The best way to make a real and consistent profit with binary options is to know the assets really well before you trade on them. This way, you move beyond hunches and guesses and start trading like a professional stock broker.
There are two schools of thought when it comes to binary options strategy:
Technical analysis is based on the idea that an asset’s true value is reflected in past market movements. Basically, this means to predict the way the asset will move in the future, you must study its history and look at its charts to determine how it will move in the future. By studying and understanding tools like Japanese candlesticks graphs, you can identify trends in the asset’s movements and therefore predict future movements. Learning about the different kind of charts and graphs, as well as the patterns that characterize market movements, will give you a huge advantage.
Fundamental analysis is based upon the idea that you can predict future movements of an asset by studying the economic climate that it exists in – understanding the context and keeping up with financial news, reports and announcements is key to understanding its movements.
We at Platinum Trader recommend combining these two approaches for optimal strategy. While the superiority of one method or the other may be argued, it is a safe bet to use both technical and fundamental analysis to get the full benefits of both methods.