Give yourself time to try different strategies and always keep in mind certain modifications of the system as you gain experience.
Binary Options Strategy
There are 3 main binary options strategies to choose which option to take and when – fundamental analysis, technical analysis and trading news. Let’s see how they differ.
Fundamental analysis understands the true value of the assets so as to create an opinion whether the assets are overvalued, well-valued or undervalued. In the context of this action is an analysis of products, management, balance sheet, and potential for growth, strategies, and the current share price.
If you think the asset is overvalued, you can order a put option where you bet that the value of the asset will fall. If you think that assets are undervalued, you can commission an option to purchase, which will give you a profit if the option value will increase.
Technical Analysis selects investments based on trends and market trends. Those who use this method working with binary options, assume that all the factors of fundamental analysis are already sold to the market and the value of assets may rise or fall according to the market mechanisms. This happened due to market statistics such as prices and trade volume and other cycles.
For example, if the currency is traded between 1.04100 and 1.04900, according to technical analysis, you have the option to buy the currency, which could increase at any time at the lower end of the indicator and, have the option to sale the currency, which fall in price, when it will be at the top of this indicator.
It’s easy and simple technique that does not require any special knowledge or skills to gain profit from it. Just find out what important financial information to be disclosed – eg. The unemployment rate, the interest rate or some company’s annual report. Find out what rates the market expects among that ratio would have been better than expected, or would be worse than expected.
If the disclosed numbers will be better than projected it will be replaced at a call option. If the number is worse (less) than expected, the assets will decline.
For example: week before writing this text, the unemployment rates in the US have been disclosed to the public and were much worse than expected. It’s practically guaranteed that the ratio of rates EUR / USD rises and so it happened. We were able to make large investments from 81% payment.
If you want to apply majority of profitable strategies and have a lack of time – we suggest you to read about automated binary options trading