As a binary options trader, you know the importance of a sound strategy for your options. Good binary options strategy can not only give you great returns on your investment but also help you minimize your risks in binary options trading. A few days ago, I had discussed 3 of the most commonly used binary options strategies: reversal binary options strategy, straddle binary options strategy and bungee binary options strategy. Today, I will shed some light on next three binary options strategies, namely, hedging binary options strategy, 60 seconds binary options strategy and market pull binary options strategy.
a) Hedging binary options strategy
Hedging strategy is generally used by binary options to minimize the risks associated with binary options. In this binary options strategy, investors can decrease the risk factor by selling some percent of the investment before their expiry time. The left over investment can be kept with the intention to earn some profits. This strategy is more secure because it keeps the investor protected from the outcomes in case of some expected drastic reversal which can result in huge losses in the absence of hedging strategy. The investors are sometimes able to sell the asset just minutes before expiry time.
b) 60 seconds binary options strategy
As its name suggests, this strategy is executed within a short period of 60 seconds. The investors can use this strategy to make investments on the basis of some current news releases, economic event, or other factors that may influence the value of different assets. For this strategy to work, investors have to play quick in 60 seconds. While using this strategy, investor also needs to be vigilant enough to benefit from some emerging trends without making mistakes.
c) Market pull binary options strategy
Market pull strategy is one of the most widely used strategies among the experienced and skilled investors. The basis of this method revolves around investing in call or put option according to dramatic changes in the market. This strategy also requires investors to keep an eye on the market news, trends and reports. If an investor sees an emerging trend, then he should buy put or call options on the basis of the trend. A lot of people actually earn their profits in binary options by executing market pull strategy.
In the end, I would like to emphasize on the importance of keeping yourself updated about market conditions in binary options trading. When you trade in binary options, you cannot live without keeping an eye on market conditions, economic climate, currency fluctuations, latest news, company reports etc. In fact, you cannot make a strategy without having the right knowledge about market. That is why you should always make an effort to learn about the market dynamics if you want to be successful in binary options trading.
Without right knowledge, binary options trading will only become gambling for you. You have good chances of making money in gambling, but you can also lose a lot of money in gambling. Your chances of winning or losing are 50 percent. Therefore, do not think of binary options as gambling. Acquire information about your chosen area of trading and use this information to make real profits in this great form of trading.