With automation transforming our daily lives it is no surprise that the financial world has grudgingly given way to automation of the trading scene. As a result, the internet is rife with several automated trading platforms like the QProfit System which facilitate easy trading for the novice and the advanced trader alike. While it is interesting and convenient to use this automated software, it is beneficial to have some knowledge about when it is best to trade in binary options and when you should not. An automated trading system will do what you program it to do, but knowing what to do is paramount and you cannot neglect that. Thus, along with a trading strategy, it is crucial to know what time of the day and which day of the week is ideal for profitable trading.
Best time to trade in binary options
- When Financial reports are released and major events are scheduled: The US election is an example of how the markets crashed once Donald Trump was declared the President of the US. Such major events shake the stock markets and unless you have some knowledge of the market, you must desist from trading around these times. Those who understand the implications make money in such cases while the rest burn their fingers. Hence, it is important that you read up the news and be up to date with the latest happenings to prevent any trading that might end up in the loss.
- Avoid weekends and holidays: Though with an automated trading system you can trade 24×7 you must be aware that not all markets are open 24 hours and all through the week. Markets too shut down over the weekend and for the holidays. Therefore, to avoid slippage and unpredictability once the markets open you must not do trading on weekends and holidays. A good time to trade will be mid-week when the initial hiccups in the beginning of the week settle down and the unpredictability factor is low.
- During the day when the market is volatile: Not all financial instruments behave the same way. At different times of the day, different instruments behave erratically or stay calm. With experience, you can identify those that are more volatile and at what time. This gives you an opportunity to strategize so that you don’t lose any money but rake in profits.
Thus, with experience and some prior knowledge, you can turn online trading to be profitable with minimal losses.Read More