In binary options market you win sometimes and sometimes you lose. And most of the time what makes the difference is the strategy you use.The ability and discipline are two important factors that every trader should have, but investment tactics will you use what you really provide those benefits.
The Investment Plan
One of the first things we must do is make a plan investment performance targets by posing and calculating the risk margin as we are willing to risk to achieve these returns. Once the investment plan we have and develop the trading strategy that best suits our needs.
The Basic Strategies
Believe it or not the choice of an option is also considered as a strategy in itself, because choosing one or the other the future of the operation will have different consequences. Having two possibilities to negotiate can be hit and profit, or fail and provoke losses.
The most used strategy by investors is reduced to make that decision. Will it rise the asset price will fall or otherwise? As we know in the binary options is negotiated with management to present prices of selected assets. So yes the trend is there to bet on an option and it is another bearish.
Therefore, the usual strategy basically operate with call options and put options. Stock options are known as call options while put options are called options PUT.
When dealing with any underlying asset online trading platform we have these two possibilities. A choice of options CALL or PUT.
- CALL: Yes you want to bet on a rise in the value of the asset will use this option. Yes the operation ends with a price above the initial value will mean that the trend was upward and we can collect your winnings.
- PUT: Yes otherwise expected to decrease the value of the asset has to purchase a put option contract to bet on the price trend downward. Yes our prediction was accurate operation in terms expire “in the money”.
To be successful in trading does not just go for trends, as sometimes we win and sometimes the play can not come out so well and we cause losses. To win in the binary options have to be cunning and use various strategies to play at the top with the prices of the underlying assets.
- Tactical Rescue: This strategy that I like to call “rescue” is simply the strategy of concurrent PUT and CALL option. This is a strategy where the reverse trend is bet when the initial choice is about to make us lose money. If we acquire a CALL contract and the bearish trend becomes a way to save the operation is to acquire another contract type PUT.
- Doubling investment: Just as rescue tactics used to save the loss of a transaction with the proceeds acquired another strategy to double the investment will allow us to increase the value of the transaction and thereby doubling the ultimate benefits . This strategy is often commonly used when the transaction is progressing well and we are almost certain to end successfully.
Control Markets in Any Situation
The market analysis is essential to develop the most appropriate strategy according to circumstances. Some markets are more stable and trends more clearly defined while in other cases the markets become more agitated and the changes are more abrupt. In any case, an investor should know how to act in both situations.
Certainly it is easier to go for an option, either CALL or PUT option, when we observe a clear trend. But it is also true that when sudden changes occur in the market can get good gains other hunting opportunities are achieved on time. This strategy is known as Pull harder to carry out, but the benefits are usually much more rewarding.
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