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New! Best Binary Options Strategy that works – Beginner Friendly

New! Best Binary Options Strategy that works – Beginner Friendly

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Estimated reading time: 14 minutes

 best binary options strategy beginners

Binary Options Strategy that works

Binary options have been available to the general public since 2008, but have only gained real momentum over the past few years, with more people recently becoming aware of this unique (and possibly lucrative) trading opportunity.

Still, while many people have heard of binary options and quite a few have even tried it, it remains a mystery to many how it works and how they can take advantage of it to turn a profit. The purpose of this article is to inform those who are interested in making a profit in Binary Options how to go about doing so.

We will touch on the basics of binary options and how Binary Options work, we will then explain the different systems and strategies available and finally we will find out what the best Binary Options strategy is, or which one actually works. By the time you are finished reading this article, you should have a good working knowledge of Binary Options and a good idea of how to turn a profit.

You May Also Like: List of all the Best Binary Options Brokers for beginners and Advanced Traders

The basics

Binary Options trading is basically speculating whether an asset will go up or down in a certain amount of time. A Binary Options trader will put his or her money on either a “Call option” or a “Put Option”. A “Call option” is a speculation that the current assets value will be higher than the opening price in a set amount of time. If the assets value is higher, then the trader wins. On the other hand, a “Put” option is the opposite, in that it is speculating the assets value will be below the opening price. The underlying asset can be a stock, a forex currency pair, a commodity or an index.

There are also a few different types of binary options. Digital Binary options are your standard up or down options. This is the most common binary option. All you are doing is deciding whether the price of the underlying asset will be higher or lower (up or down, call or put). Another type of Binary Option is Range Options (also known as Boundary Options). Range options

Another type of Binary Option is Range Options (also known as Boundary Options). Range options allows you to predict if the underlying asset will expire in or out of a set price range. Another variety of Binary Option trading is called “Touch”. Basically, this option provides you with a price and you have to decide whether the underlying asset will hit that price during the time allotted. If it “touches” or goes past that price, then you win the option.

One of the best things about binary options is that the risk is fixed as is the return. It doesn’t matter how well the underlying asset does, if you call it, and it’s in the money, you get it. Whether it has largely surpassed all expectations or just barely made it, as long as it has expired in the positive, you get your return. The expiration time is also fixed, so the trader knows exactly when it is set to expire before he even clicks on the trade. It’s so simple and easy, anybody with a computer and a bank account can start trading and even winning right away.

Of course, even if it is that simple to trade in binary options, it’s not that simple to actually make a profit from trading. You have a 50/50 chance of guessing the results in a binary options, which isn’t really that awful bad, but you can do much better if you have a strategy going into it. Without any sort of strategy, chances are you are not really going to make much in binary options trading and you will usually be lucky just to break even.

 

 

**Hot Tip** – If you don’t want to stress yourself combining many different strategies, then consider using a trusted signal service like Signals365 which makes use of the trading strategy we explained on this page as well as other top binary options trading strategies.  They really made everything interesting, simple and easy to follow!

 

 

Binary Options strategies and systems

There are many binary options strategies out there, but not all of them are successful. In order to maximize you potential return, it’s necessary to understand the different strategies, finding the best strategy, and then continuing to change and tweak your strategy as the market changes. You may have also seen some systems online that promise high yields just for signing up on their website (often free) and using their program to make money. While this might sounds pretty good on the surface, most of the time these programs and systems are nothing more than scams. The catch to most (if not all) of these systems is that they require you to use their broker, which ends up giving you less of a return and often no return at all on your investment.

Your best bet would be to steer clear of any types of programs or systems that claim to make you rich in binary options, as these are more than likely just out to get your money, not to make you money. You should, instead, concentrate on learning and developing a strategy to track and gauge trends in order to make a more educated guess on how the underlying asset is going to do. While there are many, many binary options strategies out there, most of them require you to use a price chart to gauge the activity of assets.

An important thing to remember about binary options is that there are constant fluctuations in the price of any given asset. This is especially true over short periods of time, like 15 minutes or 30 minutes. Of course the longer the period of time is, the easier it is to predict certain trends in the fluctuations, but the longer you will have to wait for your return.

