This is where our Trading Strategy Guides team comes to the rescue. We will provide you with the best binary options strategy. Understanding how to trade options can help increase your performance as a trader. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk. Binary options are easy to understand. This is coming from someone who has little or no experience in the area.

If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly. When we first discovered binaries, the light bulb in our heads turned on. No need to worry about how many pips we could grasp in the process.

Binary options trading is a form of derivatives trading that has a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date? Essentially, we can trade binary options for any type of instrument. Second, before submitting our trades, each of these instruments has a current value at any given point in time.

How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options. The market can only go up or down.

If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options. Third, we need to determine what the most critical aspect of trading binary options is. Being wrong means you incur a loss.

We have made a nice infographic that highlights the four steps on how to master binary options trading. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you. Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. The mathematical model behind this binary options trading strategy has a proven market edge. The only tool you need to trade binary options successfully is the RSI indicator.

The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably. Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold conditions, we get more accurate day trading signals.

By changing the RSI overbought and oversold line, we have eliminated the noise. The 1-minute binary options or the seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame. We recommend highlighting the starting point on your charts. And the ending point of your candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.

When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.

Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time. We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

A minute ahead or later would have resulted in a losing trade due to the fast changing price. After making the spike, price moved within a tight range without any direction and it would have caught many traders who were late to the party… or some greedy traders opening new contracts resulting in a losing trade.

From the above examples, we see that while it is simple to trade news releases with short term expiring contracts, traders need to get in on a contract at the right time and price. For traders who are just starting out with trading the short term expiring contracts , always trade with the minimum investment amount for the contract so as to keep your losses to the minimum. Your email address will not be published.

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Newest Forex EA, Systems. After all, in the end, we all want to make huge profits. Its CCI indicator, also known as Commodity Channel Index. By using CCI, you can win fast-paced environment trades without any issue. But to improve your binary options trading game by using CCI, you need to know what this indicator truly is?

How does it work? Also, what are different CCI indicator trading strategies? And why should you use it? Commodity Channel Index is an excellent trading indicator that can help you identify the market environment where the value of an asset has moved too far and has to come back.

While this indicator is called Commodity Channel Index, you can use it for all markets. With the help of this indicator, you can analyze currencies and equities. Short-term traders generally use it. Developed by Donald Lambert in the s, the CCI indicator quickly became famous for its accuracy and ease.

Similarly, a bearish signal is when the reading is below ,. This way, traders can even spot a new trend in the market. Also, if the indicator diverges with price, it shows weakness in the trend. The thing is the value of the apple has increased gradually over time. Now imagine that shoppers doubled the price of apple overnight. What would happen? Well, the possible scenario is buyers would stop buying that fruit altogether. It will bring the price of apple back to its original value or a little higher.

The CCI indicator helps traders use this idea in market analysis. With the help of these three factors, CCI shows the distance between simple moving average and current typical price to the mean absolute deviation. At last, the final sum is multiplied by 0. But sometimes, the value goes outside these boundaries. When this happens, it shows oversold and overbought action in the trading market. You can even make a trade when CCI breaks the trendline. There are multiple reasons for using the Commodity Channel Index indicator.

Here are three of them. The CCI indicator is mostly used for short-term trading because this kind of trading does not have a large fundamental influence. That means the psychological impact is more in short trades. So, the market will follow the direction that CCI predicts. Thus, it creates an excellent environment for winning trades. When you trade binary options, you should be quick because this volatile market can change its direction at any time.

Using the Commodity Channel Index indicator can help you accurately predict the market movement by showing precise readings. If the environment is favorable, you can trade. Another reason to use the CCI indicator is that it supports short-term predictions.

It creates predictions on different time scales that you can use to apply to the next few candlesticks. Also, these predictions can make excellent trading strategies. You can further use the strategy for maximizing the profitability of your trading. If you want to use Commodity Channel Index indicator like professionals, you should follow the right trading strategies.

For doing this, you should wait for the CCI to enter an extreme area. If you choose to trade when the CCI indicator is leaving the extreme area, that means you are investing in a developing area. Thus, you should select a shorter expiry time to win the trade.

The growth of binary options trading strategies can be aptly reflected by the rise of the popularity of binary options trading that has been adopted by most forex traders in the recent months. The primary reason for this sudden boost comes from the high profit potential, low deposit requirements that has given a boost to the binary options as an alternative investment tool. This popularity has risen to an extent that investors now actively seek binary options trading strategies to help them maximize their profits even further and consistently.

