ExpertOption is a fairly new binary options broker that has been steadily rising. The broker has 8.5 million subscribers since its inception in 2015. ExpertOption is based in St. Vincent and the Grenadines and provides a wide range of trading accounts depending on your financial capability. The drastic rise of ExpertOption indicates that there is something that ExpertOption is doing right. A good number of people are probably making profits on ExpertOption. So, what does it really take to make profits on ExpertOption? Well, just like on any other binary options brokers, it takes strategy. We like to remind our readers that trading without a strategy is gambling. It is like tossing a coin.
We pride ourselves in being able to educate you about various binary options brokers and their operations. We are going to look at how you can employ the technical analysis strategy in ExpertOption. Technical Analysis is one of the most renowned strategies of trading in binary options. It has been tested and proven to be effective. Binary options trading can be very rewarding when you have a robust strategy. We seek to educate you on the strategies you can employ. However, it is important to note that the information outlined in this guide is not a blueprint for making money on ExpertOption.
Basics of Technical Analysis
Technical analysis is a trading strategy that pays attention to the charts and price fluctuations, rather than efficiency ratios. It, therefore, follows that you ought to have the ability to read and interpret the charts if you are to employ technical analysis in your trading. Technical analysis can be employed in two ways;
Pattern traders spend time looking for similar or familiar patterns on the chart of the assets they are trading in. Pattern trading is almost similar to trends-based trading strategy, but they are a little different. Whilst trend-based strategy looks that the whole movement of the chart, pattern trading looks for similar patterns in the future as those in the past, and predicts results similar to those of the past. The two strategies use the same ideology though.
Indicator trading does not concern itself with the patterns. It uses market indicators such as MACD, ADX, and stochastics. ExpertOption offers these and other types of market indicators for you to take advantage of. Indicator trading is solely based on resistance and support on the financial market charts. The trader reacts according to the signals provided by the indicators. Indicator trading is considered to be fairly easy because you act on the prompt of the indicators. However, if you can master the patterns, you will give yourself a better chance of winning.
You need time to master both methods of employing technical analysis. They cannot be learned overnight. Luckily ExpertOption has an educational center where you could try to learn and understand the strategy. You will be able to decide which approach will work best for you. Pattern trading involves looking for patterns, but the patterns must be identical for you to stand a chance of winning the trade. Pattern trading can be very misleading. One the other hand indicator trading requires that you are able to interpret the signals, and know when to place a call or a put option.
Whichever approach you choose to take, you have to exercise caution as none of them is straightforward. Many people tend to jump right away into a new strategy, without really understanding what it entails. As mentioned earlier, having a working strategy is the only sure way to profit from binary options trading. If your strategy is robust and keeps working for a good while, you will accrue handsome profits on ExpertOption or on any other trading platform.
Confidence is key while employing technical analysis. You gain confidence by ensuring you have enough knowledge. You should not be overconfident though. You do not want to hurt the balance in your account. You find the balance between the two by educating yourself enough to know when to trade and when not to. Be confident when the patterns or indicators are right so that you don’t miss out on a lucrative trade. On the other hand, exercise a bit of skepticism with the patterns and indicators you that you do not end up getting misled.
Opening a paper of demo account that you can use to exercise your knowledge of the technical analysis strategy is advisable. Expertoption offers you a demo account that you can use to get acquainted with technical analysis. Whether you choose the pattern or indicators approach, you have to give yourself time to learn, or you might lose all your investment. When you are not worried about losing money, you will be able to focus on learning how best to employ the strategy. If you will be trading with the indicators, we always advise that you don’t solely depend on the brokers trading signals. Learn the strategies and generate your own trade signals, or at least be able to confirm the signals offered are valid.
In conclusion, technical analysis is one of the most effective, if not the most effective, strategies of binary options trading when you master it. Most of the people making handsome profits from binary options trading employ technical analysis. Statistics indicate that only 5% of the people who engage in binary options trading end up making profits. Many people are misled to think that they can just stumble upon a binary options trading platform and start making profits. Whilst it is true that anybody can trade in binary options successfully, it is not as easy and straightforward as they may make it seem. You have to put in work. You put in work by learning the ropes and formulating a working strategy.
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