How To Profit In Consolidating Markets Trading Binary Options
Why trade binary options?
One of the most commonly cited reasons is that binary options offer a fixed risk and reward—though in reality, you can set up most trading platforms to fix your risk and reward with traditional trades as well.
So the real benefit comes more from the versatility that binary options offer a trader. You can make all different types of trades such as One Touch, No Touch, Double One Touch, and Double No Touch depending on what the market is doing.
We’re going to take a closer look at Double No Touch trades and how they can help you to profit in consolidating markets.
How To Profit In Consolidating Markets / Flat Price Movements
Even if you’re brand new to trading, you’re probably noticed that markets tend to be either ranging or trending.
Trending markets are making big moves up or down.
Moves that are easier to profit from than the ranging sideways motion of consolidation.
While consolidation eventually leads to breakouts, sometimes highly profitable ones, most markets spend most of their time consolidating.
So if you’re going to learn to be profitable over the long run, it’s important to learn how to profit from a market that is ranging without really going anywhere.
And that’s traditionally very hard to do!
Binary options give you a unique way to profit when the market is consolidating. One type of trade you can make with binary options is a Double No Touch trade. When you place this type of order, you make a wager that price is not going to touch either of two levels.
“A Double No Touch Works by setting those levels above and below the current price at a certain distance, you’re identifying an area in which you believe that price will continue to range without a breakout for a certain time period. It the price does not touch either point, you win. And you probably win big.”
If within that expiration period price does not break either of the two marks you’ve set, you win your trade and make money. This is something you can’t do without binary options, since generally you only can profit off of price movements!
With binary options it is possible to profit off of price doing absolutely nothing at all, which is a great opportunity and something which you’re not going to be able to do without the option of Double No Touch trading.
This is a great way to make money, but don’t dive in without doing some testing first. Come up with a solid method for choosing your entries and your trigger points, one which you can prove profitable over many trades of historical data. Demo test and go live when you’re ready!