Tuesday, 30 September 2014

Binary Options Strategies

As you are about to enter into binary options trading you first should learn about the various strategies. There are many reasons for employing binary options strategies not just that it can help to maximize your profit potential but that if done correctly and you can discipline yourself to follow the strategy all emotion gets removed from your trading.This is important as there are many ups and downs during a trading year or month or week or day or hour. If you get too high when you win you can get arrogant and the market will punish you for it. If you get too low when you lose a trade you will punish yourself and possibly miss opportunities for trading.So here are your binary options strategies:1.

Hedging Strategy. What that means is that you are locking in the profits. For this strategy if you are mere minutes away from your expiry time and you're in the money on your trade you can either get all the profits on your current stock or sell a portion and keep a portion of it open just in case your trade stays in the money and you can potentially make even more money.2. Pairing. This is buying both a put and call that are in the money. What happens here is that when the trade expires and the price is between the two prices you still make money.

3. Reversal Trading. Another of the potentially lucrative binary options strategies. What happens here is that when there is a big move on a particular stock you buy a binary option opposite to what it moved. While this might seem contrary to the statement that the "trend is your friend" often times what goes up like a rocket will come back down the same way.4. A Double Trade If a trade is moving in your favor this strategy has you buy more of the trade thus increasing your profit potential.

5. Paper Trading This is where you practice the above trading strategies. You do this before using real money trades so you can learn how to recognize the entry signals of a trade. With everything in life you learn to crawl before you learn walk and walk before you learn to run. Paper trading is crawling so that you can have a longer and more potentially profitable career.These are some the best binary options strategies that you can engage in.
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