Time is money! Choosing the time to trade binary options
You can trade binary options at any time of the day - and this is one of their main advantages. Nevertheless, the profitability of binary trading depends not only on proper analysis and the chosen strategy, but also on the time of trading. To a greater extent it is influenced by the market conditions and the possibility to make the most accurate forecast.
Today we're going to figure it out, How to choose the right time to trade binary options.
Selecting a trading session
Learning the basics of fundamental analysis always begins with the fact that a beginning trader learns about several geographical segments of the market, each of which is active at a certain time. As you have already understood, we are talking about trading sessions.
Within the global market it is customary to distinguish between four trading sessions:
Each trading session has its own characteristic features. For example, during the Pacific session trading activity is the lowest - almost all assets are in a very narrow price range, there are no trend movements or formation of any patterns.
During the Asian session Activity in the markets begins to increase. As a rule, the highest volatility is demonstrated by currency pairs with the Japanese yen and assets of the Asian region.
The peak of activity in the markets is observed when European session is not over yet, and American session has already begun. In general, this is the time when the key macroeconomic publications are released, when the markets experience trend and correctional movements, when the technical analysis figuresThe old trends come to an end and the new ones begin. It is this time, in terms of price movements, that is potentially the most productive for trading.
Nevertheless, it should be understood - the higher the potential profit, the greater the trading risks. That's why to start trading binary options is recommended from the Asian session, where trading is more or less calm. And only after gaining the necessary experience can you move first to the European, and then to the American trading session.
Selecting an asset for trading
Currency traders are accustomed to the fact that it is possible to trade in the market around the clock, taking into account the peculiarities of the trading sessions we have just talked about. However, binary options are available for trading not only on currency pairs, but also on many other, often more profitable assets.
For example, stock market assets are not traded around the clock, but are available only at certain times. In this case, we are talking not only about stocks, but also about stock indices. As a rule, there is a dependence of asset trading time on geographical binding. For example, shares of Gazprom are traded on weekdays from 6:30 to 14:30 GMT.
The commodities market has a similar situation, but the trading time of commodity assets, especially the most popular ones, is somewhat longer than the assets on the stock market.
More detailed information about the trading hours of the asset you are interested in can be found on the website of your Binary options broker.
Taking the news background into account
Since the price of an asset, especially on the foreign exchange market, moves constantly, the formation of trends, channels, TA figures and other things is possible, in principle, at any time.
With fundamental analysis, the situation is somewhat different. Important macroeconomic statistics are released during the trading session, which geographically this asset belongs to. Therefore, when choosing the time of trade, it is necessary to take into account the time of the news release, affecting the chosen instrument.
Degree of priority of binary options trading
If trading is your main occupation, you don't have any problems with working hours, and you already know about all the things mentioned in this article. But if trading binary options is a source of additional income for you, then you should choose the trading hours responsibly.
In principle, the technical possibilities of trading are now so developed that it is possible to trade binary trading almost anywhere. All that is needed is a smartphone or tablet and an Internet connection.
Despite the fact that mobile trading has a right to exist, constant trading "on the knees" can hardly be called effective. The level of concentration is not the same, and the set of tools available for trading is somewhat limited.
If you are busy with other things during the day, then trading binary options in parallel is not a good idea.
In this case it is advisable to determine for yourself some hours in the morning or in the evening, when you can devote yourself to trading entirely. Based on the time you choose, you will already be able to choose the assets you want and learn about the peculiarities of the trading sessions, in which your binary options trading takes place.
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