Binary options daily highlight trading tips and strategies list
There are simply too many traders in the market to create a gap with a low volume. Therefore, low-volume gaps mostly occur near the end of the trading day. Many traders are day traders. They close their position at the end of the day and never hold a position overnight.
These traders will stop trading when the market is about to close because there is not enough time to make another trade. When day traders have left the market, the trading will drop off significantly. Now you can find closing gaps. Monitor all time frames from 15 minutes to 1 hour, and trade any gaps you find with a one touch option with an expiry of 1 hour that predicts a closing gap. Traders who work during the day and can only trade after work can use this strategy to make a profit despite their work.
The important point here is that you can trade successfully, even if your time is limited. If you have to trade during your lunch break, you can find successful strategies for this limitation, too.
As with anything in life, success means making the most of your limitations. With binary options, your limitations might help you to trade more successful than if you had none. It combines an expiry that seems natural to us with a wide array of possible indicators and binary options types, which means that every trader can create a strategy that is ideal for them. Whether you prefer a pattern matching or a numerical strategy, a high-potential or a low-risk approach, and a simple or a complex prediction, you can create a 1-hour strategy based on any combination of these attributes.
The double red strategy is a simple to execute strategy that allows binary options traders to find many trading opportunities. The double red strategy is a trading strategy that wants to identify markets that feature falling prices. The logic is simple: After it has sorted itself out, however, the falling price movement is often stronger and more linear than an upwards movement, which is why it is a great investment opportunity.
For example, assume that there is a resistance. When the market approaches this resistance, it will never turn around immediately. It will edge itself closer and closer, test the resistance a few times, and eventually turn around. While the turnaround would be a great trading opportunity, finding the right timing is difficult. During the process of edging closer and closer to the resistance, the market will already create a few periods with falling prices that will fail to lead to a turnaround.
You have to avoid investing in these periods. To find the right timing, the double red strategy waits for a second consecutive period of falling prices that confirms the turnaround. When such a period occurs, the market has obviously stopped moving around the resistance and has started to move away from it again.
Double red traders would invest now. If you add another indicator the Average True Range, for example and like to a take a little more risk, you can also use one touch options or ladder options. Keep your expiry short. The double red strategy creates signals based on two candlesticks, which means that its predictions are only valid for very few candlesticks, too.
Ideally, you would limit your expiry to one or two candlesticks. For example, on a minute chart, you would use an expiry of 15 to 30 minutes. Binary options strategies for newcomers must fulfil some special criteria. They must be simple but effective, quick to understand but profitable. There are many complicated strategies that can make money if a trader executes them perfectly. Beginners, however, will be overwhelmed, make mistakes, and lose money.
The goal of a good strategy for newcomers to create similarly positive results while simplifying the strategy. We will present a risk-averse strategy for those traders who want to play it safe, a riskier strategy for those who want to maximise their earnings, and an intermediate version. Following trends is a secure, simple strategy that even newcomers can execute. Trends are long lasting movements that take the markets to new highs and lows.
The trick with trends is understanding that they never move in a straight line. It is simply possible for all traders to keep buying or selling continuously. There must always be brief periods during which the market gathers new momentum. These periods are called consolidations. During a consolidation, the market turns around or moves sideways, until enough traders are willing to invest in the main trend direction.
The alternation of movement and consolidation creates a zig zag line in a particular direction. This is a trend. When you look at the price charts of stocks, currencies, or commodities that have risen or fallen for long periods, you will find trends behind all of them. Trends can last for years, but the more you zoom into a price chart, the more you will find that every movement that appeared to be a straight line when you looked at it in a daily chart becomes a trend on a 1-hour chart.
What seems to be a straight movement in a 1-hour chart becomes a trend on a minute chart, and so on. There are many levels of trends. Regardless of which time frame you want to trade, there is always a trend you can find.
Since these are relatively safe strategies, you can afford to invest a little more on each trade. We recommend somewhere between 3 and 5 percent of your overall account balance.
