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Best Binary Options Trading Strategy For Beginners

Best Binary Options Trading Strategy For Beginners - Binoption

From Novice To Pro: Best Binary Options Trading Strategy For Beginners

If you’re a beginner looking to dive into the world of binary options trading, the first thing is to find out the best binary options trading strategy for beginners. Only a perfect strategy will help you to take the trading game to the next level.

No wonder binary trading is an exciting way to trade financial markets. However, it is not without risks, especially for beginners.

With our proven approach, you’ll be able to make informed decisions and maximize your profits. So, whether you’re a novice trader or someone who’s been in the game for a while, this strategy is the perfect solution to take your trading skills to new heights. 

Let’s get started!

Best Binary Options Trading Strategy

Discover the power of a winning binary options trading strategy. Our expert guide unveils the top strategies to minimize risks and maximize profits. From trend following to hedging techniques, we’ve got you covered. Start implementing these proven strategies today and take your trading to the next level. 

Understanding Binary Options Trading

People started binary trading for over a decade, but the final screening happened in 2008. From that year to now, the trading form has updated itself with various features and many more advantages. Picking the right broker is more important now, including a basic understanding of binary trading.

Moreover, if you are looking for an example of binary options, just open the what is the binary trading article. Just don’t pick a broker that says “Deal or No Deal” unless you’re looking for a real gamble!

On the other hand, the primary concept is that the form will let you get a profit after predicting the right price. If the prediction goes wrong, your initial investment in that particular trade will go on forever. So, no partial wins.

Well, I guess that means you’ll be trading until the end of time!

What Is A Trading Strategy?

Strategy is a constructive plan that helps one to do the task properly without any breaks. Trading strategies are not different from this concept in any way. So, a trading strategy is a set of rules that a trader uses to determine when to open and close a position.

In essence, it is a strategy the trader uses to decide how to trade in the market. Also, it helps the trader to make informed decisions based on data and analysis rather than emotions.

Many factors are involved in forming a strategy. You should have the power to combine all the elements and tools to make a strong shield. And Binoption also has a resource to share with you. Our best strategy for binary options section will guide you with many popular strategies you can implement in your trading.

So, do not forget to check!

3 Best Binary Options Trading Strategy For Beginners

Do you know what people think about binary options? Most people think that options trading is thrilling. However, for beginners, navigating the various strategies and approaches to trading can be overwhelming and confusing.

No matter if you’re new to trading or just looking to improve your skills, we’ve got you covered. Our comprehensive guide covers everything from the basics of binary options to advanced trading strategies that can help you maximize your profits.

1. Trend Following Strategy:

Traders, you are familiar with the term trend, right? 

Using this, you can also make a strategy that is one of the most popular binary options trading strategies for beginners. The idea is as simple as that. If the market moves in trends, the trader should follow the trend to make a profit.

So, in trend strategy, you will identify the direction of the market trend by analyzing price charts and other technical indicators. The goal is to identify the trend early and then ride it until it reverses.

But the fact is that a trader must have a deep understanding of technical analysis, which involves analyzing price charts and other indicators to identify trends and patterns.

Now, how to use trends to make a strategy? Simple steps. You buy a call option when the trend is up and a put option when the trend is down. And then set the expiry time to match the length of the trend.

Some of the technical indicators used in this strategy include moving averages, trend lines, and support and resistance levels.

2. Fundamental Analysis Strategy:

Fundamental analysis strategy is another popular strategy for binary traders. A prediction about an asset’s future price involves analyzing its economic and financial factors. 

So, using this analysis, traders make a strategy that involves studying various economic indicators, financial reports, and news events to understand the asset’s underlying value.

For example, if you’re trading binary options on a company’s stock, you would look at its financial reports, earnings announcements, and news about the company to predict its future price.

This is how a strategy makes and how people choose to close a profitable trade.

3. News Trading Strategy:

News trading strategy is quite similar, or you can say it’s a small part of the fundamental strategy. It is a trading method that influences traders to make decisions based on recent news or economic data. 

This strategy especially depends on various market news. In the fundamental strategy, traders use other elements, including the news. With a news trading strategy, the objective is to use market news and upcoming events to make a strong position.

The trader can profit by trading on the news event before the market reacts.

Moreover, it is simple to use!

For example, if the news is better than expected, a trader may look to buy the instrument in question, anticipating that the price will rise. Conversely, if the news is worse than expected, the trader may look to sell the instrument, expecting the price to fall.

The following facts need to remember: 

  •  Strong understanding of the market and the specific instrument
  • Must be able to identify key news events
  • Closely watch how the market reacts
  • Check the market volatility
  • Well-defined risk management strategy

On the other hand, it is a powerful tool suitable for any trader. 

What Makes The Best Binary Options Trading Strategies?

What Makes The Best Strategies​-Binoption

The best trading strategy is one that is profitable, easy to navigate, and flexible to use. On the other hand, a solid and strong strategy is based on sound market analysis. Moreover, the strategy must be adaptable to different market conditions.

But if you ask us to pick one name from thousands, nearly impossible for any trader. A good strategy defines if it is easy to use with a good return.

Factors To Consider Before Developing A Trading Strategy

Some factors that you need to consider before developing binary options trading strategy. Considering these factors before creating a trading strategy will increase your trade-winning chance in the market.

  • Understanding the market structure, the factors that drive price movement, and how it operates is essential.
  • A well-defined risk management strategy can help you avoid significant trading losses.
  • Determine your trading timeframe – is your strategy based on short-term or long-term trades?
  • Decide what kind of trader you want to be! 
  • Choose a reliable and user-friendly trading platform to support your trading strategy.
  • Check if there is any extra commission or not. Fees and commissions will eat your profits. 
  • The ability to stay calm under pressure, avoid impulsivity, and stick to your trading plan can help you succeed in the long run.

Conclusion

Binary trading can be a profitable source of earnings. It is crucial to have an effective strategy to increase your winning chance. In this article, we have mentioned a few best binary trading strategies that help you confidently navigate the market. 

We also mentioned how anyone could understand the basics of Binary Options Trading that improve their skills.

So, what are you waiting for? Dive into this article and take the first step toward realizing your trading goals!

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Some Characteristics of Reliable Trading Broker

Some Characteristics of Reliable Trading Broker: Platforms and Payout of Binary Options

It is possible to trade binary options through online only and for this every trader should know the Characteristics of Reliable Trading Broker.

As there is a lot of demand for binary option software and due to the competition in this field, these platforms are offering 100% reliable and glitch free automatic services.

These are some of the important features that every trader looks up before choosing a binary option broker.

Plus even if there will be any minor glitches, the trading platforms will try their best to resolve it with 27 hours.

The services offered are very real-time as things are happening on a live market where each second matters a lot.

The minute a trader decides to book a trade, the platform should be ready to offer all necessary services.

If this is not offered as per requirement, then traders will choose to move to different platforms that offer fast and best services.

As there is continuous popularity in binary option trading, the platforms are bound to offer latest sophisticated services to its customer.

The level of services offered will have to be flawless and quick.

In any chance, we understand there are still many traders out there who are keen to know how to choose best brokers from the list that is available in the market.

Choose returns:

The most important and first factor that should be kept in mind before deciding a broker is if they agree to offer at least 70% returns on the investment.

If the payout is determined in advance, the trader will be more confident and happy to make any investment into the platform for any trading activities.

This will help each trader to know how much they should earn or lose to get desired payout.

Also it is important to understand the bigger the payout is, it is the better.

However, as thinks get better and earning go up, you can capitalize more and more and increase the rate of return on investment.

There are certain types of options that will still render payouts as additional features even if the option is expired to have out-of-the-money.

There are some brokers who offer around 15% refund on losses.

This will decrease the whole loss and will also increase the morale of traders.

This feature is extremely beneficial if you lose a lot of trades continuously.

Binary options can be traded on a wide variety of assets.

