For you to be successful when trading forex and binary options using Pocket Option, it’s important to have a solid strategy. In this article we will examine some successful trading strategies which can be used on the pocket option broker.
1. Following the trend is an effective strategy
Pocket Option users often opt for the trend-following trading strategy. This method involves identifying the dominant market trend, and then trading that way. Traders are using indicators such moving averages, Relative Strength Index(RSI), and Relative Strength Index to confirm the direction. Trading in the direction of the trend will increase your chance to make profitable trades.
2. Reversal Strategy
The reverse strategy (also known as contrarian strategy) aims at identifying potential market shifts. A trend’s momentum may be waning or it could soon exhaust. Candlestick patterns, RSI indicators and other technical indicators can help traders identify a likely reversal. Properly executed, a reversal approach can yield significant returns.
3. Breakout strategy
The breakout strategy involves identifying support and resistence levels. Trading occurs when price crosses these levels. Bollinger Bands are often used to help traders determine breakouts. Price movements can be rapid when a breakout occurs, which creates excellent trading conditions.
4. Risk Management
Risk management, regardless of what you decide to do is key. Pocket Option includes features that help you determine your exit point, like take-profit or stop-loss. For traders to safeguard their investment, they should know how much money to invest on every trade.
5. News Trading Strategy
Trade the news is all about taking advantage volatility created by events like economics, press releases, and earnings announcements. Pocket Option traders have the ability to use news alerts and the economic calendar in order to be informed of events which could affect the market. This is a strategy that can be profitable, especially during periods when the market fluctuates wildly.
6. Demo Trading: Practice
To practice a new trading strategy, you should first use a free demo account. Pocket Option gives traders a chance to test strategies on a free account using virtual money. This will help you gain confidence in executing your chosen strategy.
For successful trading in Pocket Option and other platforms, you will need to have a defined strategy, disciplined management of risk, and a continuous learning process. Select a strategy that fits your trading style, risk tolerance, and risk management. Be aware that there aren’t any foolproof trading strategies and you will lose money. Trading responsibly is key. Don’t risk more than you have the ability to afford.