The binary options strategy is one of the most talked about subjects when discussing binary options. “Which strategy do you use?” “Which strategy fits me?” “Do I need a strategy?” Binary options fill up our company inbox with these questions. So to help them (and hopefully you) out, here is our take on the binary options strategy. But first, let’s make 1 thing clear: there is NO binary options strategy that works 100 percent of the time. If there is anyone who suggests there is, they are misleading you. There are, however, binary options strategies that give you more insight and can help you place better trades. Read below our binary options strategies that work (and don’t work).
Binary Options Strategy That Works 1: Trading Tools
The binary options strategy with which we want to kick off this story, isn’t actually a real strategy (I know, right?). Then again, maybe it is. At least this strategy is a way to trade binary options. It involves not a well laid out plan or a special set of rules to follow, but a trading bot. This trading bot analyzes the market with intricate algorithms, and then gives the trader advice on which trades to place. The trader follows that advice (or not). So actually you could say, acting on the advice of the trading bot is your binary options strategy.
For this binary options strategy, you can use various trading bots. 2 of them are listed below.
BinaryStealth – There is very little known about this trading tool. We cannot say that we recommend it, because our experience with BinaryStealth is too limited. We do, however, see various claims. Some are good, some are bad. If you want to check the tool for yourself and try to create a binary options strategy using it, click here to go directly to BinaryStealth.
OptioNavigator – OptioNavigator has a larger fan base, and on the internet are many different stories describing positive results using this online trading tool. If you want to see for yourself, go to our full review ofOptioNavigator. Or click here to sign up.
We have listed this as a binary options strategy that works, because we do hear positive stories about this type of trading. But if this is not your thing and you want to be fully in control, read more below to find another binary options strategy that works.
Binary Options Strategy That Works 2: Technical Analysis
The binary options strategy of Technical Analysis is actually about doing the same thing as the trading bots we’ve discussed above. Only in this case, you do the math yourself. It is quite complex and, even if you have fully mastered the art of Technical Analysis, never 100 percent accurate, but it will be a great tool to help you gain more insight and success in binary options trading. So how does this binary options strategy work exactly?
This binary options strategy works in a quite complex way, and a little bit of knowledge in math could go a long way with Technical Analysis. What you do, is study the history of the markets you want to trade in. You look at what the price has done in the past (and why) and use this information to get an idea of what the price will do in the near future. This information will tell you whether to trade Put or Call binary options. If you have the time to perfect this strategy, this could be your binary options strategy that works.
Binary Options Strategy That Works 3: Fundamental Strategy
This binary options strategy can work, but will take some time to master. It is by far the most intricate of the lot, but definitely the most reliable. What this binary options strategy is, is information technology at its finest. It all comes down to that one thing that every strategy is used for in the end: predicting the course of the price as accurately as possible. And it won’t get more accurate than this, believe us. Like with anything, this binary options strategy works only under 1 condition: you have to put in some effort.
For this binary options strategy to work, you need to really get into the subject of binary options trading and all the underlying assets that are involved in your trading. Try to look at the index and see how it works. See how stocks, currencies, and other underlying assets act and interact on these indices. Based upon those statistics, you can try to predict the price changes as accurately as possible. Again: this binary options strategy only works if you put in the time. If this looks like a bit too much work, you can always see if binary options strategy 1 works for you, and use a trading bot.
Binary Options Strategy That Works 4: News Strategy
A little less accurate, but still a pretty good binary options strategy that might work for you, is the News strategy. This is a quite simple, but usually much underestimated strategy. The idea is really simple: follow financial and other relevant news closely, and see how the markets react to this news. What makes the price go up, what makes it go down? Although slightly less accurate than the Fundamental strategy or the Technical Analysis, this binary options strategy can give you a lot of insight and understanding as to how the markets work, and provide you with enough information to better predict the course of prices. Maybe you are already into financial news. Then this binary options strategy can definitely work for you.
Binary Options Strategy That Works 5: Following Signals
One binary options strategy that definitely works if you master it, is following binary options signals. The trading tools discussed above also use these signals, but automatically convert these into a trading advice to help you place the right trades. You can also choose to interpret the binary options signals yourself by using this strategy. This strategy is a lot like the Fundamental strategy or Technical Analysis. The only difference is that the first part is being done by a binary options signals service. There are many different services you can use. Some of these are free and others are paid. Read more on our extensive page that covers binary options signals. If you know how to work with these signals, this can be the binary options strategy that works.
Binary Options Strategy That Works… If You Want To Make It Through the Day: Money Management Strategy
We call this a binary options strategy, but it is more of a trading strategy in the broader sense. Where most strategies are focused on the trading process itself, this strategy focuses on how to keep your cool and not invest your very last dime. So although this is not a real binary options strategy, it is definitely a rule to live by.
The money Management strategy is something all binary options traders need to implement in their trading. It is nothing more than a little red light – call it a voice, if you will – that tells you upfront how much you will spend on binary options trading. It will not tell you what to invest in or when to invest, but just to take it easy and make sure you can keep the house and enjoy a meal in a house that is heated (or cooled) because the electricity isn’t cut off.
