You don’t need a strategy to trade binary options. You could go with your guts, making decisions in a moment or instinct.
However, with this approach, you won’t make any money. You’ll probably lose a lot. So, while it’s not essential to have a binary options trading strategy, to be successful and profitable, you’ll need one.
And in the article below, we shall highlight five binary options you need to make your trades more successful.
However, remember there’s no such thing as the holy grail of binary options trading strategies. In any case, whatever strategy you’ll choose to follow, ensure it has the four key elements which include:
- Type of binary option used.
- When to use it.
- The amount of trade.
- Your exit plan.
What’s makes great binary options plan?
The binary trading strategy you chose to follow will pave the way for eventual success or failure.
Generally, in addition to the four key elements we’ve highlighted above, a great strategy should make your binary options trades consistently profitable.
Below we highlight the top five binary trading strategies that you ought to follow. You can use the strategies individually, but for the maximum benefits, you should combine them.
Binary option trading in Indonesia
Binary option like in many other countries is slowly gaining popularity rapidly. Hardly has a decade passed when binary option was reserved for the high net worth individuals. But all has changed with the introduction of retail binary option Indonesia.
Simple and easy to trade, binary option has now become of the many profitable ways of making huge sums of money online for the average Indonesian.
1) Fundamental analysis strategy
The fundamental analysis strategy is a strategy that pays special attention to the overall behavior of an asset or a company.
Here, we like define this strategy the analysis of trends in the overall direction movement.
For instance, if the market value of an asset has been consistent on the rise, there’s a high probability it will continue to move on an upward trajectory.
To use this strategy successfully, you’ll have to overlook the small market swings in the market valuation and focus on the total picture of the company or asset they want to invest in.
Unlike other strategies, the fundamental analysis strategy will entail taking fewer positions for bigger gains, and thus, an attractive strategy for those using high-commission brokers.
2) Technical analysis strategy
The technical analysis strategy studies the past performance of an asset to gauge the market direction of an asset.
While both the fundamental analysis strategy and technical analysis strategy are somewhat similar thanks to their past analysis of assets, the former is majorly concerned with gathering the intrinsic values of an asset, while the latter uses parameters such as charts, and tools such as Bollinger bands and moving average
Technical analysis strategy is quite a handy strategy, especially for traders who don’t like to get their hands dirty by digging too much into an asset or a company’s financial statements.
3) Basic option strategy
The basic option strategy is a popular trading option among many traders as the strategy is tailored to mitigate against losses on your total investments.
To use this strategy, you will first have to pick your preferred asset or currency, if the price movement of the asset is in your favor, you place a call option and at the same time, place a put option on the same asset.
4) Algorithmic and signals
If you’re always finding it hard to do the market analysis, you can greatly benefit from apps that are designed to analyze the market data.
A majority of these apps, which are installed in your computer, will gather data around your specified markets and further analyze the data to bring the best possible outcomes.
Beyond the market analyses, these tools will then select a trade for you to participate in, therefore providing you a hands-free trading experience.
If you’re the savvy type, you can also build and customize an app that will trade according to your trading requirements for the optimal results.
Whatever the case, you will need to constantly update the raw data that your app will select its analyzing details from.
5) Co-integration trading strategy
If you are experienced trader, you are probably aware there exists a correlation between various assets, probably because they are in the same industry or sold in the same market, hence influenced by many factors in the same way.
Owing to their close similarities, you will soon realize that any space between them is going to close pretty much soon.
Regardless of the cause of the space, your main task as a binary options trader is to identify this space between the two assets. After that, you can place a call option for the “weaker” asset or a put option for the “stronger” option is the direction is going to reverse.
What makes the co-integration trading strategy such a popular binary option strategy is because eventually, both of the assets are going to correlate, and this should determine your point of exit.
Strategies, like investments options, are many and you could end up with a binary options strategy, which is going to guarantee you of consistent winnings.
The key here is to find a strategy which works best with your trading portfolio and pattern.
If you are experienced, you can even come up with your strategy that will fit your trading needs.