Binary options strategy is a vital key for any binary trader success. The binary options market is dynamically evolving and it is important to adjust the correct strategy according to the market conditions. We have collected some of the more successful binary options strategies.
Before jumping into the various strategies we would to emphasize a few important trading guidelines that will help you to minimize the risk you are taking while trading.
One of the most important things if not the most important thing you should keep in mind, is the way you investing your funds. You should never invest all of your capital on one single trade! So many traders have done that mistake and worked very hard to gain that money back. Moreover, in most cases, you should not invest more than 5 to 10 of your equity.
Another important rule we recommended you to follow, is to focus on one or two assets. There are so many different assets to trade on, and it will be simply impossible for you to follow them all. Trading on only one asset will help you gain familiarity and confidence with the asset so it will be a lot easier for you to predict its value and trends.
There are several of main trading strategies will be reviewing in this article and many more in the future. So let’s go ahead.
- Bull Bear Strategy
This is a simple strategy that is quite popular mainly among beginners and is all about the financial markets trends. The idea behind this strategy is to follow the trend and execute the trade when it’s heading a clear direction if it rises or declines. In case it does not move much and the market is flat, you simply stay away.
If the trend line shows a clear decline in the price of the asset, choose PUT.
- Straddle Strategy
This is the ultimate strategy for times when the markets are volatile, and is usually being used right when there is an important announcement that is about to be released.
The idea of the straddle strategy is quite simple and is all about catching an underline asset when it picks or at least after a big movement to a certain direction, and to trade it to other direction.
As said, this is a strategy that is more recommended to use when the markets or a particular asset tend to volatile.
- Hedging Strategy
This binary options strategy is a bit tricky and cannot be used on all binary brokers’ software’s. The goal is to achieve maximum profits while minimizing the risk factor to almost 0.
The way to do it is to purchase a CALL and a PUT option on the same and on the same time. Now, in order to make it work, the most important part is to execute it with a broker that guarantees high payouts on winning trades, at least 75%, and allows you to close a trade while it is active with a small as possible lose.
With this Binary Options Strategy you must make sure before that in case you will be closing a trade you won’t be losing more than what you are profiting.
- Fundamental Analysis
This strategy is in other words is to simply follow the news. In some cases, especially among beginners, there is a lack of understanding the importunacy of the fundamental aspect of trading. There are many news releases than can have a crucial impact on the financial markets, almost on a daily basis and as a result on trader’s trading success, be sure to learn all the important news releases as well as when they will be announced.