Binary Options Trading Strategies: When Should You Trade?
Binary options have been making a lot of financial traders curious. A now famous trading market, binary options trading is pretty different from the normal kind of trading which is the first reason why it is already becoming popular catching the attention of financial traders alike. Binary options are gaining so much popularity for a whole lot of reasons. So, how are binary options becoming a popular trading market?
Binary options trading gives the trader the power to predict the estimated value of a fundamental asset which is then set as a condition in a binary options trading contract
An agent of binary options trading recommends an appropriate premium for the option and the trader can choose whether or not to go after the deal
What is Binary Trading?
Binary trading is a new and exciting method of trading. With binary options, trading has been made a lot easier; all you have to do is predict whether an underlying asset will increase or decrease in a certain period of time.
There are also some rules which are part of the binary options trading depending on the broker’s site. You will never have to care about tons of different charts and indicators because everything you need is available through the binary options site. But, of course, nothing is really ever perfect because there are still flaws you can encounter.
While binary options trading is growing more and more popular these days, this does not assure that it is an easy money making option. That’s why we’re here to help you lessen the hardships you may encounter with these following tips on binary options trading.
Approach #1: Stocks Timing
As mentioned, stocks are typically traded for 8 hours maximum daily. Stocks of major companies from outside the US that trade on US stock markets are called ADRs or American Depository Receipts. That’s why the markets from the US are often used as a basis for examining the hours for trading stocks. Stock markets from the US frequently trade between 9.30am to 4pm New York time, or EST.
Nevertheless, other European markets are as essential, such is the FTSE (operating from 7am to 3.30pm GMT) and Germany’s Xetra Dax (operating from 8am- 4.30pm GMT). If you plan on exchanging binary options trading stocks, you must know the times when the particular stock operates.
Approach #2: Monitor Currencies’ Activities
The popular Forex market is at its busiest during these overlay time zones- London/Asia and London/New York.
You must also know that the local currencies of the time zone that is active will have an impact on the improvement of volatility or instability above others. For example, the Australian Dollar is more dynamic all through the time zone overlap of Asia/London than the time zone overlap of London/New York.
Commodity markets are at their busiest during these following times:
Crude Oil (NYMEX.CL): 9AM-2:30PM. EST
Natural Gas: 9:30AM TO 5:15PM, EST
Corn: 9:30AM-1:15PM, EST
Gold: 8:20AM -5:15PM, EST
Silver: 8:25AM-5:15PM, EST
You could also check the times of trading by clustering the commodities based on the exchange markets where they are being traded. The Chicago Mercantile Exchange usually trades the agricultural commodities between 9:30AM-1:15PM EST and between 6PM-7:15AM EST of the following day. Complete information trading hours are available on the CME Group’s website.
The Worst And The Best Times To Trade Binary Options
Many binary brokers like to advertise the fact that you can trade binary options round the clock. You can trade 24/7 on our platform, they will often claim.
But of course just because such a possibility exists no one should ever be tempted to try it.
If you’re a scrupulous trader and you try to follow and trade the markets using technical and/or fundamental analysis, you will eventually come to an inevitable conclusion that markets shouldn’t be traded round the clock.
You will realize that there are certain times when it is easier to trade binary options or Forex, just as there are certain times when trading activity should be suspended.
The worst time to trade binary options
Let us first focus on times when we shouldn’t continue to trade. In binary options it’s more important to know when not to trade because losses exceed your winnings with most options.
So when is the worst time to trade binary options (or Forex or any other market for that matter)?
The worst time to trade binary options is right after a winning trade.
The main reason for this is because when we win we get a temporary high feeling from the winning trade, a ‘rush’ that obscures our cognitive senses and we tend to believe in upcoming good trading opportunities a lot easier. This is scientifically proven and there are numerous studies on this subject.
When we win, the brain releases a hormone called dopamine which basically makes us feel very good. The problem is that the as soon as that ‘dopamine high’ starts to diminish, the brain seeks opportunities to get another boost of dopamine.
We are then much more likely to see good trading opportunities in the charts or price action and trade on them quickly.
Chasing winnings is binary options can drain your account very quickly. The best solution to control this type of behavior is to follow your trading plan and remain in control.
Tip! Often the best method is to simply walk away from your computer and cool off for a couple of minutes.
