Consistent profit binary option
However the fact that you are here in my blog means that I have the responsibility to educate you in the best way I can in the area of trading. Trust me, there is no best indicator in trading binary option. The only way you can profit from trading is to have a set of good binary option strategies.
So let me explain to you what are the things that makes a good strategy. Selecting of binary option indicators is pretty important for trading. You will need to test out various indicators to see which one fits your strategy best. That is what I call formulating a strategy. If you have not yet read that articles that I have posted, you can do so via the link below.
Sometimes a wrong selection of indicator can give you more false alarm trade than without it. That is why you need to always back test your strategy when you add a new indicator. Besides the fact that most people are trading without a strategy which is one of the main reason why most traders do not make money in binary trading.
Another reason is because there are too many false alarm in trading which is not filter out in most strategies. That is why all my strategies come with a set of conditions to help traders filter out false alarm trades. Once you manage to avoid getting into false alarm trades, your winning percentage will automatically improved which will then be translate into profits in your account.
Therefore having a clear set of trading conditions to help you filter out false alarm trades is very critical to your trading success. To be consider as a good strategy, it must always comes with a clear entry signal without the trader having to guess the entry. There is no worst strategy than one which requires the user to guess the entry. For all my strategies, I have clear set of entry signal. I will never need to guess when should I enter a trade.
With a strategy, you tilt that scale to anywhere between Thus, even though you make losses everyone does make a loss at some point , you would still be able to make a killing because you will consistently make more profits than losses. The accepted fact across the industry is that the best strategy for Trader A is not the best strategy for Trader B.
A number of factors that come into play: The premise, the number of indicators to necessary for increased reliability, the complexity, assets supported, average duration et cetera. The more experienced traders get to be more picky and more resilient about what makes the best binary options strategies, mainly because of their experience and exposure. For beginners still learning the rope, emphasis is on strategies that are uncomplicated and make sustainable profits.
Two factors determine the success of a strategy—percentage of profitable trades and ROI return on investment. To explain it clearly, let us use examples.
When you use no strategy, trading is akin to a coin flip. In addition, when you win, you get twice the amount you invested. That is, applying this strategy for trades will yield exactly the same money you started with. Therefore, the best binary option strategies coupled with smart money management skills will make you profitable in the long run even when you factor the fallibility of your predictions.
This strategy is as simple as it gets in binary trading. You have zero need for technical analysis aka the use of indicators or having to read funny-looking charts.
All you have to use is fundamental analysis, which is the fancy term for news and information available to the public to predict the future value of an asset. The typical expiry times for binary options extend from only a few tens of seconds to around two hours. Expiry times necessary for this strategy extend from a few hours to a few weeks.
The main idea behind the strategy is to source for major events that would influence the movement of an asset. These can vary from a product launch to a new discovery of deposits to a terrific annual revenue report to a shift in interest rate policy by a central bank. The possibilities are endless but the effect is the same.
For example, the iPhone is the highest selling smartphone in history. Every new launch virtually signifies an accompanying rise in stock value. To apply this strategy, you can wait for around two weeks before the event, then buy a binary options contract that will expire on the day of the iPhone launch.
It is a sure way to make a profit. To prove that this strategy rocks, here is another application. Google has been on an upward march over the years with eye-popping numbers gracing their revenue reports year after year. Now, you have to find out the date on which Google will publish their annual revenue report. Then, do a quick search to find out what analysts and industry predictions are. With this information, you make your prediction.
If analysts expect better performance, you predict an increase of stock value on the date when Google publish their annual revenue report and vice versa. Understandably, these events happen only a few times per year for each company. However, there are plenty other companies.