As with most trading strategies, binary options or the mainstream forex trading are usually developed by the investors and financial analysts in order to assist the average investor by giving them a trading advantage in the ever volatile financial markets.

Binary options trading in reality is a purely speculation driven markets and this is why it also gives rise to the potential uncertainities involved with this type of an investment.

Increased risks in any investment is usually followed by a need for having and implementing a strong binary options trading strategy that has the potential to offset any unexpected developments often associated with the volatile markets that one gets to see. This is true especially during the peak trading hours where markets are known to react in the most unpredictable of ways.

Thus, the popularity of binary options when combined with the potential profits they can offer which is derived from the markets and the speculative nature, makes it a formidable investment tool.

Traders and investors in general tend to bring their own tips and tricks to the table and there is no set of rules to be followed. We introduce some of the most easy to implement trading strategies in the binary options markets. The most simplest of trading strategies available with binary options is where an investor can choose to purchase or place either a CALL or a PUT option.

There are some binary options trading platforms that do not offer any returns for losing trades, or trades that end up out of the money.

One of the most exciting factors that comes into play with binary options trading is the volatility which brings about a certain kind of excitement to the average investor. Most traders usually set off their trades in hopes of them ending up in the money. Something which every seasoned investor has experienced. So what happens in such a case when a trade was opened and a CALL option was placed but mid-way the trade is clearly ending out of the money? Typically, this is where the story ends for most investors.

Accepting that it is a losing trade and perhaps moving on. But little do most investors know that such an adverse trade can actually be utilized to place a winning trade? By opting to place a second trade in the opposite direction a PUT option in this case , investors can purchase an option that is firstly working for them and secondly is a sure shot winning trade. Illustrating this with an example, an investor has purchased a USD buy at an end-of day CALL option on the FTSE index at a strike price of 1.

The investor soon observes that the trade is going against what was initially speculated. The ideal way to convert this losing trade into a winning trade is by purchasing a PUT option that is of the same initial value that was invested, which in this case is another USD.

Choosing such type of a binary options strategy where in the trades are placed in opposite directions at different intervals can help investors to minimize their losses.

Scenario 2 : Trader purchases a PUT option for USD and the trade is losing. The investor opens a new position with the same investment of USD and places a CALL option. A winning trade. In the financial jargon, this strategy is refered to as doubling your trades.

Best illustrated with an example of an investor that placed a USD PUT option on the FTSE at By ensuring that the first trade is trading well below the The potential to win from such a strategy is twice.. The advantage of implementing such a strategy is that investors can can make very high profits on trades that are surely winning trades.

While this stratege seems simple in theory and reflects a great earning potential, it does however involve some good groundwork and a keen eye on various economic factors that determine the outcome of such trades.

For starters, when placing your second trade in the same direction, an important factor that plays a role in the outcome of this trade is the time for expiry. A worst case scenario that can be derived out of this situation being that if the first trade is due to end in the next 15 minutes and you open a second trade in the same direction, there is a potential that the markets might tend to retract within the time frame of expiry which is typically 45 minutes of your second trade.

Commonly referred to as event based market trading, this strategy is a bit more complex in comparison to the other binary options trading strategies presented in this article. The concept to pull off a winning trade is to invest in either a Call or Put Option on the basis of anticipated drastic fluctuations of prices in the markets.

What justifies this trading decision is the conviction that the news released hints at lowering the value of the currency pair. Impelementing trades that are well timed with market events can be a profitable strategy for the binary options investor. The trading strategies mentioned in this article form a few of the various strategies binary options investors have adopted to based on their trading experience.

The key to developing or implementing a successful binary options trading strategy comes from the fact that with due attention to detail and perseverance, investors can make good profits by trading binary options.

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Another effective indicator that traders can use for 5-minute binary options trading strategy is Bollinger Bands. While using the Candlestick strategy, remember that signals on daily charts are stronger than hourly charts. Binary options trading is a form of derivatives trading that has a fixed profit or loss. lenniiijuss says:. Do Binary Options trading strategies work? To Make Sure That brokers and traders alike make a Significant profit, it Is important to select and make use of the best binary option trading strategies from Earth.

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