To completely manage your time and not live from an advance to a salary is everyone’s dream. But very few have the patience and knowledge to achieve financial independence. One of the ways to gain a permanent source of income is through binary options trading. You can not call it easy. To achieve success in this area, you need to constantly improve your level of theoretical training. We will shorten your path a little by telling in this article about the best strategies for making money on binaries. But before that, we will reveal the very concept of an option.
Definition
The option began to be used as a financial instrument for transactions as early as the middle of the 20th century. It was mainly used by large companies, but the general development of Internet technologies has opened access to private individuals. They could buy and sell option contracts using binary (digital) options. A binary option is a special case of a classic option contract, which is structured so that the potential loss or profit is known even before the conclusion of the transaction. This significantly speeds up the option pricing algorithm and simplifies the risk prediction process for the trader.
Each option contract has a specific validity period. That is, the exact time of profit or loss is known in advance. Also, a basic asset is tied to each contract - a currency pair, stock or index, on the price movement of which the final result will depend. We hope you now understand what constitutes earnings on binaries. Let's move on to the description of strategies. So, let's get started and consider trading strategies for making money on binaries.
Martingale
This system is borrowed from the field of gambling. Its essence is as follows: you start a game session with a predetermined bet. In case of loss, it must be doubled to recapture the lost funds. In case of a win, the bet remains fixed. The Martingale system has been actively used by players since the mid-18th century.
If we consider all the strategies for making money on binaries, then this is probably one of the most popular. On options, it is better to use it with a pronounced trend direction (up or down). For example, you start with a bet of $ 5. If you lose, you need to bet 10. When you lose money again - $ 20, etc. After winning, the bet again becomes $ 5.
The key point is that a bet is always made in the direction of the trend. If you lost it 7 times in a row, then start over. But such a losing series is a rarity. What other ways to make money on binaries?
Channel lines
This is one of the methods used in technical analysis. The chart shows the channel lines between which the price moves. The top line is the resistance level, and the bottom line is the support. If the price tested levels a couple of times and did not go through them, then this enhances their reliability. It is likely that the third time she will be able to overcome them. And then the fun begins: determining the correct entry point. There is no need to worry about the exit point, since all options have a fixed term. Enter the market immediately after confirming the breakthrough of the current level of support or resistance. That is, the price should go beyond it.
Moving averages
No other binary earning strategies are as simple as this. In addition, it gives excellent results. It is better for beginners to start trading binary options with it.
This method is based on the intersection of moving averages with different intervals. Indicators 5 and 25 work best on half-hour and hourly charts. You can use graphs with a large time frame. But less than half an hour is not worth it, because due to market noise there are a lot of false signals. Moving intersection points give signals for making deals.
Determining the side in which you want to open a deal is not difficult at all. When a fast moving (red) with indicator 5 crosses slow (blue) with indicator 25 from top to bottom, then this is a sell signal. Crossing in the opposite direction indicates what you need to buy.
The three binary earning strategies listed above are the most common. Let's talk about a couple of less popular methods.
Forecast of 1000 traders
Here you need to evaluate the bets made by 1000 professional dealers. The risk should be minimal. This strategy works best on transactions that exceed the threshold of 60 minutes. A green indicator indicates an upward trend. Red indicates an imminent decline. You must choose the asset whose forecast has a one-way ratio of 90 percent or more.
Following the market trend
Large financial institutions (banks and investment funds), which often use enrichment strategies with the help of binaries, constantly monitor markets and conduct trading operations. Their actions directly affect the increase or decrease in the value of an asset. The main principle of the strategy is very simple: if the recent history of the asset speaks of its constant and significant increase, then this trend is more likely to continue in the future. Therefore, you need to invest in an asset that goes up. The same logic applies to cost reduction. In relation to options, it is better to track trends on five-minute charts.
Conclusion
Now you know the best binaries earning strategies. You just have to independently verify their profitability and reliability. Put them into practice, hone your skills and become a successful trader. Good luck!