Effective Time Management in Binary Options Trading

Ted Capwell

In order to become a successful participant in the financial market, or a binary options trader more specifically. Potential investors must familiarize themselves with a full range of professional skills. How else can you make sense out of the chaos of the market, stay with the trend, consistently define the direction of market movement of the most asset rates, or analyze the numerous indicators? Of course, without being educated on the topic and acquiring practical experience trading, few achieve their desired results. In this context, we propose going through the interesting topic of time management in depth. In studying this question, and also the in-depth analysis of the optimum trading periods allows you, as a binary options trader, to choose for yourself the most suitable trading tempo, trade duration, and also enables a more effective application of the algorithm of future rates for earning a profit.

So, what is meant by time management? Of course, we cannot directly control temporality from a purely physical side alone, but, from the perspective of trading fixed-term contracts, it is one of the most fundamental influences on an investor’s final trading outcome. For this reason, an effective approach to time management trading indicators is very important part of trading on the market.


Effective Time Management in Binary Options Trading


If all the possible time indicators used for trading binary options were organized, then we would be left with the following periods:


Trading By Time of Day

Intraday Trading – It a trading regime where contracts are held through the day with expiration periods that do not exceed 24 hours. In this case, traders conduct activities within the frame of the main trading session, beginning with the Asian and closing with the American. In essence, the market doesn’t sleep throughout the working week, which is why it isn’t possible to draw clear borders between days in intraday trading.

The defining characteristic of intraday trading is the high level of dynamic trading operations, which are the most profitable, however, carry a larger financial risk.

Furthermore, intraday trading is divided into two additional time periods:

Night-time Trading – An active working regime ranging from 9 PM to 9 AM MSK. In essence, it is the right time for trading on the Asian markets. Many professionals consider night trading to be a separate trading regime in its own right. It is connected to the technical behavior of the market at night period. The issue is that the Asian trading session differs due to its low level of investor activity. You rarely find professional traders capable of meaningfully influencing the market here. Besides that, at night there are practically no macroeconomic statistics, which enables you to trade on the technical market indicators. Therefore, at night, we are left with a market with low signs of price movement volatility. Usually, the rates through this period remain in a horizontal plane. Well forecasted price reversals relate to the high level of contract profit. If you choose night trading as your primary trading period, you can earn the maximum profits in the safest conditions.

Day-time Trading – The second half of the trading day has the more active sessions, the European and the American. In this case, we are faced with the total opposite situation as with night trading, such as the majority are professional investors, the markets are active, the vast total of trading funds, and there are many fundamental drivers influencing the market, like statistics or news. In total, it leads to the maximum level of price movement volatility of a specific group of trading assets, a high level of risk, and a more complex process for forecasting market movement. However, despite the difficulties, the clear majority of traders choose day trading. The reason for this likely lies in its physiological points. Day trading when there is active market movement enables investors to achieve maximum trading results in the shortest period of time. Often, during the day, traders apply options with a minimal range of expiration, creating an opportunity to quickly increase their trading funds.

● Medium-Term Trading – This trading regime involves using rates, the range of expiration of which are from 24 hours – 30 days. This trading approach is often adopted by professional investors for hedging risks of small intraday positions, and also as a means for storing their investments in a financial market asset. The specifics of medium-term trading are the complex approaches to conducting technical market analysis, in which it is necessary to learn a wide range of fundamental and technical indicators for the entire duration of the option on the market, the average price rate indicator, used as an object of the asset rate evaluation of raw materials and trading markets.

● Long-term Investments – Speculation on the market in a long-term regime is the prerogative of systematic investors, who aren’t aiming for a quick profit, but for a stable final result. Usually, long-term investments in fixed-term contracts are used with options with expirations up to one year. These rates are set apart by the high level of profitability, however, in order to earn a profit in with these kinds of positions, you need to be a professional, because producing forecasts over such long periods is very difficult and demands a substantial amount of technical resources.