The worst time to trade binary options is right after a losing trade.
Similarly, but for different reasons, one of the worst times to trade binary options is after you’ve just lost a trade. The reason for this is that in such a situation we feel a powerful urge to make up for the losses.
This pressure to recover our losses can also cloud our judgment when it’s most needed. As a result most traders rush into another trade.
If this isn’t bad enough many binary option traders make the big mistake of trading a higher amount in the next trade to cover the initial loss. Needless to say, this type of habit often leads to even bigger losses.
Tip! Again, one of the most effective methods to deal with losses is to keep calm, walk away from your trading station and have a glass of water and take a few deep breaths. Some traders like to do push ups or other quick physical activity to drain their body from the built up tension.
Trading when markets are inactive or sideways.
Trading binary options when markets are not very active may also be quite risky. The main reason for this is that the price action of underlying assets is less predictable without the presence of big influences and clear trends.
This largely depends on your strategy and your chosen options but generally if you’re trading lower time frames it is advised not to trade when market activity is low and trends can not be clearly defined.
Sideways market is often characterized by small candles moving within a narrow sideways channel. They reflect indecision among investors and often also show the absence of market movers.
Tip! The most active market exchange is during the London/New York overlap sessions.
Trading during news announcements and economic releases.
Certain news and the publication of economic data, such as Unemployment rates or Interest rates can cause prices of relevant assets to shift quite suddenly.
Many binary option traders have lost because they traded during such influential announcements.
Unless you’re a dedicated news trader and your strategy is based on the impact of news, it’s best to close your trades before any major news releases. To find out the times of of the most influential releases take a look at our economic calendar page.
Tip! Many traders like to trade after a big release when a new trend has been established and it is confirmed by the price action and trend lines.
The Best Time To Trade Binary Options
Now that we have looked at the worst times to trade binary options let’s examine when it is the best time to risk your hard-earned money on trades.
Best time to trade is during trending markets.
As it was mentioned earlier that one should not trade binary options during a sideways market, it makes sense the opposite would be true.
In fact, one of the best times to trade short term binary options is during a trending market. This means that trend can be clearly defined, it may be going up or down in a nice channel.
Of course, how you trade the price action within a trending channel is up to an individual trader and his or her own trading strategy.
Tip! However, it should be mentioned that generally speaking trading with the trend is a lot easier than trading trend reversals.
Markets are trending when market makers are trading, this usually falls during the busiest market sessions, the London and New York. It is no coincidence that many professional binary option traders trade live during the London/New York overlap sessions.
However this also depends on the trading strategy, the traded assets and your physical location. If you’re in Asia you might prefer to trade during the Asian sessions.
If you are not familiar with technical analysis or don;t have the time to look at the charts and analyse them, you can subscribe to a professional signalling service that will help you find better trading opportunities much easier.
Best time to trade is when you’re alert, calm, and well rested.
If you intend to trade binary options you should never do it when you’re desperate for money, feeling down, or if you’re frustrated, tense, and tired.
In order to beat your broker’s odds and win at binary options you need to be well rested.
Tiredness will make you miss many good opportunities and you will be unable to think clearly.
Trading is not a game. It is all about calculating probability and you can not do that when your mind is not fully alert. Your mind is the best trading tool you will ever have at your disposal so it needs to be cared for very well.
Likewise, one should only be trading binary options with a calm mind.
The right psychology is very important in trading.
A stressed mentality will result in mistakes and and tangible losses. This in turn will produce even more stress and may lead to even more trading errors.
So the best time to trade binary options is when your mind is calm and your body well rested. It’s when you are positive about your trading and you are clearly focused on accomplishing your goals.
Tip! Many traders take on Yoga and/or meditation practices that help to calm and control the mind and body. Before each trading session some may also find helpful listening to inspirational and motivational speeches or music to get into the right mindset.
Few final words
We hope this article helped to shed some light on the worst and the best times to trade binary options. Please note that times when to trade and when to avoid trading should be clearly outlined in your trading strategy and trading plan.
Please leave your comments below and share your advice and experience.
Regulated Binary Options Brokers: Complete Guide
What are Regulated Binary Options Brokers? Why Choose Regulated Binary Options Brokers? Top 3 Best Regulated Binary Options Brokers
What are Regulated Binary Options Brokers?
