How to trade Binary Options
Choose an Expiry Time – Step Three
One of the harder aspects of choosing a time is understanding that you need to take into account the chart history. As you learn more about how to trade binary options, you will see that trading is about identifying patterns and setting yourself up to capture opportune times to make trades. There are times when you would want to choose a close expiry and there are times when you would want to choose a lengthier trade.
As an example, let’s say Google has a news release out about a new product. You’ve done your research and you’re positive this will have a large impact on the asset price, to the point where you can see the asset making a large move up. If this news release is expected a week out, you would want to select an expiration time accordingly, so that it expired after the news release. If you aren’t in a position or a trade at the time the news release comes out, how would you expect to profit off of it.
So expiration times are very important and call for the trader to research the charts a little before making this decision. If an asset has been going nowhere but down for weeks, many analysts would argue and it of course depends on technical analysis as well that the asset may soon find some support and bounce. Understanding this technical approach and even a basic understanding of the charts will help you understand this crucial aspect as you learn how to trade binary options.
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