Considering binary options to be a regular game of chance is completely wrong. Quotes on the stock exchange do not move chaotically, but obey certain rules. By carefully studying the chart of a particular asset, we will discover some patterns of price fluctuations.
Traders who prefer Forex know that they can predict the behavior of the quote chart using technical or fundamental analysis . Because this is real money, they have to learn about numerous tools and their uses, read the news, and compare data to form a complete picture.
Fundamental Data
You can make good money by trading on news. Knowing how the market usually reacts to this or that statistic, you are almost guaranteed to close the deal with a profit. A lot of news comes out during the day on various assets; having a fast Internet and being able to analyze the situation at lightning speed, a trader will receive a significant percentage of deposit growth.
Fundamental analysis helps predict the value of an asset if important events occur in politics or economics that should trigger the next action down the chain. For example, this applies to large-scale financial crises or long-term military conflicts. During such a period, it is good to buy medium-term contracts. But before you trade in this way, you must clearly foresee the whole picture in advance, otherwise you will end up with continuous losses.
Technical analysis
This type of analysis is somewhat simpler, but it is news factors that can sometimes turn the main trend in a completely different direction in a short period of time. If you do not take this into account, the loss of the deposit will be as likely as possible, so the basics of fundamental analysis are no less important. The best way to trade Forex profitably is to combine two types of analysis.
Binary options also require a comprehensive approach. The choice of strategy depends on your preferred expiration time. If it is quite long (a week or more), rely on both indicator signals and fundamental analysis data. When buying short-term options, it is better to keep an eye on one thing.
If you like to operate with time frames that do not exceed several days, it is best to use technical analysis. It is also most suitable for turbo options.
What exactly to focus on is up to each trader. To do this, you need to try all the functionality offered by the broker, understand several strategies suitable for a particular time period and trading session. The work style and psychological characteristics of the investor himself play an important role when choosing the most convenient trading system for him.
To make money successfully, always stay up to date with the main news of the financial world, even if you use exclusively technical analysis. Sometimes, knowing that some ambiguous event is expected, it is better to hold off on buying a contract until the market becomes more stable and the trend is clear and sustainable.
See also:
Rating of binary options brokers
To leave a comment, you must register or log in to your account.