Trading the Right Way with IQ Option

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Always Work on Your Binary Options Strategies

Singapore binary options traders need to have a strong trading strategy if they want to be successful. It doesn’t matter if you’re an experienced pro or if you’re just starting out. If you want to have a chance of making a profit, a strategy that takes underlying asset prices and risk management into account is a must.

Not sure where to start out? We’ll help.

Binary Technical Analysis

To succeed in the binary options trading field, you have to look carefully at how individual options are working. Technical analysis is key to figuring out what you can get out of those options. This is a process that may be used on any kind of option that you have an interest in working with. Technical analysis is a form of reviewing options that places an emphasis on price action. It especially entails plenty of chart reviews. The key is to understand how the price

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Why You Need a Strategy

Trading binary options in Singapore is tough enough to begin with. As you probably know, the majority of people who try their hand at binary options trading lose money and stop trading altogether.

It seems so simple though, right? Binary options can have only one of two outcomes, but even a trader who is right most of the time can still lose money over the long run. A strong strategy will help prevent this from happening.

Different Types of Strategies

There are probably as many different types of binary options trading strategies as there are traders out there. So which is best for a Singapore-based trader?

Unfortunately, it’s not quite as simple as that. If it were, everyone would make money trading. The truth is, there’s no one “best” strategy for everyone. And what works for someone else might not necessarily work for you. You will need to experiment a little bit to find what you are comfortable with and what you are willing to develop. Practicing these things with a demo account is the best way to get that experience without risking real money. A lot of people hate demo trading because it’s not the real thing, but this is a valuable, real time way to develop your skills as a trader, and it will go a long way toward helping you develop the best strategy for your personal trading.

Luckily, we’ve put together some strong resources for you to get started with here. Our review team has scoured through the good and bad strategies and compiled a few right here.

Bad Strategies

Let’s start with the bad ones. Stay far from these.Martingale System: This strategy consists of doubling your risk every time you have a losing trade. When you do have a winning trade, you will realize a slight profit. The Martingale only works in theory, though. Basically, given a 100 percent return and unlimited money to risk, you could make money with this, but binary options brokers don’t allow for either of these things.

Arbitrage: In other fields of trading, arbitrage can be quite lucrative. But not in binary options. Any service that says you can use these effectively is not telling you the truth. Arbitrage works by taking out one position and quickly turning it around at a profit. In a way, 60 second binary options are similar to this, but not exactly. In fact, arbitrage only truly works when ownership of an asset takes place. Binary options deal with underlying assets, and therefore cannot effectively use arbitrage.

Good Strategies

These are the tried and tested strategies that are great for beginners. We have included just a few of the many we like.

Range Bounce: A range bound asset might be boring for a long term investor, but these are perfect for short term binary options traders. What happens is that assets might not change much in price over the course of an hour or a day, but they do change. As they fluctuate, a range may be created where the price gets stuck between a low and a high point. Once you’ve identified this, you simply take out the opposite position once the price reaches one of the extreme points of the range. If the asset stays range bound, then it is likely that your trade will be a winner. Traders need to pay attention to many other factors for this to be as effective as possible. This can be a very complex trading strategy as you learn more about how to use it.

Trading the News: Things happen in the world and in the markets, and these influence prices, pushing them away from where their technical indicators say they should be, such as we saw with the Range Bounce strategy above. If the Bank of Japan makes a surprise announcement about rates for the yen, you can be assured that currency prices will be impacted. If your trading the Singapore dollar against the yen, taking out a series of appropriate positions to reflect the BoJ move will more than likely be profitable.

Advanced Strategies

Some strategies are highly effective, but require a lot of practice before they can be used correctly. These are for traders that have mastered the basics and are ready for more.

Cup and Handle: This strategy is a pattern recognition strategy that only advanced technical experts should use. It looks at a pattern created on a price chart, and then extrapolates what the most likely future price pattern will be. When the cup and handle pattern emerges, then this strategy says that if there are no contradicting pieces of info coming in, you should take out a call option with an expiry five times the timeframe you are looking at on the chart. If you’re looking at a one minute chart, then five minutes is the perfect length of time for expiration.

This, and most other pattern indicators, have drawbacks and stipulations that must be adhered to. It’s an advanced strategy, so test it out with a demo account first.

Risk Management

Risk management is one of those things that most traders don’t think about or don’t want to think about, but it’s an absolute must if you want to be a good trader. All trades have risk associated with them. Your job is to minimize it so you can maximize your chances of making a profit. While this is a huge topic of study, we’ll scratch the surface here for you and plant some seeds of thought for you.

Limit your trades. Some experts will tell you different things about this, but the general rule that we like best in this category is to never risk more than 2 percent of your entire account in one trade. If you have $1,000 in your account, your maximum risk per trade should not exceed $20. As your account grow, you can increase this number, but the 2 percent rule should protect you through the inevitable losing streaks that will occur.

Kelly Criterion. The Kelly Criterion is a rule that tells you what the perfect amount of risk is based upon the odds of success and the amount that will be returned to you. It’s a little in depth to get into here, but if you are interested in learning more, you can click here: This will walk you through how Kelly works, and how you can use it to your benefit.

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Trading the Right Way with IQ Option

IQ Option

$10 upto 91% $1 4.8 TRADING N/A Review

General Risk Warning: The financial services provided by these websites carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.