Top 5 Binary Options Strategies for Beginners

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There is no doubt that trading in binary options offers the potential to generate a considerable return on your investment even for dummies.

However, it also presents an opportunity for the uninformed and inexperienced to simply lose money. Although the basic premise, of predicting the movement of the price of an asset, is simple; there are a variety of factors which must be taken into account if you wish to trade successfully and generate a good rate of return. The first binary brokers started offering their services to the public nearly ten years ago. The initial response may have been skepticism but binary trading has no become an acknowledged financial instrument in many countries and is regulated extensively.

To make a profit you must understand the market, and preferably the asset, in which you are trading. To make the most of this income generating possibility there are a few steps which must be followed. Decide upon which binary options broker you intend to use. There are hundreds of binary brokers to choose from, some are registered and regulated; whilst others are not.

You should choose one which binary options strategy for dummies either been recommended to you or has a good reputation. You will need to review their terms and conditions particularly regarding minimum deposits and trade amounts. There will also be conditions attached to any bonuses you receive. Register for an account with binary options strategy for dummies chosen broker; this is usually a simple form on the website and a copy of your ID, this will need to be sent before you can withdraw your funds.

Once registered you will need to fund your account with at least the minimum deposit amount. It is important to note that every broker offers a different range of features and you can sign up to more than one broker.

As a new trader you should binary options strategy for dummies for a broker who offers a demo account, low deposit and a good average rate of return. Having created your account you will be eager to start trading. However, you should take the opportunity to study the educational material and learn as much as possible regarding binary trading. Then use the binary options demo account which will allow you to familiarize yourself with the layout of your site before you trade for real.

The practice account also offers an excellent opportunity for you to test some of the strategies you should have been learning about. Not every approach will work for you; it is essential to choose a strategy and trading style that you are comfortable with. You will then be able to maximize your chance of placing successful trades. You can then choose your asset and the strategy you wish to employ. It will then be time to wait! Trades can be for as little as thirty seconds or as long as a year; although most traders choose to operate between one and five minutes.

It is important to note that every time your prediction is wrong and you lose your investment, the broker gains your funds. In some ways this is like gambling as you are playing against the house.

However, you are not simply binary options strategy for dummies on luck! Even when you place a successful trade your broker is likely to make some funds from you via charges! The average rate of return binary options strategy for dummies in the mid seventies; this means binary options strategy for dummies you need to place successful trades between fifty five and sixty percent of the time; just to cover your operating costs.

This is why it is essential to research and understand the assets and the market. Most experienced traders will use some kind of binary options signals. This can be as simple as a chart showing the rise and fall of an asset over short and long time periods. From this chart you will be able to see a trend binary options strategy for dummies can trade according to that trend.

More complex signals involve creating boundaries and even moving average prices. This is often too complicated to deal with when first starting trading. A viable alternative is to subscribe to one of the signaling services. They will inform you which asset to trade on and which direction to trade in.

These signal providers offer a very good success rate and are essential assistance for those with limited knowledge or time. However, they should assist you in increasing your returns and allow you to control the risks your expose your funds to. The more risk you are prepared to accept the more signals you will receive each day! An extension of this, which some brokers allow, is to use an automated trading software.

With the right approach this can be a viable way to generate an income; whether new to the market or experienced. Subscribe To Trading Secrets. Binary Trading For Dummies. In fact, for most traders the right approach is unique to them simply because everyone has different risk factors. We do our best binary options strategy for dummies set up a credible fifteen minutes Until recently, one binary options strategy for dummies was seen as the fastest possible trade, however this is now cha But there are also some distinctions in these two activities.

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Here are 3 different strategies that I use, choose one based on your risk appetite. This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart.

Draw your fibo from point 1 to point 2 for a down trend, and vice versa for an uptrend. Your target is In order for the signal to be fully valid, there has to be a retracement to between 50 — Higher the retracement goes, stronger the signal.

In the example above, the retracement happens next to the number 2 in the up left corner. And money management suggestion for this strategy is to take 2 equal bids per day for 20 days. If you lose, start with the last set of bids:. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left.

The semi conservative strategy involves trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the trade at Fibonacci projection level as well as Now, for level trades, I would advise not to take the trade with more than 6 minutes to the expiry.

Use the same money management as with conservative strategy, but your earnings will increase faster.

Now, the below strategy is a very aggressive one that defines the means of sane trading. This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels and And Fibonacci levels are drawn for every cycle. This strategy also exploit the full potential of value charts.

Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe. Now, we will go after the BIG 5. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse.

Look at the chart below:. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions. This strategy will produce around setups per currency pair per day, so use it wisely, and be very sure to learn it by heart before you jump in full steam.

The 3 strategies explained here work for all currency pairs, commodities, stocks and indices. However, even with the conservative strategy, a trader can produce excellent results if they trade assets, and take 2 high probability trades per asset per day. Click here to read my next and last post in this mini series. Conservative Long-term Strategy This strategy is for those who are new to this game and want to build up their capital slow and steady. They key here is to be patient until all 3 factors line up.

The entry rule is: And your target is trades per day. If you lose, start with the last set of bids: The rules for entry are the same as with the conservative strategy: And remember, You have to stick with the entry rules. Aggressive Strategy Look at the chart below, how many price cycles do you see? Look at the chart below: Now it gets complicated and wonderful: The Fibonacci is drawn between points 1 and 2 in light blue and marked on value charts the last high and low, 1 and 2 respectively.

Now we have the levels and wait for the retracement which can be a wick, or a full candle. Above the retracement area is the white box marked by 3, and the green candle underneath touches that box. The setup is ready when the retracement candle is followed by a red candle in the direction of the trend. This is marked by the light blue rectangle.

So this is our first breakout candle of this specific sequence. This is marked by 3 PUT on the chart above. We enter PUT 10 seconds before the close of this candle because it will be followed by a bearish candle, or bearish candles which will reach level Fibonacci level This trade is represented on the chart by 1 PUT. The last bearish candle hits Fibonacci level As usual leave comment below if you have any questions.

Click here to read my next and last post in this mini series Further reading: Trading Binaries with the Fibonacci Tool.