Binary Options Techniques for South Africa
November 8, 2016
Trading binary options is a relatively new trend in the South African financial market. It has become hugely popular, and that’s why people are looking for binary options techniques.
It is not only the experienced traders who are rushing to make money here, but even beginners are starting to get excited at this new challenge.
Binary options aren’t just a form of gambling and a way to try your luck – for those who want to be consistently successful or lucky; you need to have reliable binary options techniques in place.
There are two main categories of binary options methods:
1. Betting model base strategies – this is betting based on the news. Several tactics can be used to increase your chances of trading successfully.
2. Market behaviour strategies – you rely on the statistics that you have researched, helping you to understand the data.
Popular Binary Options Techniques and Strategies
Fundamental Analysis Strategy
That is about the analysis of a particular company’s overall performance.
Technical Analysis Strategy
That involves financial charts. It is a study of the past to help you predict the future.
Basic Options Strategy (Reversal Strategy)
If the price of an asset you are interested in looks promising, you will place a ”call” option. At the same time, you will also place a ”put” option on the same asset, in case the price drops. That is an important strategy when the asset price fluctuates all the time.
Algorithmic and Signals
There are apps that you can install on your computer; that gather the data you want. It then analyses the data and comes up with an outcome. The computer then picks an option for you to trade on, based on this information.
Co-integration Trading Strategy
Often when you have two similar stocks or assets, there can be a relatively large gap between the two prices. Because you know these stocks are similar, you see the gap will probably close soon. Once you’ve identified the gap, buy a ”call” option for the weaker one, and a ”put” option for the stronger one.
This strategy goes on monitoring the trend of a particular asset.
That is is one of the most traditional procedures. Traders use it when they are sure that the asset price is going to rise, or even fall, dramatically. You then trade accordingly.
There is no perfect strategy. Some of these only work better for certain trading options, and others again will work for most options. It is, therefore, prudent, over time, to develop your strategies that work for you. You should ideally have several strategies that you have developed, according to the kind of trader you are.
Some techniques are used mostly by beginner traders. Others require certain trading skills and knowledge intended for the more experienced traders.
The best place to test strategies you would like to adopt as your own is to go online and use a demo account with a chosen broker. You will only be using virtual money, so it’s the ideal place to try out your techniques and strategies.
Binary options trading is both attractive and exciting. Research well, and find a method that suits you and gives you consistent winnings.
All info was correct at time of publishing