Create a Strategy for Binary Options
The creation of your own trading strategy for binary options
All traders who have reached the top of the financial markets agree on one opinion, namely that the most profitable trading strategy is the one that invented the trader on his own for himself.
Why? Because in this strategy the trader invests all his personal best achievements and skills. All terms and conditions of the strategy are the most clear for the trader, and the whole point of the system is a synthesis of all the best that incorporates the trader as a professional for the time of personal trading.
However, some traders often do not think about the fact that you can trade in your own way without the use of other people's rules which are often not very clear and applicable to your own style of trading. Especially because many of us have long pointed out that their approach makes a profit more often, and you just need to learn how to use it correctly.
Therefore, there is a fair question: why don’t you create your own trading system for binary options?
This article describes the most important principles that should be followed when creating your own trading strategies.
Choose the time of the trade
To begin with, you should decide what trading strategy is best suited to you in spirit: short-term (like scalping), medium-term or long-term. Decisive may be such a factor as your daily employment. If you have little time, then scalping is not for you. Most likely you will be able to trade on short-term and long-term trading strategies. However, just pay attention to the trading conditions of your brokerage firm which often do not provide long-term approaches to trade. To do this, you can use our rating of brokerage firms.
- if you have plenty of time to trade, it is better to trade with scalping strategy-making a large number of short-term transactions throughout the day;
- if you trade only 3-4 hours a day, most likely you will like the mid-term trading strategies;
- if you can devote only 1-2 hours per day to trading, then you will need the long-term strategy.
With indicator or without the indicator strategy
If you are a novice trader, your first point is to try your hand in the indicator strategies, as trade with clear graphs assumes more professional skills. If you still like the clear graphs, use the trading strategies on patterns, building your strategy on those signals of prices that are profitable for a large number of professional traders.
Web terminal is dangerous
The vast majority of web terminals are designed so that the trader is not able to properly assess the current market situation of the asset. Why? You just do not see a small window and do not see the situation in the complex. Candles and bars are not available. You cannot switch the timeframes, zoom in and out the prices. You cannot even draw a trend line which is so important for future trading. All that is available to you is twisting in different directions slightly longer than the chart, which is very difficult to understand and predict. What should you do? Use additional software in trade:
1. The terminal Meta Trader 4. In its arsenal it has all the necessary technical solutions for the best analysis of the charts.
2. Live quotes graphics presented on our web-site. Here it is possible to apply the necessary technical indicators to assess the situation on the market of the asset.
Do not look for exotic assets
As a rule, trading terminals contain about 70-150 of financial assets that can be used in trade. However, it is best to use the most popular of them, than to give preference to the exotic ones. Why is it so? Because:
1. In the calendar of economic news there are macro-economic news which deals only with the most important and popular assets.
2. On the example of popular quotes graphs an array of trading strategies that can be replicated are created now.
3. Every trading tool has a unique way of movement. The movement, which is inherent in popular assets, has long been studied and described, and the specifics of the movement of exotic assets can be very unpredictable.
The concept is simple
Do not invent elaborate multi-stage moves. The simpler is the trading strategy, the more profitable it is. Today, the network has different colored "wrappers" of sold indicators which promise huge profits. However, Moving Average is considered to be the most profitable indicator at all times. It brought higher profit to its users than all the other indicators combined. Thus, use the proven techniques that have never failed.
What strategy should we take as an example? Full of such examples are offered in our category "TRADING STRATEGIES".
Slow and steady wins - on going
Do you have 200 USD in your account? Then your maximum bet is 2-5 USD. Since the basic rule of money management says that the size of the rate should not exceed 2% -5% of the size of the deposit. Why is it so? Because the market sometimes presents surprises - 4, 5 and even 6 consecutive losing trades. Even if you have the most profitable system in the world, you will not be immune to such market conditions. In general, the system shows itself profitable and within half a year has brought you more than 1,000% of profit. However, there comes a point when the price begins to behave quite differently. In this case, when a deposit of 200 USD and a rate of 50 USD, you can already replenish the reserve bench on the fourth order.
Keep your emotions in a fist
The worst enemy of a trader is his emotions. Do not stop on a halfway. Since starting to create your own trading strategies, you've stepped onto the right path. Now, it remains only to bring your plans and ambitions to their logical and profitable end: to create your personal trading strategy.