Famous Stock Trader Turns Attention to Binary Options Trading
Well-known stock and commodities trader, Yehuda Belsky, has recently turned his attention to binary options trading, namely to develop a trading strategy that may help binary options traders see more profits and fewer losses.
With more than 20 years of experience and knowledge in the financial markets, Yehuda Belsky is well-versed in the language of trading. Working and trading a variety of instruments at a wide range of institutions, over the years, Belsky now makes his home at Y Trading, LLC as the head of their Derivatives Trading segment.
Over the years, Belsky worked with a range of trading methods and investors but noted that he consistently seemed to find that certain groups of people were always excluded, due to either a lack of financial ability or a lack of understanding when it came to brokerage accounts. Belsky noted that many of these same individuals are generally the prime market for binary options trading because such trading typically only requires minimal amounts of trading capital.
A Shift of Focus
Belsky determined to shift his focus to binary options, emphasising finding a way to reduce or get rid of some of the risks associated with such trading. His quest led him to investigate the variety of strategies typically used with these options, and why such strategies tend to fail.
Belsky determined that one of the primary components to the failure of many of the strategies was that the individuals losing the money didn’t seem to be bothered by it because the losses were often relatively minimal, and the opportunity to win big was the pot of gold they continually hoped for. This is an attitude familiar in gambling. Belsky aimed to educate traders on a more realistic and rational approach to binary trading.
It is a positive note to see a veteran investor in the financial markets take sufficient interest in binary options trading to create a trading strategy specifically designed for trading such instruments.
Traditional Trading Methods
There are two commonly used strategic approaches used by binary options traders. One strategy involves focusing on news reports and developing conclusions about the right way to trade based on, essentially, educated guesses that the market will follow the direction indicated by fundamental economic data releases. For stocks and commodities, this trading strategy is often sound and reliable, but in terms of binary options trading, the market world moves too quickly for this strategy to always be dependable.
The second strategy sometimes referred to as the market behaviour model is pure technical analysis trading. This method involves the use of price charts to figure out if a security’s price will move up or down. While this method is excellent for predicting movement and identifying potential trends in regular trading, it also tends to fall flat when applied to binary options.
Belsky has determined that the best way to reduce the risk for binary options clients is through a new trading strategy using the best parts of the two traditional methods outlined above. The “Blended Model” that Belsky has developed uses economic news item predictions, then correlates them with price action, ideally producing a more sound and reliable determination for how to trade. This newly-formed model utilises a host of tools and variations, including market behaviours, strategies for betting, indicators, and changes in asset value from a historical perspective.
Whether Belsky’s Blended Model will ultimately prove a profitable strategic approach for binary options traders is yet to be seen. However, in any event, in a trading market that has been much derided, it is a positive note to see a veteran investor in the financial markets take sufficient interest in binary options trading to create a trading strategy designed explicitly for trading such instruments.
Anatol has been writing for our news site for a year and is the newest member of our team. While he’s new to us, he’s certainly not new to trading with over 10 years’ experience being a professional financial journalist and working in the markets.