Binary Options Strategy!
Winning Strategies and Trading Systems made simple
by Signe J. Petersen New
In order to make money over time in binary options trading, you need a winning strategy. Simply making decisions based on hunches and guesses will not give you the winning percentage you need in order to establish yourself as a reliably profitable trader.
You need to device an overall strategy for how you would like to trade. It is important that you choose an approach that suits your personality and trading style, and that you stay true to it. If you opt for a low-risk trading strategy, you should not do high-risk trades here and there.
You will also have to come up with a money management strategy that will ensure that you are protected if you should incur a losing streak. Because be warned: all traders, no matter how competent or experienced, will incur losing sequences. The difference between successful traders and the rest is that they prepare for this eventually, and are ready when it happens.
You need to stick to a winning binary options trading strategy
First things first: you have to have a winning binary options trading strategy if you are to achieve consistent profits. Your strategy should guide all your trading decisions, so that you follow a certain approach. Only by sticking to this approach will you earn money in the long run.
There are many strategic decisions you have to make. Let us illustrate the importance of consistency by looking at a fundamental one: risk levels. Some traders are risk-seekers, some are risk-averse. There is no difference here in terms of good or bad – there’s money to be made with both these strategic approaches. This is a choice between strategies that will work for some traders, and not for others.
The low-risk binary trading strategy entails making a lot of trades with small returns with relatively low risks. This approach will see you lose few trades, win many trades, but earn only a small profit per trades.
A high-risk binary trading strategy will see you win fewer trades, lose more trades, but earning a major profit per trade.
Which you prefer is up to you, but the important consideration is this: if you chop and change between the two you miss out on the benefits of both, whilst incurring the drawbacks of both. Both low-risk and high-risk strategies depend on you making a lot of similar trades. That way you will pick up enough big wins with a high-risk strategy and enough small wins with a low-risk strategy to be profitable over time.
This same principle of consistency also applies to other strategic decisions such as: choosing to be a gap trader, trading the breakout, be a trend follower or a swing trader, and so on. Whatever you choose, you have to stick to it.
Binary options strategy based on signals
One strategy that has become very popular is to trade on signals. This approach lets you benefit from the same trading insights and advice that the professionals use.
A binary signal is quite simply a recommended trade. It lets you know when a good trading opportunity is imminent, and gives you the chance to make money on this knowledge. Signals are generated by highly complex and sophisticated software solutions. They use specially developed algorithms to identify patterns in the financial markets that point towards future price movements.
By using a strategy based on signals saves you from doing a lot of technical analysis, leaving all the hard work to the computers. This means that you can get better results with less effort. Alternatives include strategies based on candle sticks and similar manual methodologies. They tend to be labor intensive and less successful than binary signals that will usually have a winning rate in excess of 70%.
Binary options strategy based on robots
The best way to ensure that your binary options strategy is consistent is to use an automated trading system. Such systems are often referred to as binary options robots, and they offer you the chance to use the same strategy that professional traders rely on.
A binary robot is a fully automated trading solution that not only generates signals, but also acts on them on your behalf. You simply tell the system how much money you wish to invest per trade. Everything else is taken care of by the system.
This means that the only strategic consideration that is left to you is money management. In other words, you will need to make sure that the robot invests a suitable percentage of your capital in each trade. This will require you to make occasional adjustments to the invested sum as your balance goes up or down, depending on the robot’s performance. A good robot will win in about 70% of trades.