Making Money with Binary Options Trading

Binary Options Trading, High Leverage, and Basic Options Trading Tutorials

Previous Entry Share Next Entry
Day Trading Options System - 3 Basic Profitable Strategies
The point of developing a day trading options system is to create opportunities to make money. There are lots of strategies that work and a number of markets to work in but which ones offer the best chance of success with a balanced level of risk and time commitment? Let's look at three strategies and take a look at the strengths and weakenesses of each day trading options system.

Market Timing Index Options Using Forex Trading Signals

One of the earliest strategies I used as a trader involved watching the movements of forex markets and using those signals to guide my trading. I personally still use this method today. The idea is to follow the movements of what traders would call "funding currencies" (presently USD and previously JPY). When traders in the big forex markets were taking on risk by borrowing in the funding currencies (ie shorting them) then it was considered a safe bet that trading for the day was going to be "risk on" - ie safe to pick up options on the major indexes (DIA, SPY, etc). It was a daily grind to make money day trading index options this was but it worked.

Using Deep in the Money Options for Modest Leverage

Another reasonably reliable day trading options system involves buying deep in the money options, creating modest leverage on trades. See the options trading leverage tutorial for better understanding on creating leverage. The point is that in order to overcome the transaction costs which make low capital day trading impractical you use in the money options contracts to amp up your buying power and increase potential earnings. This carriers some risk (like any investment), but again, it's a strategy that works.

Day Trading Options System Using Binary Options

A last and extremely low cost day trading options system involves trading binary options. There are multiple ways to use binary option contracts either as stand-alone investments or in combination as hedge trading strategies. While many people are unfamiliar with using binary options. The major blessing of working with simple binary contracts is that trade increments can be as small as you like (effectively as little as $30) but can still be profitable (yielding 60-85%) because there are no commissions to pay.

Any day trading options system is going to carry some significant level of risk, but many times the profit is worth it. I have had good fortune using a day trading options system or two in my lifetime and I hope some of the ideas above make sense to (and cents for) you.


Log in