The chances are that if you are looking to understand what regulated binary brokers are, you probably already understand a few about binary options brokers. For the sake of those who stumbled upon this article, and have never heard about binary options trading before, here is a quick explanation.
Binary options trading is a form of online trading, where you can only lose your whole investment or profit with a predetermined margin. Conventional stocks or forex trading usually involve fluctuating values. You can never tell how much you will profit or lose until the trade is over. Binary options brokers are the enablers of this trader. They make the trading assets available for you to trade.
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My Recommended Regulated Brokers
Min Deposit ($)
Min Stake ($)
Max Payout (%)
Back to regulated binary options brokers. There are many binary options brokers operating in different countries around the world. The brokers handle their clients’ funds, and hundreds or thousands of transactions. A lot of funds exchange hands within these platforms. Such circumstances require the parties involved, especially the brokers to be of high discipline. So, who regulates binary options brokers? In a bid to avoid dubious undertakings and scams, there are regulatory bodies in various countries that govern the operations of binary options brokers. Regulated binary options brokers are those brokers under the regulation of such authorities depending on the countries in which they operate. We compiled one of the best regulated binary options brokers reviews. This guide aims at leading you to the best regulated binary options brokers.
Different countries have different laws and regulations concerning binary options trading. Some countries even allow unregulated binary options brokers to operate. It is always advisable to trade with regulated binary options brokers. We will expound more on why you should only trade with regulated binary options brokers. Below is a list of countries where most of the binary options brokers available operate from;
Each country has a different set of regulations concerning binary trading. Among the most respected countries regarding binary options trading regulations are the USA, the UK, and Cyprus. Let’s take a quick look at the regulatory bodies in these countries.
Cyprus boasts of binary options traders that have the largest numbers of subscribers. Their laws and regulations are a bit flexible, and they allow many people from different countries around the world to trade on these platforms. Their regulations are quite effective too. Cyprus has some of the most trustworthy binary options traders in the worlds.
Cyprus was the first country to recognize binary options as a financial instrument, allowing many brokerage firms to sprout. CySec (Cyprus Securities and Exchange Commission) is Cyprus’s body that regulates the firms operating in Cyprus. It is a respected regulation authority around the world. CySec laws and regulations are aligned to those of the EU allowing many traders from all over Europe to get involved. The laws and regulations are quite different from those in the USA though! This makes it difficult for USA residents to engage on brokerage platforms from Cyprus. A majority of the binary options brokers from Cyprus, if not all, do not admit traders from the US. Brokerage firms can still operate in Cyprus with licensing from CySec. However, clients will always prefer a regulated binary options broker.
The USA has the strictest laws and regulations as far as binary options trading is concerned. In fact, very few binary options brokers from overseas can afford to engage traders who are residents in the USA. Binary options trading is part of the US Financial markets and is under the regulations of CFTC (Commodity Features Trading Commission) and the U.S SEC. (Securities exchange commissions). These bodies are mandated with licensing binary options brokers in the US. Many of the binary options traders operating in the US are based in the US. The regulatory bodies insist on being able to monitor and audit their operations constantly.
Majority of the offshore binary options brokers that operate in the US are from the UK. USA’s regulatory bodies have the means to monitor the binary options brokers in the UK. Brokers operating in the USA are seen as the most secure and reliable binary trading brokers.
The UK takes pride in being the source of binary options brokers. Many of the first binary options brokerage companies were started in the UK in the early 1990s. UK’s laws and regulations concerning binary options trading have been quite different from those in other countries for some time. The UK has for long allowed free interaction between its residents and binary options brokers. The regulations have since changed though. Just like in the USA, the UK laws and regulations have become strict, and brokerage firms are required to be licensed and regulated by the FCA (Financial Conduct Authority). The authority also constantly monitors and audits the brokerage firms.
The similarity in the UK’s laws and regulations on binary options trading and those in the USA has made it fairly easy for UK’s brokerage firms to admit USA’s resident traders. UK’s brokerage firms are currently some of the most respected around the world. They also command a good share of the market. They admit clients from many countries around the world. Brokerage firms also subscribe to the regulations of authorities in other countries, so that they can be attractive to traders in that country.
So, why is it important to have the binary brokers regulated? Why do countries such as the UK and USA have strict regulations concerning binary options brokers? Why is important that you trade only with regulated binary options brokers? Let’s find solutions to these queries.
