The choice of strategy for each trader by binary options has always been one of the hard and painful issues. Each novice stumbled on this obstacle many times in a row. An experienced trader can sometimes be difficult to make a decision too. To connect a trading asset with a strategy is a task that requires a lot of patience and effort. All difficulties will usually await you at the beginning of your journey to the world of earnings on binary options. Now in 2017, there are a lot of different types of trading strategies, as many that eyes can easily run away. How to find the strategy we need, how to determine exactly the strategy that we need. In this article, we will try to help you with choosing a successful binary option trading strategy.

To evaluate the trading strategy of binary options, it is enough for newbie to take 3 main factors. This approach to evaluating strategies can be used both in forex and in traditional trading. On what factors will need to navigate this year, read more in the article.

Binary options: making good money with profitable strategy

Learning to choose a profitable binary options trading strategy

Trading strategies for binary options are considered to be one of the most difficult and difficult to perceive. But, sometimes it happens and the biggest misconception for all novice traders. Strategies are of varying difficulty. It, in turn, can be determined by the level of perception and preparation of the trader. Each trader is interested in the profitability and risk level of a strategy. Using the 3 main criteria, you will be able to learn how to choose trading strategies for your level of training, character, manner of trading binary options. Let’s not hesitate, we will consider these criteria:

The percentage of successful transactions in the strategy

This indicator is of a statistical nature, it reflects the ratio of successful transactions to their total number for a specific strategy. Each strategy will have different values ​​of the indicator considered by us. But not always a large percentage of successful transactions will indicate high profitability. In this case, one should also take into account the level of risk that can cause a loss of capital.

Do not forget about the existence of different types and types of binary options. Applying the same strategies to them can give you different results. When trading different types of options and applying different strategies, the probability of successful transactions can be quite high. For example, when applying strategies for trading high or low options, the probability of a successful transaction will be higher than when trading and applying strategies to ladder options. But the profitability in the case of staircase options can be significantly higher with the lowest level of winning trades. So the profitability of your chosen type of binary options and your strategy is determined by many factors.

When choosing a trading strategy for binary options, you need to consider your psycho-emotional factors. Since their control will affect your trading, then the profit will depend directly on them.

  • Try to select strategies very carefully, not hurrying up
  • Remember your character traits
  • Analyze how your perception reacts to different situations
  • Study and test
  • Do not be afraid to make mistakes.
  • Do not be afraid to start trading

Observing simple rules and systematizing knowledge of binary options trading will give you the opportunity to become a successful trader.

Almost all strategies are more or less successful. But not always the best and successful strategy will bring profit permanently. In this case, many traders are always in search of an optimal strategy. The optimal strategy is considered to be one that a trader is able to adhere to for a long time. To some, strategies with a more stable level of profit will work, but to someone more risky strategies, where the profit will be much higher. Patience plays a very important role in this matter.

When choosing a strategy, it is important to focus not only on the method of making a profit. First of all you need to consider your personal qualities, character and style of trading. After all, you and only you will trade.

Calculating the average profitability of your chosen strategy

With such a calculation, it is important to consider the probability of successful transactions for a particular strategy. As we found out earlier, strategies with a high percentage of successful trades have lower profitability. Strategies with a low percentage of successful transactions have higher profitability. The lower the number of successful transactions on the strategy, the higher will be its profitability. This rule will make sense in most cases. These 2 different types of strategies attract completely 2 different types of traders. Some of them are accustomed to getting a profit from trading to a lesser extent, because they can not accept a number of not successful trade deals. Others are willing to show patience and wait for their lucrative deal. These 2 types can be combined in one trader. This case happens when a trader is gaining experience and can conduct risk diversification, applying this or that approach at the right time.

The main factor in this case is the psychological aspect. You decide for yourself the type of binary options trading that is acceptable to you. Can you tolerate losses and get a big profit or will you have a small but steady income.

Your decision must be weighed. Do not make it based on copying the trade of other traders. You need to be honest with yourself. Only in this way you will be able to choose the desired style of trade, which is right for you. It will never be superfluous to test both styles on a demo account from a trusted broker. This will help you to determine much faster.

Let’s count all on examples:

We have a strategy whose yield is between 67% and 63%. In order to obtain a mathematical expression for the probability of a successful transaction

(0.67 + 1.00) * 0.63 = 1.0521.

67% – adding income

1,00 – our initial investment

0.63 – percentage of successful strategy transactions.

If we take the second strategy, then let its yield be 210%, and the probability of winning is only 20%. In this case: (2.10 + 1.00) * 0.2 = 0.62. This strategy has a winning frequency lower than the previous one. But comparing our indicator of the mathematical expression of the probability of a successful transaction, we can compare their effectiveness.

The most important point at this stage is the choice of strategy. Choose you can any of you suitable. But, you should know about the optimal trading strategy for binary options. The optimal strategy is a strategy that a trader can use constantly. In other words, it is a strategy that will not cause feelings of tension in the trader.

Frequency of trading transactions

The frequency of trading transactions is another important factor in the selection and use of a specific strategy. This indicator shows us the right amount of time, which is required for 100 deals. Recall that the mathematical expectation shows you how much we can in positive or negative positions after 100 deals.

All these factors have a direct connection with your personal qualities.

Strategies may have differences in the frequency of transactions. The frequency of transactions can be different. In this case, it can show you how many transactions a month this or that strategy provides. But, we must remember that this indicator does not guarantee the nature of the transactions themselves. Whether they are profitable or not.

The indicator only demonstrates the rate of trade, which may or may not suit you. It all depends on how you will be more comfortable to conduct trading operations. How much time do you have to trade. And, of course, will you sustain this rate of binary options trading morally.

You need to remember your funds when you start trading binary options. Plan them ahead of a particular strategy.

Сonclusion

In this article, you have learned some more useful ways of trading binary options. As you have already seen, everything needs to be adjusted to the maximum for yourself. It is necessary to act very carefully, so as not to lose the initial investment. Try to carefully build a plan for trading binary options in the context of all the information you have. You need to do a self-analysis of your personality component. After all, this factor will play the biggest role in selecting all the subsequent components of binary options necessary for trading.

All binary option trading strategies can make a profit. But only in that case, if they are compatible with you, your trading style and other qualities that are unique to you.

Test the strategies, add the elements you need to them. Feel free to experiment with different strategies for trading binary options.

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“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

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