If you are a person who is considering trading binary options for profit, there are several points that you must understand before making a final decision. Since this is a trade that includes several economic threats, it makes sense to understand them before starting. Traders who first take the time to understand the basics of the market will have more anticipation than those who don’t understand anything but jump straight in.
Some binary options traders play the market without any solid strategy, but we highly recommend at least some strategy and only trade when the strategy indicators are clear. By doing that, you will not be able to reduce risks but also increase profits significantly.
Why are binary options starting to become popular among traders? Because of the convenience, it provides compared to other instruments, with binary you only need to focus your gaze on which direction the price or asset will move. Compared to forex, every time you enter, you are going to be risking your money on the trade. However, with binary options, that risk is clear and limited only to exactly how much money you commit to a particular trade.
One of the brokers most used by the author while trading in binary options is Binomo. Binomo web login has become popular recently because it is a broker that is easy to access and provides easy transactions for its users. Withdrawal and deposit methods are easy because various choices are provided and various currencies are available. Binomo was open 24 hours, so you can trade wherever and whenever the market will always be open.
One of the important things a trader must know is when is the right time to trade. Although trading in foreign exchange options, stock options, and commodity options is available 24 hours, not all of that time is suitable for trading. There are different hours during the day and different days of the week that have more volume and liquidity than others, resulting in high volatility and high odds.
There are days when there is more volatility and price movement than others. According to research, Tuesday and Wednesday are considered the most effective trading week. Friday is also known as a trading day with high volatility, especially at that time when the European and US trading sessions overlap. During the second one 1/2 of the day, fee moves may be very unpredictable.
Discussing trading time, of course, we also don’t forget the trading ending time or what is better known as the time frame. When it comes to timeframes, you will have many choices, ranging from 60 seconds to 30 minutes. To determine the trend, use a candlestick chart with a larger time frame than the one you use to determine the expiry time trend.
It is generally advocated to apply a time body of at the least 1 hour for chart sample recognition. However, traders can have to use 1-minute to 15-minute charts. 1-minute charts provide entry and exit signals while 15-minute and hourly charts are used to confirm trends as well as support and resistance.
Conclusion
Personally, I’ve chosen binary options over forex since I can easily make profit with small capital. But you need to know the risk in binary options is much higher compared to forex and the profit you could make also bigger (with higher risk you get higher gain). I recommend you to practice using demo account before using real account to improve your skills in analysis. Well, I hope my explanation about binary could help you in learning and practicing trading. Let’s make profit through trading, and grow your portfolio in Binomo.
