Binary options trading is quickly becoming known by many as being one the simplest ways to make money easily and over short periods of time. Investors can use various strategies to increase their earnings, and one of them is the 'one touch' strategy. This is a basic binary trading strategy that can be used by new or less-experienced traders. Here are five tips on how to succeed at trading one touch binary options.
1. One touch binary options strategy is all about you as the trader being able to predict and decide on a target price, which is the price you feel the asset will each within a particular time frame, also chosen by you. So both the strike price, which is the price at which you buy the option, and the target price is known to you. Because of this you know just how much the asset's price must move, up or down, for you to make a profit. This in turn means that you are aware of the exact amount of money you are risking.
2. Like all other binary options trading, one touch trading has two outcomes. The price of the asset will either touch or go past the target price set by the trader and you will make a profit, or the price of the asset does not touch the target price and you will lose your investment. For you to make a profit, the asset's price will need to touch the target price you have set, within the time frame you have chosen. Once the asset price Touches the target price, the trade ends.
3. When using one touch binary options you will have to pay some attention to the movement of the assets you want to invest in on the market. For this you will need to study the market, and the asset's movements and trading patterns over certain time periods. This analysis will help you to predict which way the asset is likely to move. Assets usually belong to four categories: commodities, forex, indexes and stocks.
4. The best time to use one touch binary options is when the asset price is on the move. Whether it is moving up or down, you need to make sure that the trend is strong enough to cover your investment and make its move during the time frame you have decided upon.
5. As the usual time frame for one touch binary options trades is one week, the ideal time to trade is on weekends when the markets are closed. Most binary option traders will allow you to invest in one touch on the weekends, which gives your trade a week to touch the target price set by you. Because one touch binary options are harder to get than conventional ones, you can make up to 500 per cent on an investment, depending on what the broker you are trading with offers you.
In this day and age of instant gratification and having everything a mouse-click away, one touch binary options offers traders the chance to make money quickly and easily. And with the right preparation, you can make good profits without having to invest heavily.
Source by Jenny M White