Ever wondered how you can ace it trading in Expert Option?
You must have tried so hard to make it trading in Expert Option but it unfortunately always never bears fruit.
I may not know how you trade in Expert Option, but the question of ‘how’ is paramount.
It is how you do something which determines whether you will be successful at it or you will fail.
Likewise, it is how you trade in Expert Option which will tell whether you are headed for success as a trader or headed for the rocks.
When you turn on the social trading feature of the Expert Option trading platform, you can see traders staking as high as $1,000 and more, and they win.
What exactly do these successful traders do in order to predict the market correctly in Expert Option? What is the magic used here? Well, I came to reveal the magic to you.
In this post, I will show you the top 10 techniques for successful trading in Expert Option.
I have been using them and they have brought me success. They are also the very techniques that other successful Expert Option traders have been using.
But wait. If you are new to trading, you might be wondering what it is that we are talking about.
Expert Option, trading, and other jargon might be mixing you up. Let us first introduce Expert Option and what trading in Expert Option entails.
What is Expert Option?
Expert Option is an online Binary Options trading platform.
The platform offers over 100 different financial assets which include Currencies, Cryptocurrencies, Commodities, Indices, and Stocks. Expert Option offers a $10,000 free Demo account and Up to 95% returns on the invested amount!
The minimum deposit amount with Expert Option is just $10 and the minimum trading amount is only $1.This makes it quite simple to get started. Great bonuses are also available on deposits.
The minimum withdrawal amount from Expert Option is $10 as well.
You can trade via their website or by downloading one of their apps.
Expert Option began providing services in 2014 and executes more than 30 million deals every month.
The broker is an FMRC authorized broker that holds a license from one of the world’s reputable regulatory bodies, VFSC.
What is Trading in Expert Option?
Trading in Expert Option entails predicting where the price of an asset will be after a given period.
Will the price be higher or lower in respect to the level where you take the trade?
An Up green button exists on the platform to hit if your analysis implies that the price will be higher and a down red button is to be pressed if your analysis implies that the price will be lower.
If your prediction is correct, you earn the specified percentage of the invested amount plus the invested amount itself.
You can earn profits up to 95% of the invested amount per trade on Expert Option.
To earn, you have to predict whether the price of an asset will go up or down within a specified period.
The available trade durations to choose from are 1 minute, 2 minutes, 3 minutes, 4 minutes, and 5 minutes.
Top 10 Techniques for Successful Trading in Expert Option.
Now that you understand what Expert Option is and what trading with the broker entails, we can proceed to the subject of this post.
I would like to reveal to you techniques you can apply in your trading so that you emerge a successful trader in Expert Option.
Trading in Expert Option is not as simplistic as hitting the up and down button. If you take it that way, you might as well have become some sort of a gambler.
You need to understand why you will hit the up button and not the down button and vice versa, and then, you will have earned the name ‘trader’.
It is these top 10 techniques that can help you make better trading decisions and increase your win rate as well as your profit margin.
I must have kept you waiting for long, right? I can feel the longing to get hold of these techniques and therefore I will stipulate them right away. Here is my list:
- Acquisition of Knowledge.
- Demo Trading.
- Social Trading.
- Enough Capital.
- Trend Trading.
- Volatility Trading.
- Specialization in Specific Assets.
- Emotional Detachment.
- Technical Trading.
- Money Management.
Acquire Enough Knowledge.
When it was said that knowledge is power, I know you laughed it off with a ‘to hell with it.
It is yet another day to remind you that it indeed is, knowledge is power.
That is especially so as concerns trading with any broker, not only Expert Option.
You must arm yourself to teeth with adequate knowledge about assets and how their prices move.
Reading books that show you the way to ace it in binary trading is highly recommended because the mode of trading in Expert Option is binary options.
Here, you predict the up or down movement of prices to earn a fixed percentage of the invested amount, within a fixed duration, say 1 minute, 3 minutes, 5 minutes or so.
They are actually short-lived trades and having the knowledge and skill to predict the market in a matter of minutes must be backed with a lot of knowledge.
