Beginners who first appear in the binary options market often make the same mistake: they hope to find universal binary options strategies with accurate signals that would always work, regardless of external conditions.
There are many factors that affect the success of a particular strategy, and one of them is the trader’s temperament, the speed of his reaction, as well as standard patterns of behavior in different situations. For example, not everyone will find a binary options strategy for 60 seconds – many people prefer more conservative and long-term methods. This does not mean that the model is bad – you just need to find a different working principle.
In addition, if you first came across an algorithm that helped to make high profits, you should not think that it will always be so. Some binary options strategies become obsolete and stop working over time, so you should always have spare options in mind.
A successful trader will call a good strategy not because it is now at the peak of popularity, but because at one time it personally brought him a lot of profit.
Binary options strategies
Profitable strategies for binary options are divided into the following categories:
Strategies for Market Analysis Methods
- strategies based on fundamental analysis;
- strategies using technical analysis.
One of the most common ways to make money based on fundamental analysis is to trade on the news. The bottom line is that you analyze economic, political, and even weather news and assume which ones will resonate in the financial world.
For example, hurricanes in the United States affect the exchange rate, as well as commodities.
If we talk about strategies for binary options, then 99% of them are based on technical analysis, namely indicators (MACD, RSI, Stochastic …) – these are the parameters by which you can determine the future rise or fall in prices and make an appropriate forecast.
Binary Options Strategies by Complexity
There are 2 types of strategies here – simple and complex. The difference between them is only in the analysis tools themselves. Simple strategies use one or a maximum of 2 indicators with very clear signals, for example arrow indicators. Complex strategies include those where you need to open indicators on different timeframes, connect more than 2 indicators and use more complex tools like Alligator or Ichimoku.
Strategies for binary options by duration
- long-term (transactions last for one day or more);
- short-term (binary options strategies for 60 seconds, 5 or 15 minutes, hour).
According to statistics, more than 80% of traders prefer strategies for 10-15 minutes. They are more predictable than 60 seconds, and more profitable than an hour or a day.
Binary options strategies with an accuracy of 90%
If you have not yet decided what exactly suits you, it is best to familiarize yourself with examples of the best binary options strategies for beginners and not only that have long established themselves in the market. Having got to know them better, you will understand the binary options trading mechanism and work out your own algorithm.
Why is it important to choose your own strategy?
The best and most profitable strategies with accurate signals cannot be universal. Yes, they help to earn a lot, but not all. Even if you decide to use paid strategies, this does not mean that from the very beginning it will be possible to row money with a shovel. Paid versions are just commercial projects of those who created them. You may like this option, and you will develop a good strategy that you can sell later.
Do not be naive – the binary options trading market is built not on random luck, but on constant daily work and improving your skills.
Of course, it happens that newcomers hit the jackpot on the very first day, but there are actually a few of them. Noting the appearing signals (indicators) on the chart and interpreting them correctly is not a matter of one day, but if you want to develop this area will bring a lot of money.
How to create your own strategy?
How to create a trading strategy First of all, observe for yourself – even using the “poke method” you can determine which trading strategies for binary options are suitable for you and which are not. If you like speed, quick response and instant jumps in profit – pay attention to short-term options (strategy for 5 minutes or even 60 seconds).
Evaluate your ability to switch to another task if the plans suddenly change – if you can easily change positions, pay attention to aggressive trading. This is not to say that aggressive traders act at random – they are also obligated to soberly assess the situation, and do it in a much shorter period of time than conservatives.
Compare several trading options, learn the basics of fundamental and technical analysis – all this will come in handy if you intend to become a good trader.
Do not go in cycles if something went wrong. There are failures in any business, but the percentage of successful transactions will inevitably increase, unless you give up after one or more failures.
How to use the right strategy for binary options trading
How to use the binary options strategy Any broker through whom binary options are traded operates according to almost the same scheme, so it’s easy for beginners to understand what needs to be done. The only thing that is required of you is to accurately follow the instructions for a particular strategy.
- Choose a strategy and apply the conditions on the chart.
- Find the most suitable asset for this strategy, for this you need to look at the history of the chart for several different assets, and choose the one on which the strategy gave less false signals.
- Indicate the term of the transaction.
- Depending on the signal of the strategy, indicate the forecast UP or DOWN.
In addition to ready-made strategies, you can use separate trading signals or apply different types of technical analysis with instant signals, for example, Japanese candles can immediately signal reversals. Combining candlestick analysis with Price Action patterns, you can reach your own strategy. And of course, every binary options strategy must keep up with risk management (money management).