If one has started to dip into the world of trading, the name Binomo will definitely ring a lot of bells. This platform is very famous in trading binary options, which basically mean you just need to make guesses whether the asset price will rise or fall within a certain time period. Get to know Trading Tools on Binomo
- Bollinger Bands
This is one of the most favorite tools of Binomo traders. BB is something like a radar that can tell you when asset prices are at the “overbought” level-most people have bought, or “oversold”-most people have sold. So, if the price has touched the upper line, this is a sign that the asset is overbought-get ready to take a sell position. But if the price touches the bottom line, that could be your cue to go into a buy position. This BB will let you measure the market’s volatility, so you don’t just guess.
- Moving Average (MA)
Well, this MA serves to show the trend in price movements in a certain time. In Binomo, many traders use MA to monitor at what time prices will rise or fall. For example, if the price moves above the MA line, it shows that the trend is rising, so you can open a buy position. Conversely, if the price is below the MA, then that’s your signal to sell. Rather simple, right?
- RSI or Relative Strength Index
Also, RSI is the standard indicator that was widely used for the analysis of price movement momentum. It will indicate whether a certain asset is overbought or oversold, just like Bollinger Bands, but a little differently. If the number from the RSI shows something above 70, it means that an asset is overbought and the price falls. If it is below 30, then it is a sign of oversold, and the price is likely to go up.
- Support & Resistance
This is basic, but very important. Support is the lowest price level that is hard for the asset to penetrate, whereas Resistance is the highest level hard to be exceeded. If the price approaches support, usually the price increases, while vice versa-if it approaches resistance, the price most likely goes down. It is very helpful in determining when to buy or sell.
Basically, the key to maximum profit is expiration time. Along with trading tools, Binomo also provides something called expiry time, and it doesn’t stand behind in terms of its importance. So, the expiration time which would mean a time limit within which all your price predictions will be evaluated. For instance, you chose an expiration time of 1 minute, meaning after 1 minute, Binomo will see if your prediction went right or not. If your prediction is correct, the returns would have come straight away!
Why is expiration time so important? Because this is what determines your trading results. If you set a time that is too long or too short, you might even fail to make a profit. So it’s important that you choose an expiration time that suits your analysis and strategy.
Emotional Training
So, You Don’t Be Careless Besides using appropriate trading tools, having good risk management is super important. Trading is full of pressure, especially if the market is unstable. So, how do you keep your emotions under control when trading?
Be Relaxed and Concentrate Don’t rush to make any decisions. Take your time to analyze the market, and don’t open a position until you’re sure what’s going on. If you are not in the mood or experiencing stress, then it would be better to stop trading instead of making impulsive decisions.
Review After Trading After every trade, whether it be a win or a loss, always review. Why was your prediction right or wrong? What can you improve in your strategy? This is very important so that in the future, your trading will become more mature.
Binomo really does have cool trading tools to help you gain a profit, starting from Bollinger Bands, MA to RSI. But don’t forget to choose an appropriate expiration time and always use good risk management so you wouldn’t get left out. Lastly, control your emotions so that you wouldn’t make rash decisions. Trading is not only about strategy but also about being mentally strong; stay cool and trade smart!