Those traders who are looking for great return can customize their trades as per their wants.

The more complex and accurate your predictions are the chance of earning high returns is great.

Also for this while choosing platforms, you should check if customized trades or structured trading style is accepted by the platform.

Also while choosing platforms look up for news feed services, the more updated you are on the market conditions, the higher will be the accuracy of your predictions.

 

As a binary option trader you should be aware of latest economic developments which will influence the price movements of the assets you are looking to trade.

Quality of support:

When choosing a binary option broker, the quality of support that it offers plays an important role.

Its true there are a lot of safe and secure binary options trading platform but they are not 100% full proof.

Glitches, errors and malfunctioning of the systems can be commonly seen.

For all these there should be sufficient support rendered around the clock for any quick resolution.
While choosing trading platform, security is another main factor.

There should be privacy of any personal information shared plus there should be high level confidentiality.

Its broker’s obligation to make sure that there is lot of privacy of their client’s information.

All have threats from cyber-attacks;

Though brokers will try their best to avoid it, there is no guarantee that trading platforms are 100% safe.

Trader should be open to take up any risk associated from such factors.

However, what traders can do in these instances is, they can stay away from those brokers who have the history of very poor data management.

In order to get all the facilities and to make use of the same to the utmost, it is important that the information provided to brokers is original with sufficient supporting documents.

If you try to open an account with fake information, then in case of any account related issues, if they recognize you have fake identity, no support will be rendered from the platform.

The severities of fake account can even extent to getting your account banned in case of any legitimacy checks.

The same is the case when the broker is not genuine, the money you invested will be lost if it is not an approved and regulated brokers.

Apart from these passing false data and using inappropriate measures to make money will lead to losing the investment in itself.

 

Just like Forex, there are basically two types of binary option trading platforms- Propriety platforms and white-label platforms.

White label platform:

There are lot of software companies who create platform for different brokers, broker will buy these and then customize it as per their platforms requirements.

 

These companies make use of the Meta Quotes Software Corp’s white-labeled Meta Trader platform model to create platforms for brokers that can be customized and used.

Proprietary platforms:

As per the brokers wants and needs they design binary option trading platforms.

These platforms can be directly used by the broker to share with trader.

No additional efforts are required on the same.

When broker are allowed to come up with their own style customized platforms, they can easily add unique features.

Plus it also offers features where in there is wide range of expiry settings as compared to what is offered in white label platforms.

To summarize, with White label platforms specific software companies create white label platforms, post which it will be sold to various binary option brokers.

But on the other hand proprietary platforms are specially designed as per the needs and wants of each broker;

It is more like creating a customized and exclusive platform for each of the brokers.

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Binary Options Gold Trading Strategy

Binary Options Gold Trading Strategy

Binary Options Gold Trading Strategy: Expert Tips and Winning Factors

Are you looking for a lucrative opportunity to trade gold? If you’re interested in profiting from the gold market using binary options, this article is a go-to resource Gold, being one of the most valued and traded commodities, offers excellent opportunities for to generate substantial returns.

However, successful trading requires a well-defined strategy that maximizes profit potential while minimizing risks.

In this guide, we will explore various binary options gold trading strategies that can help you navigate the market with confidence. Whether you are a beginner or an experienced trader, our insights and expert tips will empower you to make informed decisions and execute profitable trades.

Stay tuned as we delve into technical indicators, fundamental analysis, risk management techniques, and other essential elements to craft a winning strategy in binary options gold trading.

Let’s unlock the potential of this exciting market together and pave the way to your financial success.

Binary Options Gold Trading Strategy

Binary options gold trading strategy is a powerful approach to harness the potential of gold’s price movements within the binary options market. This strategy enables traders to speculate on the direction of gold prices within a predetermined timeframe, aiming to secure profitable outcomes. By combining fundamental and technical analysis, implementing risk management techniques, and choosing the right binary options broker, you can navigate the world of gold trading with confidence.

Explore this comprehensive article to unlock profitable opportunities and take your binary options gold trading to the next level.

Importance Of Having A Trading Strategy

Having a well-defined trading strategy is of paramount importance. A trading strategy serves as a roadmap, guiding traders through the complexities of the market. Also, helps them make informed decisions.

It acts as a set of rules and guidelines that dictate entry and exit points, risk management techniques, and overall trading objectives.

Our experts believe that one crucial aspect of having a trading strategy is that it provides structure and discipline. It helps traders avoid impulsive and emotionally-driven decisions, which can lead to costly mistakes.

By following a predetermined plan, traders can stay focused on their goals and maintain consistency in their trading approach.

For instance, let’s consider you have decided to engage in day trading without a proper strategy.

You might succumb to the temptation of chasing quick profits, making rushed trading decisions based on short-term market fluctuations. This lack of direction can result in inconsistent and haphazard trading, leading to unnecessary losses.

On the other hand, you found that I am armed with a well-thought-out strategy would approach each trade with a clear plan. Such as

  • Market analysis
  • Risk tolerance, and
  • Profit targets.

So, I would be able to identify favorable trade setups, manage risk effectively through appropriate position sizing, and execute trades with discipline.

So, the benefits that you will get: 

  • A trading strategy allows traders to evaluate their performance objectively.
  • Traders can identify strengths, weaknesses, and areas for improvement.
  • Well-defined strategy help you staying disciplined. 
  • Traders can navigate the complexities of the market with confidence.
  • Have the power to control unnecessary emotions.

And if you are a day trader, don’t forget to check this day trading strategy article to learn more. 

Top 3 Binary Options Gold Trading Strategy

To achieve remarkable trading results, strategic empowerment is key. Numerous traders have suffered significant losses due to the adoption of ill-suited strategies.

Our focus today is on gold, renowned for its unparalleled liquidity in the market. When it comes to trading this precious metal, there’s no room for negotiation.

Experience in trading is of utmost importance, and with the right strategy, you can unlock the full potential of gold trading. Trust in your expertise, and watch your trading results soar.

Let’s find out the best three binary options gold trading strategies. Note that, we are not giving any financial recommendations. 

1. Technical Indicator Strategies:

If you are a gold trader, technical analysis is the best tool to make a profitable strategy for gold trading. It’s a guiding light. This involves blending various technical tools or employing a single tool customized to suit your precise requirements. These strategies serve as your compass in navigating market trends and facilitating your decision-making process.

The common indicators to build strategies are –

  • The Moving Average (MA)
  • Relative Strength Index (RSI) 
  • Stochastic Oscillator

Sometimes, you can combine both fundamental and technical analysis to make a strong one. 

2. Trend Trading Strategy:

Trend Trading Strategy-Binoption

Trend following strategy is one the popular forms of strategy for gold traders. For traders, this strategy offers a practical advantage. It keeps you grounded in the here and now, allowing you to leverage real-time market movements.

By adapting to current trends, Trend Following provides a versatile tool in your trading arsenal, enabling you to navigate the ever-shifting landscape of gold trading with confidence and precision.

3. Price Trading Strategy:

Price Action is not just a strategy; it’s a philosophy that underscores the significance of pure, unadulterated market data – price itself. It ditches the clutter of indicators and oscillators, focusing instead on the raw movement of gold prices.

Price action is a simple process that relies on candlestick patterns, support and resistance levels, and trendlines. It’s a strategy that allows you to read the mood of the market as it unfolds.

Whether you’re a short-term scalper or a long-term trend follower, Price Action accommodates all trading styles. It’s your canvas to paint your unique trading journey.

Introduction To Gold Trading

Gold trading is a potentially profitable venture that has attracted traders for centuries. This type of trading involves buying and selling gold as an investment, speculating on its price movements to generate profits.

But, in binary options, the trading process is slightly different than the other trading methods. 

Engaging in gold trading presents several benefits. However, it’s crucial to recognize the risks associated with gold trading.