Apart from books, you can access the wide database of articles on binary options trading online. You will find them as resourceful just as books would be, or even more.
You might be tempted to underestimate the power of video tutorials, but I warn you not to.
Video tutorials online, showing you how to trade, tricks to trading, and trading strategies, have proven to make successful traders in Expert Option.
If you do not fancy reading a lot and prefer videos, then go for video tutorials and you will equally succeed as a trader just as one who reads books and articles.
There is a manner of knowledge acquisition that is coming up and which I would recommend at the top of my lungs. It is called trader education by brokers.
Expert Option is one broker which offers free education to traders.
On their education database, you will find educational materials such as video tutorials and in-depth articles.
These address aspects such as technical analysis, fundamental analysis, trading strategies, and trading psychology among others.
The broker goes a long way to even availing webinars accessible to all traders, which address a wide range of knowledge areas useful to both beginners and professionals at trading.
Whatever the case, read that book or article, watch that video tutorial, attend that webinar and align yourself towards successful Expert Option trading.
You will save yourself so many snares and pitfalls by learning how to trade for yourself, which begins by acquiring the necessary knowledge before anything else.
Demo-trade Your Way to Success.
A Demo account is a free account that contains virtual funds provided by the broker.
It is these funds that you can use to practice trading risk-free.
The Demo account is free and so you do not incur any cost in terms of real money while opening the account and trading on that account.
The demo account allows traders to practice trading risk-free because they are not using their own real money.
You are using virtual money provided by the broker.
If you make losses, you don’t lose real money but virtual money and so it doesn’t hurt you. If you make profits, they are also virtual profits and so cannot be withdrawn.
Generally, trading in Expert Option is in form of Options.
It means that you have to predict the direction of the market within a specified period of time. If you think that the market will go up within a certain duration, you click on the Up button.
On the other hand, if you think that the market will go down within a certain duration, you click on the Down button.
You will earn a specified percentage of the invested amount if your prediction is correct.
Use that information to formulate a profitable strategy on the demo account.
You also need to make use of the indicators and oscillators on the platform in the formulation of your strategy.
You can also have a trading strategy based on pure price action.
Expert Option offers new traders a demo account loaded with $10,000 of virtual funds.
The interesting thing with this account is that you can replenish it if the demo units get depleted.
This means that there is no limit to how long you can practice trading with the demo account. Therefore, you can practice for as long as you wish, until you are skillful enough.
Pros of a Demo Account.
If you thought of skipping demo account trading, then see how much it enables a trader to do:
- Get acquainted with the trading platform offered by the broker.
This is in terms of the various functions and navigation keys that enable you to trade on the trading platform offered by the broker.
It is here where you get to know how to adjust trade duration, adjust trade size, place trades, exit trades and navigate through the platform easily.
- Learn how to analyze the market.
A demo account offers traders exactly the same trading conditions as those in real accounts.
The market conditions for both real and demo traders are the same, only accounts are different. One might be tempted to think that demo account conditions are a fake simulation but they are actually not.
That way, you get to understand how markets move, their patterns and consequently learn how to analyze them.
- Develop positive trading psychology.
While demo trading, you get to understand the emotions that accompany both winning and losing, though not very much so as in the live account.
That way, you will get messed at times by emotions until you learn that emotions and trading are incompatible.
It is then that you will begin developing positive trading psychology and ditch the emotions of fear, greed, overconfidence, and the like.
- Develop a solid profitable trading strategy.
Never quit demo to live to trade until you have developed a strategy on a demo that has been making consistent profits.
It is what works in the demo which will work on the live account. If the strategy didn’t work on the demo, it won’t work on the live account either.
Do not go live until you have had the full experience of the demo account as we have discussed above.
It is one of the most valuable techniques every successful trader out here has embraced and employed.
Embrace Expert Option Social Trading.
If you don’t want to formulate your own trading strategies on the demo account and use them on a live account to make money, there is also a way you can make money with Expert Option.
You can do so by copying trades of other successful traders on the platform and make profits and they make profits.
