Binary options trading is a lucrative way to make a profit, however it requires some knowledge and skill in order to be successful. Traders spend a lot of time becoming familiar with binary options trading strategies so that they can make informed trades and stand the best chance of making a profit. This article aims to give you an education of binary options strategies that you can employ to maximise your profits.
There are three things that any trader must know in order to achieve success in binary options trading:
- A knowledge of binary options trading strategies
- Money management techniques
- Awareness of signals
With these three pieces of knowledge in place, you will have a strong starting point for your foray into binary options trading.
The Best Binary Options Trading Strategies
Timing is essential to the success of your binary options short-term investment, and is equally important as predicting the market’s direction correctly. Your strategy should define clearly the signal you wish to trade and also when you wish to enter the market when that signal occurs. There are several possibilities depending on the technical analysis:
- Trade the breakout – it is possible to trade the market when there is a breakout of a reversal or continuation pattern. Traders must define whether they are going to invest in binary options as a reaction to a pullback or breakout or in anticipation of a break Alternatively, it is possible to trade all three of these events depending on preference.
- Trade the trend lines – a trend line can be traded in a similar way as resistance and support levels. Traders can invest in the imminent turnaround as a trend approaches the trend line and invest in the price breaking through the trend line.
- Trading percentage retracements – Retracements in a trend tend to end at around a percentage of 40% to 60% of a prior advance. If a trader invests in a price direction turnaround at approximately these retracement levels, they can enjoy good trading opportunities.
- Trade the gap – often, a price will take a large leap in one direction or other and then the gap created will almost certainly close again. It is possible to invest in this closing of the gap with binary options.
- Trading technical indicators – there are several technical indicators which can provider traders with an insight into the movements of the market and when applied correctly, they generate signals which traders can trade with binary options.
- Trade candlestick formations – candlestick formations are indicators of short term future price movements, and by learning how to identify and interpret them, traders can find lots of excellent trading opportunities.
- Trade a combination of techniques – it makes sense to base a trading strategy on more than one technique or signal as results can be greatly improved by combining a range of techniques.
Money Management Strategies
The next area of focus in this binary options trading academy is to learn about money management as without this skill, no trader can be successful in the long term. It is inevitable that at some point, some trades will be lost and therefore the goal of a trading approach cannot be to win every trade, but to win an adequate number of trades in order to net a profit overall. Money management is an essential tool to achieve this goal.
There are several rules of money management, however the main one is that only a small fixed percentage of a trader’s overall capital should be invested in a single trade and this percentage should never be more than 5%. Employing this type of rigorous money management strategy ensures that losing streaks will be weathered and a constant profit will be maintained.
Trading Strategies Using Signals
Most binary options trading strategies are based on technical analysis while require a trader to observe certain patterns in the movement of an asset’s price and thus make predictions about how prices will move in the future with reference to these patterns.
Paterns enable traders to develop a strong understanding of the market and use this information to generate profit. However there is a less labour intensive way of making money from binary options trading than reading and interpreting charts, and that is to use signals.
Signals are generated by sophisticated software which absorbs and processes all the market data and uses technical algorithms to select the best trading possibilities. These signals are used by virtually every professional trader to inform their trading strategy.
There are many types of patterns and signals that traders look out for on the charts to inform their trading strategy. Some of the most commonly spotted patterns include:
- The Hammer and the Hanging Man
- Engulfing Candlesticks
- The Head and Shoulders Formations
- Flag Patterns
- Triangle Patterns
- Rectangle Patterns
- Pennant Patterns
When a trader learns how to identify some or all of these patterns on sight on a chart, they are one step closer to making a successful trade. The next step is to know what each pattern signifies and how best to use this information to make the correct trade and to trade at the correct time.
What you will learn in our binary trading academy:
- Use X Waves and Fibonacci to spot a profitable market opportunity
- Recognise And Use The Head And Shoulders Pattern For Binary Options Trading
- Japanese Candlestick Formations – Bullish And Bearish Engulfing Patterns
- Gain Using Wedges In Binary Options
- Fibonacci Retracements To Identify Potential Reversal Levels
- Trading The Flag Pattern In Binary Options Strategy
- Ascending Triangle Strategy In Binary Options
- Profit From Interpreting Morning And Evening Stars Patterns
- Classic Market Technical Analysis With Former Resistance/Support Becoming Support/Resistance
- Continuation Patterns And Pennants In Binary Options Trading
- Reversal Patterns Triangles Trading Strategy
- Dark Cloud Cover Candlestick Chart Pattern
- Double Top/Bottom Patterns In Binary Trading
- Japanese Candlesticks Formations – Price Action Hammer Pattern
- Contracting Triangles: An Easy Way To Earn In Binary Options
- How To Use Impulsive Waves To Understand The Market And Become A Successful Trader
- How To Identify The Many Types Of Corrective Waves And Trade Them Successfully
- Profit From Triangles As Continuation Patterns When Trading Binary Options
- How To Trade Divergencies In Binary Options
- X Waves Offer Many Opportunities To Make Money Trading Binary Options
- Dealing With Rare And Tricky Expanding Triangles In Binary Options Trading
- Find Out What A Zigzag Is And How Can Be Used To Successfully Trade Binary Options
- Binary Options Trading Opportunities In A Flat Market
- Use Hedging Strategy To Manage Risk Effectively In Binary Options Trading
- How To Use A Risk Reversal Strategy To Avoid A Large Part Of Your Risk While Trading Binary Options
- Use The Straddle Strategy For A Possible Put And Call Double-Win
- Trade As Risk Free As Possible With The Pinocchio Binary Options Strategy
- Trend Following Strategy: One Of The Simplest And Most Profitable Of All Binary Options Strategies
- Fundamental Analysis In Binary Options Will Help You Understand How Different Events In The Market Can Affect Your Trading Day
- Trading Double Combinations: One Of The Most Complex Corrective Waves
- Trading Triple Combinations: A Powerful Use Of Corrective Waves.
