Binary options have become an extremely popular form of trading in a relatively short period of time. The more you learn about this opportunity, though, the easier it is to see why. With binary options, you can turn a profit no matter what’s happening with the market. Therefore, while it definitely takes practice, once you have a strong grasp on binary options, you have the potential to make money year-round, regardless of what the market is doing. One-touch trading is a good place to get started on your journey, though it is a method you’ll most likely never outgrow.
What Is One-Touch Trading?
One-touch binary options trading refers to an investment where your underlying asset only has to touch the strike point one time for you to get paid (a.k.a. “in the money”). That’s it. See why one-touch binary options trading is such a common and simple tactic? As long as your strike point is reached, you’ll be making a profit.
Don’t Forget Your Entry Point
Now, that being said, there are obviously some parameters. For example, for a one-touch binary options trading investment to work out, you’ll need to make sure that you can hit the strike point from your entry point in the given timeframe. To do this, you’ll need to really understand the market. Otherwise, the strike point may indeed get hit but it will happen outside the window of opportunity and pay you nothing.
Expect to Pay More
Another extremely important factor to consider about one-touch binary options trading is that each trade is most likely going to come with a higher price too. This is understandable when you consider the potential for higher payouts represented by one touch.
Due to their simple nature, a lot of investors have an easy time placing one-touch trade after one-touch trade. If one of them pays out, it can often cover the other losses. This is a poor strategy, though, so, again, take the time to study a market. The higher costs can easily be mitigated if you know what you’re doing.
Don’t Assume Volatility Is a Good Thing
While market volatility will push many traders into safer sectors (e.g. commodities) or simply to keep to a modest position, this is the type of climate one-touch trading aficionados often love.
You may find yourself in the same boat once you learn the ropes, but keep in mind that your broker understands volatility too. Therefore, you can expect that any one-touch trading options they’ll accommodate will feature conditions that even the odds. Put another way, never assume that your broker is naïve about the market. If they set the contract a certain way, it’s because they’re certain that they won’t have to part with their money.
The Trends Are Usually Right
It might not feel particularly rewarding to always bet with the market—don’t we all want to be the rich rebel?—but the truth of the matter is that trends are usually going to be accurate. Obviously, they all break and turn around at some point, but if you’re constantly using one-touch trading to fly in the face of trends, this is probably a good sign you need some more practice (unless, of course, you’re consistently right—then you have a gift).
One-touch binary options trading is a straightforward method every beginner should start with, but many will continue to use for the rest of your lives. Just be sure you don’t take this simple approach too lightly or you’ll soon find yourself with a losing record.