how to trading binary options

Binary Options Trading Strategy

How To Trade Binary Options:

In this article, I want to show you a simple binary options trading strategy.

In the previous article, I've shown you how binary options work.

If you haven't read that commodity withal, delight exercise this start so that you know the basics before we actually kickoff trading binary options.

Because in this article, I volition testify you:

How to configure your charts
How to find the right market to trade
How to notice the best expiration to trade and…
As promised: A Binary Options Trading Strategy

Then let's get started…

How To Configure Your Charts For Trading Binary Options

In the previous article, we talked about all the markets that yous can trade:

Indices like the Southward&P 500, DOW Jones, Nasdaq, etc.
Currencies like EUR/USD, USD/JPY. AUD/USD, etc
… and you tin can merchandise bolt like Gold, Silver advertisement Rough Oil also.

And equally yous know, Binary Options can expire…

in 5 min,
in twenty min,
hourly,
at the stop of the solar day
… etc.

For this very unproblematic trading strategy, I want to know which Binary Options expire in the next 20 min, so I'm selecting this here:

binary options

Right now, we encounter that but the indices are expiring in the next twenty min.

Depending on the time of twenty-four hour period, you might as well see currencies and commodities here.

But allow'south get started with the indices:

Simply click on one of the indices, e.thou. US 500
And then select any strike toll.

This will bring up the chart and an order ticket. For now, nosotros only need the chart.

This is what it looks like:

binary options

For this simple Binary Options trading strategy, I want to remove the RSI, and I want to add together the Bollinger Bands as well as the Bollinger Bandwidth.

And I am changing the settings of these 2 indicators to 12 and 2:

binary options

Hither'south what I've constitute when using Bollinger Bands:

If prices are moving higher and the Bollinger Bandwidth gets larger, prices unremarkably stay In a higher place the Moving Average.
And if prices are moving lower and the Bollinger Bandwidth gets larger, prices usually stay BELOW the Moving Average.

A Simple Binary Options Trading Strategy

Here'due south how I utilise this for trading Binary Options:

When I run into prices moving HIGHER and the Bollinger Bandwidth gets larger, I Purchase a binary option with a strike price at the Moving Average
When I encounter prices moving LOWER and the Bollinger Bandwidth gets larger, I SELL a binary pick with a strike toll at the Moving Average

I like to use LIMIT orders and I want to run into at to the lowest degree $10 in profits.

$10 might not audio a lot, merely if y'all can practise this every 15-twenty minutes, information technology adds up.

And you could always purchase more than contracts:

If y'all would buy x contracts, y'all would make $100.

Go on in mind that in that location'southward always the risk of losing money!

Simply you already know that, right?

us small cap 2000

After placing the society, all you need to do information technology wait until expiration.
In this example:

If prices close in a higher place 1581.iv in the next 6 min, you would make $10.
And if prices close below 1581.4 in the side by side 6 min, you would lose $90.

If y'all demand a refresher on how exactly Binary Options work, read the previous article.

Can Binary Options Make You Rich?

What you take just seen is a very unproblematic strategy for trading Binary Options.

And there are a few restrictions when trading this strategy:

You have to exist in front of your computer during the twenty-four hours when the markets are open. And not everybody has time to do that.
Yous have to wait for the right setup that I just explained.
The strategy has a low risk/reward ratio.

I personally use a more avant-garde trading strategy for Binary Options that allows you to place the trades at night so that you don't have to worry about it during the day.

I'll prove yous this strategy in the side by side article.

Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial run a risk of loss and is not suitable for all investors. You lot should carefully consider whether trading is suitable for you in lite of your circumstances, knowledge, and financial resources. Y'all may lose all or more of your initial investment. The lower the twenty-four hour period merchandise margin, the college the leverage and riskier the trade. Leverage can work for you lot likewise as against you; it magnifies gains as well equally losses. Past performance is not necessarily indicative of future results.