Effective Time Management in Binary Options Trading

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Effective Time Management in Binary Options Trading

In order to become a successful participant in the financial market, or a binary options trader more specifically. Potential investors must familiarize themselves with a full range of professional skills. How else can you make sense out of the chaos of the market, stay with the trend, consistently define the direction of market movement of the most asset rates, or analyze the numerous indicators? Of course, without being educated on the topic and acquiring practical experience trading, few achieve their desired results. In this context, we propose going through the interesting topic of time management in depth. In studying this question, and also the in-depth analysis of the optimum trading periods allows you, as a binary options trader, to choose for yourself the most suitable trading tempo, trade duration, and also enables a more effective application of the algorithm of future rates for earning a profit.

So, what is meant by time management? Of course, we cannot directly control temporality from a purely physical side alone, but, from the perspective of trading fixed-term contracts, it is one of the most fundamental influences on an investor’s final trading outcome. For this reason, an effective approach to time management trading indicators is very important part of trading on the market.

If all the possible time indicators used for trading binary options were organized, then we would be left with the following periods:

Trading By Time of Day

Intraday Trading – It a trading regime where contracts are held through the day with expiration periods that do not exceed 24 hours. In this case, traders conduct activities within the frame of the main trading session, beginning with the Asian and closing with the American. In essence, the market doesn’t sleep throughout the working week, which is why it isn’t possible to draw clear borders between days in intraday trading.

The defining characteristic of intraday trading is the high level of dynamic trading operations, which are the most profitable, however, carry a larger financial risk.

Furthermore, intraday trading is divided into two additional time periods:

Night-time Trading – An active working regime ranging from 9 PM to 9 AM MSK. In essence, it is the right time for trading on the Asian markets. Many professionals consider night trading to be a separate trading regime in its own right. It is connected to the technical behavior of the market at night period. The issue is that the Asian trading session differs due to its low level of investor activity. You rarely find professional traders capable of meaningfully influencing the market here. Besides that, at night there are practically no macroeconomic statistics, which enables you to trade on the technical market indicators. Therefore, at night, we are left with a market with low signs of price movement volatility. Usually, the rates through this period remain in a horizontal plane. Well forecasted price reversals relate to the high level of contract profit. If you choose night trading as your primary trading period, you can earn the maximum profits in the safest conditions.

Day-time Trading – The second half of the trading day has the more active sessions, the European and the American. In this case, we are faced with the total opposite situation as with night trading, such as the majority are professional investors, the markets are active, the vast total of trading funds, and there are many fundamental drivers influencing the market, like statistics or news. In total, it leads to the maximum level of price movement volatility of a specific group of trading assets, a high level of risk, and a more complex process for forecasting market movement. However, despite the difficulties, the clear majority of traders choose day trading. The reason for this likely lies in its physiological points. Day trading when there is active market movement enables investors to achieve maximum trading results in the shortest period of time. Often, during the day, traders apply options with a minimal range of expiration, creating an opportunity to quickly increase their trading funds.

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● Medium-Term Trading – This trading regime involves using rates, the range of expiration of which are from 24 hours – 30 days. This trading approach is often adopted by professional investors for hedging risks of small intraday positions, and also as a means for storing their investments in a financial market asset. The specifics of medium-term trading are the complex approaches to conducting technical market analysis, in which it is necessary to learn a wide range of fundamental and technical indicators for the entire duration of the option on the market, the average price rate indicator, used as an object of the asset rate evaluation of raw materials and trading markets.

● Long-term Investments – Speculation on the market in a long-term regime is the prerogative of systematic investors, who aren’t aiming for a quick profit, but for a stable final result. Usually, long-term investments in fixed-term contracts are used with options with expirations up to one year. These rates are set apart by the high level of profitability, however, in order to earn a profit in with these kinds of positions, you need to be a professional, because producing forecasts over such long periods is very difficult and demands a substantial amount of technical resources.

As you see, there is a reasonably wide range of time periods used on the binary options market, allowing every potential successful investor to select the timeframe that suits them best. Let’s continue our analysis of time management criteria, and consider the question of market evaluation.

On the Period of Market Evaluation

Not only the final trading result is dependent on this decision, made when analyzing the chart period of asset liquidity, but also the vast majority of basic indicators as well. Besides that, there is a more effective and suitable active chart timeframe for every investor, which enables them to evaluate market indicators and achieve a comfortable trading regime more efficiently. So, when trading with binary options, investors frequently use the following chart construction periods:

Tick Charts – They are liquidity charts that employ the minimal construction periods possible and a maximally quick renewal – often rate candles have a construction range of 0.05 – 15 seconds. These fast regimes for constructing market indicators obstructs effective analysis, and using Tick charts usually leads to disastrous results. In sum, we don’t recommend using this type of active chart for trading with binary options.

Minute Charts – They more efficient chart construction periods for trading on the binary market according to specialists. In this case, traders can analyze market periods within the range of 1 to 30 minutes. On trading platforms, brokers divide this chart construction range into very useful periods, 1/5/15/30 minutes, which creates a wide variety of opportunities for traders in terms of their choice of trading systems, filtering out fraudulent trading signals, and also managing the behavioral dynamic of trading operations.
Working in minute charts allows for, within your regime, the most dynamic realization of your trading operations, a wide selection of trading strategies, and also the use of highly profitable contracts to achieve the highest indicators of trading profitability.

Hour Charts – In this case, investors analyze the market in active chart timeframes with a period ranging from 1 to 5 hours. Despite the connection to the continuing time range analysis, these frames allow for trading within one working day. With them, the range of market analysis expands, substantially increasing the quality and accuracy of forecasts with binary options.

