Binary Options Trading
Welcome to our binary trading strategies section. We would advise that you read this page fully and spend a little bit of time reading through our topic sections.
Why?….because it is this part that separates all the wannabes from the successful traders. All successful traders have clearly defined strategies.
The problem is inexperienced traders do not realise or recognise the different elements that go to make up a successful trading strategy. While moderately successful traders do not spend enough time honing these different elements.
We’ve defined this option trading strategy section in such a way as to make it easier for you to understand the different elements.
– here we introduce some of the concepts around technical analysis and its use. You can find a lot of very good information on technical analysis but don’t get bogged down in the detail. Simple strategies can work really well.
– this is more about different elements of trading and trade types and managing trades. (Some great content in here)
– many people consider technical analysis and charting as one and the same but here we define how to use specific trading methods and indicators specifically for binary options.
– here we cover off some resources, software and systems you can use. Although brokers are trying to address more of this and making it part of their offering, the quality of charting, analytics and trading tools in general is often lacking.
A section that we have not covered off specifically in this area, although mention in different parts, is money management. Money management and trade management are critical elements to your success. To keep it simple for now…do not risk all your capital on one trade… in fact risk no more than 5% of your trading pot on any one trade. If possible, reduce this further to 2-3% in your early trading stages. The art is to survive and learn at first and evolve from there!
Why have a strategy?
Because without it you will fail! – success requires a strategy.
Like so many successful endeavours in life, those who go furthest have a successful strategy in place. This is really about a method or process. What you want to aim for is a replicable strategy you can do over & over again.
From initiating your trades (trade entry), managing trades to exiting and money management principles. Because of the nature of binary options trading and generally short term nature, timing is everything.
Investing in and developing trading skills and good strategies is key to your success.
What is a binary options strategy?
There is a lot of emphasis placed on binary option strategies but really they are no different from other short-term trading methods. So look to forex, spread betting and other short duration trading methods for ideas and techniques. The problem is, as a significant proportion of the industry has evolved from the gaming sector, they are not really interested in your success. They just want to attract the thrill seekers and adrenaline junkies. If that’s you…recognise it for what it is. You’ll get your kicks but don’t expect to suddenly get rich and hold on to that money. Trading is a very different game!
If you’re just starting out…avoid the very short times to expiry trades. The marketing and hype is fantastic but without a lot of experience…it’s simply a lottery.
You can check out our recommended binary options brokers here
Are some strategies better than other?
Yes. Any method that gives you clear decision points is best.
Trading is about stacking the odds in your favour. Strategies that impose certain elements of discipline are good. By that we mean decision points against which you can clearly evaluate your success. You have to stack the odds in your favour and be able to do it over and over again. The best traders do not look to hit a huge winning trade every time, they look to make consistent small gains the majority of the time.
The beauty and unrivalled power of binary options is, given the short-term nature of trading, if you stack the odds of success in your favour, you can compound your trading capital very nicely.
Trading is very much about discipline and mental attitude…not instant wealth.
Now it’s time to delve in to this section and start learning – enjoy!