Trading swings is a variation of our first strategy, following trends. A swing is a single movement in a trend, either from high to low or vice versa. Every cycle of a trend consists of two swings: Instead of trading a trend as a whole like trend followers , swing traders want to trade each swing in a trend individually. The advantage of this strategy is that every trend provides them with multiple trading opportunities, not just one.
More trading opportunities mean more potential winning trades, and more winning trades mean more money. The downside of this strategy is that trading a swing is riskier than trading a trend as a whole. You are trading a higher potential for a higher risk — if that is a good idea depends on your personality.
If you decide to become a swing trader, we recommend using a low to medium investment per trade, ideally between 2 and 3. Only traders who like to take risks should invest more, but never more than 5 percent of their overall account balance. Choose your expiry according to the length of a typical swing. If you expect an upswing and a typical upswing takes about 30 minutes, use an expiry of 30 minutes.
Choosing the right expiry is no exact science, and you will need a little experience to find the perfect timing. To identify ending swings, you can use technical indicators. Trading gaps combines an intermediate risk with a good chance for high profits.
Gaps are price jumps in the market. At the end of one period, something influenced the market strongly, and the price jumped to a higher or lower level with the opening price of the next period. The most common gap is the overnight gap. When the stock market opens in the morning, all the new orders that were placed overnight flood in. If traders were optimistic or pessimistic, there is a good chance that most of these orders point in the same direction.
Such a gap is a significant event because the same assets are suddenly much more expensive. The market can react shocked, some traders might take their profits; or the market can push forward, providing the sense that this is the beginning of a strong movement. The basic principle of all four gaps is the same. Gaps are significant price jumps, which is why many traders now have an incentive to take their profits or enter the market.
Both forces push in the opposite direction of the gap and are likely to close it. For a gap to remain open and create a new movement, the gap has to be accompanied by a high volume. This high volume indicates that many traders support the gap, and that there are few people who will take their profits or invest in the opposite direction immediately after the gap. With Binary Options A zero-risk strategy is the dream of any financial investor. While it is impossible with any investment, binary options can get you closer than anything else.
When you invest, there is always some risk. Despite all efforts to predict what the market will do next, nobody has yet found a strategy that is always right. Sometimes, the market moves in unpredictable ways and does things that seem irrational. In hindsight, we often find good explanations for these events. As a trader, you have to avoid letting this hindsight bias confuse you. When a trading day is over, it is easy to say that this event moved the market the strongest.
But when a trading day begins, it is often almost impossible to predict which of the many events of the day will have the strongest impact on the market and how it will influence the market. Even beyond the stock market, financial investments always include some risk. But binary options offer a few tools that allow you to get relatively close to zero risk. Most binary options brokers offer a great tool: Demo accounts work just like regular accounts but allow you to trade with play money instead of real money.
In the risk-free environment of a demo account, you can learn how to trade. You can try different strategies, find the one that suits you the best, and perfect it. You can wait until you switch to real-money trading until you have a solid strategy that you know will make you money by the end of the month. While many stock brokers offer a demo account, too, binary options have one great advantage: Once you have traded a strategy with a demo account and turned a profit for a few months in a row, you know that there is a very high chance that you will make a profit when you start trading real money, too.
There will still be some risk, but binary options have helped you to eliminate as much risk as possible. For those still looking for zero risk trades, Arbitrage is another option. The breakout strategy utilizes one of the strongest and most predictable events of technical analysis: Breakouts occur whenever the market completes a chart formation.
These completions indicate significant changes in the market environment. The market will pick up a strong upwards or downwards momentum, which means that many traders have to react to the change. Since most traders anticipate the payout, they will place orders that automatically get triggered when the market reaches the price level that completes the price formation. These orders intensify the momentum even more.
Digital options offer a number of strategies to trade the breakout. Here are the three most popular strategies:. When you anticipate a breakout, wait until the market breaks out. If the breakout happens in an upwards direction, invest in a high option; if the breakout happens in a downwards direction, invest in a low option. Use an expiry equivalent to the length of one period. Trading the breakout with one touch options. Breakouts are strong movements, which is why they are perfect for trading a one touch option.
