Creating a break even strategy for binary options
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For many centuries, enterprising merchants have tried to sell all sorts of ways to get gold from stone, the elixir of eternal youth, and so on. The modern world is not much different. With the advent of binary options, there are exactly the same traders who promise 100% profitable trading tactics, trading which, you will never have a loss.
This is absolutely untrue. In any situation, you will have losses. Even experienced traders have not been looking for the "same" Holy Grail for a long time. They fully admit that losses are inevitable, and they spend their time not on empty searches for a magic indicator, but on improving their own trading tactics, working on mistakes and further training in technical analysis. In general, they try to minimize losses, rather than completely eliminate them. This is impossible.
Attendees at the Young Black Leadership Summit cheering President Trump. CreditT.J. Kirkpatrick for The New York Times
Relying on such "break-even" strategies, you only increase the number of losses. Many brokers are guilty of such offers. Think about it, would you sell your effective strategy to another, unknown person? Why then don't you yourself trade and get rich on it, since it is so "break even"?
So, immediately say goodbye to the dream of creating a break-even strategy. Better to take the time to minimize your risks through proper money management and creating an effective trading plan. And how to do it - we will now tell you.
So, immediately say goodbye to the dream of creating a break-even strategy. Better to take the time to minimize your risks through proper money management and creating an effective trading plan. And how to do it - we will now tell you.
Failure is an integral part of a trader's job. The market itself is chaotic, and none of the existing professionals can be completely sure where the price will go - Higher or Lower. There are always risks of an unexpected trend reversal. Therefore, you need to try to reduce such risks to zero in a variety of ways.
Successful traders have long created rules to help you create your own holy grail. But be prepared to periodically change it, adjusting to the market, as it, like a living organism, is constantly changing under the influence of many factors.
Successful traders have long created rules to help you create your own holy grail. But be prepared to periodically change it, adjusting to the market, as it, like a living organism, is constantly changing under the influence of many factors.
1. Newbies often resort to news analysis, and this is their common mistake. They believe that fundamental analysis is much easier than technical analysis. On the contrary! For a full analysis of the market situation from a fundamental point of view, it is not enough to check the Economic Calendar a couple of times a day. You need to know the basics of economics, finance, politics, be aware of all the news and follow the meetings of the Central Banks of all major states. Therefore, it is better at first to simply avoid trading half an hour before and after the release of important reports. This is where your knowledge of fundamental analysis should end for now. Better master the construction of support and resistance levels, the most common candlestick patterns and trend indicators. This is not as difficult as it might seem at first glance.
2. Another common mistake that is too common for beginners is short-term trading. All novice traders are impatient by nature, they can earn the millions that tempting banners and advertisements promise them at least as quickly as possible. And the best way to do this, according to brokers, is 60 seconds options! The Vedas are only 60 seconds away from profit! Then why wait for hours if the profitability is the same? And here the newcomers en masse drain their deposits on such short-term contracts. This is because technical analysis practically does not work on minute timeframes, there are too many market noises that generate false signals. It is best to start working with higher timeframes at first. Yes, here signals will not appear every five minutes, but they will be many times stronger! Learn to take not by quantity, but by quality! This is how experienced professionals work.
3. And the last thing is the correct choice of a trading asset. Many newbies jump headlong into trading the only pair they know is the Euro / Dollar. But this is the most chaotic and unpredictable asset. Start with those with the Swiss franc or Japanese yen - these haven assets are easier to technical analysis.
3. And the last thing is the correct choice of a trading asset. Many newbies jump headlong into trading the only pair they know is the Euro / Dollar. But this is the most chaotic and unpredictable asset. Start with those with the Swiss franc or Japanese yen - these haven assets are easier to technical analysis.
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