Greetings, friends! It’s John Foster, and today I will tell you about the safe option strategy rescuing bad positions at binary option exchange. Thinkit’s impossible? You are wrong! Everything is possible at the exchange, and even more, if you know some key rules and some nuances. Right now, I am telling you about these nuances, which, believe me, will significantly increase your profits.
This principle is called averaging down among traders, and it works at forex. Nevertheless, it may be used at binary options exchange, having modified and adjusted it a bit. I’ve spend more than a half-year for that, creating rules, testing them and checking via different brokers at demo- and real accounts. And now, I can say for sure that averaging down really works, and after publishing this very article, it will become available for all my subscribers and readers.
But there’s the last question: why should the price go toward our position when the second order is opened? The reason for this lies in drawbacks and corrections. The chart moves not in the same direction in 90% cases – it draws back periodically, displaying corrections from the trend. But such corrections are not continual, and soon the direction changes to the opposite one. If the first order is opened toward the trend but goes to the losses, then, the correction takes place, and it will not live for too long. If the order is made against the tendency and goes to the losses, then the correction doesn’t take place – the price still moves with the trend. But the drawback will surely happen, with 90% chance. And we’ll gain with it via the doubled order, having covered losses and gained some profits.
Thus, no matter which direction your order has to the trend, averaging down works with 90% chance anyway. The principle described above is called the corrections theory, and it’s the base for most professional technical strategies at forex. Novices don’t use it, because don’t even now it exists. So, if the certain trading strategy gives 30% profits per month, it’s supposed to make more than 60%, if goes with averaging down.
But I’ve told not of all nuances. And here is the most interesting part. Averaging can relieve us from 90% losses, but so-called scaling up (deposit boosting) lets make 90% more. They are used by forex traders, but only by professional and experienced ones. Beginners can use it at options, having realized and learned the following instruction:
Scaling up works with the same principle as averagind down does, but it doesn’t stand for rescuing a bad order, but for making yet more profitable from a good one.
In the case of the example, the total profit will be slightly less than 75 $, against 25 $ supposed to be gained initially, without using scaling.
I want you to pay attention that one may not use averaging and scaling with every single order. The chart must go reasonably far from the price of buying an option. If it fluctuates around the line of purchase, moving the option to profits and then to losses, corrections theory doesn’t work and it’s impossible to use either averaging or scaling.
You’d better engage averaging or scaling at strong levels, such as Fibonacci lines, impulse levels, support or resistance lines. With that, the chance of successful outcome increases. It’s an optional conditional, but if it’s met, profits increase well. Herearestrategieswhichsuitthismost:
Actually, scaling up and averaging down may be always used, with any asset and strategy – either technical or fundamental. The main point is to realize its essence, simple rules of trading mentioned above. Using of this principle will let you significantly reduce risks and increase profits. It hasn’t been commonly used at option exchange, but those pro-traders who trade at forex with this tool, gain 3-4 times more than any other trader with the same system but without scaling and averaging. Remember: corrections theory is the essential part of most traders’ trading systems. In some measure, there is the secret of their successful trading. Now, you are known about it – so, start trading and use it in practice!
Get lucky and gain much!
Best Regards, John Foster.
for binary options
|Moving Averages:||Buy (7) Sell (5)|
|Indicators:||Buy (8) Sell (2)|