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Binary Options - Strategies

Essential Binary Options Strategies

Although you need little bit of luck when trading binary options, you cannot depend on luck alone. A successful trader knows that it is important to combine effective strategies and methods, as well as choose the right broker and assets that you are familiar with in order to stay on top and increase profits.   

Money management and minimizing risks

The rule number one regarding binary option trading is: never put more than 5% of your equity on one trade. This will minimize the risk of losing all your capital at once. Even if you have a bad day, which we all do sometimes, and you have 5 or even 10 unsuccessful trades in a row, by sticking to this rule you will still have a chance to emerge as a successful trader when you close a few in-the-money trades with your remaining trading capital.

Another important rule is: do not chase your loses. This is a typical mistake that new traders often tend do. When they are having a sequence of unsuccessful trades, they think that continuing trading until returning all lost money is the way to go. But they are wrong; all they are doing with this is chasing their losses by continuing to trade angrily and risk losing all of their money.  Also, in these situations, they often make huge mistake by using the martingale binary options strategy (after a few losing trades you double your investment until you win), which rarely ends up good. You must learn that sometimes it is best to let go. You cannot always win, it is only normal that there will be days when you will end up on the losing side. The key here is to stay calm, be patient and prepare yourself properly for the next trading session. Knowing when to stop is definitely a good approach to minimize risks.

Focus on a single asset

The best thing about binary options trading is that it gives you an opportunity to choose from variety of assets and you do not need to purchase certain stocks to gain profit, instead your winning relies upon your ability to predict the direction in which the price of those stocks is going to move. So all you have to do is choose a field that you are interested and familiar with and find the assets connected to it in order to profit from your knowledge.

For example if you are a gadget-person and you follow the trends in this industry, then you should be able to recognize the timing when the stocks of a certain company are going up or down. Let’s say that Samsung is releasing a new device that is selling well, then it is likely that Samsung’s stocks will go up. And if you are in to cars, then a good example is when the Volkswagen emission-cheating scandal emerged in the USA; their stock crashed 20% and Volkswagen lost almost a quarter of its market value. Aldo this was very unfortunate situation for them, some people used this information and made good money in binary options trading with it. As you can see no matter what your passion or hobby is, you can find a way to profit from it choosing the right assed where you have enough experience and knowledge to make the right assumptions and become a successful trader.


Choose the right broker

How can you choose the right binary options broker when there are hundreds of them? Some are offering high bonuses even up to 100%, some have the best customer support, other ones have the best interface and platform, some are even offering one-to-one training classes and the list goes on and on. The best advice we can give you is to do your own research. Read the reviews, open a few demo accounts on different binary options sites, check out the refunds, the terms and conditions and most importantly test the platform and the interface - if it is not user-friendly, or you are having hard time to navigate thru it than move on to the next site and broker. After all, this is a fast-paced market where time is of the essence and it is crucial for you to be able to react fast and a well-organized, easy to use platform should allow you this.

Finding the right broker to work with, can be a very challenging and time consuming task. Hopefully our list of the best and most respected binary options brokers based on customer satisfaction reports and ratings will make your decision easier.


As obvious as these strategies sound, in our opinion it is very important to follow them, especially if you are a new binary options trader and you are hoping to make the most of this market. It might seem quite disappointing in the beginning, but over time you will learn from your mistakes and develop your unique style and strategy in order to gain as much profit as you can.