- Complex Patterns: Waterfall Effect In Binary Options
- Trade With Corrective Waves Using Double And Triple Zigzags
- Buying Strength/Selling Weakness: How To Make A Powerful Move Is The Key To Binary Options Trading
- Wedges That Break The Other Way: How To Win When Other’s Lose
- Using Dynamic Support And Resistance Areas To Find A Striking Price Giving A Profitable Binary Option
- Channelling Is One Of The Most Profitable Strategies In Binary Options
- The Most Important Retracement Levels Used To Find Places To Trade Split Entries
- How To Identify A Normal Flat
- Trading Binary Options With One Of The Most Popular Trading Indicators: Cloud/Kumo
- Profit From Trading Call Options In Oversold Territory And Put Options In Overbought Territory
- Leverage Trading The Thrust Of A Triangle For Better Results In Complex Market Situations
- How To Trade Special Types Of Triangles In Binary Options
- Increase Profits In Binary Options Trading With Fibonacci 80% Retracement
- How To Use The Principle Of Alternation To Profit From Differences Between Corrections
- Trading The Apex Of A Triangle For Profitable Binary Options Trading
- Trading 1st Wave Extensions In Binary Function
- Channelling With Impulsive Moves: Elliott Waves Simple Trading Theories Leverage Your Profit In Binary Options Trading
- Confirmation Stages To Be Taken Using Elliott Waves Theory Once Corrective Waves Are Identified
- Profit From Trading Rare Fifth Waves Failures With Elliott Waves
- The Elliott Waves Theory Impossible Without Fibonacci Tools. Here’s Where And How To Use Them.
- Elliott Waves – How To Trade 5th Waves Extensions Impulsive Moves
- Elliott Waves – Tips And Tricks For Trading 3rd Waves Extensions Impulsive Moves
- Elliott Waves – Insights For Trading The 2-4 Trend Line Break To Increase Your Profits
- Elliott Waves – The Implications Of A Running Correction To Reduce The Risk Of Painful Trading
- Use Simple Corrections In Elliott Waves Theory To Master The Market
- Using Fibonacci Confluence Zones To Trade Binary Options
- Finding The Right Striking Price Using Fibonacci Levels Is Key In Successfully Trading Binary Options
- Use Fibonacci With Elliott Waves To Trade Zigzags For Greater Returns On Invested Money With Binary Options
- How To Trade Elliott Waves With Fibonacci Levels And Get Better Win Rates When Trading Binary Options
- Use X-Waves And Fibonacci To Spot The Most Profitable Market Opportunity
- How To Project A Channel
- What To Look For When Buying Call Or Put Options On 50% Retracements
- When To Buy When Everyone Is Selling/Selling When Everyone Is Buyingf
- Gain Competitive Advantage With Running Triangles In Binary Options
- Elliott Waves – Understanding The Importance Of Strong X Waves In Binary Options
- How To Channel With A Pitchfork For Trading Success
- Ladder Trading Reduces Risk In Binary Options
- Basic Trading With Binary Options: When To Put And Call
- Use Of Volume Trends Of The Asset Market In Binary Options Trading
- Binary Options Strategy With Trend Lines
- Trading Binary Options With Bollinger Bands
- Binary Options: Determine Overbought And Oversold Markets And More With With Cci (Commodity Channel Index)
- Binary Options Trading System With Moving Averages
- Optimize Your Binary Options Strategy With Macd Indicator
- Binary Options Range Trading Strategy
- Comparing Continuation Patterns And Pennants In Binary Options
- Correlation Strategies For Binary Options Trade Or Forex
- Chart Patterns For Trading Analysis Every Investor Should Know
- You Can Profit From Binary Trading In A Financial Crisis
- Managing Risk Assets In Binary Options Trading
- Multifaceted Trades For Risk Free Binary Options Trading
- How To Manage Selling An Option Before Expiration
- How To Draw Support And Resistance Lines
- Profitable Binary Options Trades In Volatile Environments
- Relative Vigor Index (RVI) Indicator For Binary Options Trading
- The Advantages And Disadvantages Of Binary Options Trading On Longer Time Frames
- Use Market Geometry To Detect Support And Resistance Areas For Your Binary Options Trading
- Binary Options Trading On Non Farm Payroll Release
- Pivot Point Strategies For Binary Options Trading
- Binary Options Trading With Crosses: The Difference Between The Two Currencies
- Moving Averages’ Strategy For Binary Options Trading
- Rules For Trading Divergences
- Trading Double Combinations (also Known As Complex Corrective Wave Analysis)
- Tunnel Trading Strategy In Binary Options
- The Importance Of Market Psychology In Trading
- Manage Your Money And Assets In Binary Options Trading
- How To Pairs Trade With Options
- Using Fractals In Binary Options Trading
There are two types of binary options strategies based on signals that can be adopted, the first being to take out a subscription to a signals provider – a company that specialises in identifying promising trades. Subscribers receive signals in exchange for a monthly fee. There are a number of signals providers to choose from however it makes sense to choose on that has a good success rate as otherwise you are unlikely to make a long term profit by following their signals.
The second type of signal-based strategy is to use a robot. This is a piece of extremely advanced software which processes enormous amounts of data while using algorithms to identiify the best trades. Not only that, but it also executes trades on the trader’s behalf. This strategy enables a trader to outsource their trading to an automated system which scans the markets, analyses the data and makes all the essential decisions. This eliminates issues such as human emotions from the process.