One of the most popular trading strategies for binary options is the trend strategy. Many have written about this strategy and its pros and cons, so if you want to read more about the background, just go to Google and type in ‘trend strategy’. If you’re reading this because you want to put this trading strategy into practice, just follow the 3 easy steps.
Step 1: Find a Trending Underlying Asset
The first step in this binary options strategy is to find the right underlying asset. See if there is an underlying asset that shows a clear trend. Trending assets show a graph that follows an imaginary upward or downward line. Of course, the graph itself doesn’t have to go straight upwards or downwards, but a general trend has to be noticeable.
Step 2: Determine the Next Move
Most articles on trend strategies will tell you to place a trade according to the trend. So if the graph is showing an upward trend, you should always invest in call options. I disagree. You should look at the end of the graph. Is the price still going up, or can you see a change in the trend? Sometimes a trend can be over the hill (or recovering from its downfall). Check for signs of a changing trend.
Step 3: Place Your Trade
Once you’ve figured out whether the trend is (still) going up or down, you can place your trade. The question is, how much money should you invest? It depends on how certain you are about your choice. The more certain you are, the more you can invest.
Start investing in binary options using the trend strategy today! Check out one of our favorite brokers 24option.