With the information provided on this post. You’re increasing chances and opportunities to make it a successful journey in the Binary Options trading.
How to use this binary options strategy
- This easy to use strategy is another way of securing your investment by minimizing loss.
- Let’s look at the example on this chart below.
The example shown above in this chart indicates a buying of two different options with the same expiry time frame. We suggest that newbies use a longer time frame e.g. 1H; 1H15min or 1H30min to maximum of 2H.
e.g. Let’s say you buy a CALL and a PUT options both for $50 with potential return of 85% which is $42,50 each. Both options are set to expire at the same time.
- $50 CALL option = $42,50 – (85%profit).
- $50 PUT option = $42,50 – (85%profit).
Both options will cost you $100 of investment with potential of $85 profit if both are WIN (ITM) at the time of expiry.
However if only one of these option lose, you will only receive $92,50 back from your initial investment of $100. In essence, you only risked $7,50 out of your total $100 investment on both options. But if you take one trade and that trade turns out to be a loss at the end of expiry time, your total investment is lost. However with this strategy; you are actually putting a barrier to your investment against total loss thereof.
Lil research goes along way
In order to use this binary options strategy, you need to have knowledge or educate yourself on the price action movements or knowledge of reading candlesticks in order to know when to enter. This great eBook on candlesticks has helped us to analysis candlesticks and can help you too. (The candle sticks you are watching needs to be within area of prior candlestick, once confirmed, next candle stick above or below the previous one will signal Call or Put.
The best way to catch the price action movements is by use of the simple method of looking at the candlesticks; because candlesticks tell you a story. They give you an idea of what has happened in past minutes, hours or days in the market and they tell you what is happening in the market at that point in time and the likelihood of where the market is headed.
Using this simple method, you are able to gather enough solid evidence to support your trading decision. Once you know how to properly use this simple method, you will be able to enter and exit the market with precise accuracy and maximum profit.
Congratulations on learning this strategy and we believe it will be helpful to your trading experience. Make use of this strategy and follow through carefully in order to maximize your chances of profitability.
To start making use of this strategy and practice what you’ve learned.
As we mentioned above that this binary options strategy works together with price action and candlesticks momentum.