Are you new to trading? If yes, then the first thing you need is a reliable binary options strategy. The good news is that if you can choose your trading strategy correctly, then you can easily get a payout of about 70% to 90%. If you are a beginner, then you have to choose your trading strategy with discretion, and we will help you make this choice.
Binary Options Trading Strategies for Newbies
Conservative long-term strategy
If you want to build up your capital slowly and steadily, then this strategy is for you. When you opt for the conservative long-term strategy, then it becomes easier for you to minimize the risk levels.
Conservative long-term strategy makes use of the Zig Zag indicator and the Fibonacci Retracement. The Fibonacci Retracement measures the turning points by Fibonacci’s ratio. The zig zag indicator can easily smooth out the price fluctuations.
When you trade using this strategy, then you have to wait for the perfect setup. You have to start by drawing the Fibonacci Retracement from first two zig zag peaks on the chart. This way the trend is set up for the analysis.
If you notice that the second point appears to be higher than the first point, this means that the trend for Fibonacci is up. If you notice that the second point appears to be lower than the first point, it shows that the trend for the Fibonacci is down.
A signal gets generated when the price retraces back above the 50% level. As a trader, you need to wait for a valid signal at this point in time. There are three criteria that define a valid signal.
- The price should hit the 161.8% Fibonacci retracement.
- The value chart needs to be 8 or above.
- The price should not be within the red channel zones.
Five Minutes Trading Strategy
The five minutes trading strategy is also ideal for beginners who are new in the field of trading. The interesting part of this strategy is that you do not have to deposit a huge amount. This strategy works according to a simple rule.
The rule is that most binary options brokers allow the traders to place the options on the farthest extent and this happens 5 minutes before the expiration.
As a trader what you need to do is study the assets in the market and figure out the one that is steady. You also need to figure out those assets that have been decreasing.
After this, you have to figure out the minimum and maximum value of the asset depending upon the prevalent trend. This value is termed as the turning point of the trend.
Both the mentioned strategies help the newbies to gain significant experience about trading. However, you should play safe, and you should try to do significant research before you try out these strategies. Attempt the strategies using the demo account and see the results. This way you can avoid losses and make significant profits at the end of the day.