THE HOT WINDOW
Part two: Timing your trades for success
There are many variables that determine successful trades. The one at the top of the list is timing. Many factors can create volatility in daily market prices. Because binary options are based on the market price, volatility can have a negative effect even on a well researched and planned trade. On the other hand, if a trade is well timed, volatility can be in your favor, and bring you substantial returns. Assets react to the market differently. Studying an assets price fluctuation will help you know at what rate its prices change. Using this information will help you know the best timing to successfully trade that asset.
Choosing the best timing to invest in the binary option
Here, we’re going to provide you with tips for timing your trades to have the largest profit gain potential.
Investing on Assets
Like we mentioned above, assets react to the market differently, and because they do, all assets cannot be traded the same way. The first step is to understand your assets behavior to determine if it’s a short term or long term stock. One asset can provide a long-term profit opportunity, and another can literally generate a substantial return almost instantly because of its spontaneous price fluctuation. Every asset needs to be handled by its appropriate time slot if you want consistency while maximizing profits. Study the rate an assets prices fluctuates inside its time period, until you’re comfortable categorizing that specific asset as a long term or short term asset.
Dealing with stocks
There is a six or eight hour period that a trader wants to always consider when trading stocks daily because it’s the time difference between the U.S. markets and other markets across the globe. The most significant times to monitor are the U.S. market and the European market when investing in stocks. You also want to pay close attention to the other markets that your stocks are trading in. Monitoring the markets will tell you when to invest or withdraw your funds from stocks appropriately.
Handling Commodities and Currencies
When handling commodities, its important to do so at specific times. Investments in natural gas, for example, will give better results between 9AM to 2PM EST. Over time, you will have a broader understanding of the time periods commodities trade better at. Currencies also work relatively the same. Investments have better profit potential when time zones of regions are affected by currency collide.
Understanding timing will increase your certainty in the market, and will help you develop healthy trading habits for maximum trading performance. It’s a good idea to study instances where you not only gained money but also lost money to increase your knowledge of asset behaviors and sharpen your timing habits.