On the other hand, gold prices can experience volatility and rapid fluctuations due to external and internal factors. It’s important to stay informed about market trends, conduct a thorough analysis, and develop a well-defined trading strategy to navigate the gold market successfully.

Binary Options Gold Trading

Binary options gold trading is a popular method for speculating on the price movements of gold within a predetermined timeframe. With binary options, traders have the opportunity to profit from the price fluctuations of gold without owning the physical asset.

One of the key advantages of binary options gold trading is the defined risk and reward ratio. Traders know the potential profit and loss upfront. 

Furthermore, binary options gold trading provides access to global gold markets, allowing traders to capitalize on gold price movements across various exchanges and time zones.

Factors Influencing The Price Of Gold

Factors Influences Gold Trading-Binoption

The price of gold is influenced by various factors that shape its value in the global market. Such as:

  • Supply and demand dynamics play a significant role, as shifts in demand for gold during periods of economic uncertainty or geopolitical tensions can impact its price.
  • Global economic conditions, including recessions or growth periods, also affect gold prices as investors seek its stability.
  • Central bank policies, such as interest rates and currency fluctuations, can make gold more or less attractive as an investment.
  • Inflation and currency movements drive investors to gold as a hedge against inflation or weakening currencies.
  • Investor sentiment and market speculation can influence gold prices, while jewelry and industrial demand contribute to fluctuations in its value.

How To Choose The Best Gold Trading Strategy

Selecting the most suitable gold trading strategy is crucial for maximizing profits and minimizing risks in the gold market.

With a myriad of options available, it can be challenging to determine the best approach for your specific needs.

However, following steps will provide you with valuable insights and practical tips to help you navigate through the process of choosing the optimal gold trading strategy.

  • Define Your Risk Tolerance and Investment Goals (short-term, long-term, capital preservation, aggressive growth)
  • Understand Different Types of Gold Trading Strategies
  • Consider Market Conditions and Volatility (such as, trend, volatility, market indicators and economic factors.
  • Decide on the frequency of trades (daily, weekly, monthly)
  • Seek Professional Advice and Mentorship
  • Be open to adjusting your strategy based on market changes

Conclusion

Gold trading on binary options presents an exciting opportunity for traders. So, mastering a gold trading strategy in the binary options market can be a game-changer for investors seeking profitable opportunities.

Remember, success in gold trading requires continuous learning, adaptability, and disciplined execution.  By incorporating with a winning strategy you can position yourself for success in this dynamic market.

Hope this guide will help you to smooth your journey. Embrace the challenge, stay focused, and embark on a rewarding journey where financial success awaits.

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15 Minute Binary Options Strategy

15 Minute Binary Options Strategy-Binoption

15 Minute Binary Options Strategy - How To Guide

We see a dynamic opportunity waving at us whenever traders talk about a 15 minute binary options strategy. The strategy is undoubtedly profitable for traders who focus on multiple trades throughout the day.

Shorter time with bigger rewards. Eye-popping!

On the other hand, the strategy will allow you to hold your position for a relatively short time frame. However, beginner traders have a fear of choosing this strategy.

What about day traders? Is it profitable?

Now it’s time to clear things up.

In this article, we will include how to trade a 15 minutes strategy and the benefits.
Let’s make your day shine.

What Is Trading Strategy?

Well, many of us are already familiar with the word “strategy.” Generally, a strategy refers to a solid and pre-set plan people use to achieve short-term or long-term goals. 

Similarly, in trading, a strategy is a systematic methodology that investors or traders use to buy or sell underlying assets. So, to build a strategy, you must use certain tools, indicators, and graphs to identify market movements. 

There are usually three steps to a trading strategy:

  • Planning
  • Executing
  • Placing trades

Traders use either technical or fundamental analysis to build a strategy. Sometimes, they combine both to build a stronger one.

Multiple strategies you can develop using tools and charts. The concerning part is the market analysis. It is one of the most important parts or sections that allow you to close the deal successfully. 

What Is 15 Minute Binary Options Strategy?

In binary options trading, the formation differs from other trading types. The outcome is a simple yes or no. Whether you predict the right asset movement to reap the rewards or you will get nothing for a wrong prediction.

In the 15 minute strategy, you have to choose the right outcome within the timeframe.

For example, if you believe that the chart of a particular asset will be in an uptrend, he will go for the call option. Similarly, if he thinks that the price will drop, he will select the put option. But, it should take place within a short time frame, 15 minutes.

The highest-performing asset so far for the 15 minute binary options strategy is JPY. However, please do not take it as financial advice.

Moreover, it is one of the most hyped strategies for scalpers and day traders. The only reason behind this, it opens the opportunity to trade multiples. 

How 15 Minute Strategy Works On Binary Options?

It is mandatory to remember that the strategy that you pick to trade suits your personality. Not all types of strategies are suitable for all. You must find your strengths and weaknesses before choosing the right approach.

But how? 

And, tada!

The demo account is just for you. Practice a few different timeframes before gambling with your money. Identify the right fit that will enable your best trading decision. On the other hand, setting up a trading goal is equally important to your success. 

Let’s have a look at how the strategy works. 

1. Trading Chart:

The first thing is to open a trading chart. Go to your broker platform that one you have selected already and use their dashboard. However, we will mention the regulated broker’s list below to make your work smooth.

There is also some third-party software, but we recommend you go for a broker’s one. Or else, Or else, the trading view is another option you can pick. 

Now opening a chart is not the last task. You should know how to read the chart and analyze it. So, make yourself comfortable with reading the chart accurately. Also, sufficient knowledge about support resistance and simple candlestick. 

Trading Chart- Binoption

2. Customized The Chart Time:

Customized the chart time to a “15 minutes” time frame. You will see candlestick movement on that chart. Zoom in and analyze the chart movement.

3. Add Indicators:

Add indicators that are suitable for 15 minute binary options trading. You will find the indicator list on the left side of your broker’s platform. Pick one or two and customize them according to your predetermined plan. Or use the default settings.

4. Choose An Asset:

Once you have done with your other settings, choose an asset to trade. In binary trading, you can see the approximate return ratio before placing an order. Check out the asset list, look at the volatility, and pick.

5. Study Trading Chart

Now it’s time to read the chart. Monitor the market and the indicators. Combine both analyses or pick any of them according to your research.

Now, wait for the result. The broker will pay you a fixed payout if the price of that asset hits your prediction within the time frame. 

How To Trade 15 Minute Binary Options?

Binary options trading is straightforward and simple. However, you will only achieve your goal if you know how and when to start. On the other hand, there are some other technical issues involved when one tries to make each trade profitable.

Let’s break this phrase into a few steps to help you understand how to trade 15-minute binary options with some super brokers. 

1. Choose A Broker:

Ah, the critical part of your life. No matter how tremendous your trading knowledge is, you must select a regulated broker to save your ass. Pick any regulated binary options broker from this list that has the following benefits with realistic features.

Do not forget to check the authentic reviews as well. We designed our each review to educate beginners and push them to know the real scenario about brokers. Moreover, our expects are just tremendous in it.  

Scam brokers will attract you with their eye-catching advertisements. However, regulated entities always provide traders with easy-to-use trading dashboards.

But, to play calm and safe, you need to investigate a few points. Like –

  • Low minimum deposit 
  • Regulation
  • Demo account facility
  • Withdrawal timeframe
  • Assets 
  • Customer support 

2. Set Up The Chart:

After completing the signup process, you can either go for a demo trade or deposit money to start live trading. Choose the chart system that suits you and your trading style.

3. Trade:

After completing the market research and analysis, go for the trade. Choose the call or put option according to the pre-set strategy. 

On the other hand, you can set up automated trading bots to simplify your trades. Though, not all brokers have the option to integrate automated software. 

Binary options have a fixed payout. You will get that if your prediction goes right or lose the investment amount if you make a wrong move. 

Is 15 Mins Strategy Profitable?

Strategies are profitable only then when you can create a proper winning environment. You need to confirm the direction of the trend. 

