Saturday 26 December 2015

Binary Options Strategies For Beginners




Binary Options Strategies for Beginners


Posted By admin on March 7, 2013


When you first start binary options trading, you’ll likely come across tons of articles, tips and tricks and other advice about strategies. As you learn and progress, you’ll want to look into all of these to see which ones work for you. However, in the beginning it pays to keep things simple. Here are five strategies even beginners can master for success.


1. The Stupid Guy System


Yes, the name is a little off-putting, but we embraced the For Dummies books, didn’t we? This system involves using MACD crossovers. MACD is Moving Average Convergence Divergence, which sounds really complicated, but isn’t. Basically, you use this indicator (which is available on most binary options brokerage sites) and watch the lines. When the line crosses over upwards or downwards, it’s time to trade. If the indicators move up, you place a call option. If it moves down, you place a put option. See? Very simple.


2. The Strangle Strategy


The Strangle Strategy is commonly used by stock market investors, but binary options traders have learned to adapt it to their system of trading. It involves using Touch/No Touch trading. Buy a call higher than the current value of the stock and a put lower than the current value of the stock. When you use the Touch/No Touch option, one of these contracts (either the call or the put) will always be in the money.


3. One Touch Weekend Trading


Image via Flickr by Roberto Verzo


This strategy is excellent for weekend traders who don’t have time to deal with binary options trading all week long. It involves placing an option close to or at the strike zone, and the value of the stock only has to get there once during the week to be in the money. These are all or nothing trades, but are very high yield. Remember, however, that high yield trades are always higher risk trades.


4. Hedging Strategy


This is perhaps the most simple binary options strategy for beginners to master. It simply involves placing both a call option and a put option on each trade. One will always be in the money. You can further offset your chances of losing out by taking advantage of any refunds options your broker offers at the time of trade purchase.


5. Multiple Time Frame Strategy


In binary options trading, there really is a strategy for everyone. What you’ll notice quickly is some investors are in love with a particular strategy while others loathe it. Instead of worrying about what everyone else thinks or what the “pros” are doing, simply read enough to get a feel for the strategy. Just start out with low investment amounts until you get the hang of the new strategy and decide whether it’s worth pursuing.