STRATEGIES OF TRADERS FOR BINARY OPTIONS
With the growing popularity of binary options, when more and more people, evaluating their advantages and prospects, switch to trading options from other areas of activity, the strategies of traders for their earnings are also multiplying. New algorithms and workflows arise, almost every day and a beginner, at times, it is quite difficult to find a good strategy for yourself that would fit into its trading style, used assets and types of options.
KINDS OF TRADING STRATEGIES. TRADERS FOR BINARY OPTIONS
So, the strategies for working on binary options are divided into several groups, depending on the tools underlying them. Some are built on work with indicators of technical analysis (Bollinger Bands, Moving Average, Alligator, etc.).
Others – on graphic figures (patterns), the third – on financial news, etc. Of course, they all vary in the degree of risk, profitability, speed of profit and many other indicators.
TRADERS FOR BINARY OPTIONS. WHAT STRATEGY TO CHOOSE A NEW?
The first thing you need to do before choosing a strategy is to decide on the style of trading, deciding how you intend to work.
Will you be a scalper who instantly reacts to binary options signals and earns the slightest fluctuations of the market, trading on turbo options. Or you will follow a more relaxed, conservative strategy that involves working with long-term options and a detailed analysis of each asset.
If you are not afraid to take risks and want to get maximum profit from binary options – you need scalping strategies based on indicators, patterns and trading signals. Given that scalpers work on short-term options, in most cases they need to open a deal immediately after the signal comes in, there is practically no time for thinking. We have to completely commit ourselves to our strategy and hope that it will not fail.
And if your goal is to get a stable profit in the long term and with minimal risks, then it’s better to choose long-term options and strategies for working with them. They are based on a fundamental analysis of assets, trading on news and stable trends.
Such strategies are much more reliable, but they also have negative aspects. For example, trading options with a long expiration period will have to work with large amounts, because otherwise the game will not cost a candle. This short-term traders can afford to trade minimal lots, compensating for the low profit from them by a large number of trades. And to wait until the long-term option is closed is quite difficult psychologically, because your money is at stake, and uncertainty always scares.
So, think carefully, evaluate your level of preparation and emotionality, only so you can make the right choice.