There are two wrong assumptions that are normally made when it comes to binary options trading.
1.That there is a required level of experience for one to be able to do it successfully.
2.That it is just a matter of mere luck, guess work, and being in the right place at the right time.
To address the first assumption, even the most experienced and prominent investors get things wrong if they do not follow the right path to choosing the correct option. There is no such thing as previous experience needed in order to grasp the concept of how binary trading works. Any level of skill can grasp it. You are only required to predict the direction in which the price of an asset will take. Will it increase (call) or will it decrease (put)? The only advantage that those with previous experience have over those who do not is that they may understand the strategies and procedures to use to predict while the inexperienced ones don’t. But it does not change the fact that binary options trading requires little to no experience to be able to succeed in it and of course the “how” is what we are here to discuss.
In addressing the second assumption, to some extent, it might stand its ground. You do not really require a strategy to be able to trade in binary options. You may be at the right place at the right time, there is no denying that. The problem lies in how long will you be lucky? How many times will you be able to magically be in the right place at the right time? Most traders and investors who choose to go with their gut end up losing more money than they ever thought possible. While you do not really need it in order to trade, you need it in order to trade successfully.
The importance of using a rule based approach in the road to the attainment of your goals is general knowledge. Just as it works for personal and organizational goals, so does it work when it comes to binary options trading. There is a great need for having the best strategy in this kind of trading for one to expect constant results.
Binary options trading strategies simplify trading by minimizing risk, reducing anxiety by eliminating guess work when choosing the entry option. They can be defined as the specific measures or plans of actions aimed at achieving a specific goal, that is to get an overall picture, trade well in the long run, and generally minimize risk. This is what sets binary options aside from gambling. There is no getting better with experience in gambling as there is in binary options. Please note: the trading is not suitable for everyone.
Binary options strategies determine what you invest in, how you invest in it, and studying them will help you know what you can do to improve your trading progress, i.e., after you have invested in them for a while.
To properly lay down the meaning of binary options strategies, we shall compare it with a soccer ball. Let’s create a scenario where you have a soccer ball and you are the penalty taker. There are two things that you can do here. You can either choose to hit it hard with as much brute force as you can towards the goal keeper, without calculating your moves first. Or you can choose to take your time and wait while you calculate how tall the goal keeper is, where his blind spot is, and his dominant hand then taking advantage of his weakness, you hit the ball. Not fast, not hard, but precise. If we were to rate the probability of succeeding in scoring in the above two cases, the first would have a 50% or lower chance and the second would have a 90% chance of scoring.
The first case, in the world of binary options is the trader who according to him/her “does not require” a strategy. The second however, is the trader who makes use of the strategy. That said, binary options strategies are important in that:
– They allow one to be in total control.
– They reduce the emotions of anxiety and stress that may follow since when applying them, one trades to the minimum.
– They help one to be able to retrace back the steps that he took so that he can realize the mistakes made and prevent them from happening again.
So what are these strategies that we have been discussing above?
There are hundreds, if not thousands of strategies that traders can use in binary trading. Below at the best five that when employed are sure to give you the desired results, if not more. Before we get to the exact strategies, we will look at three mini-strategies that should be incorporated in the strategies that you will opt to use.
There are two benefits that one may accrue from creating and sticking to a trading strategy.
One, you will reduce the possibility of making irrational judgment from emotions. It ensures that your trading is based on logical thinking in the sense that all your decisions will be based on predefined constraints and logical and clear thinking that you had as you started trading.
The second is that you will be able to reap the benefits of repetition. You will be able to easily figure out what worked and why it did or what failed and why it did. Say you make a 50% profit this year, then next year you make a 50% loss. If you had no trading strategy, you would only hope for a better coming year, with nothing concrete on which to base your decisions. If you had, you would exactly know what to change in your strategy for better results.
Even with the perfect binary options strategies, there are some inevitabilities in trading that a trader is bound to come across. They include unprofitable trades and losing streaks. The money management strategy helps one get through these rough patches by preventing his account balance from hitting zero and maximizing the winning streaks.
There is no such thing as the epitome of all trading strategies. The market is very dynamic and it changes from time to time and that is why even the most prominent traders are constantly in the process of creating new and improving their binary trading strategies.
This strategy helps improve the working parts of the money management and trading strategies, while eliminating the parts that do not work and replacing them with ones that work, helping the trader become more profitable in the long run.
While there is some objective aspect to picking the best, there is also some personal aspect involved. This makes it difficult to point to one and recommend it to everyone. Also there is the fact that every trader has his or her own personal favorite. Below is a list of the most popular and most preferred binary option strategies accompanied with an explanation of what they mostly focus on.
As its name suggests, its main focus is fast paced trading. It is mostly for those traders that are risk takers and are willing to try riskier and more dynamic forms of binary trading options strategies.
This is more bent towards the comprehension of the favored type of chart in the binary option industry.
This binary option strategy is based on technical indicators which are designed to tell you whether the prices are low or high in relation to an expected trading range.
As discussed above, this is very essential to be able to maintain your account balance when one is going through a rough patch in trading.
It’s one of the essential instruments that will help traders to make money successfully with binary options. However, the success of failure of the trader will be dependent on how he or she interprets the generated values.
As can be observed, best binary options strategies are very important for the success of you trading activities. As a recap, the three most important subcategories that you need to have in mind as you create your strategy are:
– Trading strategy
– Money management strategy
– Analysis and improvement strategy
These may take time to create, but that is an unavoidable step if you are out for success. Without either, the rest won’t work as you expect, and success is impossible.
When you start trading in binary options, one of the most important decisions is in choosing the right broker. This is a task we have made easy for you since we have looked and tested for the most reliable and best brokers and included them on our binary options broker comparison chart.
In our best binary options brokers section, you will only find the most reliable, trustworthy and the best binary brokers online. These brokers will enable you the best binary options trading experience in our opinion. We have decided only to promote regulated binary options brands as unregulated binary brokers are often scams and are less safe.