Contrary to those who claim that binary options trading is little more than pure gambling, the truth is that achieving profits through binary options trading is completely possible if one understands and applies the right binary options trading strategies. What follows is a concise and informative guide that brings together and navigates you through the different binary options strategies and trading systems that exist in order to help you map out your road to binary options trading success.
Prior to reading the contents of this guide below we need to make clear from the beginning that trading success cannot be guaranteed and that risks are always involved in trading, however if you do engage in the trading of binary options then doing so based on a carefully devised and executed strategy is almost certain to remarkably improve your chances to succeed and achieve profits and high returns.
If you have ever searched online for trading tips and strategies for trading binary options you would have undoubtedly come across a plethora of websites promising sure winners, miracle strategies that can make you rich in a few minutes and bring you incredible returns. Don’t worry, you are not stupid and do not feel left out, it isn’t that simple and surely is not so profitable and certain that you will succeed. That being said, binary options success is feasible and could generate considerable profits in a shorter time and in a simpler way than compared to other trading types, provided you find the right strategy to employ…
The importance of trading Binary Options using a strategy
The fact that the average return in the binary options industry is around 70% also coupled with the fact that the industry also offers expiry times that range from a few seconds to end of day or longer, is adequate proof that the trading of binary options could generate high profits in a relatively short amount of time. In fact, an experienced binary options trader with solid market knowledge and perhaps the help of some luck could very well triple their investment amount in a day. However, don’t be misguided, those who do achieve such profits are not merely good are guessing or incredibly lucky, rather they are people who have enough experience to understand the absolutely crucial role that risk management techniques and trading strategies play in the successful and effective trading of binary options. Those who achieve profits are not only up to date with financial news, but are also knowledgeable in managing and diversifying their portfolios, aware of the different strategies available and most importantly how and when to best use each strategy. They know not only what each strategy entails but also how and when to best put into practice and correctly apply each strategy.
How about having the necessary experience to trade?
Contrary to other forms of trading the actual trading of binary options is simple enough not to require a vast amount of previous trading experience in order to be successful. To trade binary options you do not need to be a long-time expert in the financial markets, however you do need to dedicate some time in order to grasp the fundamentals of placing a trade, through which you are predicting the increase (call) or fall (put) in the price of a specific asset at a specific time interval. This basic understanding can be easily and quickly attained by aspiring traders of any skill level, however success chances are greatly enhance through the use of simple trading strategies and through the careful selection of a trusted, reputable and reliable broker to trade through.[contentblock id=top-binary-options-brokers]
How to minimize the risks involved with binary options trading
In the lines that follow we will attempt to provide all interested individuals with a concise guide containing effective and solid strategies that will help enhance your trading experience and improve the chances of it being lucrative. Having already pointed out that the element of risk is inherent in binary options trading, it is crucially important for aspiring traders to realize that they need to take active steps in order to minimize those risks to the greatest extent possible. Such risk-minimizing, may include, but are not limited to:
- Never investing the whole of your capital at once
- Never investing more than you can afford to lose
- Never placing a trade on a specific asset before carefully reviewing its dynamics
- Try out a trading strategy in real conditions by starting to invest only a small percentage (less than 10%) of your total available funds at each time.
Top Ten Binary Option Strategies Collected and Explained
We compiled this Binary Options Winning Strategies and Trading Systems Guide in order to meet the needs of the repeated requests we were getting from visitors to our site, who were asking for credible and comprehensible information on profitable binary options strategies online. Knowing that the online market for retail binary options trading is plagued by scams and phoney promises we thought it would be very useful, interesting and beneficial for traders to demonstrate how making profits by using the right binary options strategies is possible, by collecting, presenting and further explaining the principal binary options trading strategies.
The material you will read below and the bigger, more detailed posts that it links to has been compiled with due diligence and care by truly knowledgeable people, editors from our team who have the necessary experience and professionalism required to supply information that is accurate and helpful for your trading. We truly believe that the truly successful traders are the educated ones, those who spend the time and make the effort to truly learn how to trade and we are in the business of helping and guiding such traders, instead of promoting scam systems, dodgy software and the rest of the sorts.
The Reversal Strategy Binary Options Strategy can be said to be a more advance strategy than others, but it is still founded on the easy to understand notion that if the price of any particular asset keeps moving in one direction it will not remain at a peak (either up or down) but will most likely return to its original position. Mastering this strategy will allow a trader to place a trade in the opposite direction of the price of an asset that is found to be changing suddenly, having the knowledge that once the peak is reached the price will return close to its original point eventually. To find out more about how the Reversal Binary Options Strategy works and how it can hugely benefit your chances to place trades that end up in the money, have a look at the very basics of reversal strategy for dummies.
The ability to trade binary options at the super fast expiry time of merely 60 seconds was added to the menu of choices available to traders as an innovation to trading. Employing the 60 second binary option trading strategy is not suitable for traders, because it calls for extreme caution and care, especially when it comes to money management issues and entails one having an eye for and the ability to immediately spot potential trading opportunities at the exact moment they occur. However, provided that this type of trading occurs against the right market conditions and performed according to a clear trading plan, it may well lead to ultra high profits in an instant. To learn all about the hows and whys of the 60 second binary option trading strategy, read our dedicated post.
