Is your binary option trading profitable, but is not generating the returns you want? Here are three ways to make more money with binary options.
How to make more money
To make more money with binary options, you need to create more trading signals. A trading signal is the impulse you invest on. You trading strategy clearly defines which signal you use and how you trade it. You could use moving average crossovers, for example. Every time a shorter moving average crosses a longer moving average upwards, you invest long. Every time a shorter moving average crosses a longer moving average downwards, you invest short. The crossing of the moving averages would be your trading signal.
To make more money with binary options, you need to generate more trading signals. The more signals you create, the more binary options you can invest in, and the more money you can make.
There are a number of ways you can create more signals:
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A) Switching to a shorter time frame
When you use a shorter time frame, you chart will generate more candlesticks in the same amount of time. The more candlesticks you create, the more signals you will create. Therefore, the easiest way to generate more signals is switching to a shorter time frame. In this case, you can keep your entire strategy intact. You can use the same indicators with the same amount of periods.
There is, however, a downside to shorter time frames: The shorter you choose your time frame, the more erratic the market becomes. That makes predictions less reliable and can decrease your winning percentage significantly. As a trader, you have to weigh the advantages (more signals, more trades) and the disadvantages (smaller winning percentage).
Unfortunately, the decision to which factor is more significant depends largely on the strategy you use. There is no general answer, you have to find out for yourself. As a rough set of guidelines, you can check our article on trading short time frames.
B) Trading more assets
If switching to a shorter time frame should be impossible, you can also try to trade more assets. The more assets you trade, the more signals you will create. Make sure, though, that your strategy is adaptable to all asset types. If your strategy does not work for a certain type of asset, you should not trade it.
Also, monitoring many assets at the same time can be time consuming. The more assets you monitor, the more you should think about using automated signals.
A good trading software should allow you to create your own signals by using automated programs. Alternatively, you can also use a signal provider. These companies will analyze the market for you and send you the signals they create by email or text message. After you receive a signal, you simply have to carry out the instruction given in the signal.
C) Use touch options
If you can neither trade more assets nor shorter time frames, you can make more money by trading touch options with the same number of signals you are currently trading.
Touch options generate payouts of up to 500 percent. Compared to high / low options, which only generate payouts from 65 to 85 percent, touch options are the far more potent asset class. Unfortunately, touch options not only require you to predict the market direction, but also whether the market can reach a certain price level, the target price.
Sometimes the market reaching the target price is a reasonable prediction, sometimes it is almost impossible. To make more money with binary options, you could therefore use touch options whenever the market environment allows you to. To find market environments that are well suited for touch options, use momentum indicators such as the average true range (ATR). To learn more about this topic, read our article on combining touch options and high low options.