Binary trading strategies and their advantages: Doubling Up
Binary trading strategies are essential for successful binary trading. In addition to analyzing the market and following its fluctuations, staying informed about the current trends and educated about trading, using a proper strategy is one of the keys to making profit.
What are binary trading strategies?
Binary trading strategies are, as the name says, strategies you use when trading binary options. Each of them is based on a set of principles which are applied when you trade. They are used to maximize the profits, but also to stay focused and disciplined while trading.
Every binary trader can develop a strategy of his own, which will suit his trading style and preferences. However, this is not recommended if you are still new to trading and still do not understand all the concepts. In such case, there are several trading strategies which are already established. New binary traders adopt their principles when they start trading, but many of them also keep using them later instead of inventing new ones. One of them is Doubling Up strategy, and we will write some more about it below.
What is Doubling Up strategy and what does it involve?
Doubling Up strategy is used among many binary traders. Many platforms offer the option to use this strategy while trading by giving you a chance to double up your investment and thus double the earnings as well.
The principle of Double Up strategy is to call or put an option and set a time frame of the trade. Five to Ten minutes before the option expires, on some platforms you can choose to “double up” your investment. This way, an amount of money invested in an option will double, and if you win the trade, you will earn twice the money you initially would.
This strategy requires you to monitor the conditions in the market when you buy or sell an option, because this way you will be able to see the fluctuations and the movement of the asset. This will tell you whether it is safe or not to double up. This is why Doubling Up is not suitable for absolute beginners, since they may still not be skillful in monitoring the market and its changes.
In the cases of high market volatility and unpredictable changes, it is better not to double up. However, when the market is stable ad follows a certain trend over a period of time, doubling up can help you earn more.
The advantages of Doubling Up strategy
The main advantage of this strategy is that it can double your earnings in just one trade. If you monitor the market and rely on the conclusions you draw from the analysis, you can successfully use this strategy.
Then, it can help you learn how to monitor the market, analyze the change and separate the important from the unimportant. These skills are necessary if you use Double Up strategy, but you can also find them useful for many other strategies and trading situations.
Last, but not least, you can use this strategy with some trading robots, like http://top10binaryapps.com/ or some others. They base the predictions on market conditions, so some of you allow you to double up the trades.