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Follow-the-trend is one of the most popular and widely used strategies you can use in 60-second binaries trading . Its a strategy with a relatively high success rate and its really easy to execute . Of course, the mandatory prerequisite knowledge has to be there if you hope to realize this strategy to its full potential . You will need to read charts and spot trends, so if you dont know how to do that, we recommend you learn Pocket Option Best 5 Second Strategy . We have a very comprehensive guide that can be of great help to you if youre new to the area of technical analysis . We recommend reading it.
How much does a Pocket Option cost? Pocket Option doesn't charge fees or commissions on withdrawals and deposits. Here's how they make their money: Trader losses. Users who purchase gems and other boosters with cash.
How much to make $500 a month in dividends? That usually comes in quarterly, semi-annual or annual payments. Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
Follow-the-trend
What is this strategy and how do you use it? In short, the strategy requires you to look at charts and recognize trends. Whether they are uptrend or downtrend doesnt matter, but you need to be able to spot them. Once youve established that there is a trend, you make a trade in the same direction as the trend. If its an uptrend, you go for a call option, and for a downtrend – you go for a put option. Statistically speaking there is a great chance that the trend will continue and you will make a profit. This is how the strategy works in general, but there are several very important aspects you need to be familiar with. For example, no matter how strong a trend is, there is always the possibility of pullbacks.
How do you enter the trade?
Open a chart of the market youre interested in. Its important not to trade when there are big market fluctuations. If there are, then spotting a trend will be difficult, and even if you do, its not going to be safe to trade. However, if the market seems stable, you can enter a trade with no problem. Look at the chart and when you see that the price has moved in the same direction two or three times, then this may signal the emergence of a trend. This is where you will have to risk. If the market conditions are good for you, then enter the trade. For an uptrend, buy a call option. For a downtrend, buy a put option. Wait and see what happens.
If you win, just keep investing in the same price movement until a loss occurs. In case you lose, wait for a bit and check if its a temporary pullback or a trend reversal. If its a trend reversal, simply follow it. If its just a pullback, then continue with the first trend. If you lose a few times in a row, stop trading. This means that the market is not stable enough to employ this strategy. Keep in mind that trends rarely go for more than 5-10 minutes. This means that you will need to adapt to the changing conditions quickly.
A few things you need to keep in mind
Since youre trading so quickly, and in most cases for rather small sums, it may seem like youre not losing much in a few unsuccessful trades, but you may very well be. For example, losing three consecutive trades for USD 50 each is a loss of USD 150. It may not sound like much, but this is a loss in less than three minutes. In fact, it may be on just a minute if youre using multiple brokers at the same time. Responsible money management is needed if you dont want to risk substantial losses. Always apply caution – there is no strategy that is 100% safe (no matter what the Internet tells you). We wish you good luck!