Most binary options trading is done in the short term, even though it’s much harder to predict. This is because short term binary options offer an almost immediate payout, so your money is not tied up for a long period of time. Most binary broker’s payouts are not sufficient to tie up your money for a long period, and immediate payout can increase your funds much quicker. This is where a good price chart becomes an invaluable strategic tool in gauging the actions of any given asset. A good price chart can give you an accurate representation of how quickly prices might change and allow you to see how quickly future trades will materialize.

By using a price chart, you can see minute to minute movements of different assets in order to more clearly predict what the asset is likely to do in the near future. It may take a little time to get used to reading a price chart in a way that helps you to predict the outcome, but after a while you will start to learn how to see trends in the market, and by understanding and using these trends, you can accurately gauge the direction an asset is most likely to move.

You May Also Like: Trade Binary Options with these top regulated brokers

Using a candlestick chart

The best type of price chart to use for gauging the movement in any given asset is called a “Candlestick Chart”. A candlestick chart will give you the most information on the performance of any given asset over a short period of time. The first thing you will need to know is how to read a candlestick chart before you can actually utilize it for predicting your assets movement. At first glance, candlestick charts might seem complicated, but in reality once you understand the basics, they are very easy to use and quite intuitive.

A candlestick chart will show you the opening, highs and lows and closing value for a set time frame of an asset. The chart is made up of vertical rectangles which are either red or green with lines on the tops and/or bottom of the rectangles. The rectangles are called the bodies and the lines are called the wicks. The wicks (also called the shadows) tell us the highs and lows where the top line define the upper value of the stock and the bottom line defines the lower value. If the asset closes higher than the opening price, then the body is shows as a hollow rectangle (usually green) with the bottom of the body representing the opening price and the top of the body representing the closing price. If, on the other hand, the asset closes at a lower value than it’s opening price, the candlestick is drawn as a filled rectangle (usually read) with the top representing the opening price and the bottom representing the closing price.

Usually, the longer the body of a candlestick the more intense the buying or selling of that asset is at that period of time. Conversely, the shorter a candlestick is, the less movement there is in the price of the asset. A long hollow candlestick shows aggressive buying and a long filled candlestick shows strong selling of any given asset. The longer the hollow candlestick is, the higher the close is above the opening, and conversely the longer the filled candlestick is, the lower the price of the closing is above the opening.

By simply studying the candlesticks over a period of time you can see patterns in the opening and closings and without any further information, you can often accurately determine the next action of the given asset. For instance, you will notice on many price charts that there will be a filled candle, hollow candle, filled candle, hollow candle, etc. If you the last option closed higher than it opened, then the probability will be that in the next period of time it will close lower than opening and you would then place a “put” option on that asset, and vice versa. This is probably one of the simplest, yet successful strategies used by Binary Option traders today.

Another thing to look at when you are reading the candlestick chart is the wicks (lines or shadows) on the candlesticks. The wicks on a candlestick shows you the actual movement during the session of buyers and sellers of any given asset. The longer wick on top and shorter wick on bottom indicates that the buyers dominated the session and bid higher prices, however sellers forced the price lower toward the end of the session and the weak close created a long upper shadow. If, on the other hand, the lower wick is longer and the top wick is shorter it shows that it was dominated by the sellers for that session, with the buyers driving the price up toward the end of the session with the strong close causing a longer lower wick.

Best Strategy for gauging binary options

By understanding candlestick charts you can use the information to accurately predict how any given asset is going to move. Of course, you can never be 100% sure on how it’s going to play out, but by understanding and using the candlestick you will increase your chances of success quite a bit.

The thing you need to remember is to not only look at the candlesticks, but also the wicks (or shadows) as well. If there is quite a wide fluctuation in the wick, it will be much more difficult to gauge than if the wicks are fairly stable. The less volatile a market is, the easier it is to predict high and low trends, so a good strategy is to look for less volatile assets, such as foreign exchanges (Forex) that tend to oscillate in a fairly predictive pattern. Once you have discovered those assets that seem the most stable, all that’s left is following the asset in real time over a certain period of time and then utilizing the trend to predict the next call or put option.

