To become a successful binary options trader, you need two tools: A trading strategy and a money management strategy. Both combine to create the basis that can make you successful in any market environment, but if you try to trade without either strategy, you are sure to lose money. Learn all about the binary options strategies you need here.
More and more traders also rely on signals as part of their strategy. Signals are recommended trades identified by advanced computer systems. All professional traders will use some sort of trading software to help analyse the market, and make predictions about future price movements. Basing your strategy on binary signals, can help you trade like a pro.
This article, Binary Options Strategies, outlines the basics of these approaches to binary strategies and provide you with links to relevant articles, thereby enabling you to create your own trading strategy and your own money management strategy. You will also find the information you need in order to decide whether signals are right for you or not. This article is the perfect starting point for new traders.
Binary options work on short time frames. In such a fast-paced environment you need a concrete plan to know what to invest in, when to invest, and which type of binary option to use. This plan is your trading strategy, allowing you to constantly make money over a long period of time. With your trading strategy, you can find trading opportunities and decide how to capitalize on these opportunities.
The foundation for your trading strategy is technical analysis. Technical analysis allows you to find trading opportunities for every asset, even if you have never heard about it before. There is almost an endless possibility of binary options strategies based on technical analysis. To provide you with a starting point, here are some of the most popular trading strategies:
Trading technical indicators: Technical indicators aggregate market data and display it in a way that allows you to make a prediction that you can trade with binary options. Technical analysis is probably the easiest way to generate signals, thereby making it the ideal way to generate signals for new traders.
A good money management strategy is just as important to your success as a good trading strategy. While a trading strategy can help you win a high percentage of your trades, you will never win all of your trades. Even with a good strategy, you will win only about 70 percent of your trades. This is easily enough to make you money with binary options, but you also need to account for the 30 percent of trades that you will lose with such a strategy.
If you accept the premise that you will inevitably lose some trades with binary options, you also have to accept that these losses will sometimes come in a row. By the sheer power of the odds, you will sooner or later lose 5 trades in a row, or even 10 or 15 trades. A money management strategy will help you to survive such a losing streak without going broke.
First things first, despite of what you might have heard signals do not replace the need for learning the various binary options strategies we outlined above in point 1. You cannot simply trade on signals and forget everything else. The best strategy is one where you understand the market yourself, and assess the signals you obtain to see if you think they are reliable.
Also, you most certainly will need a money management strategy even if you trade on signals. Even if you should attain a higher win percentage by using signals, this does not in any way negate the importance of managing your money wisely.
So, what are signals, then? And how can you use them? Let’s answer the first of these questions first. A binary signal is:
This means that software programs and powerful computers do the most difficult part of being a binary trader for you. All the number crunching and reading of charts is taken care of. However, as we pointed out already: the best signal-based strategy is one where you assess signals based on your own knowledge and act on the ones you trust the most.
Signals are sold to traders by companies called binary signal providers. You will find links to a lot of very good ones here on our site. We have provided you with reviews that will enable you to assess each one, and choose the one that fits best with your needs.
Signal providers are not all the same, but in general this is how they operate:
As you can see, it is very easy to trade with a signals based binary strategy. Good binary signal providers will have a strike rate of 70 % or more. This means that if you currently win fewer than 7 out of 10 trades, using signals ought to improve your performance and your profits.
To get a complete overview of our articles on binary options strategies, take a look at the right side of your screen. For further reading on the subject, we recommend you to read more about professional traders advice on winning strategies for binary options on Binaryoptionsstrategy.net.
We wish you a successful trading career!