Patience is the key to a winning forex binary options strategy
This strategy is for those who are new to this game and want to build up their capital slow and steady. The point of this strategy is to minimize risk and wait for the perfect setup on the chart. Draw your fibo from point 1 to point 2 for a down trend, and vice versa for an uptrend. Your target is In order for the signal to be fully valid, there has to be a retracement to between 50 — Higher the retracement goes, stronger the signal.
In the example above, the retracement happens next to the number 2 in the up left corner. And money management suggestion for this strategy is to take 2 equal bids per day for 20 days. If you lose, start with the last set of bids:. You should reach around 5k in profits within 20 days, and next month just start over or carry on from where you left. The semi conservative strategy involves trades per day. The rules are the same as for the conservative strategy, only with one exception: We take the trade at Fibonacci projection level as well as Now, for level trades, I would advise not to take the trade with more than 6 minutes to the expiry.
Use the same money management as with conservative strategy, but your earnings will increase faster. Now, the below strategy is a very aggressive one that defines the means of sane trading.
This strategy represents the use of price cycles and Fibonacci sequence in fast trading. Trades are not only taken at levels and And Fibonacci levels are drawn for every cycle.
This strategy also exploit the full potential of value charts. Above you learnt what you are hunting, where to find your prey, and how to bag some prey steady and safe. Now, we will go after the BIG 5. Now, change your zigzag indicator parameters to 2,1,1. How many short-term price cycles do you see now? Each of these cycles is a Fibonacci sequence with a high-low-retracement-projection-reverse.
Look at the chart below:. Within each price cycle between 3 points there are on average 3 ITM trade setups during normal volatility trading conditions.
That is one aspect of this because everyone wants to get rich without putting in any effort. Ironically, traders who want to get rich quick actually end up losing more money and some questions arise.
This problem is often seen in automated trading systems. It is known to be one of the major drawbacks of using auto-trading robots. Trading psychology is a vast subject, and interestingly, considerable research on the topic has been done. One famous name that often comes up when talking about trading psychology is Dr. In addition to Dr. Do you ever feel confident after making a few winning binary trades, and then you start to pick the short term second expiries and trade on impulse?
Or have you had some losing trades, and then you get into revenge mode and end up trading blindly, ignoring all your trading strategies and plans? Very often, these periods can quickly result in your trading funds being liquidated. It is easy to simply tell the trader to walk away from his or her trading terminal, but in reality, this action is difficult. Trading mind traps can be dealt with when a trader has a good trading system and is disciplined in his or her trading approach.
Knowing when to call it a day is just as important as knowing when to make more from the markets. It is exactly for this reason that expert advisors and automated trading systems have become popular, for the simple fact that these automated bots do not bring emotions into the picture.
To acknowledge your emotions is one of the keys to building a strong trading psychology. One of the most significant factors that play a role when emotions are involved is not fully coming to terms with your emotions. For example, traders hate to be wrong, and at times, this is reflected in their bias toward a trade that is already losing. In trading terminology, this is called being married to a position, and the binary trader finds it difficult to shift his or her point of view.
Fear and greed, as one might have heard, are the two most common human emotions when it comes to trading. Fear of the markets makes a trader cut his or her winners early or invest the smallest amount possible on all trades, thus making no decent profits. Greed, on the other hand, involves risking too much on just a few trades without doing proper analysis.
The emotions of greed and fear are bad when used in the extreme, and the sooner traders realize this, the better it is for them to deal with. There are some major benefits to having and following a trading plan, one of which includes knowing when to stop trading and when to take your profits and leave the table.
Trying to trade without a trading plan is like going to a poker table at a casino with tons of chips without knowing the rules of the game. Without a plan, the poker player most likely will end up losing his money as other smart players around the table can instantly sense a weak player. The same goes for binary trading as well. The first step is having a trading strategy. You cannot plan without having the right tools, and a trading strategy in this aspect is your tool.
You can choose any trading strategy that you are familiar or comfortably with.