Why Choose Regulated Binary Options Brokers?
The main reason why you should only choose regulated binary options brokers is so that you don’t get duped. Whenever you fund an account on a binary options broker’s platform, you are entrusting them to handle your money for you. Therefore, it is important that there are watchdog authorities that ensure the brokers handle your money right. Let’s get into the nitty-gritty of how binary options brokers handle trader’s money, and how the regulation authorities protect you from getting scammed.
My Recommended Regulated Brokers
Min Deposit ($)
Min Stake ($)
Max Payout (%)
Binary Option Brokers Operations
The reason binary options brokers are in operation is that many people do not have the capital to trade in the stock or forex markets directly. They give traders with small amounts of capital access to the markets.
They combine identical trades from different traders (since only binary options are involved there is a bulk of identical trades) and the amounts stakes and put execute the trade on the main market. They, therefore, trade on the main market on your behalf. You need to be sure that they will put up your trade the way you put it, and they will use your money for exactly that purpose.
The other form of engagement is where the binary options brokers buy the binary options from the main market, and you buy the options from them in turn. In both instances, the flow of funds is similar.
So why should you have confidence in the fact the binary options traders are regulated? How does the regulation protect you?
First, a regulated binary options broker indicates that the broker has the best interests of the traders. It indicates that they want you to profit from the trade. It is important to note that binary options traders can profit in both ways. They can profit if you lose or win.
Regulated brokers have to keep their client’s assets independent of their company’s assets. They cannot use your assets to trade on the market if you have not initiated any trade. This means whatever happens to the company, the trader’s money remains intact.
For the binary options to be licensed by the regulatory bodies, they need to show proof and guarantee that they have the adequate financial capital needed to run their trading operations smoothly. The trades you make, start immediately you confirm. The broker, therefore, needs to have enough funds ready to cater to the clients on their platform.
Governments across the world are beginning to appreciate the binary options trading is a legitimate investment channel. They also know it is very easy for traders to be duped. There are two main reasons why government authorities are choosing to regulated binary trading brokers.
One, as already mentioned, need to ensure that clients are offered legitimate services by the brokers, and the brokers handle client’s money responsibly.
As with any other investments, there are profits and losses. You all know the government wants tax everywhere there is any profit. The regulation allows the government to cash in on the profits made, more so by the binary options brokers.
At this juncture, it should be pretty clear to you why you should only go for regulated binary options brokers. You are always at your own discretion to choose whichever broker you want to work with. You will lose nothing by choosing a regulated broker though. Also, note that there are binary options brokers that claim to be regulated in weird jurisdictions. Some of these jurisdictions have no proper systems in place to regulate the brokers. The most reputable and trustworthy jurisdictions are those from the countries mentioned above. It is prudent to stay away from binary options brokers claiming to be regulated by jurisdictions that have a history of money laundering, and tax evasion havens.
So, you have finally decided that you need to trade with a regulated binary options broker. Right?
If you follow the guidelines above, you will find a lot of available brokers. You will most likely be left confused concerning the broker you should choose. Apart from regulation, there are a few other factors you should consider before settling on any binary options broker.
Maximum payouts – different brokers offer different profit percentages when you win a trade. Higher percentages are always attractive. However, take time to explore other services offered by the broker. Some brokers will have low payout percentages but will offer you great resources that can help you win trades.
Minimum deposit – different brokers require different amounts of initial deposit to issue you with an account. Obviously, you can only work with the broker whose minimum deposit you can meet.
Below are three reputable binary options brokers that you could consider trading with.
Best Regulated Binary Options Brokers
You will find a long binary options brokers list if you go searching for some. Which binary options brokers are regulated? Which ones are trusted binary options brokers? There are many different binary option regulators that control trustworthy brokers. You could go for binary options brokers regulated by asic or binary options brokers regulated by cftc. binary options brokers who are regulated with the cftc are usually those looking to operate in the US. We shall look at binary options brokers regulated by cysec and binary options brokers regulated by fca since they are the most popular currently.
