Recommended Trade Strategy

Recommended Trade Strategy

There are several digital options platforms that offer some form of recommended trades. These can come in a few different forms, such as contracts which are being purchased by a larger numbers of traders, or contracts in which traders are heavily leaning one way or the other (towards asset price increase or decrease). While it is not recommended that these trades be your primary source of investment selection, they can certainly be used to generate profits on a regular basis.

Brokers actually tells you the exact percentage of traders who have purchased Calls and how many have purchased Puts. A great digital options strategy would be to watch for times when the percentage of either Calls or Puts are extremely high. Although your investment decisions should never be based solely on this, a high percentage in one direction or the other is more than enough to point you towards prospective profit. Once you see a strong tendency towards one prediction, you can then investigate further.

Not every broker offers you prediction percentages. Sometimes trade recommendations show up simply because that one trade setup has been chosen by a larger number of digital options traders. What you might want to do in this case is start the analysis process, with the goal being to determine why so many traders are making those selections. A quick check of market news is highly likely to provide you with the answer. If not, you may need to do a bit more digging during the technical analysis process.

Whenever a trade is recommended or suggested, this does not mean that your digital options broker is actually prompting you to act on that trade. This type of information is really just offered as one of hopefully many helpful tools. Should you invest in a “recommended” trade, the broker will not take responsibility of whether you win or lose. All decision making is left up to you, so feel free to completely overlook these trades anytime you feel that it is not in your best interest to pursue them.

One last tip would be to not always go along with the crowd on recommended trades that show percentages. There may be times when a large group of people have indeed made the wrong selection. If you have faith in your analysis process and it is telling you to move in the opposite of the majority, then that is certainly something that you must consider. What you have to account for is the fact that certain events could take place between the time that those contracts were purchased and the time you trade. Sometimes the better option is not to go with the majority.

There absolutely will be times during which recommended trades are goldmines, offering you easy trades with large profits. However, this is not always the case so be prepared to complete some analysis along with each and every trade. Part of your strategy could be to check out these trade opportunities daily. Just keep in mind that you should never feel compelled to utilize these trades unless you feel relatively certain that they can bring you profits.

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General Risk Warning: Trading Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
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