Trading binary options profitably isn’t easy; it takes time and dedication to learn everything you need to know and develop winning strategies in order to consistently turn a profit month after month and year after year. While there is no substitute for experience, you can start to be profitable from your very first trade if you take the time research option trading tips and strategies that can help you be in the money more often than not.
Here we provide some binary options trading tips that novice traders can use to maximize their trades and make as much money as possible. Check back frequently for new binary options tips and strategies that can help boost your portfolio and make every trade count.
Tip: Trade at the Right Time
With the exception of stocks, which are traded according to the opening hours of the particular market in which they are traded, most kinds of binary options are traded 24 hours a day by traders from around the globe. Theoretically, this means that you can trade an option on a commodity or currency any time you want, no matter where you are. However, there are certain times when it is better to trade these assets, and times when you should avoid them and knowing the best time to trade is one of the best options trading tips out there.
Binary options depend on there being some sort of price movement for you to predict, so you want to trade things that are constantly changing price. If the asset is flat, or moves only slightly, it can be next to impossible to accurately predict where it is going to move in the next few minutes. Only when there is a large amount of price movement and volatility is it possible to make accurate, well-informed decisions. The bottom line is that you need to trade when the most people are trading, so that the asset you are trading is most likely to make a definitive move in the direction you want.
Stocks: The option trading tips for stocks state that you should generally conform to the NYSE operating hours, as that is when US and International stocks are traded. This is between 8:30am and 4pm EST. While some binary option tips sites will tell you that close to closing is the best time to trade, for most large stocks, there is enough volume throughout the whole trading day to make any time in this window acceptable. If you want to trade foreign stocks that trade on the London FTSE exchange, or the Hang Seng index in Asia you will want to scan the binary option trading tips to find out the exact market hours for those exchanges.
Currency: Many binary option tips sites state that currencies are a round-the-clock asset that can be traded any time of day or night, and give the trader great flexibility. While this is technically true, currencies also follow trading patterns and have much higher volume at certain time, which means much easier to predict patterns. For large currencies like the Euro to USD, you want to trade near the beginning or end of the trading day for that currency. This means that for the Euro, you should trade it between 2am and 10am EST. Check the binary trading tips on other major currencies to see their local closing and opening times. For lesser-known currencies, you want to trade when that currency is being traded, and when it overlaps with another major currency. For instance, you want to trade Russian Roubles and British Pounds when both the Moscow and London exchanges are open, and certainly not when it is the middle of the night in Russia.
Commodities: The binary options trading tips for commodities are a little more amorphous, because these are real-world goods which do not conform to strict market hours. However, there has been plenty of expert analysis of the years of certain commodities, and experts have compiled a list of options trading tips on when are the best times to trade commodities. Agricultural commodities like are best traded in the morning, EST, from between 9am to 1pm. Gold, silver, crude oil, and natural gas are traded from around 9am to 5:15pm every day, EST.
Using so-called ‘sentimental analysis’ like this to judge when to trade is one of the most important option trading tips out there. By finding the best times to trade, as well as following the news on certain stocks, currencies, and commodities, and timing your trades to coincide with big announcements, you can be sure that there will always be enough volume to move the price consistently and allow you to make a good prediction. And you can use these binary option trading tips to save yourself time and not have to sit around all day, waiting for the right opportunity, because you already know when something is going to happen, and you can take advantage of it.