The common misconception is that binary options trading can only be done by one that has a certain amount of experience in the area. There is no particular need to have any previous experience in the financial trading and with a time, any trader regardless of skill and experience can start to understand the basic concepts of binary option trading and start making profit with no particular hassles. The basic requirement necessary for succeeding in trading binary option is to prediction the direction of an asset. This can be achieved by picking a reliable strategy.
Below you may see some effective strategies that will assist you in getting a successful start in binary option trading with Bullabear. These simple techniques will help you to identify certain signals in the market that guide you to make proper moves in binary option trading. Risk minimization is important factor when it comes to trading binary options and as such should be properly utilized to allow for smooth and fast growth of your trading account.
How to minimize the risks
Our goal is to provide you with effective strategies that will help you to capitalize on your returns. These are simple techniques that will help to identify certain signals in the market that guide you make the proper moves in binary options trading. Risk minimizing is important for every trader and there are a few important principles that aim to help in this area. Binary options trading can present several risks but to decrease them, consider the following.
Never invest the entirety of your capital at once
Review the dynamics of your trading asset prior to investing
Exercise the strategy by investing only 5 to 10 percent of your equity per placement
There are several assets to select from in binary options trading. However, the oldest and most effective approach to minimize risks is to focus on a single asset. Trade on those assets that are most familiar to you such as euro-dollar exchange rates. Consistently trading on it will help you to gain familiarity with it and the prediction of the direction of value will become easier. There are two types of strategies explained below that can be of great benefit in binary options trading.
A basic strategy most adopted by beginners as well as experienced traders. This strategy is often referred to as the bull bear strategy and focuses on monitoring, rising, declining and the flat trend line of the traded asset.
If the trend line shows that the asset is going to rise, choose CALL.
If the trend line shows a decline in the price of the asset, choose PUT.
This method works the same as the CALL/PUT option except in this case, you select the price at which the asset must not reach before the selected period. For example, Google’s Share price is $540 and the trading platform is on the No Touch price of $570 with percentage returns of 77%. If the price doesn’t reach $570 after the specified time, then there is a gain.
2. Straddle Strategy
This strategy is best applied during market volatility and just before the break of important news related to specific stock or when predictions of analysts seem to be afloat. This is a highly regarded strategy utilized throughout the global community of trading. This is a strategy best known for presenting an ability to the trader to avoid the CALL and PUT option selection, but instead putting both on a selected asset.
The overall idea is to utilize PUT when the value of the asset is increased, but there is an indication or belief that it will being to drop soon. Once the decline sets in, place the CALL option on it, expecting it to actually bounce back soon. This can also be done in the reverse direction, by placing CALL on a those assets priced low and PUT on the rising asset value. This greatly increases chances of success in at least one of the trade options by producing an “in the money” result. The straddle strategy is greatly admired by traders when the market is up and down or when a particular asset has a volatile value.