The exchange rate of a currency or prices on the stock exchange always come into effect through a market of supply and demand. If many people believe that the exchange rate of the euro will increase vis-a-vis the dollar, they will go for the EURO/USD. This will inflate the price of this currency, as a result of which the euro will indeed increase in value compared to the dollar.
This is why it is important for you to be able to assess what the market will do and to then do the same thing. There is no room for criticism because the market is always right, since the prices will always move with the masses, even if there is not really a good reason.
Assessing what the market will do looks easier than it really is, because you are not standing in a square full of people who show what they are going to buy or sell by putting their hands up. Like you, there are millions of other Forex traders sitting at home behind their computers or in their offices who are placing orders without you having any insight into this. However, there are resources that enable you to predict what all these people are going to do. There are two possibilities for this, namely: fundamental analysis and technical analysis.
By developing a better insight here than the rest of market, you will learn to predict more quickly and effectively what a stock price will do.
If you want to be successful in online trading in Binary Options, you must first formulate some objectives. What follows is determining a profitable strategy. Your objectives must first of all be realistic. This makes sense of course, but enthusiasm and inexperience often ensure that people start without any plan, which is not advisable.
It is possible to start with € 300 and turn it into a €10,000 profit, but it will likely not happen in a week. (probably, because one might always get lucky, but chances are slim). Your financial objective is also determined by the investment with which you start and must therefore be in some proportion to the size of your account.
We will deal with the various strategies you can use in the following pages!