My Recommended Regulated Brokers
Min Deposit ($)
Min Stake ($)
Max Payout (%)
IQ Option is one of the best, if not the best, binary options brokers. The Seychelles-based broker operates under the regulation of CySec. As we have already established CySec is also a reputable and respected regulation authority. IQ Option was launched in 2020 and has seen consistent growth since then. Consistent growth in an indication of satisfied traders and high winning rate. IQ Option has over 25 million subscribers as at now.
IQ Option trading platform offers you up to 77 assets to trade with. They offer three types of accounts on their platform. The accounts are;
DEMO account- this is a virtual account that is offered to a new member on the platform so that they can learn how to trade. Binary options trading is available to everyone. It is prudent to start here if you have no idea about what binary trading is.
REAL account – This account gives you access to the real market. The account attracts a minimum deposit of $10. The account offers a cash back option of up to 45% too. You also have access to the web brokers trading competitions. A deposit of $100 and above will earn you free trading signals, and you also get access to more trading opportunities.
VIP account – this account attracts a minimum deposit of $3000. The account offers you unlimited access to trading opportunities. IQ Option will also give you a dedicated account manager and trading insights from their resident analyst. The account also offers refunds of up to 60% when you make wrong predictions.
The minimum deposit on IQ Option is $10 for a real account or $3000 for a premium account
The minimum investment is $1
The maximum returns are 95% profit on your stake
IQ Option offers no bonuses.
IQ Option operates a proprietary web, and Android and iPhone platforms
IQ Option is recognized by many players as one of the best binary options brokers 2020. It is also one of the best binary options brokers with low minimum deposit, and one the best binary options brokers regulated by CySec.
Raceoption is a UK-based binary options broker. It is subject to the laws and regulations of the FCA (Financial Conduct Authority). UK regulations have gotten tighter in recent years. Raceoption has stood out as one of the most compliant binary options brokers. The company has managed to get itself in the USA market too. That’s a strong point for any binary options broker. Raceoption has been operating since 2020 and has 1570 subscribers as of now. It boasts of average trader earnings of 1217 per month.
Raceoption offers you over 100 assets to trade with. They offer three types of trading accounts too. The trading accounts are.
Bronze account- this trading account attracts a minimum deposit of $250. The account’s privileges include; demo account, copy trading tool, 1-hour withdrawal, 24/7 live support, and a bonus of 20%.
Silver account – this trading account attracts a minimum deposit of $1000. The account comes with all the privileges in the bronze account plus a master class training, up to 50% in bonuses, a dedicated account manager, and first three risk-free trades.
Gold account – this account attracts a minimum deposit of $3000. The account comes with all the privileges of the silver account plus, up to 100% in bonuses and integrated technical analysis.
Raceoption has one of the best binary trading sites. The sites are user-friendly and very responsive. Raceoption is one of the best binary options brokers regulated by FCA. It is one of the best binary options brokers uk. It is also one of the best us regulated binary options brokers.
Raceoption offers up to 90% profit on the stake in payoffs.
Binarymate is yet another reputable UK-based binary options trader. It is also under the regulation of the FCA (Financial Conduct Authority). It is also regulated and licensed by CySec. Binarymate is another one of the few binary options brokers that admit US traders. Binarymate is a recent entrant into the binary options scene. It has managed to gather 5372 subscribers in a short while. Binarymate is best binary options brokers for beginners. It offers a wide array of educational resources to help you learn.
Binarymate offers over 100 assets for you to trade with. They offer three types of trading accounts too. The trading accounts are;
Bronze- this account attracts a minimum deposit of $250. You are also offered up to 20% bonus on your deposit.
Silver- this account attracts a minimum deposit of $1000. You are offered up to 50% bonus on your deposit.
Gold- this is the ultimate trading account on Binarymate. It attracts a minimum deposit of $3000. The account offers you either a bonus of $250 or risk-free trades.
You can choose to start with a demo account if you are a green beginner. You might not want to invest your money before you have learned the ropes of engaging on the Binarymate platform. Below are a few advantages to the Binarymate platform.
Steller customer support 24/7 live video chat support
1-hour withdrawals processing time
Secure trading, and ample data protection
Binarymate pays maximum returns of up to 90% profit on the stake. The broker allows US traders on its platform. It is one of the best binary options brokers us.
These are three legit binary option brokers that you can choose to trade with. Other binary trading reviews will suggest different brokers depending on their findings. Trading binary option 2020 is one of the ways of making money online in 2020. It is not straightforward or easy though.