Once you aware of the fact that there is more than one type of trade, you may find yourself with an entirely new question. This is probably how to choose the right type of trade for you. As you can imagine, the type of trade that you choose can greatly affect whether or not you will win a trade.
In turn, this will determine just how much of a profit you make in this venture. All in all, it is an important decision to make and one that should not be made lightly. To help you with this verdict, here are some things to consider:
Your Preferred Strategy
One of the more important things to take into consideration is the strategy that you, as Australian trader, prefer to use. This is because the strategy has an enormous impact on the type of trade that you can choose. For example, imagine that you like to use the straddle strategy so that you can minimize the amount of risk involved.
Due to the specificities of that strategy, it is the boundary trade that will most likely be of greatest use to you. This is because the broker will provide you with the outermost prices of the asset. This makes it easier for you to take the two opposing positions to ensure that you come out on top.
How Much Risk You Can Incur
The next question that you need to ask yourself is whether you want to opt for the safer route or choose something a little riskier. This is because some Australian trade types automatically carry more risk than others. Imagine One Touch trades, for example. This is because you have to now factor in a price point as well and determine whether or not it is a viable value for that specific asset. As you can see, there is an increased level of risk. At the same time, there is also a chance to make more money.
Therefore, although you may lose more often with such a trade type, you can stand to make more money as well. In terms of simplicity, the Call/Put or High/Low trade is probably the one with the least amount of risk. This is because you have to decide if the price is going to go up or down. As the payout is considerably lower, you stand to make less amount of money.
Your Own Emotions
Many traders fail to factor in their own emotions, moods, or emotional wellbeing when deciding on a trading type. Although it may seem unusual, it is actually quite important to take a look at this aspect as well. As discussed above, with High/Low trades, you have a greater chance of winning. This ostensibly means that all things being equal, you win more times than you lose. With the One Touch, however, you are probably going to lose more. If you are the type of trader that gets anxious, especially after losing a couple of trades, it is best to stick with the High/Low option. This is because you will not be able to stand the thought of losing despite the fact that you will be making a profit. If you are the type of trader that can keep their eyes on the price, however, you just may be able to bear the brunt of One Touch trading.
It can be tempting to choose a trading type solely upon the simplicity of it or just how much money you may make. If you are planning on being a binary options trader for quite a while, however, this is not a tactic that will work. You need to carefully look at the points above to decide how to choose the right type of trade for you.
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