Quite a few investors make the same big mistake. They make a spontaneous decision to invest in binary options and put in money for the simple reason that they just want to do it.
Just imagine that you sit at your computer and want to make a profit on binary options. You look through a list of underlying assets and choose one of them. Suddenly, with no obvious reason it comes to your mind that you will succeed. It may even seem to you that you’ve figured out the trend on the chart or you are sure of the price direction. And this is the way how investors lose money and why they leave negative comments on stock exchange trading.
When to Buy Binary Options?
If your decision is based not on your intuition, but on information received from different sources and comprehensive analysis, in this case you can invest in binary options. If you heard the news that, in your opinion, can affect the price, make surethat you are right, look at the chart and check whether your opinion correlates with the market trend. Check traders’ buying statistics and compare your opinion with forecasts. In other words, don’t rely just on a single signal.
Don’t forget to listen to the news and use fundamental analysis. This is the fundamental analysis that can help you predict stocks and indices prices and the right time to buy binary options.
On the Crest of a Wave
Also, the right moment to buy binary options is the time when the price reaches its highest or lowest point.
Sometimes, the price suddenly soars or plummets as shown on the chart below:
Typically, abrupt movements are followed by bounces. The price can bounce back two thirds as a minimum and even keep moving smoothly in the same direction.
An upswing is not the right time to invest in binary options because the price is expensive. However, it will inevitably fall a little.
After an upswing, the trend doesn’t reverse immediately. This is the reason why you need to wait until the price falls to the market level, and then you can buy binary options. Deal only with reliable and time-proved brokers offering the best terms. For instance, AnyOption limits your trading risks and has a wide choice of underlying assets.
I’ve managed to make a profit on 60 seconds binary options many times. After an upswing, I invested in the PUT binary option.
When and how much to invest in binary options are two key questions studied comprehensively. You can find many strategies on this website that will help you choose the right time to buy binary options. Also, economic calendar and forecasts can help you check other signals.
Avoid making common mistakes. Don’t buy binary options relying on luck.