So now you know how to shift the odds to your advantage.
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These people have pointed out that short-term options offer a hard time for newbies to make money, as these options are very hard to predict.
You know that Apple will launch a new iPhone in 2 weeks. Based on this information how do you think the stock prices of Apple will move right after the iPhone launch? Will they decline or will they increase? This is what happens most of the time after a launch. Using a long-term binary options strategy you just made money in binary options. This strategy is impossible to implement using short-term options only. It is not possible to use a major news event to predict the movement of an asset during just a few seconds or minutes.
So, in other words, long-term binary options strategies involve accounting in for major news events that are expected to influence the value of an asset. I personally claim that this is the easiest way to make money in binary options. Long-term binary strategy vs. Technical analysis is an advanced form of strategy that involves you having to read and interpret various charts and use different indicators.
On the other hand, when it comes to long-term binary strategies all you need to know is when a major event such as new product launch is taking place and then make the appropriate investment. Real and to-the-point examples of long-term options strategies Below you will find actual examples of the application of this strategy.
Apple is expected to launch a new iPhone in September 15 You will wait around 2 weeks before this event and will buy a binary options contract that will expire on September 16th and predict that the value of Apple will be higher at that point that it is now. Now, such an Apple event usually only happens 2 times per year. Surely, you need much more than 2 winning opportunities to make real money in binary options. But the thing is you can use this with any company such as: You can literally find out within 10 minutes of Google search when these companies have their annual events and product launches.
Microsoft is expected to give its annual revenue report on August 10 Two weeks before the event you will do a quick Google search and check for industry predictions whether Microsoft made more money during the previous year or quarter.
The best thing about this strategy is that you can do this on much more occasions than just with the one on example 1. There are hundreds of companies out there that might not even be as famous as Apple and Microsoft and might not even offer any products they do services. You just need to Google their revenue report release dates and then Google what experts predict and then buy the appropriate binary options long-term contract. And these are just two ways of making money in binary options with long-term strategies.
As you can see by now, this is perhaps the easiest way to make money. This is also the reason why brokers introduced this concept so late. Now that you know all these, make sure to use them and you will likley make money in binary options. The next step is to look for the sentiment. Usually media starts to report about the estimates on such events 24 — 48 hours ahead of the news.
If the general sentiment is bullish, then 5 minutes ahead of the news release, make sure to purchase a CALL option. Choosing the expiry time is of importance here as a small miscalculation can lead to a loss. Typically, choose contracts that expire close to the news release time. Choose either a 60 second expiry or a 2 minutes expiring contracts. Price usually tends to rally before the news and then drop back after the news is released.
To compare, a forex trader usually employs such a strategy known as scalping to make some high probability profits before, during and after the news release. Notice how price spiked just around the time the report was released. A CALL option around 0.
But notice the importance of timing here. If the option was a 60 second expiry, it would have resulted in a loss. The next example below shows the Kiwi unemployment data. Keeping in line with the buy the rumor sell the fact strategy, notice how price spiked ahead of the news release. The unemployment rate had actually increased from 5.
However, despite the actual release, price rallied before the news was released. In this chart, we see that a 2 minute expiry just before the news release would have resulted in a winning trade. Again, in this chart we would like to stress the importance of timing the trade and choosing the right expiry time. A minute ahead or later would have resulted in a losing trade due to the fast changing price.
A Winning 60 Second / 1 Minute Binary Options Strategy. This Short Term or 'Turbo' Strategy Had 14 Wins From 18 (77%) on 60 Second Expiry Trades.
Learn to use long-term binary options strategies in order to make money in binary options trading. Find out why these strategies are the easiest to implement. Jun 23, · Short Term Binary Options Strategy It is very easy to get addicted to trading the short term expiries and a trader can quickly lose all of 5/5(4).
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