Expert Option Copy Trading.
Expert Option Copy Trading is a special feature offered by the Expert Option trading platform, which allows traders to copy the trades of other traders.
The platform does not have a function to copy every single deal of a specific trader.
Instead, you can choose a trader and follow their decisions. You can simply see the trader’s deals and copy them manually.
Expert Option Copy Trading is actually branded as ‘Social Trading’ on the Expert Option trading platform.
It is social because if you turn on the social trading feature, you will not only see the deals of your single preferred trader but the deals of all traders on the platform.
Social trading is such an interesting feature of Expert Option.
In Expert Option Social Trading, a trader can see the deals of other traders in real-time on the graph.
The trader can then trade in the direction of their preferred trader or in the direction of most of the traders to get more profit.
Little red and green circles with an image inside, appearing on the price graph represent the various traders and the trades they have taken, real-time.
How to Make Money with Expert Option Social Trading.
To make money with the Expert Option Social Trading feature, you can either choose specific traders to copy or just trade in the direction in which many traders (non-specific) on the platform are trading.
A. Specific Traders.
Choosing a trader to copy is not so difficult because all you need to do is just access the Expert Option Social Panel and view data there which will inform which traders you choose.
On the Expert Option Social Panel, choose the traders who:
- Appear frequently on the ‘top 5 list’.
- Have won high amounts consistently.
- Stake huge amounts.
You can also choose traders to copy based on other own criteria.
After choosing the traders to copy, take note of their names, respective photos, and the asset they are trading.
You can then choose that asset from the various assets available on the Expert Option platform and turn on the Social trading feature.
The button to turn on the social trading feature is shown below:
Once the social trading feature is on, you will begin to see red and green circles with photos and those will be traders taking trades in the respective directions.
Track the traders you had chosen and only take trades in the direction they take trades.
Ignore any other traders as they do not bear the same characteristics as those with the traders you chose.
You can confirm that it is one of your preferred traders by clicking on the circle and the name pops up, and by also looking at the photo within the circle.
If your preferred trader takes an up trade, confirm it is them and take an up trade.
On the flip side, if your preferred trader takes a down trade, confirm it is them and take a down trade.
Red circles mean that the trader has taken a down trade while green ones mean that the trader has taken an up trade.
B. Non-Specific Traders.
You are also allowed not to have any specific trader to copy.
In this case, you will only be looking at the red and green circles of traders with the social trading feature on.
If so many red circles appear consecutively, then most traders are taking down trades and you can also do the same.
On the other hand, if so many green circles appear consecutively, most traders are taking up trades and so you can do the same.
Newbie traders can use this technique to make money without having to use any of their own strategies which might fail.
That way, it is a technique you should consider if becoming a successful trader in Expert Option is something you will realize. Make profits hassle-free with this technique.
Don’t Fall for the $10 Minimum Deposit Trap.
If you are serious about your trading career, you will not find yourself depositing only $10 and hoping to make money in Expert Option.
You will lose that $10 before you can double it because I know that is your goal.
With a $10 account, you can only gamble around with the up and down buttons and not actually trade.
We recommend that serious traders make deposits beginning from $100 or even $1,000.
Have you checked the social trading in Expert Option and seen how much traders are staking?
What is the possibility of staking up to $1,000 if that is all you have?
It means that such a trader has a huge account and they are under no pressure to gamble around trying to double their account.
Understand that you need money to make money.
For that reason, you cannot make serious money if your deposit is not serious.
You need to part with a significant amount of money as a deposit in order to expect to make significant profits.
The $10 minimum deposit feature is a trap to newbies who think that they can become rich quickly.
What they don’t realize is that the minimum trade size is $1 and with a $10 account, one is limited and cannot truly exercise money management in full swing, and cannot allow the market to move in their favor.
If you had begun building castles in the air of how you are going to become young and rich with only a $10 deposit, you would rather stop.
Wake up to the reality that trading in Expert Option is not a get-rich-quick scheme but real business.
It thus requires real capital, resilience, and patience to make it successful.
