Probably every trader has tried at least once to search for proven trading strategies. Binary options traders are no different. But the problem is always the same and very few people are willing to expose it. So let’s do it, let’s face it, you won’t find on the internet an easy to follow binary options strategy that would be profitable in the long term.
Why? It is very simple. As you probably already know, binary options are not traded in a central market, where ask would meet demand. Every single binary options broker is a market maker. It means that when you buy a binary option, it is your broker who sells it to you. Equally when you sell a binary option, it is your broker who buys it from you. It is valid also for the majority of Forex brokers and the point is this: when you make money, your broker loses money. And of course when you lose money, your broker makes money.
Binary options brokers can therefore exist only if the majority of traders lose. That is the case and it is the same in every other market, the majority of traders lose money.
Now you can see why you just can’t find a public binary options strategy that would be profitable in the long term. Because if it would be public, a lot of traders would be trading it, which would make the brokers fail and the industry disappear. This is a fact.
Now there are a lot of so called traders that claim they have the holy grail and are willing to sell it to you. Stay away from these offers. They will never make you money. These strategies are sold and make money to their seller, but traders fail with them.
Why would somebody sell a working binary options strategy? Why would the seller not just trade this strategy and make tons of money? Why he would sell it and make it public?
Because don’t get us wrong, you can make money trading binary options. There are binary options trading strategies that DO WORK. But they are not public. Because making them public would kill them. As we already explained, when you make money, your broker loses money. And brokers do not want to lose money and quit. They want to make money. So if there is a profitable strategy that is massively traded publicly, they will undertake steps, that will make trading this strategy impossible. It is not fair, but they can change the conditions and other little things to defend themselves against massive losses caused by a single strategy.
A good example is trading news on the Forex. Years ago it was possible to make huge money just by placing entries above and below the current price just before big news announcements. This strategy became public and guess what followed. Since then brokers made it impossible to trade news this way, they no longer execute those trades as before, you will get massive slippage and requotes. This is a fact, it has happened, brokers defend themselves this way.
The only way you can make money in trading is to find your own strategy that you won’t share. You trade your own binary option strategy and make money, this is possible and a lot of people are doing that.
That is why we won’t give you nor sell you any strategy. We will try to cover main principles of trading, approaches that work in the long term, but don’t expect an exact description of a binary options trading strategy with all the entries etc. Nobody will give it to you. Now you know why you should stay away from binary options strategies sellers.