Relying on luck is not a good option since it will turn your investment into gambling, and eventually you will end up losing. There are two important aspects when talking about binary options trading:While predicting the market correctly is very good and can make you a profitable trader in almost any circumstances, there are certain strategies that can generate very good profits even for traders who are not very skilled at identifying market trends.- Big spikes in the charts mean that the asset was bought or sold in large quantities in a very small period of time. This happens mostly because speculative investors are trying to obtain short term profits. In order for them to be in profit they must close their positions, which mean they must sell what they initially bought, or vice-versa. This phenomenon is called marking the profit and has an opposite impact on the market than the initial movement. That means that every time you will see a big spike in the charts, it is very likely to see normalization afterwards. If the market raised excessively it is time to sell.- If you are more experienced in trading you can use technical indicators in order to identify trends and market movements. This is recommended only for advanced traders who know what they are doing. Technical indicators can be very tricky if they are used wrongly, and we advise you to stay away from them unless you understand the phenomenon very well. There are plenty of other ways to make profits trading with binary options, so this is not a big inconvenient. However, if you are skilled with technical analysis you should take advantage of it, because it can be a very potent tool combined with the advantages of binary trading.Another great way of improving results in binary trading is by using signals from experieneced traders. While finding a good singal providing service can be pretty hard and expensive, sometimes there are also affordable options that may prove to deliver a very good return on investment.Some people prefer to use automatic systems for trading (also known as algorithmic trading) and let the computer trade by itself. This hands free approach has the advantage of not requiring much effort and time, but those using it must always check the performance and adjust their strategies to maximize the results. When it comes to binary options you can check the algorithmic trading service from Option Bit named Algobit.The basic strategy is a simple but effective strategy for binary traders. This strategy can be used when the trades start in the correct direction. That means that if you bought a call option and the market raised (you are in the money but still need to wait until the expiry) you can use this strategy to aim high with low risks. The strategy is best described with an example, so this is what well do. Here is a sample on how this strategy can be used:Step 1: You buy a call option on EUR/USD at 1.3500 worth 100 with the expiry in one hour, a payout of 80 and a refund of 10. The market moves in your favor to 1.3520 (20 points in the first 15 minutes). In this given situation, the strategy can be used as described in the next step.There are three possibilities at the expiry:1) The closing price is above 1.3520 - the first option finishes in the money and the second one out of the money. Total investment 200 and total payout 190 (180 from the winning option and a 10 refund from the losing one). Outcome: a loss of only 102) The closing price is between 1.3500 and 1.3520 - both options finish in the money. Total investment is still 200 and total payout is 360. Outcome: a profit of 1603) The closing price is below 1.3500 - the first option finishes out of the money while the second one finishes in the money. The outcome is the same as in the first situation: a loss of 10As you can see from the above example, by using this basic strategy you can take advantage of a good start and risk only an insignificant amount with the chance of winning big. In this particular situation you risk to lose 10 in order to win 160, which is a reward to risk ratio of 16 to 1The Touch Options Strategy for News Trading (TOSNT) is our first proprietary binary options strategy, which means that this strategy was developed buy one of the traders in our team. You are free to use it if you consider it good, but as with any other strategy, you use it at your own risk and we are not responsible for any possible loss that you may incur while using it. However, it is strictly prohibited to reproduce this strategy on a different website.The TOSNT can be use only when trading the news, as the name suggests, and requires a broker that allows Touch Options. For this strategy we recommend brokers like 24 Option or Option Fair. If you are not familiar with news trading, you cant use this strategy. If you know what news trading is and what happens with the markets during the news, this strategy may be your lucky bullet to success. As with all the strategies presented here, we will use an example in order to make it easier for you to follow.Step 2: You buy a Touch Up Option and a Touch Down Option with the same value, at the same time. Lets say you are trading on EUR/USD and the price is 1.3500. The Touch Up option will pay you 250 profit if the pair will hit the price of 1.3525 in the next 20 minutes. The Touch Down will pay you 250 profit if the pair hits 1.3475 in the next 20 minutes. That means that if the market will move more than 25 points in the next 20 minutes in any direction, one of your touch options will hit.Since the NFP shakes the market with at least 50 points every time, one of your options will surely hit. If you are lucky enough and the market moves both ways before deciding which direction it goes you can even hit both targets. If you hit only one of the touch options (this will happen in most of the cases) and you invested 100 in each option, you will get a 350 payout for the winning option and zero for the losing one.