The straddle strategy is also used in other types of trading as well, besides binary options trading and it is one of the most popular trading strategies around. In a nutshell, it entails buying both a call and a put option on a particular asset with the same price and expiration date. The straddle strategy is suitable for when we are certain that the price of the asset will fluctuate but cannot determine the direction, so we buy both and stand to benefit irrespective of which way it goes. The theory is that if the price movement that occurs is big enough, then the amount won with one option will cover the cost of buying the other and still leave a considerable profit. Get more help in our dedicated post with the very basics of straddle strategy for dummies.
As with most trading strategies the aim of the hedging strategy is to increase profits and reduce the associated risks. As its name reveals the hedging strategy entails the use of one investment as a hedge against another. Creating a winning situation through placing a bet twice, on both directions of a price movement is a concept that is often poorly understood by most traders, but mastering this strategy could potentially prove highly lucrative. Therefore, to grasp how it works and how you can benefit the most from it, read our detailed and thorough explanations of the hedging binary options strategy and decide whether this is the right strategy for your own trading.
The trend and the range trading binary options strategies differ markedly and require a different set of competences, awareness and techniques pertaining to money management. However, through juxtaposing the two strategies it becomes clearer and more comprehensible for traders to grasp how they work and when it is best to resort to these strategies to guide your trading decisions
Originally developed for the online retail trading of Forex, the multiple time frame strategy is especially useful and suitable for binary options trading as well, since the duration and the expiration time of each trade is a component of paramount importance in every binary options trade and it is a decisively determining factor as to whether the trade will expire in or out of the money. Find out more about the potential and opportunities created by effectively using the time frame strategy when trading any asset in binary options in our dedicated article.
As revealed by the two names it is known by, the market pull strategy or knock-on effect strategy relies on the notion that any movement in the price of one option will inevitably have an effect on another option. However, using this trading strategy presupposes that a trader has a deep and solid knowledge of how the markets work and what the relationships between different assets are or may develop to be. Read more on this very useful and effective binary options trading strategy to find out more on how grasping the interrelations between different assets or asset classes may lead to very profitable trading decisions, but bear in mind that a degree of elevated experience and market understanding is a pre-requisite.
One of the most popular trading strategies, the fundamental analysis strategy is primarily used when trading stocks and it helps traders to gain a thorough understanding of the asset they are trading. Having such an understanding is bound to help traders be able to make predictions on the possible future price movements of each asset more accurate and effective. As part of the fundamental analysis strategy, traders are called to conduct an in-depth exploration and study of all the elements regarding the company whose stock they have their eyes on, including earnings reports, market share and financial statements. Once grasped completely, this strategy will make it much easier to predict the future movements and reactions of a company’s stock to different eventualities. To master the fundamental analysis strategy and use it as a tool to improve your own trading, read our very informative article.
The underlying objective behind the capital management approach to binary options trading, is keeping one’s profit potential high while curbing losses to low levels. The simple theory that governs this strategy is that the preservation of one’s capital is possible though the wise and prudent management of investments. To learn how to best apply the principles of this trading strategy and increase your chances for trading success, while also decreasing the associated loss risks, read our dedicated article.
So, which is the best binary options trading strategy?
Many will have you believe that various schemes, either man-made or automatically generated, as well as the views of famous expert bloggers may constitute the surest bets, the best strategies around when it comes to binary options trading. However, we will beg to differ on this one and suggest instead that every trader may well be in a better position to devise, generate and implement the best strategy for him/herself than any purported expert or pro. The rationale behind this proposition is simply that only the trader him/herself knows exactly what their flaws, competences, strengths and weaknesses are and they are thus better equipped to create the trading strategy that best suits and fits them.
You cannot really master your trading unless you master your mind first. The importance of a trader’s psychology for the outcome of his/her trading endeavours cannot be stressed enough. You need to learn how to remain in control of your mind, your emotions and even your impulses if you are to become a winning binary options trader and be able to show and exercise the judgement, patience and discipline required to succeed. Find out how to avoid the loopholes and potential dangers and threats that your own demeanour, mindset and behaviour may be creating against you. Detailing how many traders slip into self-sabotage and how you can nib this in the bud, through our enlightening post on trading psychology in binary options trading.
Besides the mere trading strategies the world of binary options also has some other handy solutions to put at the disposal of traders, which come in the shape of binary options signals services or automated trading systems that one can subscribe to or even get for free! The signals generated may be man-made, i.e. rely on the collective wisdom of experts, or generated by sophisticated software that relies on complex algorithms. Unfortunately, the sector of binary options signal providers is also heavily plagued by fraudsters and scammers, as is the entire industry, so in order to be able to benefit from the use of a signals service you have to ensure that your service provider is trustworthy and reliable. Take your pick from our list of the best binary options signals providers around to be sure that you will not be taken for a ride and that you will be able to concentrate on profit making by executing trusted trading signals:
And now, last but not least, I’d like to present…
As in the case of a piece of clothing you wear, so in the case of a trading strategy none will work better for you than the one that is custom and tailor-made to your own preferences, priorities, skills, competences and idiosyncrasy. No ready-made solution or pre-created package will be as effective as a strategy that you make yourself, exclusively for your own use. And none else will ever be in a better position to make such a strategy than yourself. Obviously, dying your own binary options trading strategy will require time and effort on your part and access to the right tools and components. However, if you do have the time to devote and determination to succeed then your own personal strategy is bound to be the best solution for you. To learn how you can effectively build your own binary options trading strategy, read our dedicated article.