Binary Options Trading Academy

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.

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.