To get really significant success in binary options trading every trader should pick up a strategy which will perfectly fit to his own special features. In this article we tried to collect some strategies for cardinally different traders.
First variant-not risky traders
If you are not a risky person and want to get your profit every time you trade without taking risks, you should pick up a safe variant of strategy. It means that such kind of a strategy should give you rather safe predictions. This strategy will not give you the best profit but provide you with a higher probability of your winning. There are two different variants of safe strategies, let’s consider them:
- The safest strategy is trading the point 2. It guarantees you safe returns but during long time period.
Uptrend case. The main idea of this strategy is that point 2 arises when every new peak appears. At the moment when the price will rise higher than previous point (peak) this will cause a lot of limit and loss-stop orders from other traders and cause a great movement of the price upwardly. You will be able to trade such movement using high or low option and short time of expiration.
Downtrend case. In this case point 2 appears with each low. In this moment you should trade high or low option when the price’s movement through the level of the price in the previous low. This strategy is a good variant for beginners because of its unique safety.
- Another safe strategy is called “double tops and double bottoms”. In binary options trading the more candlesticks are in a formation and the longer it develops the more valuable it is. Two largest candlesticks in candlestick formation are called “double top” and another two candlesticks which are the mirror image of the mentioned Double Top are called “double bottom”. The main disadvantage of this situation is that it appears very seldom. Most often it is very hard to define precisely double top or bottom and it requires experience and skills to identify them correctly. You will try a lot of different assets and time periods until you will be able to clearly choose double top and double bottom.
Second variant-risky traders
If you are risky person and want to get higher profit with every win despite the less percentage of your winning, these strategies are for you.
- Strategy of gaps trading. Each gap appears every time at the moment when candlestick rises rather far from the closing of the price of the candlestick which was before. In such situation you can make some money by trading this gap because the price tends to close it. But the gap is rarely appears very close, that’s why this strategy is called as risky variant. However peaks’ life is rather short you may trade them with extremely short expiration dates and get your profit in an extremely short period by making lots of trades.
- Another strategy for fearless and risky traders is called “simple formations of candlesticks”. Such simple candlestick formations are made by only one candlestick. It is very hard to create the correct prediction about further movement of the price in such situation because a lot of movement types are especially unexpected. This strategy requires big risk from the trader but also brings you good and fast profit in case of your winning.
In conclusion we want to sup up all material that was mentioned above. Safe strategies will give you rather stable profit but it will not be so often as in the case of risky trades, risky trades will provide you with less stable but more frequent profit. Your strategy choice depends only on yourself, so pick up the best one which will perfectly suit you and enjoy your binary options trading!