The Binary Options Trading Strategies and Yehuda Belsky's Blended Model

Brooklyn, N.Y, August 1, 2017 (Newswire.com) - Yehuda Belsky is a world-renowned financial expert who has traded on various markets the world over. One of the areas that Yehuda Belsky has placed a particular focus on is binary options trading. He started studying binary options because they provide people from all walks of life the opportunity to trade, especially since trading can be done for relatively small amounts.

Binary options, unfortunately, are incredibly risky. In fact, trading such options has been likened to gambling in a Las Vegas casino and are also commonly referred to as "all or nothing" trades. This is because there are only two possible outcomes with each trade: get back the amount invested plus some profit, or lose the whole amount invested. Nevertheless, they remain interesting because they are quite affordable. This means that people feel as if they can afford to lose their investments. But just like gambling, people can lose their entire life savings by losing small amounts time and time again.

Binary Options Trading Strategies

To mitigate some of the risks of binary options trading, a number of different strategies have been developed. The main and most popular strategies, which are also those employed by the vast majority of everyday traders, are signal strategies. This means that they use predictors to determine which way a price asset will move.

Two typical signal strategies exist:

1. News events. This strategy involves perusing over the financial market reports and predicting how certain assets will move based on those events. Stocks and options often respond to major events. For instance, if a war is declared, stocks in arms companies may rise. If, on the other hand, a major political event happens, the currency of that country often devalues for a short period of time. The same is true for binary options, and many people use news events to base their decisions on whether to quickly buy or sell their options.

2. Technical analysis. In this strategy, historical data is used to predict the movement of the price of an asset. Depending on the economic situation, prices tend to go up or down, forming a pattern. This is even seen in global economies, where it is common to see seven years of growth, followed by seven years of contraction, and so on. It should be noted, however, that a technical analysis is incredibly complex and does require in-depth knowledge of economics and financial markets.

Meanwhile, because binary options trading can be engaged in by everyday people, a lot of programs have been developed to help people decide whether to purchase or sell options based on a news event strategy or a technical analysis. This means that they don't have to do the work themselves, bar perhaps running a few checks, but simply trust what the programs recommend that they do.

Yehuda Belsky’s Blended Model

For Yehuda Belsky, however, this was insufficient. He feels that the proof that opting for either the news event or the technical analysis doesn't work is in the fact that binary options continue to have a bad name, and that most people continue to lose money on them. Hence, he set about coming up with a different strategy. While he wants people to be realistic about the fact that binary options trading will always be risky to a certain degree, he feels that his particular strategy can minimize the risk and bring it down to its lowest possible value.

What Belsky has developed is what he calls the Blended Model, in which both the news events strategy and the technical analysis strategy are placed together. Essentially, his system looks at news events and then conducts a technical analysis on whether a news prediction could be accurate. Similarly, if a technical analysis points towards a certain market movement, his blended model will search for news events that confirm this.

The Blended Model offers people the best of both worlds, in other words. Furthermore, it provides people with more knowledge and information on how to become successful in binary options trading. For instance, it will make recommendations on how much should be traded on an option, based on combining both popular strategies along with the percentage-based system, among other things. Furthermore, he offers clarity and transparency as part of his model, which means people can truly grasp what binary options trading is about, thereby also being able to develop their own strategies and improve the outcomes of their trades.

Through the Blended Model, Yehuda Belsky has provided both knowledge and education to regular people. He wants to ensure that everyone is able to make use of the financial markets to their advantage. He believes this is possible with a lot of education, and a little bit of a nudge in the right direction.

Source: Yehuda Belsky