You can’t be successful trading options simply by throwing darts at a list of assets. You need to develop a solid and repeatable binary option trading strategy that will take the guesswork out of choosing options, and keep your trades profitable over the long run. While there are hundreds of binary options trading strategies out there, you will need to find the ones that work for you, and develop your own person option trading strategy based on your knowledge and experience.
Before talking any more about option trading strategies, it is important to note that there is no binary trading strategy in the world that is perfect and no ‘guaranteed’ way to make money, no matter what some websites might tell you. Every binary option strategy has its flaws, and even the best binary options trading strategies will not result in success all the time. As long as you understand that, and know that the best binary options strategy might still only result in a 65% success rate which provides a modest income growth, but won’t be the instant millions that you might have hoped for.
Let’s take a look at what is a very simple binary option trading strategy, but which is one of the best binary option strategies for beginners. The goal of this binary trading strategy is to help you accurately predict market movements, and have a higher percentage of in-the-money trades than not. The very simple basis for this particular options trading strategy is that markets do not always move up or down, and that they are more likely to switch direction than to continue on the same path.
Again, you must keep in mind that this is just a guideline, not a rule, and there will be many times when this is not true. As long as you remember that the goal of this option trading strategy is long-term success, then you will not have unreasonable expectations.
Like all of the best binary options strategies, this binary trading strategy relies on quick, volatile movements for an asset. You are only ever trying to judge the movement in the next 15 minutes, and should remember that. When you enter a particular asset into your broker’s platform and select a 15 minute option, you will see a chart for the last 45 minutes for that option. If the current price of the asset is below the opening price, it is more likely to move up and you should place a Call option. If the opposite is true, place a Put option instead because this option trading strategy says that markets correct themselves.
If you placed a Call option, and after 15 minutes the asset is indeed higher than when you bought it, you make a percentage of your initial amount, as much as 85%. Keep in mind that while you might be right 60% of the time with even the best options trading strategy, you will still be wrong a large portion of the time; don’t let it negatively affect you.
For simple binary trading strategies like this, you can get caught in a market run that defies these rules and experience a temporary downturn. Remember that one trade doesn’t matter, it is only the long-term results that determine the effectiveness of a binary options trading strategy. And of course, keep your expectations realistic and constantly update and tweak your binary options trading strategies to make sure that you are always getting the best possible results.