Many beginners wonder whether trading really works on a short-term basis. After initial losses, emotions come into play. The trader is euphoric at first and then becomes increasingly disappointed over time. And the disappointment will always be greater if the trader has made some profits beforehand.
Many give up trading during this time. Others come to terms with the fact that trading requires a lot more than sitting down once a day and pressing the button. Short-term trading in particular makes it very difficult. However, there are traders who understand the game, if not many. What's your secret?
First of all, beginners should say goodbye to believing traders who are too public. These are usually unsuccessful, otherwise they would not sell aggressively through the media. It also says: "Trading is so boring, that's why you now offer seminars." This is nonsense. Beginners should not be impressed by such blenders.
Strategies for binary options - step by step to the first trade
If you deal with binary options trading, you will quickly find that there are numerous strategies for To be available. But what needs to be considered when trading binary options? What is really important? How do traders find a really reputable broker? And how can traders prepare for trading as best they can from the start? In the following slideshow we have summarized the most important facts about trading in binary options and show how you can get to the first trade in just a few steps.
Keep it Simple and Smart always works
The approach of keeping the trading strategy as simple as possible is recommended by experienced traders. Many of them went through a long development and ended up back at the beginning after realizing that the best approach is the one they started out with. If beginners take this to heart, they could save time in their development.
But what exactly does "Keep it Simple and Smart" mean? As a rule, it is said that one should use the simplest setups and concentrate more on other factors, such as the right entries or risk management. For example, you do not necessarily have to load the chart with umpteen indicators and thus contribute to the confusion.
Identifying trends using moving averages or trend lines is completely sufficient. It is important to draw trends on several time levels to identify resistance and support within these trends.
The 1-day chart shows a clear downward trend. Both the upper trend line and the 20s moving average could not be overcome sustainably.
If you look at the 4-hour chart, you can see a sideways movement. The currency pair EUR / USD is currently in a sideways phase within a long-term downward trend.
If you look at the chart on an even shorter-term level, the currency pair is currently in a steep downward trend. The first step of the analysis is done. The trader only knows the following three things:
- There is a long-term downward trend on a daily and weekly basis
- On a 4-hour basis, the currency pair moves in a sideways phase
- Within the range and on a 1-minute basis, the currency pair is in a clear downward trend
But what do these findings reveal? The following: All three time levels show important support or resistance zones that you should watch out for. At the 4-hour level, the next support in a range is around $ 1.1300 per euro. The dealer now knows that the current short-term downward trend could fall into this range.
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Furthermore, he can see within which range the price is 1- Minute level moves. He now has several options to trade this knowledge:
- He can trade within the range
- He can trade the outbreak
Currently it sees after an outbreak. But trading within the range would also be conceivable.
The advantage of trading within the range is that the trader buys in a countermovement.
As you can see, it doesn't matter how many indicators you use, but what options you have to find the right entry. It is important to draw resistance and support on several time levels. This gives the trader a better overview of the overall situation.
In addition, it is often advantageous to buy in a countermovement, as this gives you a greater chance of catching this dynamic movement and getting a cheap entry point. The trade in the counter movement is implemented by many professionals.
The broker Anyoption, for example, presents the reversal strategy on its website. This is very similar to the approach presented above.
Click here to learn more about the Martingale system.