Friday, 5 April 2019

Time and Volatility, Win the Success of Binary Options Trading

"Time is money." The reminder was right in trading binary options. Just look, at every trading action, a stock player must definitely determine the time. Time prediction accuracy determines how much profit you will get.

"In binary options trading, there are two main concepts that all traders must master in order to succeed. Each time and volatility.


Well, this time we will get acquainted with volatility, the time pair in trading binary options. However, beforehand, let's remember the role of both of them in trading.

Time and Volatility

Time is an important element in trading binary options, as well as intangible assets. Because time is a major factor in decision making. If we pay attention, time in binary options trading has two sides, good and bad, what's the good side?

When the graph shows a positive signal, it means a good time to take a trading position, until it ends with a profit. That's the good side. It's not good, when we can't take a position in trading, inevitably we have to be patient waiting for good time again. If it is forced into, it will cause loss, and as if time is not on our side. This also applies to volatility. What is volatility?

There is no specific meaning for volatility. Because this word is widely used in various fields and interpreted in various ways. But here we take as an illustration of volatility, which is like something that is not stable. For example, people who are emotionally explosive, chemicals that have explosive properties. In other words, volatility describes movements, actions or events that are considered sudden. Implicitly, these actions and events are extreme, changeable.

So, to be easy to remember, volatility is identical with extreme words. In trading, it is very important to pay attention to volatility. The chart shows through price fluctuations that are not clear, not directed. From the higher it could suddenly fall, the sideway market in the whipsaw phase. This also brings together time and price elements. Then how do we measure volatility?

There are several ways to measure volatility, either mathematically or statistically. We start with a standard deviation. This standard is one measure of volatility that is often used, and is the basis of several trading indicators as well as interpretations of volatility. We can assume the standard deviation as a price distribution statistically; the basic thing when considering volatility and statistics.

Read to Magic Mantra for Binary Options Trading
Read To  Strategy to Increase Profit on Forex Trading

Although standard deviation is not perfect, it at least gives us a basis for measuring and seeing practical volatility. This method is often called statistical volality. This method can be accepted mathematically if the data is stationary. While in the capital market, the stock price or index will move over time. To apply a standard deviation in terms of statistical analysis of historical price actions has little relevance. So it is better to use indicators that involve time.

Now that we know the relevance of time and volatility, is this enough to make our trading successful? How to apply it technically?

We still need trading practices. One way is to open a binary options account first, by clicking on one of the binary banners on the landing page. Follow the procedure to sign up for the forum completely.

Related Post

Post Top Ad

Your Ad Spot

Pages

close
fxxtool.com