Binary Options Trading: Binomo Trading Strategies

To the readers, if you find this article, it means that you are learning and want to find out more about trading in binary options, especially Binomo. One of the brokers many traders are familiar with is Binomo, due to the availability and ease it provides, making Binomo one of hundreds of choices of brokers.

The things you are going to want to know before you go too far in the trading world are how to control your emotions and how to control your decision-making. In this article, you will learn a few things before you dive into trading, especially on Binomo.

1. Determining the Underlying Asset

The first decision is choosing an asset. Depending on the broker you choose, you will have a choice of assets from various financial markets. Some traders choose to focus on one particular asset or one market, while others trade multiple options simultaneously. One consideration about what asset to trade is related to the opening hours of various world stock exchanges. Currencies are usually available for trading 24 hours a day.

Binomo offers four asset classes:

1. Commodities - for example: Gold, Silver, Wheat, Coffee, Oil, Sugar, Platinum.
2. Stocks - for example City (USA), Apple (USA), Gazprom (Russia), BP (British Petroleum), Google (USA), Sberbank (Russia), Coca Cola (USA). Forex (Currencies) - for example GBP/USD, USD/JPY, USD/CAD, EUR/JPY, EUR/GBP, USD/TRY, USD/BRL
3. Indices (Indices): - for example DOW (USA), S&P 500 (USA), NASDAQ (USA), DAX (Germany), CAC (France), FTSE 100 (UK).

2. Determine the Amount to Invest

Binomo allows a low minimum so you can be flexible about the amount you can invest. The amount you dedicate to trading should be determined by your risk management plan. The lowest amount you can invest in Binomo is $1

3. Determine the Desired Time Frame

Binary options are short-term investment instruments by definition. The available time frames can range from one minute to a week, depending on the trading platform. So, which time frame should you choose? The problem with choosing a very small time-frame like one minute or 5 minutes is that you may experience a lot of “noise” resulting from the activities of hedge funds, scalpers, and automated trading. You may think that you are observing an emerging trend only to realize that it was just a short-lived move that was manipulated and the trend ended after you entered the market. Therefore, I recommend that you use at least a 15-minute time frame. This is small enough for you to catch good moves, but large enough to eliminate noise in the market and correctly show the “true trend.”

On Binomo, the type of trading used is Buy & Sell. This type is the most popular type among traders because traders will use it the majority of the time. Buy / Sell options expire in the money when the trader correctly predicts that the price of the underlying asset will move above or below a predetermined strike price at the time of expiration.

Example: when looking at the available assets for trading, you choose Gold as the asset you want to trade. After doing your analysis, you come to the conclusion that Gold is currently trending up. Since you believe that the price of Gold will go up, you choose BUY with an expiration time of 15 minutes and an amount of $100. You take a look at that the payout for this change is 81%. If at the time the contract expires the price of Gold has gone up, you will finish in the money and take home the amount of $181. Easy, right? So. binary options are the choice of all traders, from those who are new to starting out to those who are already professionals. Don't forget to keep learning, analyzing, and controlling your emotions so that trading can run smoothly. See you later!