Digital options are a popular way of trading on financial markets, with which some traders manage to get stable income. However, options trading can be risky, especially if you lack appropriate specialized trading strategies. Therefore, if you use the strategies outlined in this article, you can reduce the risk and enjoy more successful trading. This article will outline some concepts of the most popular trading strategies.
After opening an account and starting to use the IQ Option trading platform, you'll have to stick to some rules to avoid making losses. Here are some of them you might want to follow:
One of the main rules postulated by the popular strategy is that the trend is always your friend. To avoid making losses, you should follow the trend and not bet against it.
For example, before placing a call option trade, make sure that the trend is going up. This way, chances of making profits are increased, instead of trying to execute a call order on a down-trending market.
Another important options trading strategy is proper risk management. As a rule, the broker advises traders to decide beforehand the amount of money they are willing and able to trade in every order. This way, traders can avert huge unbearable loses, and get good results.
The general strategy recognizes that emotional decisions can cause suboptimal trading results. As such, the broker advises traders to strictly follow their strategies and avoid making decisions based on their gut feelings (instead of the prevailing market conditions).
IQ Option provides clients with demo accounts to enable traders to practice their trading strategies risk-free and perfect the art of beating the market. With this IQ Option strategy, you can conveniently familiarize yourself with the broker's trading platform as well as other offerings before implementing them on a real trading account.
Here are some common trading strategies from IQ Option. You can watch all educational video on the Tutorials page.
Traders can use Japanese candlesticks to analyze the market and identify potential trading opportunities when using the IQ Option platform. As a trading strategy, Japanese candlesticks enable traders to effectively carry out technical analysis and place profitable trades in the market.
Some noticeable candlestick patterns include pin bar, three black crows, engulfing patterns, and hammer.
In options trading, trendlines depict lines drawn to illustrate the prevailing market direction. If you draw them on the IQ Option platform, they can point out highly rewarding trade opportunities.
Using this trading strategy, you can effectively identify the current market trend; that is, whether the market is trending upwards, downwards, or in a sideways trend.
Most traders are interested in gauging the level of volatility in the market, as a change in volatility normally indicates changes in the market conditions. Therefore, as a part of your strategy, the broker provides Bollinger bands on its platform to assist traders measure market volatility and identify potential areas to place and exit trades.
Another important strategy available on the platform is moving averages. With this tool, you can conveniently smooth out market fluctuations over a specified time period and help in making good decisions to either buy or sell.
Some of the common types of moving averages IQ option provides include simple moving averages, exponential moving averages, and weighted moving averages.
All the tools present in this article were created with the sole purpose of making your trading activities even more profitable. With them, you can both reduce the risk associated with trading, and ensure you become successful in your career.