Trading strategies are plenty and all of them are different and aimed at different trading levels. Some are more suitable for beginning traders whereas others for advanced investors who have an opportunity to invest large amount of money. Below you will come across four basic steps that will help you to choose the most suitable trading strategy for you personally and which will later help you making money on the binary options trading market.
One of the most important things for traders when trading is the winning payout percentage. Every dealer wishes it to be high. Some psychological implications are presented here. For instance, a trader should realize that strategies with high payouts are difficult and complicated and therefore the reward is pretty rare yet big. Whereas dealing with strategies that are more simple to manage and use, the payouts are constant but small. For some traders this fact of rare and small rewards is not acceptable and they don’t understand it. Nevertheless, try to understand which of these options is better for you as it will make a further progress to selecting a suitable for you strategy.
As it was mentioned above, winning percentage is different. Its main aim is to determine how many of your trades you will win.
To have big chances for winning, you should take into account the following: a strategy and an option type. The right type of option is very important as the payout percentage varies. If you select, for example, high/low options – the payout will be 60% – 70%, touch options – 30% – 40%. As you can see the difference is considerable, therefore there is really something to think of.
Trade frequency is another significant point to consider when choosing a suitable trading strategy. The main goal of trade frequency is to determine the profitability of a strategy meaning the amount of money a strategy is capable of making over a certain period of time. And once again, different strategies have different time frames.
The most important to remember here is – always check the expiration date as well as time frame.
The last, fourth point in this short binary options trading guide should be dealt with when you have already decided upon the strategy.
The last step would be to see if you are comfortable with the signals a strategy creates. Ways of creating are multiple: trend analysis, technical indicators etc. Read about all of them, test them and select that one you will like most of all.