Even though assets like currencies and commodities are supposed to be hour markets, there are only certain times of the day when the market activity is at its maximum. This is usually when we have an overlap of the trading zones of the world. Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.

As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day.

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As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation. The diagram below gives a perfect illustration of this. Yes, you might think that all the days are the same, but there are days that are not so good and not so bad. Anyone who has a life knows that this is true. In binary options, what is considered as a great trading day is when you get that signal.

It does not matter what your trading style is because there is not a day that is precise for trading unless you have a great strategy that can generate signals every single day. However, these may be plausible assumptions, but there is that day when traders can best enter the market. You might have learned over time that one day is as different as another and one trader is also as different as the other.

Now, when we talks about commodities market, forex, bonds, and equity stocks, Mondays can be the best day to trade because this is the entry and exit day of retail traders as a whole. These traders go home during Fridays and do their routines including monitoring trading accounts and deciding which stocks they have to sell because of misses in earnings.

Thereby, Monday can be considered a volatile trading day, and it can be a day that can be against long term trends.

Moreover, Monday is a good day for binary options trading just when the market opens its doors. Tuesday — Just like Monday this can also be an equally volatile day for trading. Find support and resistance levels in the market where short-term bounces can be had. Pivot points and Fibonacci retracement levels can be particularly useful, just as they are on other timeframes while trading longer-term instruments.

Take trade set-ups on the first touch of the level. I believe that taking a higher volume of trades can actually play to your advantage. For those who are not familiar with this form of analysis on longer term expiries: The advice is to look for an initial rejection of a price level already marked ahead of trading.

So marking support and resistance is a vital. If it does reject the level, this helps to further validate the robustness of the price level. Trade on any subsequent touch.

Choosing the Best Time to Trade

This will lead to a lower volume of trades taken in exchange for higher accuracy trades. The first touch is not traded, but used to validate following trades. So less trades, but more accurate.

In that it helps to even out the accuracy fluctuations that come when trading such short-term expiry times. This means lower expected value from each trade. Higher volume however, can compensate. For example, trades with an expected profit of 1. But trades with a lower value, say 1. So a lower strike rate does not always mean lower profit if more trades can be found over the same period.

Let us take a different view. It is very likely that you are going to be waiting a long time before your true trading skill level becomes clear. I could be that you are not profitable using 60 second options.

Elements Of A Profitable Strategy

It is better to find that out sooner, rather than later. Continue to consider price action e.

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On occasion, those instincts can over-ride any other signal. But bear in mind many trading lessons are learnt the hard way — with losing trades. The momentum is an important indicator of the speed with which the price of an asset moves. For binary options traders, it can be both a great way to find trading opportunities and a helpful tool to pick the right binary options type for the current market environment. The momentum is a technical indicator that compares where the price of an asset now to a price in the past. There are different ways of calculating the momentum:.

Most of the time, these indicators display their result as a percentage value of the average momentum, with being the baseline. Both indications are similar, but also very different. Binary options offer a number of great strategies to trade the momentum. The simplest of them uses the momentum indicator and boundary options. Boundary options are such a great way of trading the momentum because they are the only options type that enables you to win a trade on momentum alone. Boundary options define two target prices, one above the current market price and one below it.

Both target prices are equally far away, and you win your option as soon as the market touches one of the target prices. This means it is unimportant where the market moves, as long as it moves. The momentum can help you make this prediction. Now you know that the market has moved twice as far in the recent past as it would have to move to win your boundary options. This seems like a good investment opportunity. If the momentum were only 0. A good 5-minute strategy is one of the best ways of trading binary options. To get it right, there are a few things you need to know. A 5-minute strategy is a strategy for trading binary options with an expiry of 5-minutes.

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While there are thousands of possible 5-minute strategies, there are a few criteria that can help you identify those that are ideal for you. In the eyes of many traders, 5-minute expiries are the sweet spot of expiries. A 5-minute strategy allows you to take advantage of this perfect connection. Over the next 5 minutes, fundamental influences are unimportant — for example, no stock will rise because the company behind it is doing well. The only thing that matters is the relationship of supply and demand on the stock exchange —whether traders are currently buying or selling.

Technical analysis is the only way of understanding this relationship. One of the technical indicators that can best describe the relationship between supply and demand is the Money Flow Index MFI. The MFI compares the numbers of assets sold to the number of assets bought and generates a value between 0 and The relationship between buying and selling traders allows you to understand what will happen to the price of the asset next.

Since the price is determined by supply and demand, a strong movement where too many have already bought or sold exhausts one side of this relationship. The market has to turn around. This strategy work especially great as a 5-minute strategy.

Best Time to Trade Binary Options

During long-term trends one year or longer , the MFI often stay in the over- or underbought areas for long periods. Fundamental influences are strong on these time frames and can keep pushing the market in the same direction for years. On shorter time frames, fundamental influences are unimportant. It is more important to identify the number of traders that are left to buy or sell an asset and draw the right conclusions from this indication.

The MFI is the perfect tool for this diagnosis, and binary options are the ideal way of trading it. If you feel uncomfortable with a strategy that uses only a mathematical basis for its prediction, there is one alternative to technical analysis as the basis of a 5-minute strategy: trading the news. When important news hits the market, there usually is a quick, strong reaction.

This strategy works well as a 5-minute strategy because longer expiries face the threat of other events influencing the market and causing a price change. For the next 5 minutes after the release of important news, however, you can be sure that the news will dominate the market.