Day Charts – They are charts with a candle construction range of 1 day, investors rarely use them. We have already explained above both medium-term and long-term trading and their specific qualities. Day charts allow investors to recognize medium-term market trends, creating the possibility to devise plans and correct the work of intraday trading strategies with an aim to increase profit.

When considering time management from the angle of choosing a market price range, it’s necessary to point out that, in this plan, there are many suitable timeframes, such as weekly, monthly, yearly, for the entire period the market is open. However, these rate movement ranges prevent private investors from trading in a highly dynamic regime, therefore they ignore them.

The next important time management indicator for trading with binary options is the choice of the option’s expiration.

On Rate Liquidation

And so, we have come to the more concrete time indicators, which are vital to consider when formalizing any option, expiration periods. The correct selection of the range of expiration specifically is one of the primary necessities for earning a profit from fixed contracts. The clear majority of trading platforms propose the following types of options:

Turbo – Contracts with the minimum expiration range on various platforms. This type of rate has a broad-range of expiration indicators from 30 seconds to 5 minutes. In essence, they are standard binary options, but with the minimum expiration. This type of trading rate is often used by investors for day trading, in a scalping regime (earning profit off minimal rate reversals). Using fast options opens up the opportunity to quickly increase funds in your trading account, regulate the general trading dynamic, and to earn additional income in a contract package trading regime.

Classical Binary Options – Contracts with an expiration range from 5 minutes. There is no final expiration indicator range for standard binary options, as the optioned are limitless, however, are regulated by your broker on the specific trading platform chosen. It is all simple and clear. The maximum expiration range for options, in this case, opens up a wide range of possibilities for trading on the market in a profitable regime, from forming trading and investing cases to regulating the trading dynamics and choice of an effective strategy.
In order to choose the correct type of option and consider the expiration rate, traders must consider the many indicators, such as the current level of market volatility, the presence of any fundamental drivers influencing the asset price, and the historical market data. All this information in combination enables you to accurately define the optimal rate expiration indicators, maximally increasing your profit.

We have provided you with a selection of the basic time management indicators, which are used by professionals when trading with binary options. Using this analysis and practical recommendations, you can decide for yourself not only the specific trading time period and the optimal trading dynamic but also the most suitable trading strategy that produces the best results. In closing, correct and effective time management will lead you to the pinnacle of financial success!

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

7 Binary Options

Currently, there are tone of articles that have been published on various sites and online forums, regarding binary options trading strategies. It is also a known fact that the majority of traders spend about 99 percent of their time searching for the best binary options trading strategy, indicators and the best markets to invest in. While this is important, traders rarely take time to ponder about a most important aspect of trading binary options – money management. Since the trade is about either winning or losing it all, it is important that you exercise money management strategies. If you are to succeed in this trade, you have to explore the current strategies and settle on the one that will maximize your chances of profiting from the trade.

Risk and Money Management

While risk and money management have different meanings, they are closely related when it comes to binary options. This is mainly because the manner in which you manage your trading capital will determine the risk that comes with the investment choice. In this regard, you need to manage your capital in a way that minimizes the risk. For instance, you should avoid staking all your capital on one outcome because the risk is too big.

The Best Strategies to Manage Your Money

To set up an effective money management strategy for binary trading, there are various approaches that you may use. Among the simplest and most effective strategies is the ‘Kelly’ system. Over the years, this method of betting has become a preferred money management strategy among binary option traders. With this method, the objective is to maximize the chances of profiting from the trade while minimizing the risk that comes with the investment. In theory, the system suggests that minimizing the risks associated with your investment will put you in a better position to profit from the trade.

Implementation of Kelly System in Binary Options

When using this strategy to invest in binary options, it is advisable that you invest only five percent of your balance in any particular outcome. With a regular broker, this translates to a 5 percent risk against about 3.5 percent return on the investment. While this may appear to be a small investment, the method focuses on reducing the risk and maximizing the potential to grow in the long term. With this strategy, a string of losses will not put you out of business as you will still have money to invest.

Traders need to understand that there is a slight difference between trading and gambling. With an effective money management strategy in binary options, you increase your chances of profiting from the trade.

Start trading now with our recommended brokers.

Binary Options Trading Strategy – Best 60-Seconds Strategies

Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.

The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.

Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.

And that, my friends, is the real beauty of binary options.

What are Binary Options?

Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?

Now, let’s start by understanding how binary options work.

Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).

So, the first thing you need to decide upon is to select the asset to trade.

Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.

The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.

Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.

Trading binary options require you to correctly forecast two things:

  1. Whether the market will rise or fall.
  2. Your forecast needs to be accurate during a certain time frame – called the expiration time.

If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.

Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.

Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.

We have made a nice infographic that highlights the four steps on how to master binary options trading.

Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.

Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.

In this demonstration, we’re going to look at the buying Calls.

The Best Binary Options Strategy

Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator.

Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.

Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.

*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.

By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:

Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)

The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.

We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.

When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.

Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.

Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below

Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.

In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.

Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.

We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.

What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.

If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.

Now it’s time to highlight how to find the right entry point for the binary options trading strategy.

Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low

The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.

It’s that simple!

After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.

Step #5: You collect your profits if the next candle closes higher than your trigger candle

If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.

For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.

If you want to buy Put binary options, use the same binary options guide, but in reverse.

Conclusion – Binary Options Trading Strategy

Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.

We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.

Thank you for reading!

Also, please give this strategy a 5 star if you enjoyed it!

Don’t forget to read our guide on regular options trading for beginners here.

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    Best Binary Options Broker 2020!
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  • BINOMO
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    2nd place in the ranking!

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