Quite a few investors think that Binary Options Trading is gambling. In fact the success is not only determined on luck
and the odds can be more than 50 percent by specific measures and by previous research.
To achieve this traders should not be guided by emotions or "inspiration" but act primarily on the basis of strategies. There are several trading strategies that now have become established in the field of Binary Options and are therefore often used by many professional traders as well as beginners.
On what do strategies base?
Although there are various trading strategies the strategies also connect some similarities. In the field of Binary Options trading strategies are mainly based on past experiences which have been made with the price development of the respective underlying. Also the past behavior of the traders/investors plays an important role for the development and use of strategies that should also apply to the future. Technically speaking the trading strategies are based to a large extent on trade signals. Each strategy specifies its focus on a specific "behavior" of the market so that the trader can choose what strategy suited best to his goals and ideas.
Trend-following strategy, volatility strategies and hedging as trading strategies
What the individual trading strategies include in detail and on what the strategy is based on can often be seen on the name. The intension of the trend-following strategy is the fact that the trader follows a specific trend so in principle most of the other traders do the same. If most traders buy a particular Option or an underlying asset so the trend-following strategy involves the purchase of the underlying asset, too. For the volatility strategy it is primarily important how strong are the price movements of the underlying. Here Options are mainly bought or sold if the underlying are unstable/volatile. In the third trading strategy of hedging it is in the foreground to protect potential gains and potential losses by certain measures.
Read on: Trend-following
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