If you employ this technique, you can be sure that your trading career will begin taking shape. You won’t have to make desperate moves in a bid to salvage your account.
After all, you have enough money to trade with, in order to recover the lost money.
Try this with a $10 account and immediately you lose $1, the pressure is palpable, the pressure to recover that $1, and profit ahead.
This will drive you to crazy extremes and before you realize it, your account is all blown.
Do not be a miser, make that huge deposit.
You will enjoy the convenience of being a successful trader in Expert Option without any pressure to perform.
It is among the best techniques you can apply to become a successful trader in Expert Option.
Make the Trend Your Friend.
You must be thinking that I am trynna be a poet right there by rhyming words here and there, but no. Hehe.
All I am saying is that you must befriend the trend.
That is because trading in the direction of the trend gives a trader a higher chance of profiting than trading against the trend.
There are terms to define here, beginning with the term ‘trend’.
You also might be wondering how you can spot a trending market and what kinds of trends do exist. We shall discuss all of that.
What is a Trend?
A trend is a sustained price movement in a particular direction.
The price can have a sustained movement upwards, downwards, or sideways and all such are different kinds of trends.
If the price has been rising for long enough, then such is a sustained upward price movement, hence an uptrend.
On the contrary, if the price has been falling for long enough, then that will be a sustained downward price movement, hence a downtrend.
There are cases where the price has not been having a sustained upward or downward movement but a kind of oscillating movement seemingly within upper and lower levels.
Such is a sustained sideways movement hence a sideways trend occurs.
What Kinds of Trends Exist?
From the definition of a trend, we have already covered what different types of a trend are. They are:
- Upward trends (Uptrends).
- Downward trends (Downtrends).
- Sideways trends.
How do you Spot a Trending Market?
Spotting a trending market is not difficult.
You only need to observe what the price is doing and you will know that the market is trending.
Let us match how to spot a trending market with the types of trends that exist. Here is how to spot a trending market:
- Uptrend – the market makes higher highs and higher lows progressively. If any technical indicators are in use, they show an upward trajectory despite a few fluctuations here and there.
- Downtrend – the market makes lower lows and lower highs progressively. If any technical indicators are in use, they show a downward trajectory despite a few fluctuations here and there.
- Sideways trend – the market makes highs to almost the same level as previous highs and lows to almost the same level as previous lows. It appears to move within a range. If any technical indicators are in use, they show no apparent trajectory but up and down movements about the zero line.
How to Ride on Trends like a Pro.
I would now like to show you how you can ride those trends like crazy. We shall discuss each trend type here. Let us get at it.
If the market is in an uptrend, you must have noted that it doesn’t move up in a straight line.
There are downward fluctuations which we call retracements or pullbacks.
The secret to profiting big on an uptrend is in waiting for the price to retrace downwards and then entering a buy trade just after the retracement is over.
Furthermore, you can enter a buy trade just after the price breaks above the level of a previous high on an uptrend.
On the other hand, you must have noted upward retracements on a market trending downwards.
What determines if you will be a successful trader or not is how you utilize such pullback to enter the market in the direction of the trend.
To stand a better chance of winning, you should wait for the price to retrace upwards and then enter a sell trade just after the end of the retracement.
Moreover, you can enter a sell position just after the price breaks below the level of a previous low on a downtrend.
Wondering how you can trade sideways trends?
It is quite simple.
All you need to do is to establish the levels which the market seems to range within.
The upper level will be a resistance level while the lower one will be a support level.
You need to wait until the price hits a support level and retests it to buy and until the price hits the resistance level and retests it to sell.
Other traders choose to ignore ranging markets which are still okay.
Apply the trend trading technique and see a real turnaround in your trading results.
Successful traders have known that trading with the trend is life and trading against it is synonymous with catching a falling knife that must cut you so deep.
Trade Where Volatility Leads.
Volatility in trading is defined as how fast and to what magnitude the price of an asset changes over a given period of time.
Volatility will be defined as high when the price of an asset fluctuates markedly and very fast within a short period of time.
