Tag Archives: Trend Reversal

Picking A Broker By Binary Today

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Finding the right binary options broker, so here is a guide by Binary Today on how to pick the right broker, how much you should be risking per trade, and a couple strategies as well.

This is a great place for you to start.

Choosing The Right Platform Or Broker

Choosing the right platform or broker for your trades is an important factor in reducing your risk of losing money. Whilst there are many platforms to chose from, you should be aware that they are not all the same and don’t all offer the same features and benefits.

One benefit that is important to consider is whether or not the platform or broker you choose gives you back a percentage of your trade when it loses. There are a variety of offers out there and they usually average between 10% and 15%, but you should be aware that this benefit may be offered because the return on winning trades is slightly less than those brokers that don’t offer this benefit.

Therefore, you need to decide for yourself which type of platform is more beneficial to you depending on the level of your trading skills. At Binary Today, it is recommended to start small and build from a low deposit level. This way you get your footing with very little risk.

How Much To Risk On Each Trade?

Another important strategy to consider is not to get carried away and invest too much of your account in one trade. With binary option trading, especially on the Forex market, you can open an account with a broker for a small amount of money, generally around $250. This means that if you see a good opportunity in a trend, it is all too easy to risk a big sum only to find the trend suddenly changes and you’ve lost the lot.

Therefore, a good strategy to adopt is to only invest small amounts in each trade, relative to the amount you started with and to build up your account balance gradually with your winning trades. For example, if you opened your account with $200, then only enter trades with $10 to $20. If you opened your account with $1000, then trades of $50 to $100 can be entered.

Some of the brokers at Binary Today provide traders with the option of trading very small. As small as 10-25 cents per trade. This is a great way to learn while still in the live trading environment.

The reason for using a strategy like this is because no one can have winning trades 100% of the time, so you must be prepared to lose some of your trades. You should adopt this method until you feel confident that you know what you’re doing.

The Double Profit Strategy

In the Forex market, for example, if you have noticed over the past few hours that the trend of a currency pair that you’ve been studying is neutral (neither climbing very high nor falling very low), then to profit with this strategy you would enter a trade at both the high and low ends of the trend.

Place put-trade at the top of the trend just as it peaks then, when the trend falls, place call-trade at the bottom of the trend. Providing that the price fluctuates between these two points during the time period of your trade, then you will win both trades. Double profit. However, if the trend went outside one of these parameters, then you would still win on one of the trades and so, limit your loss.

For example, if you placed a $50 put-trade and a $50 call-trade and both stayed within the parameters then you would earn $70 plus your $100 ($170). However, if one trade went outside the parameters, then all you would lose is $15. In other words, you will have invested $100 and won $85.

On the other hand, if you were wise enough to have chosen a platform like binary today that pays you even on a losing trade, then you will have reduced your risk of loss even more.

Taking the example above, if your platform paid you 15% for a losing trade, then on top of the $85 you won, you would also get 15% of the $50 that you lost ($7.50), making a winning total of $92.50 and a loss of only $7.50.

Binary Options Trading Strategies – Trend Lines

The Trend Reversal Strategy

If you see a trend going in a particular direction, whether it be up or down, and you’re concerned that the trend may change direction within the time period of your trade, then this strategy will help you to break even. To employ this strategy, however, you will need to be watching the trade carefully and be ready to act very quickly.

Say, for example, you entered a call-trade (say $50) as the trend was rising and as it rose you felt confident in placing a second call-trade, then this second trade should be less than the first (say $40). If, again, you felt confident that the rise would continue and decided to enter a third call-trade then, again, this third trade should be less than the second (say $30). The reason for reducing the amount that you invest is to limit the risk of loss should the trend suddenly change downward during the period of your trade.

If the trend did, then, suddenly turn, in order to limit the loss you would need to be ready to enter a put-trade for the total value of all your trades, in this example $120, as the trend hits the level at which you entered the first trade. In doing this, as soon as the trend nears the first trade then you will have limited your loss to just 15% or $18.

Even if your platform doesn’t give you anything for a losing trade, with this strategy your loss would only be $36.

Do What The Professionals Do

One of the least risky strategies to use is to copy a professional trader, like John Kane at Binary Today as he trades Live. There are some traders on the internet that allow you to watch while they place trades, with the intention that you should copy them and learn from them.