Binary Options Trading Strategy – Tips and Facts for a Winning Strategy
Binary Options Trading Strategy – Tips and Facts for a Winning Strategy
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Binary Options Trading Strategy – Tips and Facts for a Winning Strategy
Different trading strategies
Just like stock trading, binary option trading requires the knowledge and use of strategies to put the odds on its side to gain in the long term. There are two main types of speculative trading strategies in the world of professional trading: it is the technical (or graphic) analysis and fundamental analysis that we will analyse in the first place. We will then deal with the two empirical methods that are most widely shared on the web: the martingale and trading with the traders’ tendency tool.
Trading with technical analysis
The technical analysis – or chart analysis – involves studying the exchange rates charts of different assets in order to predict their future orientation. This type of analysis is based on the Dow Theory. This theory, realized by. a great financial analyst and co-founder of the Wall Street Journal, on the principle that the “market remembers”. This means that what has been observed in the past, reiterates itself again today and in the future. In other words, the analysis of decades of charts histories has enabled the technical analysis to identify specific contexts where it becomes possible to predict the future orientation of an exchange rate with a significant reliability. The technical analysis therefore consists of studying the charts using technical indicators (to have access to certain digital information or additional charts) and observing patterns of graphics and / or candlestick charts patterns. This type of analysis is most commonly used by traders. Many books and websites will inform you about its learning, its method of application and the different strategies associated with it.
Trading with traders’ tendency indicator
The other empirical method regularly seen on the web consists of monitoring a tool for “indicator of traders’ tendency” (also called “tool of traders’ sentiment“), provided by the online broker. This tool describes the balance of positions at the purchase and sale of each index at a given moment. Provided by the broker, the tool shows you the percentage (%) of their clients with positions at the purchase and the percentage (%) of their clients with positions at the sale (in real time) for a defined financial asset. The clients of an online broker cannot trade on Wall Street but some have the audacity to trade “by instinct” (and ignore those who use the martingale method mentioned above…). Therefore, this type of tool becomes completely obsolete and its reliability is totally uncertain or even completely absent. Once again, the bonusbinaryoptions. net team warns you against this type of strategy and invites you to avoid following it.
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