Lifehack: how to always make a profit in binary options trading?
Some traders smile condescendingly when it comes to binary options trading, seriously believing that such trading is akin to a casino. In their opinion, trading on the currency market is an activity requiring certain knowledge and skills, maximum attention and concentration, while binary options is a "guessing game". If you guessed right - you are in the money, if you didn't - you will have to pay the price.
To your surprise, it is worth noting that there is a little bit of truth in their statement. Very tiny, but nevertheless... Today we're going to tell you about a tip that will allow you to profit in binary options trading.
Choosing the right BO broker
We would like to point out right away that this way of making money is in no way connected with anything illegal. There is no need to buy any hacking programs, to break into the broker's servers, to possess some secret knowledge and all that. All you need to make a profit in BO trading is to know the peculiarities of brokers and the skill of simple analysis. This is what will allow you to profit in 70% trades.
To begin with, you need to choose a suitable broker from Binary options brokers rating. In order for our, and now yours, tiphook to work, A broker must offer binary options trading of two types:
- one touch options;
- Options with long expiration dates.
The options "one touch" will guide us in determining the direction of Call or Put, and we will buy a long-term binary option that has an expiration time of 5-6 days.
How does it work?
So, the broker is chosen, now we have to determine the direction to buy the option. On the day off, we go to our broker's trading terminal and study the price levels for one touch options.
After that we determine the distance in pips from the current price to the upper and lower levels set by the broker. Naturally, one distance will be greater, the other less.
The direction to buy a long term option will tell us exactly how much more:
- if the distance is greater to the upper level - this is the direction of the Call;
- if the distance is greater to the lower level - this is the direction Put.
After such simple arithmetic calculations, we choose the corresponding long-term option, which we buy on Monday morning with an expiration date by the end of the week.
Why does it work?
The essence of the scheme of this legitimate reader is quite simple. The broker sets the levels for options one touch so that the price reaches it with a minimum chance. And it's not about some exorbitant price levels.
A thorough analysis is performed, the main result of which is to determine not the price level itself, but the time in which the price can reach it. The price may well reach the mark, however, in most cases this happens after the expiration date of the option.
This is the weakness that we are using. After the expiration of the long term option we bought, the price may not reach the level specified for the one-touch option, but it is more likely to justify our forecasted direction, bringing us a profit.
Of course, you won't be able to use this trick very often - there are only four "tail" weeks in a month, but that's enough to make a stable profit in binary options trading.