Today, we shall be talking about Binary Options trading and its use in churning out profit (of course), on the currency pairs. Now, before delving any further, the first thing that is needed is the answer to “What is Binary Options Trading?” Various places define the thing differently, but in a crux, it is akin to playing the roulette in a casino. You either win or you lose- hence the term ‘binary’, dealing with two options. There are only 2 possible ways the trading can turn out. If you are right about what you said, you win an amount. If you are wrong, you lose the whole thing. From the layman’s perspective, this might seem just like betting, but if the proper studies (yes, there are ways for that), this can be used to predict quite accurate results with a very hefty profit to boot.
The term ‘SD’ stands for standard deviation. It might bore you to know, but the SD Binary Options Trading Strategy is actually a statistical tool to determine how much a given value has deviated from its mean position. Not to worry, we won’t discuss that. Instead, what we are here to discuss is how to use the same in garnering some serious cash inflow in major currency pairs. By major currency pairs, we mean the US dollar or USD, euro or EUR, Japanese yen or JPY, British pound /GBP, Australian dollar /AUD, Canadian dollar /CAD, and the Swiss franc or CHF. Now there are other currencies involved as well, but these are usually the most important ones to work with. Further, the most common pairs in the trading aspect (also called Majors), are USD/JPY, AUD/USD, EUR/USD, USD/CAD, USD/CHF and GBP/USD.
Now we come to the actual trading part. Currency trading might not be the most complex forms of trading, but nevertheless, it is by no means the easiest either. The most important things to take care of here are the trends, or more importantly, recognizing them in real time. That is where the software for the various purposes come in. let us be clear on one thing first. The SD Binary Options trading platforms were not originally meant for trading the major currency pairs. It was just a statistical tool meant for taking necessary measurements. As such, the system is not foolproof and you will be hard pressed if you think that leaving everything on its hands can ease away all our worries.
You yourself have to be present to keep a close eye on the trends and decide what to do. The most important in this aspect is the HAMA indicator (Heiken Aishi that plots moving average). Follow the following binary options strategies for a trade-
Put Entry:
1. HAMA must be Red
2. HAMA must be below the Moving Average
3. Moving Average must be Red
4. Heikin Ashi candles must be bearish (prices of securities are expected to rise)
5. MACD (Moving Average Convergence-Divergence) is below zero
Call Entry:
1. HAMA must be Blue
2. HAMA must be above the Moving Average
3. Moving Average must be Blue
4. Heikin Ashi candles must be bullish (prices of securities are expected to rise)
5. MACD is above zero
Finally, a piece of advice – Never trade before all the conditions are met with. If you do, there is a very high probability that you will lose money. Remember, it is always a better idea to wait and persevere than to rush blindly in and lose.
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