A Strategy For Beginners

An Effective Binary Option Strategies for Newbie

Surrounding binary options trading there is a misconception everywhere as most people think that it can be done only by those who have certain experience. Basically, there is no such requirement. All you need to have is a little time and then you can grasp binary trading concept at any skill level. The basic thing is that you, as a trader, should be able to predict the movement of the asset’s price. Generally, the price will either increase or fall.

Different Strategies

Even though there are so many assets in binary options trading to select from, the most effective approach would be to concentrate on a single asset. You should consider trading on the assets you are quite familiar with, like euro-dollar exchange rates. Doing continuous trading on it will let you gain familiarity and therefore predicting the direction of the value will become easier. If you are a beginner, then there are two kinds of strategies that can prove to be of great benefit;

Going with the Trend (Trend Strategy)

This is the basic strategy and is mostly adopted by the beginners and experienced traders. Often termed as bull bear strategy, it focuses on monitoring, declining, rising as well as the flat trend line of the already traded asset. When there is a flat trend line and it is predicated that the price of the asset will rise, then No Touch Option can come to rescue. This method will work like the Call/Pull option.

Pinocchio Strategy

You can implement this strategy when a drastic rise or fall in the price of the asset in the opposite direction is expected. If the value is likely to go up, then you should choose a Call and if it is to drop, then select PUT.

Straddle Strategy

Most traders apply this strategy at the time of market volatility and prior to the break of news related to a particular stock. Also, you can implement this when the predictions of the analysts appear to be afloat. It being a highly regarded strategy globally, it is best known for giving the ability to the trader to fend off a selection between Call and Put option.

Basically, the overall idea is to use PUT when the asset value is increased. But when there is an indication of decline one should immediately place the CALL option. You can also do it in the reverse direction, thereby increasing you success chances.

Hedging Strategy

This is also known as ‘Pairing’ and is executed by opting for both CALL and PUT at the same time, assuring that the trade generates a successful result no matter in whichever direction the asset value moves.

If you are a newbie in binary options trading, then considering these effective strategies will definitely help you to capitalize on the returns.

Advanced Hedging Binary Options Strategy

The Advanced Hedging Strategy is another binary trading strategy that enables the traders to make slow but safe profit by giving them the chance to either enlarge their profits, or reduce the loss by opting for purchasing another Call or Put option in the opposite direction. In this money management technique, the percentage of loss… Read more about hedging

Risk Reversal Strategy

Being one of the most highly acknowledged binary options trading strategies it aims at lessening the risk factor that is associated with trading, whereby enhancing the chances of positive outcomes. You can implement this by placing both CALL and PUT simultaneously on the underlying asset. If you are trading on the assets with fluctuating values this strategy comes to help.