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Real Online Work via The Trend Following Trading Strategy
What is the Trend Following method?
This is a popular method for trading in Binary Options, as it allows us to indicate when an asset's price in the stock market will change in value, so we can invest on it and make extra money. This method has become a vastly popular trading tool among many novice and expert traders alike. It is widely known for its simplicity and high accuracy rate despite how easy it is to use.
While there are many online trading tools offered by different financial guru's, advisers and trading companies, the trend following strategy has proven its worth and effectiveness more than most. By patiently following asset movements on graphs within short time frames, any person of any background can easily make an extra income online using this trading method.
Where do I access these graphs?
First, you will need your own trading account with a licensed and regulated binary option broker. Using a regulated binary option broker allows you to access a LIVE market platform and make money off real time graphs. It is important to choose one that not only pays well, but is also fully supervised under CySec's regulations. Finally, you will be able to invest in your account, and use this investment to trade on assets in the stock market.
On the trading platform, you will have plenty of assets to choose from: stocks, commodities, currencies and indices. As seen on the graph above, I have chosen the AUD/JPY currency pair, with a 5 minute time frame. This means that I will be predicting the movement of the Australian Dollar currency value against the Japanese Yen, within these 5 minutes. Choosing this time frame makes it easier to recognize asset movements. Although, after you gain experience with this strategy, you can move on to making extra money using longer time frames.
Now, as we can see on the graph, this asset's value is clearly going down. Recognizing this as a clear and sharp trend line, we place a "Put", or "Down" action. "Put" means that we are predicting that the asset will continue to decrease in value. By the end of those five minutes, when the trade expires, my payout should be about an $18 profit (a total of $43). While this might not sound like much, it is important to remember that you can always increase your investments for higher results and to make more profits. In any case, the very same thing happens when you predict that an asset will rise in value. In this scenario, you will place a "Call" action, or "Up", and wait for the trade to expire.
This is called a "neutral trend". Meaning that the asset's value is moving in an unclear direction. After picking the EUR/USD currency pair, we can see on the graph below that it is impossible to predict whether the trend line will go UP, or DOWN. In this case, we avoid making our investment as It is highly risky and hurts our goal of making profits from the stock market.
If you would like to gain more knowledge of the financial market, and strengthen your trading skills by learning more complicated strategies, you should try one of the following:
- Enlist to a professional trading course. I personally recommend the CleverTrader education programs, they are easy to understand and suitable for beginner traders. These days there is a promotion that you can get the first course for free.
- You can read more about the one who perfected this trend following method. His name is Michael Hill and you should definitely follow him on his Facebook page, or watch his free online video.
- Consult a professional account manager working for an authorized binary option broker. As a financial expert, your account manager can teach you different trading strategies according to your level of experience, and help you become a profitable and professional trader by building for you a trading plan customized specifically to your needs.
Finding the right strategy to trade is the first step towards making a great extra income online using the financial market.
Until next time,