Time In Trading

Time In Trading

Time In Trading

When trading binary options, time is probably the most important element you need to take into consideration before opening a trade. First and foremost, you need to know what your expiry time is going to be, but there are other time-related things you need to be aware of, as well. This is what we’re going to be discussing in this article because, after all, you do need to predict prices when you’re trading. With some help from our experts, we will go through the basics you need to be aware of when dealing with the time element in your trades. Let’s go and see what we have to address when talking about time in trading.

Time in trading | Why is it so important?

Let’s first give you an example: suppose you have information that an asset’s price is going to drop 30%, but you don’t know when that is going to happen. Your information is therefore incomplete and there really isn’t much you can do with it. The importance of time in trading should now become pretty apparent.
Binary options brokers often offer very short expiration times, sometimes only 60 seconds or even less. While you may be tempted to try to make a quick buck this way, be aware that markets usually don’t change very much is such short time frames, so it’s really difficult to make some kind of prediction based on serious analysis when you’re using this particular type of trades. But let’s now take a look at a theory that may be the most important one when we’re talking about time in trading.

Time in trading | Elliott Wave Theory

Elliott Wave Theory is one of the most important theories in binary options trading in general. Take zigzag corrective waves, for example. To verify that you’re indeed dealing with zigzag waves, the move after a zigzag needs to cross your trend line faster than the last part of the corrective wave formed. Therefore, you cannot perform this analysis if you don’t take time into consideration because without that you don’t know which move was faster. The type of your chart also plays a role in all of this, since it’s definitely not the same if you’re using daily or hourly charts, so you need to know How to use charts properly. This influences your choice of expiry times significantly, so be aware that time in trading is something you always need to consider.

Time in trading | Conclusion

Time in trading is always one of key elements of your investments because you don’t just have to guess how a price is going to behave, but you have to predict when it’s going to move, too. Some theories are actually based on the time it takes for the market to move, so it’s pretty obvious why mastering time is one of the most basic things you as a trader must do if you are to become successful in this business. After that, you can move on to more complex things and further expand your knowledge and improve your chances.

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FURTHER READING:

1. Conclusion: The Future of Binary Option Trading (A Cofnas – 2012)
2. Step By Step Trading (A. Elder, 2015)
3. Come Into My Trading Room: A Complete Guide To Trading (A. Elder, 2002)
4. The Age Of Turbulence: Adventures In A New World (A. Greenspan, 2007)
5. Trading By The Minute (J. Ross, 1994)

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