20 days. Then use that data to predict the next call. It can be high or low. This strategy provides two signals.
Buy signal: If the current price movement is above the bar/line for the last 20 days.
Sell signal: If the current price is below the bar/line for the last 20 days.
This strategy can be easily used even for beginners. However, the results of the turtle strategy vary. Trading strategies help traders identify signals, but none of them promise to be 100% accurate.