If you are looking for a good way to sway your trade smoothly to success, here’s one pro technique that is proven effective when trading binary options.
Do you wonder why your losses still override your profit? It’s a possibility that your awesome trading skills aren’t quite enough. There’s something else you should know about trading. Choosing the right strategy and the perfect broker aren’t always the only things you need. You have to know how to deal with market movement as well.
Market condition plays a huge role in binary options trading. Now ask yourself, how well can you read market conditions? Can you identify when the market fluctuates or when it is about to fluctuate? Do you have the knowledge to identify major from minor support and resistance? Have you learned how to spot the difference between trend and single impulse of the market? It is a given that we can’t predict everything 100%, but knowing the answers to the questions above gives you a much better chance to identify the expiry time you should use.
Adapting your expiry time to market conditions will give you infinite possibilities. For instance: If you are trading in a fast market, use a 1-2 candle expiry (basing on the movement of market). If you are trading news, then it is suggested to choose an ultra-fast expiry like a 1 minute chart with 1 or max 2 candles. But if you are trading in a slow movement market, then you can move up to 12 – 24 candles. Just remember to consider the movement of the charts also.
If you are trading a bounce off of a support or resistance level, then use a shorter expiry time. If you trade a break of a support or resistance level then you can use a much longer expiry because prices could return to re-test the recently broken level. If I am trading in the direction of the main trend which has been going for quite a while and regular divergence is present then I will probably use a short expiry time of 3 – 5 candles because the divergence could cause the trend to reverse so I want to be out quickly. If I am trading in the direction of a trend that has just begun I will use a longer expiry because a retracement might be coming up and I want my trade to “survive” that potential retracement. If I am trading after a retracement but in the direction of the trend, I can use a relatively short expiry of up to 5 candles. If I am trading a reversal I can use either a short expiry of 2 candles or a long one of at least 24 because price might make another top/bottom before finally reversing…as you can see it all depends on the situation – and I might totally disregard all the numbers above if the market requires it.
Start your day right. Trade while taking consideration of choosing the right expiry time depending on market conditions.