Safe Binary Option Strategy! Is Risk-Free Trading Possible?
There are many different binary option strategies. Surely, each of them gives different income, and some even make suffer reasonable losses. And if you try to find a strategy on the Net, you are likely to meet a multitude of “the safest binary option strategies”, and a logical question appears: “If all the strategies are that risk-free, why do most traders lose their money with them? Why is there not that pleasant statistics at financial exchanges (from 80 to 95% traders lose money)?
If you read my previous article about option strategies, you must realize that there are many repainted strategies on the Net, which are unable to give you anything but losses. And even a strategy seems to be very comprehensive and simple, praised by authors, profitable by their words, there is still reasonable danger to waste the deposit fast with such algorithm.
As readers of this website know, trading strategies should be chosen from created ones or created on one’s own. In previous articles, it was described how to choose a safe option strategy, and now I’d love to tell you how to create your own safe option strategy and make it work for your deposit, and not against it.
1.Risk Is Everywhere!
2.“Safe Binary Option Strategies” on the Net!
3.How to Create Your Own Trading Strategy?
4.The Main Rule of Wasting!
Risk Is Everywhere!
Safe option strategies cannot even exist, as exchange trading is connected with risks in any cases. Even a strategy of the most professional trader is not risk-free, because even with such one can lose solid money. There is always the danger of the market breakdown, unpredictable movements or systematical fails caused by complicated psychological state of a trader. Let alone any broker, even the most reliable and trusted one, can stop paying you in a moment, block the terminal or go bankrupt.
Thus, there are no safe trading strategies, but nobody says your system may be close to this idealistic term. Yeah, you will anyway take risks, and if you are not ready to admit this, you’ve got nothing to do with the exchange, but one can create a strategy of high profitability and lower risks. One can set StopLosses and TakeProfits, withdraw profits instead of keeping them on the account. Maybe, there are no safe trading systems, but it shouldn’t make you stop, because there are always some good trading algorithms, which are risky, but, however, able to lead to gaining. After all, there is no activity in life, which is not related to some risks.
“Safe Binary Option Strategies” on the Net!
Curiously enough, but yelling about “risk-free” and safe option or forex strategies can be heard from authors of bad or “repainted” algorithms. Yes, they are all risk-free, because you don’t have any risk to make money with them. Surely, one should avoid such systems, if they don’t want to say goodbye to the deposit. Remember the important rule: the higher is the convincement about profitability and full absence of risks, the more partiality you have to express testing such algorithm, as there are lots of cheaters in this field, whose goals are to sell completely useless systems to naïve traders.
How to Create Your Own Trading Strategy?
- Firstly, you will have to study all available information about the financial exchange you are planning to trade at, along with its laws and working principles. In case of taking another’s strategy, this step is recommended to be done, though, it’s optional, because you can just learn the algorithm you are supposing to work with by heart. And if you want to create your own author’s strategy, you will anyway need all the knowledge about the financial exchange you may get. It will contain indicators’ working principles, fundamental laws, trading psychology basics, system of engaging non-indicator methods of forecasting, etc. Besides, you should realize how to combine all that stuff for efficient and profitable trading.
- After that, you will have to decide about the type of your trading strategy. It can be either fundamental or technical, using indicators or not, short-term, medium-term or long-term. You can study all features of those kinds on our website in my other articles. I must mention now, that this choice is very important, because it defines not only your future profits, but also your comfort of trading. For instance, if you decide to engage scalping, i.e. short-term trading, but don’t have an opportunity to spend greater half of the day at the monitor, your strategy will give you no income, no matter how profitable it may be. And there are some people who can’t wait for results too long, they are emotional and not capable to hold orders open for several days or weeks. For such folks, scalping will be great, but they won’t be good long-term traders themselves.
- Step 3 – select tools which you will forecast further rate movements with. They can be, depending on the chosen type of strategies, indicators, economical news, analysts’ websites, non-indicator analysis figures, etc. And quantity of those tools must not be very little or very high. In the ideal case, you should consider readings of 3-5 indicators or analyze the same quantity of factors affecting the rate. For example, you can watch for GDO, interest rate, consumer price index, inflation and unemployment rate. If you take more of them, you will be likely to get entangled in such great volume of information, and it you take less – you won’t have the full picture of the market situation. The same thing occurs with indicators. I know some traders who try to compare information from more than 10 different indicators, and it often happens that even a half of them has no space at the chart to be located, one tool covers another, and thus, a trader gets confused and makes mistakes. You must realize different indicators use different algorithms, and sometimes they conflict with each other. If you are concerned the more of them you place, the more profitable is your trading, then, you won’t get any trading signal confirmed by all your tools or just be entangled in them.
- When you figure out everything about tools, it’s the time to write the algorithm. I recommend novices do that, as they can’t orient themselves and trade at the exchange without any plan of actions. Probably, it can now seem to you that you’ll deal with trading and will even be able to adjust the system while an order is opened, but you think like that only until the first position starts. When it does, you become influenced by colossal emotions, your brain stops working, which can lead to bad consequences for your deposit. And that’s why, you must have a certain action instruction and confidence that no matter how unprofitable your trading is and how much you want to violate the rule, you must stick to the plan thoroughly and not deviate from it even slightly.
- So, you’ve written the system and are ready for trading, but don’t engage before the right time. Firstly, you have to test your strategy and understand whether it is really profitable to work with. It can be done via history of the rate or on the demo-account. You can spend more time at this stage, than at all previous ones, but it’s worth it, as most traders waste their money because of engaging strategies without preparatory testing. Algorithms turned to be “repainted”, i.e. bad, and traders lost their deposits. Having not missed this stage, one gets the opportunity to adjust a strategy and start profitable trading. Don’t hurry to come to the exchange – you will always have a chance to waste money.
- When a strategy is tested, all you need is to adjust it if needed and start working. Remember: if your algorithm gives profits in the result of testing, you mustn’t deviate from its rules while trading, even if you are 100% sure that such violation can bring money. Of course, I am not saying that you must never touch the profitable system. You can make some improvements, change its rules drastically, but only when the last order is closed and you are not going to enter the market again.
The Main Rule of Wasting!
The rule sounds like this: every deposit can be wasted – at any time and with any strategy. No matter how profitable the strategy was, you still may trade with no profits, and the main reason of fails will be only you. I’ve seen for many times, when several people trade with the same strategy, but one gains 100% per month, another – 40% and yet another just wastes money. Remember: your success is only 50% about the chosen or created trading system, and the rest half of success depends on your personality, skills, abilities and psychological control. And if you close an order with little loss, if you overtime a bad order and make same mistakes again and again, if you always violate rules of the strategy, then, you definitely will never have any income. Improve yourself firstly, and only then look for blunders of your trading algorithm.
So, there are no absolutely safe option strategies, and if you plan to gain there without any risk of losses, you’ve opened the wrong door: the exchange doesn’t have such trading-heaven. Thorough and hard work of creating the strategy, testing and improving it – the base of ant trader’s success, but risks always exist, and you must put up with it.