Binary Options Financial Strategies

Posted by OliverPearson 0

Binary Options Financial Strategies

Capital management is a must for successful binary options trading. Financial strategies don’t help you make money, they help you lose less and hence get a higher profit. If you manage your deposit right, you will never lose all your money.

Binary Options Financial Strategies

Although binary option trading is actually very simple and doesn’t require special knowledge, it is accompanied by risks. To secure your capital and minimize risks, you need to thoroughly control cash flows and know all pros and cons of binary options.

Financial strategies are also called as “management”, “money management”, “asset allocation” etc.

Anyway, right money management prevents you from making too many mistakes, in particular, physiological errors.   And coherent step-by-step strategy will allow you control your emotions.

50/50 Financial Strategy

This is a finical strategy limiting your maximum investment to 50% of your deposit. Although the strategy is rather conservative, there are many different versions like:

The strategy limits your trade to 50% of your deposit.

If your first trade yields a return, you buy an option spending a 50% of the profit made.

You can’t buy binary options spending more than 50% of the profit you made. If your investment produces a return, you allocate it like 50/50 and the balance 50%, you divide by the number of the binary options, say, by 5, and hence you buy 5 binary options spending 10% of the profit that your previous trade has yielded.

Fixed Investment

In this case, you always spend a fixed amount of money to buy binary options. You can buy whatever options you want simultaneously, but the amount you can spend at a time can’t be higher than  5% of your deposit.

If you have $3,000 in your deposit account, you can invest in binary options just $150.

You set yourself  the ratio based on your strategy or personal preference. Also, you can set some amount, say, $40 rather than the ratio.

I advise you not to spend over 10% of your deposit to buy a binary option.

The 4 Option Financial Strategy

You can limit a number of trades you do at a time and hence reduce risk. I advise you to always use this strategy.

It’s impossible to follow many trades simultaneously.

Using this strategy, you can invest in 4 different binary options maximum. This strategy allows you not to get too excited and stay focused on analysis and common sense. By the way, this strategy works well with the world’s top binary options broker, as you can follow 4 underlying assets at the same time here.

New

Make it a rule to invest 105 of your profit in new assets. Generally, traders select the most popular underlying securities and don’t try something new.

It’s quite possible that new assets can yield a higher profit than the underlying securities you typically trade.

 

Looking into new underlying assets, I’ve discovered such a goldmine as McDonalds and Walt Disney stock.

One must not chase money, but meet it halfway
Aristotle Onassis, the Greek billionaire

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