So I’m about to start explaining some of the simple strategies I use in order to be profitable while trading binary option.
Strategies can be long-term and short-term, and since I’m sure you don’t want to spend so much time until you receive your first profits, I’m going to start with the shortest strategies of all – the 60 second strategies that work.
How can we predict the movement of the price 60 seconds after we placed our bet?
I’m going to start with 3 simple ways to identify a trend and then use it to know the outcome. In another article I’ll talk about trends, how to identify them and use them in our advantage. Here, I’ll simply mention and explain the fastest way to make money of simple 60 second binary option strategies.
So I’m beginning.
1. What people do
The easiest and most profitable way to earn money when binary option trading is to watch what other traders do. How do you know that? Well most of the binary option brokers provide an information about the percentage of betting on particular put or call option.As you see on the example 79% of the traders have placed the option "call", because they believe the movement of the price will reverse in the next few minutes. Only 21% are saying the price is going to drop. So stay with the majority. The moment you see the first green candlestick forming, place your "call" option and you will see how the money jump right to your account.
The trick here is to wait until an opportunity occurs. The percentage of the option you choose have to be at least 75 in order for this rule to be applicable. If the percentages are 60-40, don’t do it, it’s too dangerous. When some of the options reaches 75%, that’s when you need to act in order to finish the deal in the money.
The other two simple strategies I’m going to point use indicators in order to show you where the price is headed to. You should know that the most profitable strategies use the reverse of the price in their advantage. As the price is going high for short period of time, it is going to drop down fast in short period of time soon. Market is all about balance and the price shall always be stable, so when it reaches a certain level of high or low, it starts going the other way. Simple as that!
2. Bollinger Bands indicator – 14,2
Bollinger Bands indicator will help you have the whole vision. The bands around the moving candles are showing the highest and the lowest price for a certain amount of time in the past and are there to help you predict. So when the price reaches one of the bands, it is likely to change its direction very soon. So if the price touches the upper band, the first time you see a red candle forming, you need to place your "put" option.On the example you can see that every time the price touches or crosses the band, the price starts moving the other way. Bollinger Bands indicator has the best value used with settings 14, 2. That’s all you need to know so far.
3. Stoch indicator – 13, 3, 3
That was it, 3 easy and simple strategies to use in order to start making money from binary option now. Remember, binary option is not gambling and there are certain rules you need to apply in order to become a profitable trader. When you take this work seriously, you will see the results soon and you’ll be pleased to find that it’s not so hard to predict the movement of the price and use it in your advantage.
If you haven’t started your binary option journey yet, feel free to join one of the best brokers out there!