It should be stated upfront that this binary options strategy is not for those who are unwilling to take on a larger amount of risk. The selected instrument will be of the high yield variety, and these trades do include an above average level of risk. However, they also provide above average payouts, which is why some will want to use this strategy despite the level of risk. Although this method is simple enough to be used by beginners, new traders are advised to use other methods until some experienced with analysis is gained.
Any asset and any expiry time can be used along with this strategy. The only must is that the instrument is of the high yield variety, such as One Touch. Some brokers do offer other instruments in high yield format. To easily determine which is which, simply look at the offered payout rates associated with each. These should exceed 100%, and may be as high as 1,000% within some platforms. Since the minimum investment amounts associated with these trades are higher than average, it is easy to see that the profit potential is huge.
The higher the risk, the lower the odds that each trade will finish in the money. Although the minimum per trade investment amount will be higher, there is no reason not to opt for only the minimum as a means of controlling financial risk. Minimums of $50 per trade are common in binary options platforms. With the offered return rates being so high, even the minimum investment will still provide a substantial return when trades do finish in the money. The odds are in the favor of the broker when these options are purchased, so they certainly have no problem in accepting only the minimum amount of investment.
The strategy itself is simple. Opt for high yield trades which offer massive payouts, perform analysis, and collect the profits on each winning trade. There will be more losses than wins, but so long as detailed analysis has been carried out, the wins will come and the profits provided should eclipse loss amounts. Using the aforementioned $50 minimum, one winning trade paying 500% would provide a profit of $250. Even if a few losses occurred prior to this win, a nice amount of profit would still be credited to your trading account. The goal will simply be to win as many of these trades as possible, always having the profit amount exceed the loss amount.
This strategy is a suitable option for those who know how to perform analysis and are not afraid to take on more risk. Losses will come, but with such high payouts, recovery will be easier as it will not take many winning trades to recoup losses. Those who have been trading for a while may wish to use larger investment amounts so as to secure even larger returns along with each win. However, it is strongly advised that those who have been trading for a short period of time only opt for minimum amounts when using this binary options strategy.