Double Profit Method.
In order to maximize your profitability with binary options, it is important to capitalize on the right market conditions. Here I would like to demonstrate a simple strategy that minimizes risk and maximizes profitability.
(If you are not familiar with option trading I suggest you first check out Option trading Explained)
The concept is quite simple, Markets move up and down- in other words-they fluctuate. To double your profits you will need to take advantage of the swings of the markets.
As you can see in the image below the price history (green and red bars in the top section) has travelled upwards for a period of time, so when my indicators begin to signal a reversal, (see the green arrows) I place a PUT trade with an expiry up to 1 hour (shown by the vertical white line) The horizontal white line indicates the level at which I placed the trade, which was @ 1.11031 . So what I’m predicting is that at the time of expiry (vertical while line) the price will be below the level 1.11031
The image below is sightly more zoomed in to give you a clearer idea of what is occurring.
In this image (above) you can see the price level has increased past my trade level of 1.11031 and is at now @ 1.11041 and I am now out of the money and the fear of loss is upon me. As I keep my emotions stable I refer to my indicators which indicate a downward move soon so I am relaxed and ready to place a CALL trade when the market reaches a lower level than 1.11031 in order to protect my initial investment.
As you can see in the image above that the price did in fact move downward below my trade level of 1.11031 and I have now placed a CALL trade @ 1.11000 ( shown by the second lower horizontal white line) using the same expiry time (vertical white line) , The first prediction is saying the price level will go down (below 1.11031) , and the second prediction is saying the price level will go up (above 1.11000)
As you can see, in either case I will win one of the trades. If the price level goes down I win on my first trade. If the price level goes up- I win on my second trade- minimizing risk. If the price level expires between 1.11031 and 1.11000 I will win both of the trades, doubling my profit. Lets see how it plays out in the following images.
In this image it looks as if I am going to loose my first trade predicting it will expire below 1.11031, my emotions are stable and I notice the indicators signalling a downward move is about to occur .
BA-BOOOOOOOOOM!! both trades expire IN THE MONEY @1.11013 which is below my PUT of 1.11031 and above my CALL of 1.11000 so I bank myself double profit, rinse and repeat.
Interested in seeing more trades of mine, check out my Recent Trades