Four Advanced Profit Reaping Strategies for Binary Options

Who Said Money Doesn't Grow on Trees?

When a trader becomes well-seasoned the flaws of novice trading strategies begin to show and the promises of more involved and often more risky techniques become much more tantalizing. The desire for higher profits outweighs the fear of risks once traders are confident in their abilities to apply basic tactics with good results. They should not waste their efforts to apply something more complex which result in a substantial loss of capital.

There are four techniques which every adventurous and advanced trader should be aware of and way against their abilities- Doubling Up, Market Pulling, Boundary Strategy, and the Long Shot Strategy.

Doubling up is an elegantly simple concept, if traders have a mastery of fundamental and technical analysis. If a trader is uneducated, or uncomfortable with market analysis- this is not the appropriate tactic to add to their repertoire as the risk of loss is significantly increased. If market analysis is strength of the trader- the tactic is to look for a trade experiencing favorable run and double the investment if the trend suggests it will continue for the near future. This technique offers the benefit of double profits, but the risk of double loss.

Market Pulling is best for traders who enjoy research and possess a deep understanding of the relationships of underlying assets and these relationships ability to pull at the prices of related assets. The concept of this technique is to capitalize on the interrelationships based on the economic calendar, so the level of work required of the trader is immense.

For traders with preference for focusing on one underlying asset in depth rather than the relationship of assets to one another- the Boundary Strategy can yield more positive results than more elementary tactics. To apply the strategy, determine the upper and lower ends of the asset’s price and predict if the price will remain in this defined range for the remainder of the expiration period. This technique instructs traders to disregard any directional movement of the price and focus on the exterior limits of the asset price. An instruction which is less confident traders may find flustering, which could cause the trader to lose focus.

Finally- the Long Shot is highly risky as the name suggests. Traders purchase an option with a predetermined return which has an excessive difference to the strike price. The payout percentage is substantially greater when purchasing options in this category and one good call can repair the damage of several bad ones. It is highly suggested that when utilizing the Long Shot- traders also employ techniques which consistently yield good results in order to avoid a capital deficiency.

As traders gain experience, they often educate themselves on new and more advanced techniques. Some even dabble in modifying old techniques in order to create something more suited to the needs of the trader’s portfolio. The four techniques here should only be used by advanced traders who would be able to apply less risky techniques and recover capital should any one of these techniques cause significant loss.