On the other hand, low volatility means that the price of an asset changes less significantly and is very slow within a long period of time.
So what is this place that we are talking about, where volatility leads? It is in the place of high volatility.
This is where prices change to a great extent, very fast within a very short period of time. It is in this place where the money resides.
That is so because the very act of the market having high volatility means that there are so many players in that market.
This can be confirmed by checking the volume at that very moment, and most probably the volume will be high.
Truth is, no one wants to trade where the market is silent.
This is where the price is not moving any significantly but slowly and taking ages to move an inch.
All traders, including you, love it when things are changing faster because it is in the change of the price where money can be made while trading.
If the price changes slowly, you profit slowly but if the market changes very fast, you profit very fast and significantly.
When are Markets Volatile?
If you are trading currency pairs, the question of when markets are volatile is of great importance to you.
Usually, volatility is highest during the first hour after each trading session opens. And then you wonder what these trading sessions are.
Trading sessions in currency trading are specific durations during which specific Forex markets are open.
There do exist four major Forex trading sessions which have specific currency pairs tied to them and different times of open and close within a day.
Below is a summary of Forex sessions, their open and close time:
- Sydney Session – Opens at 21:00 GMT: Closes at 06:00 GMT.
- Tokyo Session – Opens at 23:00 GMT: Closes at 08:00 GMT.
- London Session – Opens at 07:00 GMT: Closes at 16:00 GMT.
- New York Session – Open from 12:00 GMT: Closes at 21:00 GMT.
The currency pairs with the highest volatility to trade during each session are:
- Sydney – AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, GBP/JPY and NZD/JPY.
- Tokyo – AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, GBP/JPY and NZD/JPY.
- London – GBP/USD, EUR/USD, USD/JPY, USD/CHF, EUR/JPY and GBP/JPY.
- New York – EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY and USD/CHF.
- London-New York Overlap – EUR/JPY, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, and EUR/GBP.
Note that during periods of high volatility, it is when key market players like the banks and other financial institutions trade.
You will be better suited to trade with them as they drive the market.
Positioning yourself in their direction and coupled with the fact that prices change significantly, you stand a chance to pocket so hefty profits that you could never imagine.
Focus on Specific Assets.
Ever heard of jack of all trades and masters of none?
It is what you will be if you try to trade all assets available on the Expert Option trading platform.
While there is nothing wrong with trading any asset that you open, there is the aspect of mastering a specific asset if you give it all of your attention.
Did I not tell you that you can make as much money trading only one asset as you would if you traded all of them?
Oh but I forgot to say that if you trade all of them, you might actually lose some of the money, leaving one asset trading as the only way here.
While they say that you need to diversify your portfolio by trading different assets, you also need to master a specific asset to know its ins and outs.
I am sure that knowing how a specific asset moves and works can beat the diversification of your portfolio which is marred with assets you do not even know how they work.
What am I saying then? Pick a specific asset or a group of assets and study them thoroughly. Know them in and out and understand their dynamics.
That way, having focused your attention on those specific few ones will give you an upper hand over those traders trying to trade everything.
Note here that I did not quash the diversification of your portfolio.
It is also good when you choose assets spread across the different asset classes and master them.
Do not only pick related assets and master them but a few assets from the different asset classes.
That will be the same as knowing how each asset class works by means of a single asset that you have chosen among the few to master.
Mastering a single asset.
If choosing a few representatives from each asset class seems to be a lot of work, you can as well choose a single asset which you will be monitoring closely.
It is the only asset you will be trading.
You will read about the dynamics of trading that asset, fundamental aspects that affect the asset, and everything that is geared towards the successful trading of that asset.
I can assure you that in the end, you will be a successful trader because you have mastered something which can make you money in Expert Option.
After all, what marks successful traders is their profitability.
If you are profitable, no matter how many assets you have traded, then indeed you are a successful trader.
I have seen what I am talking about here make many previously struggling traders successful.
It is called the power of focusing your attention on a single thing. Sun rays burn when they are focused on a single point using convex lenses.
Likewise, your trading experience will yield much if focused on a single or a few assets.