On the other hand, weekend trading is also prevalent for passive-earning holders. However, according to the rule, momentum is a must for this strategy. So, definitely, you will find the momentum of weekdays; when big players are there. 

Additionally, volatility is another considerable fact. Selecting the right trading instrument is also necessary. 

But if you don’t know which asset will work best for you, follow the recommendation: 

  • Select minimum assets, less than four 
  • The popular instrument is recommended
  • Check the historical data 

Final Words:

There are several beauties to options trading. Apart from the simplicity, you can start trading with a low initial investment. Due to the ease of access and quick execution, 15-minute binary options are becoming increasingly popular with traders.

So, you can also show love for this strategy. Just make it profitable with strong chart analysis techniques.

Wish you luck!

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Binary Options News Trading Strategy

Binary Options News Trading Strategy-Binoption

Binary Options News Trading Strategy

If you’re looking to make a profit in the trading market by following what’s happening in the news, then a news trading strategy may be for you.

A news trading strategy for binary options is another method to enjoy the market. The wind of the economic market can change anytime. So, the strategy will help you make decisions based on breaking events and announcements.

You may have heard of the economic calendar. And it is one of the premier resources for traders to find current news and events.

The writer of this article will walk you through the strategy and show you how to maximize its benefits.

Let’s hunt it down!

What Is News Trading Strategy

There are several strategies when it comes to making money in the trading market. News trading is one of them.

You can’t trade the financial markets blindly without doing any research. And the news is one of the key elements of the investment market. Generally, news trading is a technique or strategy that traders build based on current news. Note that economic data determine the market’s colour.

On the other hand, about risk, yes, this trading method carries the highest risk. But it is an effective way to make money. Both technical and fundamental analysis are essential to determine the underlying asset value.

While the market will get a lot of buzzes, it won’t necessarily be profitable for every trader. So don’t jump just because you think you’ll make money. Make yourself capable enough of controlling the volatile market.

At the same time, consider yourself a day trader if you are a news trader. As a rule, day traders always close their trading positions before the market closes.

Example of News Trading Strategy

Cryptocurrency is a good example of the most volatile market. Let’s say Elon Musk tweeted that Bitcoin is a scam. After a few hours, the price of this hyped crypto coin will drastically fall. Traders who know market manipulation rules will buy the coin and wait for the right time.

And this happened to many traders. In just six hours, the price of Bitcoin jumped over $6,300 after Elon Musk added “#Bitcoin” to his Twitter bio.

To avoid becoming a frustrated trader, you must understand news categories and their importance. Every time good news breaks, the price rises unexpectedly. Similarly, devastation occurs when the news is bad.

So, take time, digest the news, and then trade.

Technical Analysis Vs News Trading Strategies

Technical analysis is a trading discipline that helps traders to make decisions by evaluating price action. According to the believer, by analyzing the past price movement of an asset, you can predict future price movements.

Traders also use price action strategies on trading charts using various tools and indicators. Basically, price action will give you all the market data with a clear picture of what is happening in the market. Depending on trends and mathematical data, traders open or close the position.

However, news traders heavily depend on the signals generated in the market when any event occurs.

Relation Between Fundamental Analysis And News Trading Strategy

Fundamental analysis works based on market sentiment. However, it is quite different from fundamental analysis. On the other hand, fundamental analysis involves economic, social, and political factors.

And news-based trading is more likely to be a fundamental analysis. Let’s say Covid is the greatest example of a fundamental outbreak.

Investors, however, choose it as a long-term investment. Alternatively, the news trading strategy is suitable for short-term traders because it focuses on account-specific events. So, it is the primary choice for news traders.

Types Of News Trading Strategy For Binary Options

Not all trading news is scheduled. Some unpredictable news occurs and impacts the normal trading environment. Let’s see the two types of news that positively or negatively influence traders. 

  1. Scheduled news: 

This type of news comes later, but traders and investors have a shady idea about that. Traders already know why this event will happen except for the details of the announcement, such as interest rates, retail sales, inflation and employment reports. 

  1. Unexpected news: 

It is just the opposite of scheduled news. This type of event and announcement happens unexpectedly without any prior notice. Additionally, black swan events are also a part of unexpected news breaks, such as terror attacks, natural disasters, etc. 

Note that the 9/11 terror attacks greatly impacted the financial market.

On the flip side, short-term changes can also affect the market significantly. 

How To Trade News Using Binary Options

There is a common misconception that trading binary options is something that only professionals can do. But the real scenario is completely different from this myth. Anyone can trade options with a small or professional head.

When it comes to trading news using binary options, there are a few things you need to keep in mind.

  • Do research before investing any money
  • Be aware of the risk
  • Consult a financial advisor if you are unfamiliar with binary options trading news.

Also, you need to use reputable sources for up-to-the-minute information on market trends, asset prices, and volatility levels, all of which can help you make informed trading decisions.

Apart from these, finding a regulated broker is the primary step you should complete. An intuitive interface will give you a hassle-free environment. Additionally, a demo account is another tool you must use to complete your first few trades.

Let’s have a descriptive view.

1. An intuitive platform -

Having a trading account is a must. As a trader, you need to take quick advantage if you plan to trade on the news. And it is only possible if you pick the right trading broker. The broker guarantees you quick execution of orders around the news events.

The fact of regulation is also a burning site. 

Here is the list of some regulated platform that are leading the options world.

Deriv

$ 5 Minimum Deposit
  • Demo trading facility
  • Multiple Regulation
  • Low deposit amount
  • Fastest withdrawal
Read Review

IQcent

$ 20 Minimum Deposit
  • Leverage up to 1:100
  • Maximum payout 95%
  • Low deposit amount
  • Instant withdrawal
Read Review

Expert Option

$ 10 Minimum Deposit
  • Demo trading facility
  • Social trading
  • Low deposit amount
  • Fastest withdrawal
Read Review

2. Know which news to pick -

News trading is only effective if you know how to pick the most relevant news. You can find news and recent announcements on the economic calendar, one of the leading tools with clear and bold highlights.

3. Find the opportunity -

Not all news traders will be able to make money. You need to ensure your winning side. You can place trades before, during, or after the release, but make sure you don’t reap the reward.

4. Technical analysis -

You can hope for the light by incorporating technical analysis to build a news trading strategy for binary options. It is important to know how price action works. And only technical analysis tools can help you to identify price areas.

Why the Economic Calendar Is Important For News Traders?

Luck is not the pathfinder for traders. Professionals do not believe in luck. Moreover, they believe a trader can close a successful trade if he can properly blend all small trading tools like charts, economic calendars, trading journals, etc.

Each of these tools is equally significant. Among all trading tools, an economic calendar is a key tool for a trader to know what’s happening in the trading world.

As a news trader, it is like your white cane. To develop a news strategy, it is necessary to determine which events are worth trading.

Additionally, you can examine recent and future economic events to predict the particular underlying asset movement.

Apart from this, there are other benefits to note. Let’s have a look –

  • Keep track of trading information like events, announcement
  • Follow key economic and non-economic indicators
  • Identify the major and minor news

Is News Strategy Suitable For Beginners?

Yes, traders of any experience level can trade on the news. You can create an excellent trading opportunity if you can overcome the barrier. However, this strategy is a bit risky.

So traders can blow away all obstacles if they remember to test the strategy on a demo account.

Pros Of News Trading Strategy

There are many reasons why people love to build binary options news strategies. Each benefit is proven with a calculative return.

  • The market is active and highly volatile
  • Fast price action
  • Best for traders who are not comfortable with technical analysis
  • Suitable for both short-term and long-term traders

Drawback Of The Binary Options News Trading Strategy

Taking precautions could save you money. You believe so, right? It is a profitable strategy doesn’t mean that it carries zero risk.

