MarketsWorld - Binary Options Exit Strategy

Hey guys, welcome back to the channel. Today we're going to talk about exit strategies and binary options and how to use your demo account not only to determine that but to fine-tune your trading skills. So first, let's talk about how you develop your exit strategy. Well, one issue is that generally when we're trading, a few things happen. Either we're winning trade after trade and want to keep up the gains, or we're losing and wondering if we should just cut our losses. So we're going to show you some strategies that you can implement to exit trading. So first, we need a demo account that we can trade in for an unlimited period of time. This will help us to create an exit strategy for our trading patterns. There's a link in the description. You can sign up for a free unlimited demo account. Once you've signed up, you can start using the strategies we're about to present to you. First, we need to take an average of the gains you make in your trading pattern on a particular set of days or weeks. Once you've recorded that information, you take your daily gains, add them all up, and divide them by the number of days you've traded. That should give you your average. You next take your average and divide it by your balance. That should give you a percentage of how much you should gain before you exit trading. For example, let me open up my notepad here. Okay, and, um, we'll take an account in this example with $40. And for you all that are new to this information, I encourage you to watch our other videos in our binary option series. They work as a complete or standalone system. You'll understand the significance of the amounts we trade in. However, this method works on a percentage basis, so any balance would, uh, would work. It basically uses the same concept. So we know the exit strategy determination factor depends on our average of profits per day and and number of days traded. We then divide our profits by numbers of days traded over the period. We then divide our account balance by the average, which we obtained. So it should look something like what we see here on our screen. In this example, you will profit a 5% gain daily. So we understand our exit strategy. However, we need to know when to enter the trade. So what would be a good time to enter our trades? So one factor is binary options need movement or volatility. Without volatility, volatility, binary options can be very crippling to us. So the best time to trade are at market opens. I usually give just a wee bit of time for trading to start. So let's take a look at what time the markets, um, open. Let me go to that page that will give us an idea. So you all can see here, and let me just blow that up a little bit, and you can see the 4 major sessions here. And there are hours when two sessions overlap. So if you count the overlapping, you're looking at about 5 to 6 sessions basically that you can trade in. So let's look at when the market opens and when we should start placing orders. So Uh, our systems deal primarily with currencies. We have the New York opening at 8 AM to 5 PM. We also have Tokyo opening at 7 PM to 4 AM, and that's all Eastern Standard Time. We have Sydney, which opens at 5 PM to 2 AM. We then have London, which opens from 3 AM to 12 noon. Eastern Standard Time. So that's, uh, a full market opening. Well, those are 4 sessions that we can trade in, and that's gonna give us the best results because when those markets open, that's when you're gonna get the most activity. And remember, we need this thing to move so we can see the pattern. Now, the full market openings can also represent full market trading sessions. However, I have a fifth. The fifth trading session would actually be during the New York trading session from about 1:00 PM to 3:00 PM Eastern Standard Time. And I try to give these kind of contained timeframes because I'm from America. And if you know you're from America, you'll know that some of these hours are hard to trade in because a lot of people are in bed. But if you're on the other side of the world, maybe you can just switch this around and, uh, and, and, uh, use all these, um, uh, time frames, you know, in reverse, if that makes sense. So let me explain why this is very important. This is important because, uh, the lower the balance you have, the more aggressive your account generally will be. You know, as to say that If you are trading with a low account, and I would say a low account is probably going to be anything under $5,000. So if you're trading like that, you probably want to do more trading, you know, do trade more than once per day. So you want to hit up a few sessions, get about 5% in each, get about a 5% gain in each session that you can make. Now the higher funded accounts generally won't have a problem with needing to trade in several market opens as much. That's because with a, a higher account balance, you're going to gain more percentage-wise and you won't need to do as many trades. So if we have determined our exit strategy percentage gain, we can then apply this to gain 5% per market open. Right? So we counted 4, and, uh, so that's 5% on every market open. So whatever your percentage gain is, once you've used this formula, you want to trade up in profits, uh, every trading session. You can put up to that amount, is the 5%. Never trade beyond 5%. If you feel uncomfortable trading for that day, it's okay to stop trading. However, we will ill-advised to go beyond whatever the that amount is or go beyond 5% per trading session. The overall point is to keep us with a sound structure and trading pattern so we don't make mistakes. If we stick to our system and use probability, we have a less chance of losing our balance. As your balance increases, you'll simply change the variables in the formula provided. So now is the time you should be training and trading your demo accounts to gain experience. Repetition will help to create less trader error, and you'll have a great exit strategy system where you find yourself— or so that you don't find yourself on the losing side of a trade. Now, if you have any questions, um, or this is a bit confusing, please comment below and we'll try to help you with any questions. I would recommend signing up for the free demo account below as the account allows you to trade unlimited. I have used some systems that limit how many times you can use a demo account. This site doesn't do that. And if you like this information, stay tuned to our next video, which will include advanced binary options trading. The information will show you how to do proper research on what to trade. It as well will focus mostly on longer-term binary options. So stay tuned for that. Don't forget to like and subscribe, and take care, folks.