As a beginner binary options trader it is essential to ready yourself psychologically and emotionally for the ups and downs that occur in conjunction with binary trading. Ideally you’ve taken some time to decide on a good quality binary options trading platform, one that is straightforward to use and suits your method of trading regardless of whether that be fx, stocks, commodities, or index trading. Therefore now it’s time to trade, where should you begin. One thing they say is those who fail to plan, plan to fail. You should have a strong binary options strategy. So that’s exactly what we have for you detailed below.
The Early Hedger Binary Options Strategy
The binary options strategy most newcomers utilize is reliant upon a fundamental comprehension of technical analysis. If you’ve never used any kind of technical analysis to study charts, we recommend reading through a book on candlestick charting, which appears to be the tool of choice for most binary traders. Integrating candlestick charting into your binary options strategy will enable you to select entry and exit points more effectively. The dynamics of the early hedger binary options strategy can best be described as follows:
- Establish appropriate entry points for your binary option trade at the beginning of the expiration period (e.g. 10:00-10:15)
- Allow the underlying time to make its move, carefully observing possibilities to increase the size of the trade or hedge.
- Commence looking to place a possible second trade approximately Ten minutes before the lock out period
- In the event the position is deep in the money your best option is to possibly sit it out.
- If the position is significantly out of the money you can leave it alone and proceed on to your next trade or endeavor to place 2 further trades to lock in a profit zone.
- If the position is trading right around the original entry point, you might want to think about placing the opposite binary trade position to restrict maximum losses.
Stick to these six techniques to guide your initial trading actions. This early hedger binary options strategy is a solid way to manage the potential risk of an otherwise risky venture. Under this binary options strategy you always give yourself an opportunity to lock in profits or exit poor positions while keeping an eye on prospective loss. Other preferred binary strategies expose traders to considerable risk with no consideration for safety.
As a new binary options trader you need to remain in the game for as long as possible so attempt to follow the recommendations presented in this straightforward binary options strategy when commencing your trading day.