Choosing an asset class
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Binary options are usually based on one of four different asset classes. These asset classes are Indices, stocks, currency pair and commodities. Each of these four classes offer their own unique opportunities and challenges. Which type of asset that is most suitable for trading depends on your personal preferences and your trading strategy. All of the asset types have their own benefits and weaknesses.
Some of the asset classes are more suitable for certain types of trades then others. Our goal on this website is to teach you how to make money quickly. In 60 minutes or less. All of the asset classes can be used to make money during this time span but one of them are in our book far superior to the others and that is currency pairs.
The currency market is very volatile and is affected by a large amount of automated trading which makes it possible to make educated guesses about how it will move in the future. It is not possible to predict the currency market with 100% certainty but it is possible to be right enough of the time to make a lot of money trading binary options.
Another reason to choose to work with currency pairs is that there are a large number of good binary option signal services that focus on this market. This makes it easier to make money even if you to not know TA (technical analysis) yourself. You can simple benefit from the work of others.
Why we avoid stocks, indices and commodities
The reason that we do not recommend trading in other types of binary options if you want quick profits is because we find:
- Stock based options more suitable for long term trading.
- Indices are too unpredictable. There are to many factors such as quarterly reports that can affect them. TA is therefore in our eyes less reliable when applied to indices.
- Commodities is the second best choice but the selection of binary options to trade in is usually rather limited in comparison to the selection of currency based options.
We find that currencies is the asset class that gives the best result using our strategies and techniques. It is possible that you will have better success with another asset class. You should not be afraid to try different types of assets until you find something that works for your and your analytical techniques.
Which currency pairs to trade
You can choose to trade any currency pair that you find easy to predict. The quality of your predictions is the number one factor that is going to affect how much money you will earn or lose. You should never be afraid to use any technique or trade an asset if it works for you regardless of the advice we give.
We prefer to focus on the largest, most traded currency pairs such as USD/EUR, USD/GBP and EUR/GBP. Do not be afraid to limit yourself to just a few currency pairs. It is better to track a few currency pairs well and make profitable trades when you find good trades than it to monitor more currencies with a lower prediction accuracy. Making money with binary option trading is not about making as many trades as possible. It is about maintaining the highest possible success rate when you do make trades. Remember that you are going to need a success rate significantly over 50% to be able to make money over time. Every percentage point that you can improve you success rate with will dramatically improve your bottom line.
There is a case to be made for choosing to track smaller currency pairs instead of the major ones. By doing so you might be able to increase the number of daily trades you can do without lowering your success rate. Something that allows you to make a lot more money. The reasoning behind this is that there is a number of good signal services that focus on the major currency pairs. By subscribing to these signals you will receive high quality signals for the major currency pairs. If you then focus your time to find good trading opportunities in the minor markets you will soon find that you will increase your daily profits significantly.