One touch options have been growing in popularity along with the regular binary options over the past few years. People tend to enjoy these types of trades because they are fast and simple, and there is the potential to make a nice profit – as long as you are making smart trades and betting on the asset moving in the right direction. It’s possible to lose, of course, but you will know your risk going into the trade.
Newer traders who are just learning about this type of trading often wonder what they should look for when they are choosing their assets for trading. While each trader will need to think about the amount of knowledge they have regarding different assets and markets, there are some tips that can help you find the assets that have the right qualities for success.
Volatility Works in Your Favor
With one touch options, just like binary options, you do not want to trade an asset that is static. You need to make sure that there will be some movement, some volatility, in the asset. It needs to move up or down regularly if you want to make money with one touch options. Take the time to look at the recent history of the asset and learn whether it is currently on an upward or downward trend.
Go with the Trend
When you are choosing your one touch options and you are watching the trends to see if the asset is volatile enough, take note of the direction it’s going. If the asset has been on a downward slide, then it’s likely it will keep going in that direction. Could it turn around? It could, but the smart money tends to be placing your bet with the flow of the current trend.
Keep in mind that these are typically very short-term trades. You aren’t trying to buy low and hold onto the asset until it turns around. This is very different. You want to go with the flow and make money on the trades quickly.
Never Invest Blind
Even though you might have advisors or peers that are willing to provide you with advice on the assets you should be trading with your one touch options, you can’t rely only on them. You need to make sure that you are doing research to understand the assets you are considering. You need to learn what factors can cause the price to go up and down, and what might cause them to swing in a different direction.
Only by gathering this knowledge will you be able to make smart and informed decisions with your trades.