You May Also Read: Trade Binary Options with these top regulated brokers

In order to predict the next option, you should look at whether the asset closed higher or lower than it opened in the latest session. Usually, in a stable market, if the asset closed higher than it opened, you would want to use a “put” option and conversely if it closed lower than it opened you want to do a “get” option. This is usually the case, but not always, which is why it’s important to track the asset to see if there are any exceptions, so that you can accurately predict how often the particular asset goes down or up, how high it usually goes before it goes down, and other such relevant information. The longer you track an asset, the more reliable you can gauge the underlying activity and the more accurately you can predict its movements.

You should keep in mind, this strategy works best when dealing with a calm market. If the market is more volatile then it’s much harder to predict what the asset might do, so sticking with the less volatile markets is key to winning, using this strategy. Also, the longer you track the assets highs and lows, the easier it is to predict the pattern and the greater chances you will be successful in your trading.

 

 

**Hot Tip** – If you don’t want to stress yourself combining many different strategies, then consider using a trusted signal service like Signals365 which makes use of the trading strategy we explained on this page as well as other top binary options trading strategies. They really made everything interesting, simple and easy to follow!

 

 

Some final things to keep in mind

Now that you understand how to use the candlestick chart to predict an assets movement at any given time you are on your way to making a profit in Binary Options trading, but there are a few things to keep in mind in order to create the most profit. One of these things, and this is a very key thing, is to check out as many brokers as possible, before settling on the best one. You should look at brokers that offer the best payouts, with the most options. There are many different brokers available and this will take some time on your part to do the research necessary in order to best decide. Some brokers will even give you a portion of your money back when you predict wrong, usually around 15%. You’ll want to check out what others are saying about particular brokers and decide for yourself which is right for you. Some other things to keep in mind when deciding on a broker is how much of an initial deposit is required and how much the minimum investment is. As a new trader, you will want to start with small investments until you see a definite trend in profits over losses.

Another thing I highly advise for new traders is to find a good broker that allows you to play the binary options without actually putting your money down first. These “practice accounts” allow you trade binary options using fake money. By using a practice account first, you can get to know and understand the options and practice using the candlestick chart before you plunk down your hard-earned cash.

You will be able to see where the best assets are, how much the best investment to make is and how often you win/lose on your trades. Once you feel comfortable and are making a profit (albeit a fake one), you can then open an account by making an initial deposit with the broker. Hopefully, by the time you actually put your real money down, you’ll be knowledgeable enough to make sound decisions, based not on guesswork or hunches, but on real, proven strategies! Just remember, even using the best strategy there is no guarantee that you will be successful every time, but by using a candlestick chart and understanding and utilizing the trends, you will definitely increase your chances of an accurate prediction by a very large percentage. Good luck and happy trading!

Hopefully, by the time you actually put your real money down, you’ll be knowledgeable enough to make sound decisions, based not on guesswork or hunches, but on real, proven strategies! Just remember, even using the best strategy there is no guarantee that you will be successful every time, but by using a candlestick chart and understanding and utilizing the trends, you will definitely increase your chances of an accurate prediction by a very large percentage. Good luck and happy trading!

 

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4 Replies to “New! Best Binary Options Strategy that works – Beginner Friendly”

  1. Hello,
    Started trading binary options about a month ago, and I really like it. Didn’t have much profit, but I still have a lot to learn, currently using iqoption platform to trade. I found this article very helpful and informative.
    Thanks

  2. hello,I am new in this business and i have just opened an account with iqoption. I have visited their trading platform and it’s quite interesting, however I could not find any thing that looks like a candlestick or wick. so please, how can I get this candlestick chart and where can I find it.

  3. Is there some type of money management to do in case of loss? Such as doubling the trade on a loss and keep doing that until a win or just keep the trade amount the same every time

    1. Yes, you can always apply Martingale in your trading style until you come out successful. However, you should be aware of the risks that abound in this style of trading.

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