Pocket Option Trading Strategy: Best Binary Option Strategies in 2024

As a trader, you must consider certain factors to maximize your earnings. One of the most important considerations you need to make is the broker you’re using. No two brokers are the same, so before settling on the one you prefer, you should research their pros and cons. Pocket Option is known for supporting binary options and is the go-to for most binary options traders.

This article will discuss binary options and how to start trading them on Pocket Option. We’ll discuss the best binary option strategies to adopt here. Let’s dive into it.

What is the Pocket Option?

Pocket Option is a binary options broker gaining popularity among crypto traders. It offers low trading fees, minimal deposit fees, support for crypto and fiat currencies, and exposure to many different financial assets. The platform’s intuitive and easy-to-use design is ideal for new and experienced traders.

Pocket Option’s popularity among traders is evident from its 4 million daily users and daily trading volume exceeding $50 million. It also has an average payout of 82%, indicating how lucrative it is. Although it is unregulated, Pocket Option still maintains a degree of trust amongst traders, which is reflected in the platform’s metrics.

Pocket Option supports trading of several assets, from binary options to CFDs and other derivative contracts. It is also possible to perform short-term price movements of several assets on the platform, including cryptocurrency, fiat currency, commodities, and stocks.

Pocket Option Trading Strategy

Regardless of whether you are a new or seasoned trader, you must have a trading strategy of your own that you adhere to religiously. This will ensure that you’re effective in the market and able to make the most profits possible. Let’s go through some of the best trading strategies out there:

Trend-Following Strategy

The trend-following strategy is one of the simplest and most popular trading strategies. The idea of this strategy is that you will trade with the trend. This means you will identify and trade in the direction that the market is moving in. By doing so, you are betting on continuing the market’s current movement.

The strategy operates with the logic that assets moving in a particular direction will likely continue moving in that direction.

News Trading Strategy

This strategy focuses on news and market events surrounding a particular asset. Once news about a specific asset that can significantly impact the market emerges, you want to make trades with that information immediately.

Speed is essential with this strategy; you want to take action as quickly as possible, usually within the first 30 minutes. Luckily, with Pocket Option, there are no unnecessary delays, so you can put your trades in fast.

The great thing about this strategy is that it requires little technical knowledge. All it needs is attention to the news.

Range Trading Strategy

Range trading strategy is typically adopted when there is no clear direction for the market. As such, trades are made within established resistance and support levels.

The idea of this strategy is to take positions while assuming that the price will stay within a specific range. Technical knowledge and an understanding of the market are required to identify the points at which the price will likely bounce back or break out of range. As such, it is more suited for experienced traders.

Volatility Prediction Strategy

With this strategy, traders are betting on the price of an asset to move significantly. The direction it moves is not essential, only that it does.

This strategy is ideal in situations such as an economic or market report. It also involves using options where payout occurs when the asset hits a particular price level, such as boundary or one-touch binary options.

Hedging Strategy

This strategy aims to play both sides by betting for and against the market trend. By making trades in both directions – when the market is going up and when it is going down – you can make profits regardless of the outcome.

You should know that the hedging strategy is more complex than other trading strategies but is highly effective if used properly. Search for tutorials online and other learning resources to understand and familiarize yourself with this strategy.

Pocket Option Social Trading

One of the reasons why Pocket Option is considered beginner-friendly is because it supports copy trading (or social trading). As the name implies, this feature allows a trader to copy or mimic the trades or the movements that a more experienced trader takes in the market. By doing so, these less-experienced traders can replicate the successes of their more experienced counterparts.

However, you should know that copy trading is not free. On the Pocket Option platform, it comes with a small trade commission of around $0.05.

However, on the upside, there is no limit on the number of traders you can copy on Pocket Option, and you will often receive push notifications for new traders from the traders you’re copying. The platform also posts daily active stats for traders, making checking their open positions and other relevant information possible.

To start copy trading on Pocket Option, visit the website and sign up or log in if you already have an account. Make sure your account is funded with at least the minimum deposit (typically $5 to $10), or fund it if there’s no money.

Once you’ve done that, navigate to the Trading tab on your dashboard and click on Social Trading on the navigation bar on the right side of your screen. A drop-down menu will appear with a list of all the top traders on Pocket Option, including the number of traders they’ve made and their success rate in the market.

A more extensive menu with more relevant information will appear if you click on a trader. You can mimic the traders’ activities on your by clicking the Watch button. This means that whenever the trader makes a trade, it will be automatically replicated on your account.

Is Binary Options Trading Risky?

Like all other financial instruments or products, binary options carry a level of risk. For example, if you bet in the wrong direction that the market will move, you will lose all your money. Inversely, if you bet in the right direction that the market will move, you will keep your money and make a profit.

To prevent loss, it is essential to understand how binary options work and bet with money you can afford to lose. Make sure you do proper research before taking a position in the market.

How to Mitigate Risks When Trading Binary Options?

When trading binary options, you can limit the risk exposure with several methods. The first is always to set a stop loss. This is a predetermined trade order you place before taking a position in the market. Once your stop loss is reached, the platform will automatically activate a buy or sell order (typically a sell to limit money lost), depending on which you choose.

Another way you can limit your risk exposure in the market when trading binary options is by testing out trading strategies on the Pocket Option demo account before trying them out on a live account. Demo accounts are virtual trading environments that do not use real money, making it ideal to test new strategies without incurring any loss in real life.

When you start trading, always ensure you are trading with an amount of money you are comfortable losing. Trading is inherently risky, so you can still incur a loss regardless of your research and preparation before making a trade. You minimize risk exposure by trading with an amount you’re comfortable losing.

Final Words

Trading binary options can be highly profitable, especially on a platform like Pocket Option, which is notable for its favorable trading conditions for traders of all shapes and sizes. However, it is essential to remember that trading is inherently risky.

To minimize the level of risk you are exposed to. You must take adequate measures, such as setting a stop loss and trading with capital you are comfortable losing.

Additionally, always do your research, even when you’re getting help from tools like copy and social trading. Remember that your risk tolerance is personal, so endeavor to make movements considering the maximum risk you are comfortable with.