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Binary options strategy pdf
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Author(s): Abe Cofnas
Published Online: 10 SEP 2012 01:54PM EST
Print ISBN: 9780470952849
Online ISBN: 9781118532034
An essential guide to the fast growing area of binary options
Long the province of professional traders, binary options are now offered to retail investors through the North American Derivative Exchange (Nadex) and a growing group of online brokerages. Now, with this new book, author Abe Cofnas explains how independent traders and investors can use binary options to speculate on price movements and global events.
The great appeal of binary options is that they are less complex than conventional options and provide a simple method to trade based on an opinion of where the market is headed over a certain period of time. Engaging and informative, this reliable guide reveals how binary options work, what are the best binary options trading strategies, and when to use them.
As the first book solely devoted to this topic, Binary Options will provide retail traders with an authoritative guide to trading this exciting new market.
60 seconds binary options strategy
In terms of strategy, 60 Seconds options take a very special place. While all binary options are short term oriented compared to regular trading, 60 Seconds options are even more extreme. Due to their incredibly short expiration time of only 60 seconds, they need a special 60 seconds binary options strategy. In this guide, we will explain everything you need to know to create your own successful 60 seconds binary options strategy.
In detail, we will answer these questions:
With the answers to these questions, you know everything you need to understand the nuances of trading 60 seconds binary options and to make money with the perfect 60 seconds binary options strategy for you.Which unique challenges does a 60 seconds binary options strategy have to handle?
A strategy for 60 Seconds options faces a few unique challenges. Most of these challenges relate to the short time frames that you have to use to trade 60 seconds options. While some aspects of 60 seconds binary options strategies can be adapted to other strategies, some of them are unique to 60 Seconds options. In general, every trader will benefit from thinking through these strategies at least once because it will provide him with a greater insight to how the market works.
On short time frames, market movements are especially erratic. Fundamental influences such as a company doing well, for example, are almost meaningless. If you knew that a company would post record earnings this year, you would be unable to predict whether this company’s stock will rise or fall over the next 60 seconds. Even if you knew how an asset would perform this day, you could not predict what the stock will do in the next minute.
Short time frames are dominated by almost random actions. The only reason why an asset’s price rises or falls over 60 seconds is the relationship between supply and demand, and there is no way in the world to understand why there is more supply or more demand in the market.
Luckily, you can make valid predictions for 60 seconds options without understanding why the market is rising or falling. All you have to know that the market is rising or falling. This is what technical analysis is for.
Technical analysis focuses on the only thing you know about short time frames: the price movement. By recognizing certain price movements and understanding what they usually lead to, technical analysis can help you to make valid predictions about what people will do even if you know nothing about why they will do it.
To understand the nature of technical analysis, think of a person walking into a convenience store. Without knowing anything about the person, you could predict that the person is likely walking into the store to buy something. Of course, this prediction would not be right all the time, some people might walk into the store to return something or to work there or to go to the bathroom, but if you made the prediction at a Walmart, you would be right at least 95 percent of the time. That’s not bad.
Technical analysis adapts this approach to trading. Some patterns of price movements are highly likely to lead to rising prices; others are highly likely to lead to falling prices. By recognizing these patterns and understanding the outcomes that they are likely to lead to, you can find profitable trading opportunities for 60 seconds options.How to deal with these challenges in your 60 Seconds binary options strategy
To make sense of the erratic price movements in these short time frames, technical analysis uses instruments such as trends, and candlesticks are invaluable instruments.
To create your own 60 Seconds binary options strategy, you have a few options. First of all, you can look for trends in short time frames. Trends are zig-zag movements that take the market to new highs and lows. Trends on short time frames are short lived, but they allow you to win a 60 seconds options when you recognize them.
Another ingredient to your 60 Seconds trading strategy could be candlesticks.
Candlesticks are a special way of displaying market movements that provides more information than the classic line charts many traders new from TV. Candlesticks display the opening price and the closing price of each trading period as two lines connected by a thick line and the high and the low of each period as a thinner wick to each end. With this simple way of displaying market movements, you know the entire price range of a period and never miss any information.
Because candlestick charts cram so much information into every candlestick, a single candlestick is often enough to allow for sophisticated predictions about what will happen next. By learning a few simple candlestick formations and the predictions for which they allow, you can easily find trading opportunities that are ideal for 60 seconds options.
In this case, make sure each candlestick represents a time frame of at least 15 seconds, or the movements will be too random. Finally, you can use technical indicators like the Moving Average to generate signals. In any case, the experience is an especially important ingredient to making good decisions in
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