Working with a Basic Trading Method
Starting out a task with some level of difficulty is not easy. If trading was simple, a lot more people would be doing it and succeeding as well. If you’re newbie you may need a little bit more hand holding along the way. What this tutorial will do is give you a basic understand of what a trading method is, how to make your own, and how to test your basic method. Once you’ve developed an idea you can then take it to the next level or move on and create bigger and better ones.
The critical thing to remember is that more often that not, the method you are trying to make will not work over the long run. Don’t get frustrated. You’re trying to find something that will be a winner for a long time.
Fact: You may get lucky and stumble on a perfect method. However, the odds of this happening are very slim. You can be working for weeks before you make some serious progress. The key is to not get discouraged if your findings are not working out well. Keep trying until you find the green light.
Everything involved with formulating a trading method will come back to the charts. Having a good charting package could make a big difference, not only in time, but the stability of your method.
Try not to reinvent the wheel. If you do some research and someone has come up with the same idea as you, remember to look at what worked and what didn’t. Don’t be a hero at this point and try to make something work that can’t be fixed. Tons of new traders search for the best binary options trading method only to be disappointed soon after.
Test all timeframes. Remember, just because it doesn’t work on a 1 minute chart, doesn’t mean it won’t work on a 15 minute chart. You’ll end up finding out the longer the timeframe the better you will be. This will cut out all the noise in the market.
Since binaries offer so many assets remember not all methods on Apple will work on the EURJPY. The premise might work, but remember they are traded heavily at different times. There are a lot of obstacles to consider when in the development phase.
By keeping your expectations in check you will realize that a strategy will not work 100% of the time. Of course you want it to work that well, but you need to keep it real. If you can be above 70%* you will see that profits are doable trading binaries.
*Amount to be credited to your account for a successful trade.
Test, Test, Test – This is very important. Too many people want to put their method right to work with real money. That could end up being some expensive testing. Keep the money in the bank and test using some kind of demo account. This might save you a lot of money.
As long as you remember not to get discouraged on failed methods, you may find it fun creating them. The amount of time and effort will feel good when you take your next trade and it works based on something you created.
***Your capital may be at risk. This material is not investment advice.***