News trading strategy has several drawbacks:

  • Not always easy to trade on unpredictable news
  • It works best if you integrate it with technical analysis
  • Need to have a good grasp of risk management
  • Have the power to control trading emotions

Bottom Line

No matter how good a strategy is, it still has some benefits and drawbacks. On the other hand, all strategy is a combination of two things: tactics and plans. You may have read that technical analysis is not completely required to formulate a news strategy.

However, if you combine technical analysis and fundamental analysis, you can hold your horses quite easily.

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5 Minutes Binary Options Strategy – Learn How To Trade

How To Trade - 5 Minutes Binary Options Strategy-Binoption

Learn How To Trade - 5 Minutes Binary Options Strategy

The 5 minutes binary options strategy is popular for evaluating the market and getting the highest possible results. A short-term trader like you can earn huge profits from the volatile market. All you need

  • A regulated platform
  • An effective strategy

However, finding the right trading strategy is backbreaking work that you should nail properly. So, we are here to pull you up from the dark tunnel with this article. With this knowledge, you can fix risks and reap the rewards.

Let’s bring the light!

What Is The 5 Minutes Binary Options Strategy?

We won’t dwell too much on this part of the article to clear your mind about the 5-minute binary options strategy. You all have an idea of binary options and its characteristics. As a result, the strategy indicates traders should finish the trade within a 5-minute timeframe.

It is a short-term trading strategy most suitable for scalpers and day traders. Due to the short timeline, you must make a quick decision by blending different trading indicators and strategies. On the other hand, you will get a better success rate if you know how to trade binary options successfully.

This 5-minute binary options trading strategy will allow you to analyze the market for the highest value. However, you have to do it all instantly. Everything should be in place in the shortest period, from market research to the strategy phase. Otherwise, you’ll fall flat on your face.

At the same time, traders need to determine whether to sell or buy an asset based on research. Due to its fast return rate, traders love this. You can trade multiple times in a day. However, it is not recommended to overtrade.

Let’s have a quick look at the following points:

  • Simple strategy
  • Easy to understand
  • Suitable for short-term traders
  • The highest rate of return
  • Multiple trades in a day

Lastly, if you choose it, you must predict whether the selected asset will move up or down in a certain expiry time (5 minutes). 

Example Of 5 Minute Binary Options

Let’s understand the process through an example.

Let’s say you want to open a position on EUR/USD, the most volatile pair. And the return percentage is 90% if you win the trade.

  • The investment amount is $50
  • Expiry time 5 min
  • Payout ratio 90%

Now, you have to predict asset price movement using indicators and other tools. You predict that the currency pair’s price will spike after 5 mins. If the price increases after 5 minutes, you’ll win the trade, and $45 will be credited to your account.

Calculation = $50*90% = $45

Total income will be $95.

The downside is that you’ll lose the initial amount if the price of EUR/USD drops. So if you guess wrong, you don’t get anything.

How To Trade 5 Minutes Binary Options?

Trading 5-minute binary options is not a daunting task. Although the formation and process are the same, the major difference is the time frame. But, the primary task for a trader is to select an authentic and regulated broker.

The broker who has – 

  • Regulation
  • Demo account facility
  • An outstanding and positive review
  • Hassle-free withdrawal option
  • Dedicated customer support
  • Minimum deposit amount
  • An excellent payout ratio

Keeping all these things in mind, we have picked one of the leading binary options brokers, Deriv, as an example. The broker offers this strategy only for digital options. As a result, we have used its platform to demonstrate how to trade a 5-minute binary options strategy. 

So, after choosing a broker, the next step is to register with valid information. Follow the below steps: 

  • Open the dashboard and select an asset
  • Select a 5-minute binary options strategy
  • Analyze the market 
  • Based on the data analysis, click sell or buy

Remember, you must have a clear understanding of trading, technical analysis, as well as individual indicators. Start with a small amount. Also, you can use the same amount for each trade to minimize risk. 

The Best Indicators For 5 Minutes Strategy

The main purpose of trading indicators is to inform traders when and which instruments to buy and sell. It is a part of technical analysis. On the other hand, it produces signals. Traders usually apply indicators to a chart that help to clarify the market. 

Besides detecting price movement, they also tell whether the market is trending or ranging. 

  • Trending – the price of an asset will continue to move in one direction; up or down
  • Ranging – traders identify a range to buy and sell instruments

All you need to do is do mathematical calculations using data, graphs, and charts to identify what is happening on this financial battlefield. 

On the other hand, note that using the same type of indicators won’t add any value. 

Each trading indicator works differently. So, here are the best indicators for 5-minute binary options.

  • Trend
  • Momentum
  • Volatility
  • Pivot Point

We will describe a few trading indicators later in this article.

Pivot Points For 5 Minutes Binary Options Trade

In one sentence, pivot points is a technical analysis tool or indicator. The indicator help traders calculate and determine the overall trend over different time frames.

Moreover, traders use this to find out the potential price action turning point in the market. If the underlying asset price is somewhere around the pivot points, either the trend will get stronger or reverse.

On the other hand, it is correct that pivot points are especially useful for short-term traders. So, this popular short-term trading indicator works perfectly for a 5-minute binary options strategy.

Bollinger Bands An Effective Tool For Binary Options Trading

Bollinger band is an effective technical analysis tool or trading indicator that determines a trade’s entry and exit points. Traders, you can use this tool to measure volatility.

Moreover, it produces signals when the market moves. For 5-minute binary options trading, it is the preferred tool to learn about short-term trading.

You can read the article to learn more about Bollinger bands. On the other hand, you can decide which market to trade in. Moreover, you can use this indicator to build multiple trading strategies based on market research.

Not only will the tool show you volatility, but it will also help you to identify overbought/oversold areas.

Easiest 5 Minutes Binary Options Strategy

We have mentioned in many articles that strategy is the greatest part of trading. You can only hold a winning flag if you know how to build a profitable strategy.

So, if you want to enjoy the rich taste of 5-minute binary options, you should know about the best binary options strategy. 

Here are a few popular and easiest strategies. Let’s make your trading journey flavorful. 

1. Candlestick Strategy:

Candlestick patterns allow you to analyze price action easily, so you can decide when to buy and sell. Moreover, the price chart illustrates current trends. As a result, you can observe the mood of the market and can predict the price movement of an asset accurately.

Additionally, fast-moving markets are ideal for this technical gear. So, you can use the candlestick strategy in a volatile financial environment to get a complete picture.

Hurray! the green and red lines are in your palm now!

However, the following statement is notable –

Signals on daily charts are stronger than on hourly charts. The moral of the story is that patterns generated signals are stronger on less time-frame-based charts.

On the flip side, you can increase the chart time to spot resistance and support levels clearly. Later on, drop down the timeframe, set the trigger, and fire.

2. Price Action Strategy:

Price action is a bulletproof strategy for short-term shooters. However, long-term traders can also use this method to analyze historical price changes. As a result, determining price movement won’t take hours.

If you look at the chart movement, price action patterns predict future market behavior. 

The interesting fact is that the price action strategy shows minute-to-minute changes in the price.

Moreover, it mostly works in a volatile market. On the flip side, you should clearly understand how each indicator works to get optimum results. However, it is a simple form of strategy.

Additionally, understanding the four pillars of price action trading strategies is a must.

  • Candlesticks
  • Bullish trend
  • Bearish trend
  • Flat market

As it is a powerful method, anyone can utilize it for successful trading. 

Note that you don’t need to use technical indicators. 

3. Scalping Strategy:

Scalping is a short-term trading style mostly adapted to day traders. But it is not a terrible decision for a longer period. And the strategy that they use to conduct trades is the scalping strategy. Moreover, it is similar to the price action strategy.

However, it tells us the direction of the price, not the trend.

The ultimate goal is to make money from small market moves. Furthermore, scalping strategies focus on price action. Similarly, ignore all fundamental aspects that a trader also follows in some cases.

By analyzing the trading strategy, you can predict how the market will perform in the next few minutes or hours.

