"How hard can it be, pick a direction, buy an option, in a few minutes I'll know if I won or lost". Been trading full time for 10 years and can say without question binaries are the most challenging instrument I've found.
CC, binaries are the last place I'd turn to if I was starting out. But given that, binaries can also be the easiest place to make serious money. My advise if you continue your pursuit is to find one chart setup which will stack the odds in your favor(& master it until it becomes second nature). And here's the key, one strategy & do not deviate, no guessing direction, no "I think I'll try this", one high probability set-up only, pass on all others until you've got this one down cold.
Not sure what timezone your able to trade in but here's a few ideas regarding the fx mkt:
1. Trade the breakout of congestion which forms during the Asian session. I'm here on the east coast(US) so here's what it looks like to me. Between 10pm-2am, the majors will congest(move sideways) in a tight 15-30 pip range, the mkts are resting & waiting for the European liquidity to enter the mkts. Now the key here is to have no opinion as to which way they will break, that means forget about everything you've heard from the "gurus" regarding what their saying about the direction of price because that means nothing to us binary traders. Between 2am & 3am, Europe will open & you'll see price start to change much quicker. Your binary trade is to wait for (1) 15m bar to close outside of this congestion & enter your binary in the direction of that 15m bar. As far as what binary expiration you take, well that's the "art form" of this instrument. If price is trending slowly then go with an hr expiration, if quick, go w/ a 30m.
2. Now that set-up described above works the same for the late European session only this time price will congest or rest between 6am-8am as the mkt waits for the NY session to begin. Again, have no opinion & just trade the breakout of that little range which has formed.
3. We talked in the room last week about what happens in late NY hrs(3pm-7pm). Rarely will the mkts breakout so trading the break is high risk as there's no volume to push it. It may break for a few minutes only to return into the range. In short, we all need volume to trade breakouts.
4. Look for a reversal 30m bar during NY & Euro morning hrs. The bar needs to open on one end & close on the other end. The next 30m bar favors a move in the same direction so you've got to be quick & place your binary right when the new 30m bar opens.
5. Trade the 30m bar trend, again during NY & Euro mornings. If the bar closes on its extreme, place a binary on the open of the next 30m bar in the direction of the trend.
I like binaries on AUD/USD the best. Aussie tends to trend longer than the other majors on the 15m bars. In short, aussie binaries are the easiest to "win"(in my experience) but remember "with trend" binaries only, counter trend binaries don't work. Cannot emphasis this enough, counter trend trading does not work, particularly w/ binaries. Time is our enemy & 9 times out of 10, the clock will expire before the retracement you were "hoping"(never trade hope) actually happens.
My advise to all new traders is to stop trading binaries & instead demo or live trade "mini" fx contracts. You need to get a good feel for price movement, how each currency is somehow related to the others, & how crude, equities, metals, interest rates, news ect affect the currency mkts. Its an exciting endeavor your undertaking & the potential to "make a killing" is incredible but the learning curve is very steep. Have fun & see you in the room!
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