Hey readers and welcome again to another LIVE Binary Option trading video tutorial on Marketpotentials.com
BINARY OPTION TRADE BACKGROUND
Today I have selected the USD/CAD forex pair to trade on in a Binary Option setting. This forex pair is one of the major pairs that’s traded daily in the daily $5.2 trillion global forex marke, and is one of my personal favourites to trade on.
I have always prefered to trade in the 30-seconds expiry window on IQ Option as I believe that the shorter timeframe helps to minimize the risk of the trade. A longer trade window means that your trade is open for longer and as such also subject to price changes that much longer. A 30-second trade window is the minimum you can do in IQ Option Binary Option trading and that is what I had picked this time around, as usual.
KEY DECISIONS MADE IN TRADE
I invested USD 2500 in this trade, which is much more that the usual USD 1000 I invest per trade because I was fairly confident of the trade working out in my favour. Please do not look at the absolute amount invested per trade, I work based on percentages, DO NOT invest more than 3% to 5% of your capital per trade. Meaning if you only have USD 1000 to trade with, the maximum amount you should trade with PER TRADE is just USD 30 to USD 50. This keeps your trading capital intact and in the event the trade does not work in your favour, you have the rest of your trading capital to continue trading with to make up for the loss.
Coming back to the trade, I entered the binary trade after I spotted a key ‘spike’ or uptick in the chart – reflected clearly in the RSI or Relative Strength Indicator in th 2 minute timeframe on the chart. This is based on probability an event that is temporary and will likely not continue, as such the timing of the trade was executed correctly with the “LOWER” option being selected, as I expected the chart to weaken going forward.
This too turned out accurately and I netted a profit of USD 2375 in the 30-seconds I traded binary options on the IQ Option platform. Do check out the comprehensive IQ Option review that was carried out by Marketpotentials.com HERE to check out all the features and advantages of opening a trading account with them.
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