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Binary Options Guide E-book | Thomas Jan
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INTRODUCTION TO BINARY OPTIONS STRATEGIES

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Binary Options Trading Requires Very Little Experience
The common misconception is that binary options trading can only be done by one
that has a certain amount of experience in the area. There is no requirement to have
any previous experience in financial trading and with a little time, any skill level can
grasp the concept of binary options trading. The basic requirement is to predict the
direction in which the price of an asset will take. The price will either increase (call) or
fall (put). Successful binary options traders often gain great success utilizing simple
methods and strategies as well as using reliable brokers such as IQ Option.
How to minimize the risks
Our goal is to provide you with effective strategies that will help you to capitalize
on your returns. These are simple techniques that will help to identify certain signals in
the market that guide you make the proper moves in binary options trading. Risk
minimizing is important for every trader and there are a few important principles that aim
to help in this area. Binary options trading can present several risks but to decrease
them, take the following into consideration.
• Never invest the entirety of your capital at once
• Review the dynamics of your trading asset prior to investing
• Exercise the strategy by investing only 5 to 10 percent of your equity per
placement
The Strategies
There are several assets to select from in binary options trading. However, the
oldest and most effective approach to minimize risks is to focus on a single asset. Trade
on those assets that are most familiar to you such as euro-dollar exchange rates.
Consistently trading on it will help you to gain familiarity with it and the prediction of the
direction of value will become easier. There are two types of strategies explained below
that can be of great benefit in binary options trading.
1. Trend Strategy
A basic strategy most adopted by beginners as well as experienced traders. This
strategy is often referred to as the bull bear strategy and focuses on monitoring, rising,
declining and the flat trend line of the traded asset. If there is a flat trend line and a
prediction that the asset price will go up, the No Touch Option is recommended.

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If the trend line shows that the asset is going to rise, choose CALL.
If the trend line shows a decline in the price of the asset, choose PUT.
This method works the same as the CALL/PUT option except in this case, you
select the price at which the asset must not reach before the selected period. For
example, Google’s share price is $540 and the trading platform is on the No Touch price

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of $570 with percentage returns of 77%. If the price doesn’t reach $570 after the
specified time, then there is a gain.
2. Pinocchio Strategy
This strategy is utilized when the asset price is expected to rise or fall drastically in
the opposite direction. If the value is expected to go up, select CALL and if it’s expected
to drop, select PUT. This is best practiced on a free demo account from one of the
brokers.
3. Straddle Strategy
This strategy is best applied during market volatility and just before the break of
important news related to specific stock or when predictions of analysts seem to be
afloat. This is a highly regarded strategy utilized throughout the global community of
trading. This is a strategy best known for presenting an ability to the trader to avoid the
CALL and PUT option selection, but instead putting both on a selected asset.
The overall idea is to utilize PUT when the value of the asset is increased, but
there is an indication or belief that it will being to drop soon. Once the decline sets in,
place the CALL option on it, expecting it to actually bounce back soon. This can also be
done in the reverse direction, by placing CALL on a those assets priced low and PUT on
the rising asset value. This greatly increases chances of success in at least one of the
trade options by producing an “in the money” result. The straddle strategy is greatly

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admired by traders when the market is up and down or when a particular asset has a
volatile value.
4. Risk Reversal Strategy
This is indeed one of the most highly regarded strategies among experienced
binary options traders across the globe. It aims to lower the risk factor associated with
trading and increase the chances of a successful outcome that results in positive profit
gains. This strategy is executed by placing CALL and PUT options simultaneously on an
individual underlying asset. This is especially beneficial when trading on assets with
fluctuating values. Naturally, binary options can experience two possible outcomes and
trading on a two for two opposite’s predictions over an individual asset at once,
guarantees that at least one will generate a positive outcome.
5. Hedging Strategy
This strategy is commonly known as Pairing and most often used along with
corporations in binary options traders, investors and traditional stock-exchanges, as a
means of protection and to minimize the associated risks. This strategy is executed by
placing both Call and Puts on the same asset at the same time. This assures that
regardless of the direction of the asset value, the trade will generate a successful
outcome. This provides the investor with profits of an “in the money” outcome. This is a
great means of protecting yourself as an investor in whichever scenario is produced. It’s
sort of an insurance method that prepares you for any scenario.
6. Fundamental Analysis
This strategy is mostly utilized during stock trading and primarily by traders to helm
gain a better understanding of their selected asset. This increases their chances of
accuracy in the prediction of future price changes. This approach involves conducting
an in-depth review of all of the financial regards of the company. This info should
include earnings reports, market share and financial statements. This review helps the
trader to better understand the previous activity of the asset and its reaction to certain
financial or economic changes. This review helps the trader to make a strong prediction
under familiar circumstances in future trading strategies. Keep in mind, that using a
good binary trading robot can help you to skip these steps completely.
The best way to practice is to open a free demo account from one of the Brokers.

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