If you have been part of any recruitment activity, then you will know that there is typically a checklist that the recruiters go around with. Recruiting a person is akin to an investment for any organization. So they have checklists drawn that are matched at various stages of the recruiting process to determine whether the person is really suitable for the organization or not. Every organization has such checklists and it varies from organization to organization based on their preferences, businesses, roles, and HR policies and such. This is so, because the person being recruited is considered as an asset or investment.
The various things ticked in the checklist are to make sure that the person contributes and provides returns as expected by the organization. So, when an activity like recruitment is being looked at as an investment and a checklist is maintained to make sure that they get it right, can we afford not to have a trading strategy or simply put a checklist, where the stakes are perhaps even higher. Here, we are going to invest our hard earned money with the hope of getting some returns. So, it is always better to think through, do some reading up, discuss with people, keep a watch on the markets and formulate a strategy on how one would like to go about the trading.
One of the first decisions to be made as part of the trading strategy would be to see if the returns expected on the investment are long term or short term and then plan the rest of the strategy.
When it comes to Binary options strategies same set of rules need to be followed to come out with a strategy of our own.
Remember, there is no such thing like ‘The strategy, ’ that is going to be the golden goose. What works for one person may not work for the other. And if you Google, you will come across umpteen websites that claim to educate you and help you to make obscene amounts of money overnight through killer deals. What you should keep in mind that there really is no way to make easy money overnight and that these are probably scams that are after your hard earned money. So please do not fall for such traps. The best thing would be for you should read, learn, understand, do trial and error and come out with a binary option strategy of your own. There is no rule that one cannot change ones binary options strategies from time to time. In fact, as you go along and get a better hang of how things work, you surely will fine tune your binary options strategies in order to ensure maximum returns. And it may take you some time to get there.
Let’s take a look at what all one should keep in mind to get a binary option strategy in place to start with. This is the checklist as mentioned above, so the points to be ticked would be like:
- Have clear entry rules. When you should buy a Call or a Put? This could also depend on your interests, the amount you are willing to invest, the duration you look for the returns and so on. But make sure you have some entry rules that you can tick on.
- Next item on the agenda would be to see how much you would like to invest and how to distribute it among the trades. It may be a good idea to start with small multiple investments and then build on the same rather than having just one or two trades where you put all your money. This is because if you get it wrong, you would have lost it all. This approach could actually help you formulate your binary options strategies in the long run.
- Now the thing to keep in mind is that we might have gotten our checklist wrong and ended up putting our money on the wrong trade. No issues, this is why you also need to have exit rules in place in your checklist. There is no harm in cutting one’s losses and getting out with what you can rather than lose it all. You would have learnt from the experience anyway and will fine tune your strategy accordingly. Also, even the best laid plans can go wrong, so one needs to be prepared for that aspect, if one wants to be in binary options trading.