Binary Options Trend Trading System

Follow-the-trend is one of the most pop and widely used strategies you lot tin apply in 60-second binaries trading. Its a strategy with a relatively high success rate and its really piece of cake to execute. Of course, the mandatory prerequisite noesis has to exist there if you lot hope to realize this strategy to its full potential. You volition demand to read charts and spot trends, so if you dont know how to practice that, we recommend you learn. We have a very comprehensive guide that can be of great help to y’all if youre new to the area of technical analysis. We recommend reading it.

Follow-the-trend

What is this strategy and how do y’all use it? In short, the strategy requires you to look at charts and recognize trends. Whether they are uptrend or downtrend doesnt matter, simply you demand to be able to spot them. One time youve established that there is a tendency, you make a trade in the same direction as the trend. If its an uptrend, you become for a telephone call option, and for a downtrend – you go for a put option. Statistically speaking there is a great chance that the tendency will continue and yous will brand a profit. This is how the strategy works in general, but there are several very important aspects yous need to exist familiar with. For example, no matter how potent a tendency is, in that location is always the possibility of pullbacks.

A pullback is a temporary change in the direction of the cost. It doesnt signal a new tendency, since the price continues the trend after the pullback, but this phenomenon tin cause y’all to lose some of the trades. You need to be responsible enough with your money and not allow yourself to autumn into lose a significant sum of money because you were so sure in the trend. Found a base of operations investment you lot make every time and dont increase it. This way even if yous lose a few trades while following the tendency, you wont fall into a financial trap – your profit will more than compensate for the losses if y’all follow this rule.

How do you enter the merchandise?

Open a chart of the market youre interested in. Its important not to trade when there are big market fluctuations. If there are, so spotting a trend will be hard, and fifty-fifty if yous practise, its non going to be safe to trade. Nevertheless, if the market seems stable, you lot can enter a trade with no trouble. Look at the nautical chart and when y’all meet that the price has moved in the same direction two or three times, then this may signal the emergence of a tendency. This is where you will have to hazard. If the marketplace conditions are salubrious, and so enter the trade. For an uptrend, buy a call option. For a downtrend, buy a put pick. Expect and run into what happens.

If you win, merely keep investing in the aforementioned toll motility until a loss occurs. In instance yous lose, wait for a bit and check if its a temporary pullback or a trend reversal. If its a trend reversal, simply follow it. If its just a pullback, and so go on with the first trend. If you lose a few times in a row, stop trading. This means that the market is not stable enough to use this strategy. Continue in listen that trends rarely get for more than v-10 minutes. This means that you lot will need to suit to the changing conditions quickly.

A few things you demand to go along in heed

Since youre trading so quickly, and in near cases for rather small-scale sums, it may seem like youre not losing much in a few unsuccessful trades, just you may very well exist. For example, losing three consecutive trades for USD 50 each is a loss of USD 150. It may not sound similar much, simply this is a loss in less than three minutes. In fact, it may be on merely a infinitesimal if youre using multiple brokers at the same fourth dimension. Responsible coin management is needed if you lot dont desire to take chances substantial losses. Ever apply caution – there is no strategy that is 100% safe (no thing what the Cyberspace tells you). We wish you good luck!