Tame Your Damn Emotions While Trading.
If there is something I have learned to always do while trading, is to leave my emotions behind.
They will do you no good at all unless making consistent losses is something you would term ‘good’.
Did we not mention that one of the pros of demo-trading is in order to develop positive trading psychology?
Oh, yea we did. Positive trading psychology entails everything to do with putting your emotions under control while trading.
That is because if you let them control how you continue trading, you will shoot your trading plan and trading strategy down and begin listening to your emotions.
See below some emotions and how they affect the trader.
The earlier you learn to tame them, the earlier you become that successful trader you have been dreaming about.
It is hard to successfully operate in the stock market without optimism.
However, you only need enough optimism to survive here.
Superfluous optimism, which is not based on technical analysis, is a common cause of losses due to overconfident buying near or at the top of prices.
Pessimism causes people to sell their stock, to be cautious, and to be suspicious towards uptrends.
Reasonable pessimism saves an investor from reckless buying, while unreasonable pessimism holds traders from profitable usage of positive market situations.
Fear deprives the trader of the opportunity to earn, forcing them to withdraw from trades and sell positions at too low a price.
Fearful investors tend to often anticipate downtrends and therefore are not eager to buy.
People who are powered by fear most of their time soon realize that the stock market is not their true purpose and probably not for them and quit.
That is why you should always follow a certain trading strategy.
That way, you will be sure that you are doing everything right, and protecting yourself from spontaneous fear-based decisions.
When a trader is greedy, they try to make too much profit and deviate from their strategy.
Greed deprives a person of the ability to think soberly and objectively, as they don’t get out of the trade on time, and neglect adequate risk management.
All this can lead to losses.
Therefore, always stick to your trading plan, even if you think that it is not overly profitable. Of course, this advice is relevant if you are confident in your strategy.
If fear deters the trader from actions, then hope, on the contrary, keeps them in a losing trade.
These two emotions go hand in hand. If the investment is successful, hope turns into pride, and in case of failure, then it turns into regret and fear.
It is from the harmful effects of hope that a trader resorts to an adequate assessment of their transactions and a good understanding of how the market works transpires.
Regret of a lost profit or a losing trade is normal.
However, if you give too much attention to sadness and disappointment, you can distract yourself and lose motivation.
To turn off emotions, analyze a failed trade and understand what went wrong, and then try to distract yourself from regret by looking at other potential opportunities.
Sometimes this can be difficult, however, the trader needs to be able to manage their emotions.
Tame all those emotions and keep them checked and see how much your trading becomes a success.
Learn to Analyze Markets Technically.
Technical Analysis is the study of past actions of the price of an asset in order to make trading decisions.
Though how the price behaved in the past isn’t necessarily the same in the future, studying the past helps predict the future.
The technical analysis thus forms a significant part of trading because most traders actually use the technique to derive trade setups and signals.
So what can you use to study past price action of the price?
How can you know how the price behaved in the past?
You can use technical indicators, drawing tools, candlestick patterns, and chart patterns among others.
Technical indicators are chart analysis tools used to show possible entry points of the market as the price proceeds.
They move along the price of an asset showing how the price is changing on a smaller scale and therefore give hints on where the price might move next.
Technical indicators on the Expert Option trading platform include:
- Moving average.
- Bollinger bands.
- Parabolic SAR.
- Awesome oscillator.
Drawing tools are tools available on the trading interface which can be applied at the click of a few buttons. They are useful in drawing significant price levels on the chart.
Drawing tools on the Expert Option trading platform include:
- Horizontal line.
- Vertical line.
Candlestick patterns are sets of candlesticks or single candlesticks which form definite shapes. The shapes the candlesticks form are associated with upward or downward price movements.
Some of the bullish candlestick patterns you can identify in Expert Option include:
- Bullish engulfing.
- Inverse hammer.
- Three white soldiers.
- Piercing line.
- Morning star.
On the other hand, some of the bearish candlestick patterns you can identify in Expert Option include:
- Bearish engulfing.
- Hanging man.
