End of session trading will mean different things to different people, as those who trade binary options certainly do not all live in the same country. Even so, markets do have a tendency to react in the same general manner as each trading session draws to a close, regardless of location. It will be these tendencies that allow traders to find last minute opportunities to profit on a daily basis.
Those who are not full-time traders often find it difficult to find the time to trade during standard business hours, but end of day trading may be possible for those who complete their workday before the markets close. When trading binary options, traders need not worry about executing a large number of trades each day in order to generate profits. In fact, studies show that traders who execute a lower daily trade volume tend to earn more in the long run. A few solid trades will allow for steady profit growth.
The benefit of trading near the end of a session is that there will be less market noise to content with. With clearer price movements being provided, traders are able to better identify excellent spots for market entry. Intra-day traders are not given this advantage, as the overall trade volume will be more substantial. Higher trade volume brings with it many insignificant price movements, and these can present extra challenges when performing analysis.
The strategy here is quite simple. Start by scanning the markets, looking for a clear entry signal. A daily chart should be used to see the previous price action for the current day. When examining a specific underlying asset, the search for an entry point should take no longer than ten minutes. If nothing clearly stands out within that amount of time, then a low-risk opportunity likely does not exist. At this point, move on to another asset and start the process over again.
Once a solid signal is identified, check to see if the price action lines up with any key price level. It should be a habit of all who trade binary options to plot support and resistance lines within a technical chart. This should be done at the start of the trading week, after which the levels can easily be adjusted as the week continues. The best time to update these levels is at the end of each session. When this is done, the chart will already be prepared for the upcoming day.
The next step will be to decide how the entry point relates to the prevailing market conditions. Is the market consolidating or trending? What is the most obvious trading range? These questions must be answered. If the signal appears to be strong, but market conditions are less than ideal, the odds of a loss increase substantially. Whether trading near the end of a session, or any other time of day, the best course of action is to trade only when the signal is in line with current conditions.
Each trader will have their own specific time-frame for actively trading. Some may trade when the markets open, while others may be trading mid-day, or in the evening. While many do become frustrated with time constraints, it is important to note that there is nothing wrong with trading near the end of a session. The fact is that there are even benefits to doing so. If trade volume is too low, consider Boundary or Range trades. Otherwise, opt for standard binary options trades when clear signals are being provided.