As you see, there is a reasonably wide range of time periods used on the binary options market, allowing every potential successful investor to select the timeframe that suits them best. Let’s continue our analysis of time management criteria, and consider the question of market evaluation.


On the Period of Market Evaluation

Not only the final trading result is dependent on this decision, made when analyzing the chart period of asset liquidity, but also the vast majority of basic indicators as well. Besides that, there is a more effective and suitable active chart timeframe for every investor, which enables them to evaluate market indicators and achieve a comfortable trading regime more efficiently. So, when trading with binary options, investors frequently use the following chart construction periods:

Tick Charts – They are liquidity charts that employ the minimal construction periods possible and a maximally quick renewal – often rate candles have a construction range of 0.05 – 15 seconds. These fast regimes for constructing market indicators obstructs effective analysis, and using Tick charts usually leads to disastrous results. In sum, we don’t recommend using this type of active chart for trading with binary options.

Minute Charts – They more efficient chart construction periods for trading on the binary market according to specialists. In this case, traders can analyze market periods within the range of 1 to 30 minutes. On trading platforms, brokers divide this chart construction range into very useful periods, 1/5/15/30 minutes, which creates a wide variety of opportunities for traders in terms of their choice of trading systems, filtering out fraudulent trading signals, and also managing the behavioral dynamic of trading operations.
Working in minute charts allows for, within your regime, the most dynamic realization of your trading operations, a wide selection of trading strategies, and also the use of highly profitable contracts to achieve the highest indicators of trading profitability.

Hour Charts – In this case, investors analyze the market in active chart timeframes with a period ranging from 1 to 5 hours. Despite the connection to the continuing time range analysis, these frames allow for trading within one working day. With them, the range of market analysis expands, substantially increasing the quality and accuracy of forecasts with binary options.

Day Charts – They are charts with a candle construction range of 1 day, investors rarely use them. We have already explained above both medium-term and long-term trading and their specific qualities. Day charts allow investors to recognize medium-term market trends, creating the possibility to devise plans and correct the work of intraday trading strategies with an aim to increase profit.

When considering time management from the angle of choosing a market price range, it’s necessary to point out that, in this plan, there are many suitable timeframes, such as weekly, monthly, yearly, for the entire period the market is open. However, these rate movement ranges prevent private investors from trading in a highly dynamic regime, therefore they ignore them.

The next important time management indicator for trading with binary options is the choice of the option’s expiration.


On Rate Liquidation

And so, we have come to the more concrete time indicators, which are vital to consider when formalizing any option, expiration periods. The correct selection of the range of expiration specifically is one of the primary necessities for earning a profit from fixed contracts. The clear majority of trading platforms propose the following types of options:

Turbo – Contracts with the minimum expiration range on various platforms. This type of rate has a broad-range of expiration indicators from 30 seconds to 5 minutes. In essence, they are standard binary options, but with the minimum expiration. This type of trading rate is often used by investors for day trading, in a scalping regime (earning profit off minimal rate reversals). Using fast options opens up the opportunity to quickly increase funds in your trading account, regulate the general trading dynamic, and to earn additional income in a contract package trading regime.

Classical Binary Options – Contracts with an expiration range from 5 minutes. There is no final expiration indicator range for standard binary options, as the optioned are limitless, however, are regulated by your broker on the specific trading platform chosen. It is all simple and clear. The maximum expiration range for options, in this case, opens up a wide range of possibilities for trading on the market in a profitable regime, from forming trading and investing cases to regulating the trading dynamics and choice of an effective strategy.
In order to choose the correct type of option and consider the expiration rate, traders must consider the many indicators, such as the current level of market volatility, the presence of any fundamental drivers influencing the asset price, and the historical market data. All this information in combination enables you to accurately define the optimal rate expiration indicators, maximally increasing your profit.

We have provided you with a selection of the basic time management indicators, which are used by professionals when trading with binary options. Using this analysis and practical recommendations, you can decide for yourself not only the specific trading time period and the optimal trading dynamic but also the most suitable trading strategy that produces the best results. In closing, correct and effective time management will lead you to the pinnacle of financial success!


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”