Everyone who is engaged in binary options or forex trading considers themselves to be “Day traders”, people who trade intraday. Everyone wants to make a profit now, or at least today. Is this correct? Whether a trader should see profits right away and how much they should earn, we will discuss in this article.
The article will be useful for novice traders in order to correctly determine their expectations from trading and establish their own line of behavior and trading.
What is intraday trading and how to determine the time format of the “Trading Day”
Inside day trading means that the trading session is “inside the day”. The main mistake is that novice traders believe that it is necessary to trade when there is time … But how? After all, binary options strategies do not always generate a signal.
Let’s define what intraday trading is – trading within a trading for an asset. If you trade on the DAX or Nasdaq exchange, the trading day will be determined by the opening hours of these exchanges. If you trade currencies, then your trading day is not defined. Since the currency is traded on all exchanges.
With the beginning of the opportunity to trade on the Internet, intraday trading has changed its definition.
For successful binary options trading, it would be better to determine the TRADING SESSION
. It can be determined by the calendar, in parallel with the work of exchanges or by the formed model, or the financial cycle.
How much can you earn during the day?
This question is on the minds of many novice binary traders. Therefore, let’s try to give a universal answer.
Firstly, due to the fact that each trader trades with a different initial deposit, there will be a difference in the size of transactions and, accordingly, in the amount of earnings. You can define earnings as the percentage of change in your work deposit. We will also consider that the risks are observed in accordance with binary strategies.
If you trade options for 15 minutes. You can open up to 96 individual trades on one currency pair (24 x 60)/15=96. If all your trades have worked out in plus, with a rate of $ 10 and payouts of 80%, you can earn $ 8 x96 = $ 768.
If you trade on turbo options (60 seconds options) you can make more than 1000 trades, as well as if you trade on more than the main currency pair, the number of trades can be whiter than 10,000.
The answer that will correctly show how much you can earn on binary options trading is obtained from the formula:
(the number of signals for the binary strategy) x (the number of assets to trade) x (the percentage of positive trades) x (the percentage of payments x on the size of the bet).
Using this formula, it is possible to calculate with a high degree of probability how much you can earn in one trading session.
Also, a lot depends on what type of option you are trading.
When to stop trading binary options?
Some traders exit positions early and therefore do not take their maximum profit. Let’s look at an example. If a trader trades on the news and goes into trading with turbo options to increase profits. However, the opportunity to trade with NO-TOUCH options is missed. If we have identified momentum and see that the market has changed direction a lot, there is no reason not to use other types of options.
An important point in binary options trading is the completion of the cycle. If you find a reversal trading pattern. But it is not over, there is no point in leaving.
Remember, the entrance and exit should be according to the strategy!
Inference:
A trading session is an individual determination of the time frame for each trader. The main thing is to have an accurate idea and definitions of what and when to trade. In binary options trading, you can earn more than 500% per day. However, if you trade without a strategy or without a specific trading plan , you can lose everything.
Plan and trade!
Tagged with: Binary Options Academy • Binary Options Trading Signals
