Strategies for Winning in Trending Markets [Aonori School, Mr. K]
Previously, as a攻略法 for binary options, we posted a strategy that targets range markets. The idea that “predicting whether it is a range market is easier than reading the trend” might have been a spark of insight. Building on that, this time we will explain a strategy targeting trend markets.
Table of Contents
1. How to use binaries effectively
2. “Limiting losses”—what are its benefits?
3. Benefits of risk and return linkage
4. Advantages of utilizing scalping trading methods
5. Methods to profit in trending markets
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※This article is a re-edited version of FX攻略.com’s September 2016 issue
How to use binaries effectively
Hello everyone, this is K-sensei. In the previous part of Binary Options Beginner Course, Part 3, I explained that by maximizing the advantages and minimizing the disadvantages of binary options, you can more easily achieve higher returns with a smaller capital in range markets than in FX.
The basic concept is to combine the characteristic of binary options—“you can make profits even in a range market”—with the market-prediction principle that “predicting whether it is a range market or not is easier than reading the trend.” This evolves binary options, which are originally high-risk, high-return relative to FX, into a trading method that is as low-risk as possible and aims for low returns, while steadily generating profits.
When we actually guided those who requested this method, there was a very strong response, and several people achieved substantial profits.
However, the biggest weakness of this method is that the timing at which trading is possible and profitable is very limited. In particular, since 2016, in a market with high price movements, there are few moments where movement seems unlikely; even when such moments exist, ranges tend to continue and sudden moves can be large, causing the win rate to drop in a vicious circle.
So, in such market conditions, should binary options not be used? My answer is “NO!” However, to continue generating profits, it is necessary to choose strategies that fit the current situation.
That is the basic idea of the trend-market攻略法 (tactics) for binary options that we will introduce today. This method requires fully utilizing another major feature of binary options—“the ability to limit losses”—and the fact that “risk and return are linked.”