4. Momentum Strategy:

Momentum trading helps you to experience a new form of trading. It is one of the best strategies for 5-minute binary options trading. Traders mainly take advantage of the uptrend or downtrend market movement. Generally, the force a trader needs to create to move the price is defined as momentum.

However, the market price swings in the opposite direction if the momentum goes too far.

But how do traders calculate it?

Force is calculated based on how many people and money push the price in one direction. Also, it is possible to show momentum in the short term using a variety of indicators.

5. Trend Trading Strategy:

Trend trading is no longer a different strategy from momentum trading. Traders mainly take advantage of either the downward or the upward market. Moreover, any trader can use this strategy with strong trading knowledge.

Whether they prefer to be stable in the market for a shorter time or not, trend trading is the best strategy for them.

Notably, traders use both price action and technical tools to determine the trend. Learn more from here.

But when to form this?

A market trend is established when there is enough momentum. So you can predict the price movement accurately.

Best Brokers For 5 Minute Binary Options

You should pick a broker which won’t go against you. That means market manipulation is one of the greatest concerns for traders. On the other hand, the 5-minute strategy is a good pick for traders to earn money. But it is also poisonous for those with zero ideas about how this strategy works.

However,  traders, you can trade with any broker with caution.

Each broker has an intuitive platform with amazing features on it. 

Let’s take a look at the best brokers.

Deriv

$ 5 Minimum Deposit
  • Demo trading facility
  • Multiple Regulation
  • Low deposit amount
  • Wide range of trading assets
  • Fastest withdrawal
Read Review

IQcent

$ 20 Minimum Deposit
  • Leverage up to 1:100
  • Maximum payout 95%
  • Low deposit amount
  • Instant withdrawal
Read Review

Expert Option

$ 10 Minimum Deposit
  • Demo trading facility
  • Social trading
  • Low deposit amount
  • Fastest withdrawal
Read Review

Bottom Line

Hope this article will deliver the basic concept regarding the 5-minute binary options trading strategy. The core idea is that one should predict the price of a particular asset after this time frame.

If you are an active binary trader, this trading strategy could bring success. Short-term contracts are exciting when you know how to open and close a deal.

So, if you want to bring success in trading, sign up for a regulated platform and use the demo tool to practice.

Posted on

3 Day Trading Strategies You Need To Know To Be Successful

Day Trading -Strategies-Binoption

The Best 3 Day Trading Strategies - Timeless Guide For Beginners

How many day trading strategies one trader should know? Single piece or multiple?

Day trading is a risky way to invest, but it’s popular because of the short-term gains that can be achieved in just hours or days. Beginners might find day trading overwhelming. Even you will find all the information available with different strategies.

Pinpointing when to buy and when to sell is crucial in investing. In order to be successful in investing, it is required.

In light of this, here are different and popular 3-day trading strategies you should know when day trading.

Is Day Trading Risky?

Before reading the story, you should know what is inside this book. Let’s bring out something interesting about day trading. The first thing is whether or not day trading is risky.

You remember the definition of day trading, right?

However, let’s memorize again. Day trading is a type of investing strategy that focuses on the day-to-day movement of any trading instruments. It involves buying and selling assets within a short time frame. In other words, trades have to be closed before the market closes.

It’s not hard to see why day trading has become popular. There can be incredible short-term gains, and one can earn money in a few hours or days.

As with anything that seems too good to be true, there are risks associated with day trading. It is important that you have a solid knowledge of how day trading works before learning about the different strategies, risk factors, and key information about it.

Important Things To Know About Day Trading

Trading day-to-day can be a profitable investment strategy, but you must know how to do it right. Your first step will be to understand how the market works and what you should look for. This post will discuss a few things you need to know about day trading.

Keep reading!

An important part of day trading is knowing when to buy and sell. Different strategies can be used, including buying low and selling high, but you have to make sure you do it in the correct timeframe.

On the other hand, trading on a day-to-day basis requires a solid understanding of technical analysis. Technical analysis includes understanding what makes up a chart and how indicators are used for spotting trends in asset prices.

A day trader has to be able to recognize the effects of macroeconomic and political events on the market. It means keeping an eye on the economy, global trade, central bank decisions, IPOs, economic data releases, and regulatory changes affecting the markets.

As a result, understanding these things will help you figure out if your assets are trending up or down. At the same time, whether or not it’s worth buying more assets.

New traders should remember one important thing – day trading is risky due to market volatility. With these resources, however, your risk should be reduced.

Lastly, it is also important to pick the legit broker platform that allows you to receive the highest payout.

But how are you gonna find out the one supersonic broker?

Well, well, the team is here to help you. You either check this top list of binary brokers or read the great article on the top 5 brokers, who allow traders to enjoy a safe trading field.

3 Day Trading Strategies You Need To Know

There are a number of different trading strategies that day traders use in their plans. In most cases, a trader’s strategy will depend on their trading and educational background, as well as personal traits.

To be successful at day trading, you need to have strategies in place for when to buy, when to sell and how much money you should risk. These are the three most important factors that will affect your profitability.

On the other hand, as a day trader, you also monitor the markets. You must also be disciplined enough to stick to your trading plan and possess good market analysis and research skills to enhance your odds of success.

Discover the amazing and profitable 3 trading strategies that suit day traders best.

1. Scalping Strategy

Scalping is a very popular strategy for day traders with a strong philosophy. Mainly, the philosophy behind this strategy is to earn big with a small win. In this type of trading, traders usually sell trades immediately after buying assets.

It sounds easy, but in reality, scalping strategy needs consistency. It may not be possible to generate enough overall return from a few modestly profitable day trades.

On the other hand, if you are confident enough, scalping is one of the best trading strategies for you. It is undoubtedly adequate for people who are quick to decide and act without dwelling on their decisions.

Unfortunately, the day-trading strategy isn’t for easily distracted people or lack a razor-sharp focus.

Amateurs think about how much money they can make. Professionals think about how much money they could lose.

2. News Trading Strategy

The investment market reacts quickly to news events. And it is an open truth for every investor. Day traders can take advantage of the popular news stories by keeping an eye on the business news.

Even political news has a great impact on the investment world. But there are some special tricks on that though you can find your own slowly.

According to the theoretical lines, news trading refers to buying and selling based on news and market expectations before and after a news release.

But it would help if you familiarized yourself with economic indicators before starting news trading. 

You have to hold a strong mindset to save your place as news can spread extremely quickly on digital media. Also, it is important to be aware of how the financial market works.

It is necessary to indicate that markets that are volatile can benefit from news-based trading. Make sure you consider each market and each news release separately. Additionally, develop trading strategies for specific news releases to succeed in your news trading.

Note that there are some drawbacks to news-based trading. Particularly, it needs an expert view and understanding of fundamental analysis. Even the overnight opened positions are also risky for traders who trade based on the news. 

So, act according to your trading knowledge. Hope, this article will help you to understand how trading can be profitable if you follow a few go-to rules.

3. Swing Trading

An important aspect of swing trading is that it assumes that prices never move in the same direction. The goal of swing trading is to profit from both up and down movements occurring in a relatively short time frame.

Swing traders often focus on the small reversals in the market’s price movement instead of trend traders who try to ride long-term trends.

In order to take advantage of smaller market moves, they try to predict reversals ahead of time.

Final Words

Day trading is a risky and competitive business.

But if you’re willing to put in the work, it can be an extremely profitable venture. The strategies outlined in this article will help you get started on the right foot, but you’ll need to find your own way as well.

With a little dedication and some hard work, your trading business could be as lucrative as you want it to be.

Posted on

3 Signs Of A Bad Trading Strategy

3 Signs Of A Bad Trading Startegy-Binoption

3 Alarming Signs Of A Bad Trading Strategy

To enhance your trading skill, it is worthy for traders to play with different trading strategies. A trader usually employs a variety of strategies according to the trading instrument or market conditions. However, how can you know what trading strategy is right for you?

