FACTOR OF TIME AT TRADE IN BINARY OPTIONS
A well-known saying is “Time is money”. For traders of binary options it is very relevant. Time plays a key role here. Having correctly determined the period of trade, you can start earning well. Conversely, if a trader incorrectly chooses a gap to work with contracts, he can begin to incur significant losses.
In general time management issues, that is, time management has so far rarely been raised by anyone, but in fact, this factor is about the same level as mani and risk management.
What is the time factor for trading on binary options? First of all, the time of work itself can be divided into two main stages, namely: the preparation and the transaction itself. The stage of preparation includes the selection of the contract, the underlying asset, the volume of investment, expiration time and, most importantly, market analysis.
That is, the trader must have enough time to complete all the above actions and buy a contract. At the same time, there is also a second important point – the time at which the contract is concluded. It is closely related to the first aspect, that is, the longer the trader is going to trade, the more time he has to analyze and prepare for the deal.
In general, today consider three categories of investors – short, medium and long-term. In Forex trading, the first work during the day, the second – for several weeks-months, the third – for several years.
As for binary options, here everything is somewhat different in view of the nature of these contracts. Short-term here are considered to be traders who work in the period from 30 seconds to five to ten minutes. As for medium-term and long-term trade, there are no contracts in this kind of contracts, but on the other hand, there are longer terms for the expiration of contracts like half an hour, an hour, the end of the trading day and even the end of the current year.
The correct choice of the time, during which the expiration occurs, directly affects the results of the trader. Moreover, there are no standards or advice. Each investor has his own abilities and capabilities. Someone prefers long-term analysis and decision-making. In this case, it is not necessary that such a trader will earn less only taking into account the fact that the number of transactions opened by him will be less.
Long-term Forex traders operate with large amounts, so, given the reduced risks, they can, as a result (for example, within one year) earn much more than those who open a large number of transactions several times a day. Everything depends on the strategy of managing capital and risks.
In binary options, as already noted, there are relatively long-term contracts (with expiration at the end of the year), which allows you to make decisions slowly, carefully analyzing everything. In principle, despite the fact that such trade today is not popular, it has the right to live, especially if the trader has an impressive deposit and does not want to risk much on short-term deals.
In any case, the choice of time scale is a decision. It should be taken solely on the basis of its trade preferences. And for this, it is necessary to analyze, including its potential, and also to know yourself better to trade in binary options.