IQ Option Strategies
Binary options is a popular way of trading on financial markets, and some traders manage to get stable income. However, trading in binary options can be risky, especially if you lack appropriate trading strategies. Therefore, if you use the competent strategies IQ Option broker offers, you can greatly reduce the risks and enjoy profitable trading. This article will outline some concepts on IQ option strategy.
Basic rules of trading binary options
After opening an account and starting to use the innovative IQ Option trading platform, you’ll have to stick to some rules to avoid making losses.
Here are some rules for developing a successful binary options trading strategy with IQ Option.
• The trend is your number one friend
One of the main rules postulated by the IQ Option strategy is that the trend is always your friend. To avoid making losses, the broker advises traders to place trades while being cognisant of the prevailing market trends.
For example, before placing a call option trade, IQ Option strategy recommends the prevailing trend should be upwards. This way, chances of making profits are increased, instead of trying to execute a call order on a down-trending market.
• Practice proper risk management
Another important binary options trading strategy IQ Option advances 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 steadily earn good returns.
• Guard on emotional trading
The IQ Option strategy recognizes that emotional decisions can cause suboptimal binary options trading results. As such, the broker advises traders to strictly follow their binary options trading strategies, and avoid making decisions based on their gut feelings, but on the prevailing mark1et conditions.
IQ Option has provided a demo account to enable traders practice their binary options trading strategies risk-free and perfect the art of earning consistent profits from 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.
The most popular IQ Option strategies
Here are some common binary option trading strategies from IQ Option. You can watch all educational video on Tutorials page.
• Japanese candlesticks
Traders can use Japanese candlesticks to analyse the market and identify potential trading opportunities when using the IQ Option platform. As a binary options trading strategy, Japanese candlesticks enable traders to effectively carry out technical analysis and place profitable trades in the market.
Some notable candlestick patterns include pin bar, three black crows, engulfing patterns, and hammer.
With candlestick charting analysis, you will enjoy your trading experience using IQ Option broker.
In binary 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 binary options trading strategy, you can effectively identify the current market trend; that is, whether the market is trending upwards, downwards, or in a sideways trend.
• Bollinger bands
Most binary options 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 an IQ Option strategy, the broker provides Bollinger bands on its platform to assist traders measure market volatility and identify potential areas to place and exit trades.
• Moving averages (SMA, WMA, EMA, SSMA)
Another important IQ Option strategy available on its platform is moving averages. With this binary options trading strategy, you can conveniently smooth out market fluctuations over a specified time period, and help in making good decisions to either place a call option or a put option.
Some of the common types of moving averages IQ option provides include simple moving average, exponential moving average, and weighted moving average.
IQ Option strategies are competent and potentially profitable. With them, you can greatly reduce your binary options trading risks, and ensure you become successful in your career.