Saturday, February 8th, 2014 by Tim Lanoue
One of the most difficult tasks given to binary option traders consisting of any experience level would be to profit with binary options. I feel that the majority of experienced traders beat around the bush to new or less experienced online traders about how challenging it can actually be to profit and earn a substantial amount of income with binary options. Luckily for you, the aim of today’s article is to provide you with a few tips that will help you succeed as an early bird binary options trader.
Early morning trading hours can be a challenging time frame to trade but sometimes not everyone is able to intra-day or night trade leaving them with no choice but to try and earn some money in the morning. Moving forward we will cover your ideal setup along with a couple tips and key factors to watch for when trading during early hours.
Trading during early market hours can be made easier when we trade assets that tend to display a relatively low amount of volatility. A few assets that have low volatility would be the EUR/USD, USD/CHF, and the Apple stock option. Since we are trading during the opening hours of the market we want to make sure to keep our asset selection down to one or two of the assets listed above. We don’t want to overwhelm ourselves or pick an asset that could ultimately hinder the success rate that we aiming for.
Trading Hours Tip #1
Take special note of support and resistance levels that occurred the previous day. Oftentimes the price of our assets like to flirt with these levels the next morning so the probability of bounce plays are high. Bounce plays off support and resistance levels are the most common type of movements during the opening market hours then after our first initial bounce play we wait for retracements to occur. For those of you unfamiliar with what retracements are they are short-term reversals that occur during the long-trend of the asset. Oftentimes a retracement will occur about an hour or so after the opening of the market, so if you notice a strong upward or downward retracement then make sure you place an end-of-day trade in the direction of our retracement, more than likely it will end in your favor.
Trading Hours Tip #2
Involves no technical analysis but instead fundamental analysis. Fundamental analysis for those of you who are unsure is a form of analysis that requires the oversight of an asset’s financial health, competition and press releases. Press and news releases are the most common form of fundamental analysis as they can dictate the price of a certain asset for an extended period of time. Take for example that Apple is going to release the iPhone 6 tomorrow at 7 A.M. EST, you can be more than sure that the price of the stock Apple will rise significantly after the announcement of the iPhone 6 release so we go ahead and place a call trade. This is simple example that can used with any of our assets, it just takes a little bit of common sense to predict the probable direction that the asset will head.
Trading online with binary options is not as easy as it is made out to be. It takes dedication, experience and a strong-willed person in order to succeed in the industry. Think about it like this, you are already one step ahead of everyone else by visiting this blog, if you have any questions or comments please feel free to leave them below.
Learn more about Binary Options Trading Patterns on the BinaryoptionsChannel.com