Perfecting a binary strategy can take a lifetime. That’s okay–you don’t need to be perfect at this, you just need to be profitable enough for your trading to be worthwhile for you. Still, this doesn’t mean you shouldn’t strive to get better. The more money you can make, the better.
Formulating a Strategy
There are hundreds of strategies out there, all of which can be profitable if used correctly. But the odds are that you will not be able to use each and every one of them in the most profitable manner. Just do a search on Google for “binary options strategies” if you doubt the number of documented successful strategies out there. The bottom line, though, is that a strategy will only be successful for you if you can commit to it and not have emotional qualms with it. When emotions get in the way, it becomes really easy to make mistakes–and that means money lost in this field.
Testing a Strategy
Then you need to test it. Using a demo account for a few days will be helpful and give you a feel for what you need to do on a small scale basis to be successful, and because it’s without real money, there’s no extra risk.
Unfortunately, because binary options only allow you to demo trade for 3 days, this is all the risk free practice you will get. After your demo period ends, you will need to do it in real time. If you can, try and scale back the risk you are taking. For example, if you’re supposed to trade in $500 increments, try and scale it back to a lot less, $50 (10 percent) or less per trade, if at all possible. This way, if the strategy does not work for you specifically, the losses will be a lot more manageable.
Why Would a Proven Strategy Fail?
This is a common question for those that have never seriously traded before. A proven strategy can easily fail when you deviate from it, and unless you are a well programed machine, you will deviate once in a while. The severity of your deviation depends upon you and your emotional state, a lot of the time, and that means that your emotions can be catastrophic to making a profit if you are not careful.
For example, if you are using a specific formula to come up with amounts to risk, and the formula tells you that with the next trade you need to trade exactly ten times the amount you usually trade, this can cause some stress for you. And when that happens, detrimental and costly mistakes happen a lot easier. For this reason, going with the best ever strategy can be a very bad idea if it is not the best ever strategy for you.
Making it Better
Once you find something that works well for you, your next task is to refine it. This is going to be an ongoing process, and it will not be easy to do. It is also a very advanced task and shouldn’t be attempted until you have been trading with confirmed success for a while.
The difficulty lies within reliably tracking your progress. Just because you make money on a few trades does not mean it will work long term. So keep a trade journal and make sure you are being thorough. That will help you to see what has worked and what didn’t. The more you know, the more you can fine tune things and increase the amount of money you have coming in. This refers back to the fact that not all good strategies will be good for you. So even the best proven strategy out there can still be fine tuned to work better for you. And you should do this if you have the know how to do it properly. Just know that this can be a very long and drawn out process.
Your trading will never be perfect, but you can make changes to make it better with the right information.