Binary Options Strategy: Last-Minute

Simple Trading Strategy for Novice Traders

There are numerous trading strategies. So, what do you think of when you hear the term “trading strategy”?

For those who are not familiar with trading, it would be difficult for them to read the candlestick chart and use analysis tools to predict market movements. These kinds of strategies, usually used by professional traders, are not simple strategies that can be understood by everyone at first.

Here, we would like to introduce a simple trading strategy that can be easily mastered by every trader, that is, “Last-Minute”.

The Last-Minute strategy only works for binary options trading, in which a trader predicts whether the price will go up or down and the time frame is pre-determined. It is not applicable to forex trading. This strategy can be easily understood by novice traders and it is possible to make profits and reduce risks.

There are traders who prefer to use more complex strategies. However, one can say that a strategy is useful so long as the trader can understand it easily and use it to minimize risks. Therefore, a trader should, at first, learn and use simple strategies.

What is Last-Minute Strategy?

Now, let’s take a look at the “Last-Minute” strategy, which is easy to learn, even for beginners who have very little trading experience.

The Last-Minute strategy is only applicable to binary options trading, in which the payout rate does not change within the time frame. By using this strategy, traders can have a higher chance to make a correct prediction. It literally means that a trader should wait until the last minute to place a position.

・If you placed a position at point A, you will have to look at the price movements in 20 minutes.
・If you placed a position at point B, you only need to look at the price movements in 5 minutes.

Take the above figure as an example, no matter when you place a position, either 20 minutes or 5 minutes, the payout rate will not change. That is to say, compared with point A, placing a position at point B will make it easier for a trader to predict the price movements. The probability of losses due to unexpected price movements will thus become less.

For novice traders or those who are not very good at reading and forecasting long time price movements, this strategy is very useful for them to minimize trading risks.

Taking into Consideration of Features of Binary Options Trading

Next, we need to consider how we can use the Last-Minute strategy in the binary options trading. In currency binary options trading, it is less likely that large price movements or the opposite market direction will occur in a short period of time.

There are a few advantages of using the strategy by taking into consideration of the features of currency binary options trading. It is summarized as follows:

・If a trader wait until the last minute to place a position, it is possible to minimize the risks of unexpected price movements.
・In a short period of time, it is less likely that large price movements or the opposite direction market movements will occur.

It can be said that this is one of the most widely used strategies, i.e., following the trend and waiting until the last minute to place a position. There are traders who use the Last-Minute strategy when they predict that the market moves in the opposite direction. However, this involves a lot of risks. This is because that, in most cases, large price movements or the opposite direction market movements are less likely to occur.

Last-Minute Strategy Not Applicable to Certain Cases

Even though the Last-Minute strategy is one of the most widely used strategies, there is a case where it is not applicable. We have explained that it is useful to use this strategy by following the trend and waiting until the last minute to place a position. However, it is not applicable to very short term binary options.

For example, the Last-Minute strategy is not applicable to 60 Seconds options, which is a representative of short-term binary options. This is because that it is difficult to identify the trend in 60 Seconds options.

If we compare the price movements for High/Low and 60 Seconds, we can see that there is a big difference between the two options in the charts. A trader can identify the trends by reading the chart of High/Low options. However, it is not easy to identify and forecast the trends by reading the chart for 60 Seconds (i.e., Short-Term).

By looking at the High/Low chart, it is possible to predict that it is a downtrend. However, in the case of 60 Seconds, a trader may forecast that it is an uptrend, which could turn out to be an incorrect prediction. Therefore, it is necessary to pay attention to the binary options types when a trader uses the strategy.

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