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Home Rating strategies Trading stocks with binary options. «Starfall» strategy

Trading stocks with binary options. «Starfall» strategy

Strategy characteristics

Risk
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Profit
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Suitable options: One-touch, Range, classic «Digital» binary options Choose a broker
Expiry time: 5 – 7 days, 30 days

Every brokerage company that provides binary options trading services has excellent selections of companies, corporations, banks and enterprises stocks. The stocks are present but not everyone knows how to trade them.

At the same time stock market trading is one of the most profitable types of trading in the world. That is because the stock market is more predictable in terms of fundamental and technical analysis if compared with currency and commodity markets.

Our «Starfall» trading strategy will tell you how to make trades with the most highly liquid exchange-traded products and to get the stable profit from them.

Do not forget that traders are first of all investors. So, let us ask ourselves - what does the investor need to know when trading stocks? Of course, the investor needs to navigate in the released economic news and financial reporting. Search engines like Google and Yandex will assist you in finding a suitable website for studying such financial statements, while the terms of trading for your web terminals will help you earn a fortune by trading stocks.

TRADING RULES

For stock trading, we need to choose American and European companies, that have always been the most highly liquid on the stock exchange. However, it is far from certain that the shares of Chinese or Australian banks and companies will not let you earn money. We study the stock market, we look at the history of stock prices and match it with the release of the financial statements of your favorite companies.

With this, you should be aware that companies publish their financial statements once a month, every quarter, every six months and annually.

Let us make an example

Commerzbank AG published his second quarter of 2014 statements on 1.08.2014, which showed an increase in profits compared to the first quarter of this year, but was significantly lower than estimated results, which resulted in a significant decline in the value of the shares of the second largest Bank of Germany.

As a result, the price of Commerzbank AG shares in the next 6 days significantly decreased that could have let us earn $400 with the $100 investment by executing a trade of selling the given company’s shares.


One more example

German Lufthansa airline compan, has reported in the beginning of the second half-year period of 2014 the reduction in the number of their flights and flight destinations, which resulted in significant decline in the value of the airline company shares quotes.


If betting 100$, such a decline would have resulted in traders profit of not less than 500$-700$.

The other thousands of examples can be provided from which we will witness the influence of companies’ financial reports on the stocks quotes.

Trading advantages:

  • there is no need for a large trading deposit;
  • A high probability (80%) of prediction of the price movement direction performance;
  • it does not take a lot of time;
  • good options profitability for the given type of trading.

Disadvantages:

  • insignificant number of trades.

APPROPRIATE OPTIONS

One-Touch options - for touching levels specified in the contract, Range options – for the price to go beyond the preset price range and the classic binary options - for a simple decrease or increase in the stock price can be all used for trading stocks.

EXPIRATION TIMES

As a rule, poor reporting of enterprises leads to a significant decline in the value of their shares and vice versa. At the same time, recession or growth can last from 5-6 days to a month (till the new report is released by the enterprise). Thus, we have to trade stocks with expiration times of at least 5 days and up to 12 days.

PROFITABILITY

Stock trading, as has been mentioned earlier, is the most profitable kind of trading. In addition, the financial liquidity of the trading instrument itself is significantly expanded and increased due to the increased payout for the Range and One-Touch option types, which in some cases reaches 700%.

MONEY MANAGEMENT

With a significant percentage of the trading signals accuracy, we can afford increasing the size of the trade up to 5% of the deposit. At the same time, in order to diversify the risk, you should disperse your attention over companies from different sectors of the economy. For example: transport companies, banks, heavy industry and other completely different spheres of macroeconomics. The investments of such type are called diversified investments and allow your deposit to grow in spite of the possible faults in individual assets trading.



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