So far this short tutorial has covered the basics of Binary.com, markets and opening hours, money management ideas and a suggestion for a trading strategy. This section will cover seasonality.
Seasonality is a study of the patterns that markets can sometimes repeat during certain times of the year.
For example: One market may have a tendancy to fall during the month of April whereas another may rise over the course of September.
Due to the limited risk involved, Binary.com is an ideal tool to use to trade using seasonality theory.
You probably will have heard the expression "Sell in May and go away" repeated regarding stock markets and the supposed summer lull. This is an example of seasonality.
While you shouldn't depend purely on past patterns shown in previous years, it is worth researching these patterns.
So how could you use Binary.com to profit from seasonality?
Some studies have shown that if an index is up over the month of January then the market will be up on the year.
For example: If the Dow Jones is higher on the last day of trading in January than on the first, it will be higher on the last trading day of the year than on the last day of the previous year.
If you researched this and found it to be true then it would be simple to buy a Bull bet towards the last few months of the year that the Dow would be above the last price of the previous year. You can buy bets for up to 6 months duration and so your odds could be very good.
Another studied trading period is the last two months of the year. It is thought that markets tend to rise over the course of November and December (the "Year End Rally"). If you believed this was the case, you could buy a "One Touch" or a "Bull" bet in or around November to back a market climb.
A third example is the price of Gold in September. Studies of the price over past years have shown that Gold has a tendency to rise in September. Again, if you back-tested and believed this was likely to happen, you could back this theory by buying a "Bull" bet at the beginning of the month to end 30 days later.
Note: Please bear in mind that past performance is no guide to future performance but if you back-test these ideas you may find certain patterns which you can bet on.
If you wish to know more about seasonality, the following site contains seasonal charts for several markets:
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