We can expect trading losses. Our article about trading psychology nicely describes the unusual features of traders. Most of these occur when they are new to trading or carry greed.

The article will expose other supporting points about trader psychology that you should consider. However, in today’s blog, we will show you 3 signs that may be considered as a lousy trading approach.

Unsuccessful Trades

If you are constantly losing trades, maybe there is an issue with your trade setup. Adjust all the technical parameters and try it on different assets. In the end, if it did not bring any positive results, you might just be using a bad strategy.

Do not be afraid to try something new and challenging. Do not drag the same strategy once again if that does not work for you. Save both your time and nerves.

Struggle To Track Performance

Track your performance for the next step. Any good trading strategy has to involve performance analysis. Save it and evaluate it later for better performance.

And you can do all this by maintaining a trading journal. It is a life-saving approach that traders mainly follow to improve their skills.

Emotions Offen Taken Over

If you want to have a risk-free trading environment, risk management is the best deal. These tools mainly control the size of the investment, entry and exit conditions, the acceptable risk degree, etc.

Using these features, you will be able to manage your deal even in the moments when you give in to your emotions – fear, greed, and impatience.

You can add risk management techniques to your strategy to see if they help you effectively control your trading routine.

Do not over chase your trading strategy. Sometimes, your strategy needs extra nourishment or energy from traders. If your strategy is too unclear and complicated, it requires complete adjustments.

In that case, you can either adjust the strategy according to your personal needs or move on completely.

Final Words

Do you remember a time when you used an inadequate trading strategy that just didn’t work for you? We’d love to hear about it in our comments section!

Posted on

Trend Strategy For Binary Options Trading

Trend Trading Strategy-Binoption

Follow The Best Trend Strategy For Binary Options Trading (Free Checklist)

Do you know why trend strategy is the most powerful trading strategy for binary options traders?

Let me explain. 

Trading isn’t an effortless task. Even though you know how to take a slice from the binary market, still you need to focus more on the trading strategy. Since you’re a new kid on the block, binary trading undoubtedly attracts you because of its exclusive features. Instead of studying several, it’s appropriate to choose the narrow focus strategy. 

And now come to the best part.

Trend strategy is one of the most effective and universal concepts that you can apply to the different financial market. The leading benefit is that it allows investors to pinpoint market momentum and to enjoy the favours of that.

But the question is how to identify and follow the trend that increases your winning rate?

That is what we will discuss throughout this following article. The article is a combination of multiple super trend trading strategies, indicators, and winning secrets with the FREE checklist.

What Is Trend Strategy?

Especially in Options Trading, it is required to predict the right asset price movement to get profits. As a trader, you are quite familiar with every aspect of trading. However, one doesn’t need to know everything before walking into the path.

But how to trade options article will definitely give the reasons why traders need to understand strategies. On the other hand, trend strategies are the most successful ones.

In a simple note, the trend is all about a general direction. Traders use technical indicators to find out the right direction of market momentum. By analysing the historical price movement, one can forecast the future particular direction, either up or down. 

And notably, we call this trend. Moreover, a specific group like position & swing traders mostly adopt this trading style. 

According to Jaymin Shah,

Don’t blindly follow someone, follow market and try to hear what it is telling you.

Note that trend trading strategy usually suitable for mid and long-term traders. However, you can use this methodology in any time-frame. 

Is Trend Strategy Important To Adopt?

Have you heard about the KISS rule? It was used as a principle for design by the U.S. Navy in 1960. The rules say that “keep it simple, stupid!” 

Not only the trend strategy but also other strategies are eventually important to follow if you don’t want to establish yourself as a gambler. However, the trend strategy has some tremendous benefits.

The most remarkable advantage is that the strategy will improve the win rate. It gives you more voluminous option depends on the time-frame. Furthermore, traders use various indicators to identify the right direction of market momentum. 

Apart from these, the analysis will ensure the highest risk to reward ratio. Moreover, you can happily apply trend strategy across any market. That means whether you trade with currencies or coins, trend lines are always there to determine your fate. 

Adopting a trend trading strategy, famous traders almost filled their wallet with money. Jesse Livermore, the most famous trader, made $100 million in 1929. Similarly, Richard Dennis made $400 million by trading the futures market.

So, if you want to score the highest, identify and understand trends that perfectly goes with you. Not against you. 

Basic Types Of Trend: List To Be Pinned

Identifying the right trend is necessary. Usually, it brings success in trading if ones can grab the market sentiment properly. However, by only following trends, you won’t be able to make money. So remarkably, using other indicators is also essential.

The upward and downward flow of the market will help traders to understand the market volatility by just a glance.

There are three basic types of trends that one should pin. These are: 

  • UpTrend
  • DownTrend
  • SidewayTrend

Each type of trend gives you an overall idea of market movements. As we mentioned above, to find out the trend, traders use different indicators along with the trend line. 

However, in this phase, we will only bring up the definition of three trends. 

What Is UpTrend?

We usually consider an uptrend as a rising trend. It describes when any financial asset’s price is getting higher. Some traders and investors only choose this bull market to trade and earn profits.  

When the trend shows an upward curve, it means to call or long of the trade. In one sentence, it allows you to get profits from rising asset’s prices.  

Technical traders prefer to use trend lines to identify an uptrend. Traders draw lines on charts and connect a series of prices.

The Basics Of DownTrend

A downtrend is the opposite of an uptrend. When the financial asset’s prices go down, it describes as a downtrend. That means a downtrend is a combination of lower highs and lower lows. 

However, it’s similar to the uptrend but the prices mainly moving to an opposite direction. Moreover, the downtrend is a popular choice for stock traders. Traders like to pick the short-selling to receive profits from the bear market. 

Definition Of Sideways Trend

The definition of a sideways trend differs completely from both uptrend and downtrend. Here, your down move and up move is extremely restricted. In this certain period, the market moves both upward and downward simultaneously.

Moreover, the financial asset price follows a particular horizontal price direction. 

According to the bookish definition, the sideways trend describes when the price moves up and down by remaining at approximately the same level. 

Top 5 Popular Trend Indicators - Potion Of Traders

Top 5 Popular Trading Indicators-Binoption

Indicators are marked as a potion to trend traders. Moreover, trading Indicators such as the bars or candlesticks also give you a report on how things work within a couple of minutes of market fluctuation.

Traders use indicators to create a plot from where they can get a rational idea of market behaviour. Of course, you need to form a strategy to win the endgame. 

There are hundreds of indicators available. Will you choose all of these to trade market? Obviously, no. You can either pick one or two to analyze the market for the future move. 

So, today, we are going to point out the best five trend indicators those widely used by beginners to expert level traders.  

The Journey Of Moving Average:

Moving averages are the most common and popular trading indicators.  It’s hard to find a single trader who didn’t use Moving Averages in their entire trading life. The moving average can filter out the noise from random price movement and smooth it out to to see the average value. 

Traders use this familiar indicator to find out trends and confirm a reversal. However, there are different types of moving averages. 

For example, if the price is above the moving average line, traders consider it as an uptrend. On the flip side, if the price is below the moving average line, point it as a downtrend. 

So, clearly, the indicator shows the direction of the trend on the actual instrument’s price. Note that it also uses to identify the areas of support and resistance. 

Now, you can buy and sell assets using these indicators. Also, note that the MA is based on past prices. It will not warn you. So, it cannot determine if the trend will end or not. 

Bollinger Bands - The Popular Tool:

Is it necessary to know who invents this popular technical analysis tool to use on charts? For general knowledge, you can have a small introduction, though the answer is negative. 

A famous trader, John Bollinger, developed it. He designed this technical tool to discover opportunities. 

Mainly, Bollinger Band is a set of three bands to measure volatility.

According to Investopedia,

A Bollinger Band is a technical analysis tool defined by a set of trend lines plotted by two standard deviations (positively and negatively) away from a simple moving average (SMA).

