Binary options strategy
To be successful at binary options trading it is important to have a good strategy. A binary options strategy is a trading system that tells you what trades to make in order to make money in the long run.
All the best traders have their own trading strategy. They generally don't share their strategies with others. If they did, their trading opportunities would soon disappear and their profits evaporate. If you encounter someone who's saying they'll freely share their trading strategy with you, don't trust them.
So that's not what we'll do. If you were hoping to get access to our own secret trading strategy, we're going to have to disappoint you. What we will do for you is provide you with all the necessary tools and insights to develop your own binary options strategy. That's even better, because you'll be the only one who knows your strategy, and no one else can take advantage of it.
The elements of a trading strategy
Every good trading strategy consists of at least the following elements:
- Underlying assets: On which assets will you trade binary options? Are you into stocks or market indexes? Are you a currency expert? Or would you rather trade commodities like gold and oil? You will have to follow the market for your assets of choice. And since your time is limited, you should restrict yourself to the assets you can best predict.
- Time frame: Are you someone who likes to predict the long term, or do you take advantage of minute price movements? The markets work differently depending on your time horizon. A 'scalper' will act on different signals than a long-term investor. You should choose a time frame that suits your trading style and the time you have available for trading.
- Trading basis: On the basis of what information do you make your trading decisions? Do you trade on important news anouncements, or study the price charts with technical analysis?
- Decision criteria: When will you open a trade? How do you determine the price direction? The articles below will help you answer these questions.
In this article we discuss a powerful trading strategy for binary options: trading the news. This is also called fundamental analysis. The strategy takes advantage of important developments in the news and their effects on prices. For binary options trading, the objective of fundamental analysis is to predict the direction in which a price will move after the release of important economic data. If you do this well, you can make a lot of money with this trading strategy.
In this article we will teach you a simple strategy that you can use to make money with binary options: the M5 trend strategy. For this strategy, we use the fact that the market often moves in trends. That is, the price moves in a certain direction, and continues in that direction (until the trend reverses).