Simple Strategies for New Binary Options Traders
March 30, 2016
Binary options trading is not something preserved for the experienced, after all everyone has to start somewhere with simple strategies that can be practiced and measured.
In the game of life we are all beginners, and when it comes to binary options trading, no previous experience is required. The basic requirement is to predict the price direction of an asset. The price will either increase or fall, and there are simple techniques that will help to identify signals in the market that will guide you to make the best moves in binary options trading. Trades vary, so you need to know how to apply the correct binary option strategy to obtain minimal financial risk. The more you apply certain simple strategies, the more probability there is that you will succeed.
There are several assets to select but an effective approach is to minimize risks and to focus on a single, more familiar asset. For trading in the binary options market a simple strategy is to have access to a binary options trading platform and to register yourself with a good binary
options broker so you can open an account. There are many binary options brokers – do research and select one that offers good trading features.
Simple Strategies – Start with a Demo Account
If you are a beginner trader, go for a small initial deposit, a small minimum trading amount with a demo account and easy to understand tutorials. Starting with a demo account will help you understand the binary options market as it will give you practical experience. There are many different strategies, but there are some which can be applied to binary options even if you are new to the game. With research you will discover that one of the best and simple strategies for new binary options traders are –
- MACD, or Moving Average Convergence Divergence indicator – this is a popular tool and a short term trading strategy based on the MACD indicator. Two moving averages as well as the MACD histogram is used to find trend following signals on short term charts. Even though this strategy was intended for 5 minute charts it is used effectively for longer term time frame trades such as hourly or daily charts.
- The Pinocchio Strategy – this simple strategy for newbies is suitable for different aspects of trading and is based on a technical price action signal known as a pin bar. With candlestick analysis it is known as a shooting star. This strategy is a great way for newcomers to begin making use of contrarian analysis and to help identify areas of support and resistance.
- Hedging Strategy – this is an important strategy as it protects your account by opening trading positions that are off-set, which means you are protected from unexpected losses. Applying the hedging or straddle binary options strategy includes risk management features which is useful as it stops you experiencing a full loss of your traded invested capital. Hedging strategies decrease the risk of investment by using put- and call options or short selling methods. Because the binary trading has expiry times that are hourly or daily, these strategies are easier to understand than other strategies.
- The 1-2-3 Simple System – an easy price action strategy with a 3point chart pattern that focuses on reversals. A great strategy for newbies which can be used with other tools and strategies recommended for beginners. Can be used with candlestick charts.
Some traders recommend certain strategies while others are against them. That is why it is important to first use a demo account to discover the strategy that will help you become an expert trader.
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All info was correct at time of publishing