If the bands are far away from the current market price, then the market is volatile. If they are close to the market price, then the opposite scenario will happen. 

Head & Shoulders Pattern - The Master Of Trend Reversal:

Head And Shoulders Pattern-Binoption

Head & Shoulders pattern is a trend reversal pattern. With the help of three reversal signals, traders identify the trends. 

The pattern is a combination of 

  • Right shoulder
  • Head 
  • Left shoulder

Shoulders represent two high or low points, where the head shows the highest or lowest price. It would be best if you worked smartly while trading with these technical indicators.

Almost all traders have a misconception that spotting a Head and Shoulders pattern means the trend will reverse. Most importantly, you have to consider two things. 

  • Strength 
  • Duration of the trend

Moreover, the neckline is considered as the most significant component. The special factor acts as the sparkline for trading the pattern. 

Relative Strength Index - An Ancient Indicator:

The short form of the Relative strength index is RSI. It is an ancient indicator that has been around since the 1970s. Also, RSI is widely known as an oscillator indicator.

Do you know what exactly this indicator shows? 

It helps you to decide whether your selected financial instrument is a good deal or not. So, ultimately, you can find out if an instrument is overbought or underbought.

Expert says financial asset over 70% is reported to be overbought. On the other hand, anything lower than 30% is said to be underbought.

However, you have to apply a few techniques to spot out the best prediction. It works depending on a formula. Later, we will discuss broadly in a separate article. 

Triangle Patterns - A Short Story To Tell:

The last pattern or indicator that we are going to describe here is the Triangle Pattern. It is a commonly used technical analysis tool that helps traders to show the bullish or bearish market. 

There are three types of triangle patterns available,

  • Symmetrical
  • Ascending 
  • Descending 

Using an ascending triangle pattern, traders enter into a long position on a break above the resistance. Traders do the exact opposite thing while they use a descending pattern. 

Furthermore, the symmetrical pattern is named by its symmetric shape. You will find that the price action grows increasingly narrow. So, it can break out into an uptrend or a downtrend. 

Free Checklist - How To Win The Market?

The man with a lamp. Warren Buffett is the man who inspires many young investors to grow their money. He believes that 

Successful investing takes time, discipline, and patience.

It is hard to ignore because no matter how talented you are, some things take time to show its result. You can not overlook a tiny thing of a financial market to eat a small pie.

If you are still looking for a shortcut solution, it’s better to take off from this path. Making money is only possible if your selected indicators help you to spot the trend. 

However, this is only applicable for trend traders. But applying strategy to predict the future asset price is indispensable to all types of traders.

Apart from gaining knowledge on the basics of trading, there are many keys that one should remember. All these points together will give you the pass to enter into the market as successful traders. 

  • Make a concrete plan
  • Strongly keep a trading journal 
  • Never listen to others 
  • Be realistic with-profits
  • Start with a small investment 

Mentioned points are the major checklist to win the market. To get the 13 Market Leading binary options tips, please read this article. 

Things To Bear In Mind

Do you think only trend strategy can bring money to your pocket? 

Those who blindly believe in trends will fall in the trap. Because the trends chart also will keep fluctuation. 

If you are planning to make all your investments in one day, there is no guarantee on the return on the next day, even if your research was absolutely right.

The reason for this is what you see now will not be the trend after 30 minutes. So the decisions and actions should not be swift but smart.

  • Trend analysis will give a clear picture of the present trends
  • Helps to predict the future movement based on past flow
  • You can choose the length of the trade
  • Control overbuying and overselling of underlying assets
  • Control in the financial market

Final Words

Apart from other strategies, a trend strategy is the most common form of strategy that traders use.  It is the best strategy that is very easy to understand and easy to put into practice.

However, it does require analyzing the charts using various indicators. Instead of going through report and documents, a trend chart can share high-level information within a couple of minutes.

So, start your first trade with our top-rated trading broker Binary.com using trend strategy.  

Posted on

Grid Trading Strategy: Step By Step Guide On How To Trade

Grid Trading Strategy-Binoption

Grid Trading Strategy: Step By Step Guide With Simple Explanation

Grid trading strategy is beneficial for traders in a volatile market. You can take advantages of the price fluctuations by executing as many orders as possible.

Additionally, when there is no particular trend, the grid method could be useful in a ranging market.

The technique of trading is quite impressive. In this method, the traders create a sequence of orders instead of opening up a single trade. They usually open multiple positions around the current price point. However, the number of trading orders will depend on traders.

The article will give you an idea of the grid method and how this method will work on your dashboard.

We also recommend to our current and young traders, check the grid technique on a demo platform, before taking a chance with real money.

Potential Time To Use Grid Trading Strategy

As we stated earlier, the strategy will work tremendously at the time of market volatility. So, the traders can earn money when the asset price keeps bouncing up and down. However, it is advisable to set the entry and exit level properly to avoid trading loss.

Without having the market update, you can not fully trust indicators. Since indicators do not give true information all the time, you should understand the accurate signals from the wrong ones.

Traders can use this method in two separate ways. You can whether running with the trend or against the trend.

If you select the first one, then the trend suggests placing Buy orders above the entry point and Sell orders below it. It will only work if the expecting price goes in one direction.

On the other hand, if the opposite approach is selected then the situation would be something like that; the traders will place the Sell orders above the entry and Buy orders below it.

In this time, the method will only work if the instrument price is expected to swing up or down.

How To Apply Grid Strategy

How To Apply Grid Strategy-Binoption

The first thing that you should do is to choose the right trading assets. Here, we will select the major Forex pair. Let’s see how we can apply the strategy on the real platform.

We pick the most popular broker platform IQ Option to explain the strategy. But the strategy can be chosen and implemented on any trading platform.

Suppose, the investment amount is $5 for a sell trade on EUR/USD on the market price 1.1230.

By employing the ‘With-the-trend’ following approach, a grid of several pending orders needs to create at the same distance.

  • 1.1225 (sell order above the market price level)
  • 1.1220 (sell order above the market price level)
  • 1.1230 (market price)
  • 1.1235 ( buy order below the market price level)
  • 1.1240 (buy order below the market price level)

Based on each price level, we have to set a stop loss and take profit for each level. And then wait for the price movement, upward and downward, triggering the orders.

You can put more orders, but 3 to 5 is considered as the standard ones for this grid. As for the exit plan of the strategy for those trades, one can choose to close all at once. Or if a trader wishes to close one by one, he can do so.

Can I Apply This Strategy Via A Trading Bot?

We never suggest our readers trade with an automated bot without a strategy. So it is vital to analyze the market before entering. 

But which trading bot is the perfect one for binary traders? 

Well, there are many, but sticking with the one maybe deliver you the best-expected outcome. So we are recommending the best-automated platform, BinBot Pro, that will give you the highest return percentage. 

You can connect multiple brokers with this bot like BinaryCent, Raceoption, Iqcent, and VideForex. The broker dashboard is open for you to build a strategy that meets your trading goal. To open a factual account, you just have to deposit $250.

Start your demo just by clicking the button below. 

Open Account

Guideline That You Should Follow: Step By Step

Practice account can help traders to understand better how Grid trading method works in different market condition. Keeping a trading plan is a must for all traders where you can make a checklist of the all necessary steps. 

For now, save the below list to a secure place so that you can implement later. 

  • First, decide your opening orders; with the trend or against the trend. 
  • Select an entry point, the number of pending orders, and the interval between them.
  • Determine the investment amount.
  • Make sure, you decide the stop-loss/take-profit levels.
  • Have a good understanding of the potential losses. 
  • Stick with the plan while creating the pending orders.
  • After generating the desire profits, close the deal or when the acceptable loss level is reached.

Wrapping Up

The trading strategy can only help you by showing a thornless path. But, no strategy has a 100% success rate. Similar to the other strategies, grid trading strategy is not an exception. Traders need to follow the ultimate learning process to avoid financial losses.