- Shooting star.
- Three black crows.
- Dark cloud cover.
- Evening star.
Chart patterns are patterns on the price of an asset formed by several candlesticks after a long time.
Unlike candlestick patterns, chart patterns are sets of candlesticks forming definite shapes and take longer to form fully.
Here are some of the bullish chart patterns you can spot in Expert Option:
- Ascending triangle.
- Bull flag
- Cup and handle.
Here, on the other hand, are some bearish chart patterns you can spot in Expert Option:
- Head and shoulders.
- Bear flag.
- Descending triangle.
Use a Money Management System.
Forget becoming a successful trader in Expert Option if you ignore money management while trading. But what is money management in Expert Option?
Money management is any method used to conserve your trading capital from depletion as you take risks in the trading environment. There is no point in getting your capital depleted so soon.
The goal is to ensure you continue trading because the potential to profit from trading is indeed huge.
Therefore, remaining afloat despite the risks is paramount, and can only be possible if traders exercise money management.
Which money management systems suit the Expert Option trading platform?
I will reveal them to you, and then you can go ahead to choose which one suits you best.
Fixed Trade Size.
Here, if you decide that your trade size will be $50, it will be so all through.
You will not add or deduct anything under any circumstance whatsoever.
Whether you place a trade and win or lose, the next trade will still be placed using $50.
Will this money management method grow your account?
Yes, it will, if you win most of your trades. Let’s say you place a total of 10 trades with a return of 80% in each trade and win only 6 out of the 10.
You will have earned $40 six times making $240 and lost $50 four times which makes $200 and such is a net profit.
Win more trades repeatedly than those that you lose and your account will keep growing.
This method will preserve your account from depletion by keeping you from doubling your stake in a bid to earn more and recover the lost money immediately.
Remember you can also lose that doubled trade too.
The Parley Method.
The Parley Method involves investing a certain amount in the first trade and then adding the earned profits to the initial trade size before entering the next trade.
In brief, in addition to the initial trade size, you add the profits of the previous trade to get the trade size of the next trade.
You realize that this method has a great potential of growing your account faster than the fixed trade size, if you are involved in a row of winning trades.
Unfortunately, the markets will at times disappoint you with some losses. When you lose, revert to the very initial trade size and begin another series.
The more you grow your account using this method, the more it will move away from possible depletion. Isn’t that the whole goal of money management? Sure it is.
The Martingale Method.
This method involves doubling your trade size when you lose a trade.
After winning the doubled trade, you revert back to the initial trade size and begin another series.
The method aims at recovering money lost in previously lost trades and earns you even far much more profits.
Let’s say for example you begin trading with $10 on an asset with 80% returns. You lose the first trade and double that to $20.
As if that was not enough, you also lose the second trade and double it to $40 and finally win this one.
You get profits worth $32 hence recovering the $30 lost in the first two trades and an additional $2.
Return to $10 and begin another series doubling if you lose.
Remember you need to have enough capital on your trading account to be able to double and still remain stable in case you lose doubled trades.
This method will recover your losses and grow your account, moving your account a step further from possible depletion.
The Anti-Martingale Method.
This Method is the complete opposite of the Martingale method. It involves halving the trade size each time you lose.
After winning the halved trade, you go back to the initial higher trade size and begin another series.
The method aims at taking advantage of winning trades and favorable market conditions to build your account as well as reducing your exposure after a losing trade.
You realize that this method helps to reduce the exposure of your account once it senses danger by losing a trade.
It also helps to grow your account fast once it senses a market strength which drives your account further away from quick depletion.
Final Thoughts on Top 10 Techniques for Successful Trading in Expert Option.
Do you want to be a successful trader in Expert Option?
Then the top 10 techniques to become so are at your disposal.
I did not only show you the techniques but went a long way to show you exactly how to do them.
I have discussed each technique in detail and approached it to the very core so that I could show you its practicality and feasibility.
For that matter, I do not expect you to still continue as a struggling trader in Expert Option.
Embrace these techniques and rise above the repeated cycles of frustrations emanating from trading.