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 of
OptioNavigator. 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.
Binary Options Strategy That Works (Or Not) To Add?
Do you have a binary options strategy that works (or one that doesn’t
work)? We are always interested in hearing from our readers. Plus, you
might help your fellow traders find a binary options strategy that works
for them! So don’t hesitate to share your story in the comments. We
look forward to hearing you binary options strategy that works (or
stinks)!