There is another part to this binary options strategy that every trader uses: allow your assets to grow slowly. Don’t place all your money on 1 trade. Sure, you might win a lot if the trade ends up in the money. But you will also lose it all when it ends up out of the money. So take it slow.
The third part of this binary options strategy is also important. Spread your investment and your risk. The greates traders in the world know to spread their investments and will never buy binary options of only 1 underlying asset. Be sure to trade binary options on different underlying assets, so that 1 lost trade can be (mostly) covered with another trade that may end up in the money. So spread, take it easy and never risk to lose it all, are the 3 principles of this binary options strategy, and it works.
It is the basic principle of any trader, investing 101: set your spending limits beforehand and stick to them. A binary options strategy that works every time.
Binary Options Strategy That Doesn’t Work 1: the Martingale
One binary options strategy that always comes up when discussing trading strategies, is the Martingale. This is not so much a binary options strategy, as it is a way some gamblers handle their win/loss ratio. What the Martingale essentially does, is make sure you never lose more than you win. But wait for it, we’re not done yet. Because this is the part where it gets tricky: in theory. You will never lose in theory. Because at the foundation of the Martingale lies an infinite amount of money as well as time. In reality, we all know you can’t have either. So much for a great binary options strategy then.
The execution of this binary options strategy is very simple. All you have to do, is 1 of the following 2 things: either you double your investment every time you lose, or you double your investment every time you win. Especially the ‘double your losses’ idea should get you home safe. If you have unlimited amounts of money and all the time in the world – and then some. Fine for gamblers, but not a solid binary options strategy.
Binary Options Strategy That Doesn’t Work 2: the Bull or Bear Strategy
Another binary options strategy that has no proof of working whatsoever, is the Bull or Bear strategy. There is absolutely no foundation for this theory. The basis for this strategy is actually faith. This is how this so-called binary options strategy works: there are actually traders who think the price will always go up (Bull), and therefore always trade Call binary options. On the other end of the scale are the more pessimistic traders who think the price will always go down (Bear). These traders trade only Put options. And there lies the problem of this binary options strategy: prices do not and will never only go up or down. So chances of getting high returns are as high as losing it all with the Bull or Bear binary options strategy.
This strategy is the binary options trader’s equivalent of going to the roulette table and betting on red (or black). Every. Single. Time. Chances of leaving the table with high winnings are as slim as becoming rich trading binary options using this strategy.
Binary Options Strategy That Doesn’t Work 3: Different Pick Strategy
Closely related to that other binary options strategy that never works (the Martingale), the Different Pick strategy makes even less sense than its relative. We assure you: this is no joke. We have actually found this somewhere on the internet. Now we will how this so called binary options strategy works.
This is the most ridiculous binary options strategy of the lot. What you do, is think of a series of numbers before you start trading. Let’s say: 2, 5, 8, 1, 10, 6. But it can also be 6, 4, 9, 15, 4, 35, 2. Or the numbers from yesterday’s lottery draw. You decide which numbers and how many in a series. But let’s stay with the first series. What you now do (and this is why it is the most ridiculous binary options strategy), is make your first trade with 2 binary options (the first number). Is this a successful trade that ended up being in the money? Then you take the second number, which is 5. Now you will trade 5 binary options. After that 8, then 1, and so on, until you reach the end of the series or your trade ends being out of the money. Then you start over buying 2 options, after that again 5, and so on. And that is how this binary options strategy works.
Now hopefully, we don’t have to explain why this binary options strategy doesn’t work. It is as useful as trading with your eyes closed. Please do not get fooled into using this strategy. Pick out a binary options strategy that works.
Binary Options Strategy That Doesn’t Work 4: Consistent Strategy
Again a (random) numbers game disguised as a binary options strategy. The Consistent strategy is the exact opposite of the Different Pick strategy. Does that mean this binary options strategy works? No. It is just another way of changing the outer shell of your trades, but without thinking about how to improve the content. So again: more of a numbers game than a binary options strategy.
What this binary options strategy is all about, is the amount of options that you trade. With the Consistent strategy, you always trade the same amount (say 2, or 50 dollars, or whatever other number you can conceive in your head). And you keep on trading that amount. This has nothing to do, however, with the quality of your trades. So whatever amount of fun you might be having using this strategy, it will not get you anywhere. We can only advise against this binary options strategy.
Binary Options Strategy That Doesn’t Work 5: Limitation Strategy
Again, not a binary options strategy, but more of a gambling routine. Still, this way of trading is often disguised as a strategy for trading. As with all binary options strategies that don’t work, the Limitation strategy requires minimum effort and little to absolutely no know-how. This is, like many of the strategies mentioned above, also a random numbers game.
So what do you do with this binary options strategy? Very simple: you start with a high risk and lower that risk along the course of your trading efforts. The idea is as easy as it is worthless: start out with a high trading amount – say 2,000 dollars. Then, if this trade is a winning trade, take a little (or a lot) off that amount. Say you invest 1,500 dollars in your next trade. The next trade is with an even lower investment, 1,000 for example. The more often you win, the lower the amount gets. Until you come to a trading amount that is too low to enter, or you end up out of the money. In both cases, you start over with you initial high trading amount. It is as simple and ineffective as that. Definitely a binary options strategy that doesn’t work.