In order to trade Binary Options profitably, Technical and fundamental analysis of the market needs to be undertaken as there are many vital factors you need to take into consideration in order to maximize your profitability while participating on the financial markets.
The Most important Factor to consider is PRICE ACTION. Price Action can take many different forms and includes many different types of techniques but overall the most common method to using price action effectively is to keep primary focus on both historical and current movement of price.
Learning how to interpret price action is a key part in becoming a successful binary option trader.
Binary Option Alliance has available on Youtube, to access the training, sign up to the free signals and video training course in the top right of this page;)
To keep things simple I have outlined a few of the methods and techniques I use on a daily basis to earn an income from trading.
There are other factors to consider before taking a position into the market, these include:
1. News releases and Current Events
Always check the latest news releases on the economic calender which can be accessed via my RESOURCES PAGE HERE.
2. A.D.R- Average daily range
A.D.R is the average amount of points/pips the market moves on a daily basis. (in order to calculate whether or not the market has room to move up or down)
3. A.T.R- Average true range
Average true range is calculated by assessing how much the market has moved in the last 4-5 hours (in order to give an idea of how much the market will move in the next couple of hours)
4. Swing Symmetry
Swing symmetry is basically the amount of pips/points the market moved during its most recent swing,( most recent high-most recent low) this will also give you a general idea of what sort of time frame you should be trading in.
5. Assess Volatility
Volatility shows the range to which the price of an asset or security may increase or decrease. You can find out more information on Volatility and how it can be used on the TOOLS PAGE HERE
Remember: It takes time to learn these techniques- its not just going to be hardwired into your brain overnight- Just like most things in life, successful trading takes time, effort and dedication! Some people pick it up straight away, for others it can take months.
PRACTICE CAN AND WILL IN MOST CASES MAKE PERFECT.