With only two possible outcomes, and not much financial know-how required on the part of the
investor, binary options are very simple investments to make, and can be traded easily online on
websites such as Citrades. Still, there are some strategies which can help an investor make more
profits, more often. A number of these strategies are made accessible to everyone by well-
meaning experts. A few of them can be discussed as follows.
Strategy for a Market that is not very Volatile
In a market where there is not much fluctuation, it will be seen that a sort of balance is always
maintained. That is to say, if the price of an asset rises for some time, it will eventually come down
as well, and close somewhere near the original price of the asset. This information can be used to
analyze the price chart of an option, and based on this, a Call or Put option may be purchased. If
the price of the asset is expected to go up, a call option is to be considered. A put option should be
used if the price is expected to go down. This kind of strategy is best used when the expiry time of
the contract is short.
When the Market is Following a Trend
One can expect to make a profit on the market only if he or she has some information about it.
Without such information, trading in binary options is just a risky gamble. Keeping up with
important market events is very important, such as whether an asset has been following a trend of
late, whether some big announcement is to be made by a corporation that can affect asset value,
etc. This will give the investor a clearer picture regarding what to anticipate from the market.
Bullish and Bearish Strategies
Either bullish or bearish strategies can work well with binary options. The former are to be
employed when it is expected that the price of an asset would go up, and the latter are reserved
for when it is expected that asset value would drop. There are many different categories of bullish
and bearish strategies too, (which investors can read about more on the Citrades website). Once
again, it is important to stay updated on market trends for gaining clues about how the market will
behave on a particular day.
It cannot be said that a certain strategy will result in definite profits. No matter how thorough
one’s research is the market can act in a way that could not have been predicted earlier. The
strategies available online and tools of analysis provided by other websites, can give you an idea of
the direction of movement of the market, but risks still remain. It is best to enter the market with
a plan and stick to it, no matter how trade proceeds. A definite amount of money to be invested
should be decided upon, and it should not be exceeded in any scenario. When you make discipline
your habit, you certainly can flourish in this market of odds and evens.
