Skip to main content

Trading Strategy for Beginners: Simple and Easy

Trading binary options is only profitable in the long run when traders take it seriously and do their research. Trading is a job, not a hobby; treat it as such—be diligent, focused, objective, and keep emotions out of it.

The Pocket Option Broker platform has wide functionality so traders can use most of the existing trading strategies. With a set of indicators and technical tools it allows you to analyze the market and find relevant points to enter a trade.

Professional traders know how to use combinations of instruments but what about newcomers who know practically nothing about technical analysis?

Fortunately, making money on electronic contracts is much easier. Here you must predict the direction of price movement. It does not matter how many points it will change up or down.

So, there are simple strategies on binary options for people with no experience in trading. Let’s discuss one of them.

The simple strategy for beginners needs an SMA indicator with a period of 100 and a Japanese candlestick chart.

Let’s explain it in more detail. Let’s how you can determine the general market movement on the hourly timeframe. We will trade on the 5-minute one.

Use SMA to determine the market trend. Pay attention to the chart position relative to the MA. If the candles are above the line, then the trend is upward, and if on the contrary, then the downward trend.

Let us set up SMA in the terminal from Pocket Option:

  • Click on the “Indicators” icon;

  • Choose Moving Average;

  • Change the period and select SMA by clicking on the pencil icon with the indicator name.

The strategy is straightforward. With SMA set up, switch to the hourly timeframe, and determine the direction of the trend. For example, the general trend on H1 is upward.

Then switch to the 5-minute timeframe. We will trade only in the direction of the trend, which is now established on the hourly interval. That is – up. The upward candlestick in the Pocket Option terminal is colored green.

We will buy the CALL contract immediately after the green candlestick closes. In other words, we will work by color: green means buy, red means sell.

The expiration period should not exceed the formation time of one candle.

For this strategy it is 5 minutes.

As you understand, during an upward movement, most of the candles will be colored green and the probability of upward movement is high.  During the downward movement, you will see red candles. You should not buy, as it may indicate the beginning of a correction.

However, in the case of a downtrend on H1, execute PUT contract after the red candlestick.

Finally, it should be added that this strategy has a high percentage of risk, so do not use more than 2% of the deposit in one transaction.

The Martingale principle is a great way to control your budget. As a beginner, focus on a maximum of one to two stocks during a session. Tracking and finding opportunities is easier with just a few stocks. Recently, it has become increasingly common to be able to trade, so you can specify specific, smaller dollar amounts you wish to invest.

Leave a Reply

Your email address will not be published. Required fields are marked *