Your Binary Options strategy determines whether you will win or lose money as a trader. Many traders, therefore, are constantly looking for a better strategy to increase their profits. This begs the questions whether there is such a thing as a perfect Binary Options strategy, and, if so, how to find it.
What perfect Binary Options Strategy can you apply?
There is a wide array of Binary Options Strategies. Some are based on trading signals, some on gambling theories, and some on reading the price chart. Based on this very fundamental difference and further differences in the detailed structure of these strategies, Binary Options strategies vary widely in risk and potential return.
There are strategies that will create relatively safe predictions. If you apply these strategies perfectly, you will win 75% of your trades, but, because of the safe predictions, will only get 70% of your invested money as profit from your broker. Other, more risky strategies will create a winning percentage of 90%, but will only win you 60% of your trades, if you apply them perfectly.
Which kind of Binary Options strategy is right for you?
Is there such a thing as the perfect binary options strategy? In real life binary trading, the winning percentage of each strategy will be relatively constant. The percentage of successful trades, however, will vary greatly, depending on which trader applies a certain strategy.
If you like to be right, you should choose a Binary Options strategy that will guarantee you a high winning percentage, even if the return per trade is a not as much as with a more risky strategy. Otherwise, a few losing trades in a row will likely cause you to stray from your strategy, and fall back into the habits of traders without a strategy. Then you will lose money, regardless of how great your strategy is.
On the other hand, if you can live with winning only slightly more than half of your trades, and if the prospect of many losing trades in a row does not scare you or make you abandon your strategy, a more risky Binary Options strategy might be better suited for you. A safe strategy would likely bore you and make you place a few riskier trades on the side. This, again, will cause you to lose money in the long run.
A Binary Options strategy must suit your character
There is no such thing as a perfect strategy for every trader. There is only a best strategy for each individual trader. You, therefore, should not listen to other traders that want to sell you their strategies as the perfect solution. Neither should you simply copy what someone else is doing or choose a strategy because of the money it mathematically can generate if you apply it perfectly.
The success of a strategy is determined by your ability to follow it as close to 100% of the time as possible. Choosing a strategy that suits you, your tolerance for taking risks, and your tolerance for being wrong is far more important than choosing a strategy with high potential return that you cannot apply. Chose a strategy you feel comfortable with and that will generate a profit, and you will be fine.
Especially when you are new to Binary Options it may be a smart idea to try several strategies with a demo account before you use them with real money. This way, you can eliminate strategies that are not working for you without losing real money, and you can learn about your own preferences, which are often very different from what we expect them to be.
If you are planning on doing this, make sure your Binary Options broker offers a demo account before opening an account.
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