One touch options define a target price, and you win your trade when the market touches this target price. Once you see the market break out, invest in a one touch option in the direction of the breakout. Trading the breakout with ladder options. When an asset breaks out, invest in a ladder option in the direction of the breakout.
Choose a target price with which you feel comfortable but that still provides you with a high payout. All of these three strategies can work. Choose the one that best matches your personality. There are hundreds of strategies that use Bollinger Bands. Regardless of which strategy you use, there is almost no downside to adding Bollinger Bands to your chart.
Even if you do nor trade them directly, having three additional lines will not confuse you. On the contrary, it will subconsciously influence to make better decisions. Nonetheless, we will now present three strategies that not only feature Bollinger Bands but use them as their main component. Understand these strategies, and you will also be able to use Bollinger Bands in your strategy.
This is the simplest strategy, and the one with the least risk. It can be explained in two simple steps:. There is one thing you should know, though. Since every new period moves the Bollinger Bands, what is the upper range of the current Bollinger Bands might not be the upper range of the next periods.
A quickly rising market will push the Bollinger Bands upwards, too; and a quickly falling market will take the Bollinger Bands down with it. Because of this limitation, the strategy works best if you keep the expiry of your binary option shorter than the time until your chart creates a new period.
If there are 30 minutes left in your current period and the market approaches the upper end of the Bollinger Bands, it makes sense to invest in a low option with an expiry of 30 minutes or less.
If you want, you can also double-check your prediction on a shorter period. Switch to a chart with a period of 15 minutes, and if the market is near the upper range of the Bollinger Bands, too, you know that there is a good chance that it will fall soon. If it is in the middle of this trading range, however, you might consider passing on this trade.
You might also consider upgrading this strategy to trade binary options types with a higher payout. By adding a momentum indicator, you can invest in option types that require a strong movement.
To understand how to add this indicator, consider the example of our next strategy. The middle Bollinger Band has special characteristics. While it offers a resistance or support level, the market can break through it. When it does, the Band changes its meaning. Both events change the entire market environment.
When the market breaks through the middle band, it suddenly receives enough room to move to the outer band. This means you know the direction in which the market is likely to move and the distance, which is a great basis for trading a high-payout binary option. For this strategy to make sense, you have to use a one touch option with a target price that is within the Bollinger Bands. On the other hand, the expiry has to be long enough to give the market enough time to reach the expiry.
Finding the right mix of closeness and enough time can take some experience. You can also use momentum indicators such as the Average True Range ATR to provide a mathematical basis for your estimate. The market is highly likely to move beyond the outer Bollinger Bands. This knowledge is a great basis for trading low-risk ladder options. Ladder options define a number of different target prices, usually five or six.
Some of these prices are above the current market price; some are below it; some are close, some are far away. Ladder options allow you to make this prediction and win a simple trade. To execute this strategy well, make sure that the period of your chart matches your expiry. Bollinger Bands change with every new period, and a target price that is outside the reach of the Bollinger Bands during the current period might be well within their reach during the next period.
When you trade a ladder option with an expiry of one hour based on a price chart with a period of 5 minutes, so many things can change before your option expires that the Bollinger Bands become almost meaningless. By matching the period of your chart to your expiry, you guarantee that the Bollinger Bands stay the same until your option expires. The volume is one of the most under-appreciated indicators.
Combined with binary options, a volume strategy can create great results. The trading volume is a simple yet important indicator. The volume indicates how many assets very traded during a period. The direction of these trades is unimportant to the volume. As you can see from these examples, the volume only makes sense in relation to preceding periods. A volume of says nothing until you know whether the preceding periods featured a higher, lower, or similar volume.
A volume strategy uses the volume of each period to create predictions about future price movements:. Binary options are primarily short-term investments. But if you want to invest for the long term, binary options have a lot to offer for you, too. While binary options are mostly short-term investments with expiries of a few minutes to a few hours, most brokers have also started to offer long-term options that allow you to make predictions for the next months and the next year.
You predict whether the market will trade higher or lower than the current market price when your option expiries. A long-term binary options strategy should be based on trends. Over the course of a year, long-term trends dominate the market and dictate what will happen next.
Identify these trends, and predict that they will continue. To avoid weakening trends, you can use technical indicators such as the Money Flow Index MFI , which allow you to identify trends that are running out of momentum. When you trade a long-term prediction with regular assets, you can average a profit of about 10 percent a year. That is a great result, but binary options can do better.
Assume that you have found a stock of which you are almost completely sure that it will trade higher one year from now. Take a look at the current price charts of Google, Amazon, or Tesla. Such stocks would offer the ideal basis for such an investment. When you predict that these stocks will rise with binary options, you can get a payout of about 75 to 90 percent — in one year.
Regardless of how well these stocks do, when you buy them directly on the stock market, you will never make a profit that rivals this return. Now, of course, you have to account for risk. When you lose your trade — however unlikely you think that this event may be — you lose all the money you invested. This is why it is a bad idea to invest all your money in a single trade. Spread your money over multiple stocks, currencies, markets, and commodities, and never invest more than 5 percent of your overall account balance in a single trade.
Also, never invest all your money. With this strategy, you should still be able to make a return that is higher than what you would make with stocks, but you reduce your risk. The most efficient tool, in this regard, is the Binary Option Broker, the main advantage of which is that it can work on different platforms and does not require you signing up on certain brokers. Thus, one can employ a personal trading platform. Indeed, in comparison to other tools, Binary Option Robot, which functions since , has managed to reveal the biggest results.
The mentioned tools work as follows: Thus, the automatic prediction making and trade execution substitute manual trading. Naturally, you may set specific limitations on the traded sums.
Among the recommended binary brokers, I differentiate two platforms, which are the most optimal for use. These are 24Option, which accepts both American and European traders, and Wynn Finance that may be accessed only by American investors. The aspects that influenced the selection of the most efficient brokers are their recognition, withdrawal parameters, payout percentages, and the related indicators since the indicators are not universal, some of them can not be applied on trading platforms.
The second binary trading strategy, which may be effectively applied by newcomers, reveals even higher efficiency than the one previously analyzed. The core of the technique is making maximally correct predictions on the basis of news tracking and long-term trading. The example of the strategy use may be predicting the stock increase of a specific asset in case the company is expected to release a new product in the nearest time.
The 10 Day Social profits system offers just this opportunity. However, with this kind of promise is 10 Day Social Profits an attractive and genuine offer However, there are many of them which are not there to help you; they simply want to make some easy money for themselves. Reviews like this will help to ensure you ch These are the ones which are most likely to be scams. Each contract should include details of the following:. Options are often classed as complicated, risky investments, and that puts off many aspiring day traders.
However, there are just two main classes of options. Setting aside the two main classes, there is a long list of different markets and options available. Although not all are suitable for day trading, the list includes:. Usually, you will find that most options are based upon shares in publicly listed companies, Twitter and Amazon, for example. However, there is a growing number of options based on alternative underlying investments.
These include day trading options on stock indexes, currencies, commodities, and real estate investment trusts REITs. The exception to this rule is when adjustments take place as a result of stock splits and mergers.
The majority of exchange-traded stock options are American. They can be exercised at any point from the purchase date to expiration. European options, however, you can only redeem on the date of expiration. A lot of people swiftly realise there are numerous similarities between day trading options and futures. They are both usually based on the same underlying instrument.
The makeup of the actual contracts also shares numerous similarities. The difference is how they are traded. With options, you get a broader range of available options. Options can be traded singularly, or you can purchase them alongside stock trades or futures contracts to create a form of insurance on the trade. There are a number of reasons you can make serious money trading options.
Even putting financial remuneration to the side, day trading with options appeals for several attractive reasons. Intraday options trading is multi-faceted and brings with it great profit potential. The best part though — accessibility. You can start day trading with options from anywhere in the world.
All you need is an internet connection. Despite the numerous benefits, there are certain challenges that come with trading in options.
Fortunately, all the obstacles listed below can be overcome. If you take both considerations into account you can adjust your trading plan accordingly. Your broker will help facilitate your traders.