Of course, everyone wants to earn a lot and earn it consistently. This applies to any field. Including online trading. That’s why many beginners spend a lot of time looking for break-even strategies for binary options.
Is it worth continuing to do so? We believe that this is not the best idea. Why? We’ll explain below.
Why break-even strategies in binary options are a myth
Despite the fact that you can find dozens of videos and articles on the web saying that you can make money with OB absolutely risk-free, we still insist on our point, because those who say this are misleading. And now we’ll explain why.
Trading is always risky. Binary options are not a financial instrument on which you can work safely. Of course, we, like you, would like to find a way of earning money that is stable and risk-free in order to multiply our money. Although this isn’t feasible, you can usually manage to earn even a little, but consistently, which is key.
If stability is your priority, you might not even think about trading the market, because at least for the first few months, you probably won’t be able to guarantee yourself consistent profits.
And because of the high risks, it’s simply impossible to create a break-even trading strategy. And there’s one main explanation for this: the market is unpredictable. You may be a master, but you won’t be able to open a single trade with a guaranteed profit.
The market can always be influenced by factors that cannot be predicted. For example, natural disasters have an impact on a country’s economy. But at the same time, no trader will be able to predict whether there will be a tsunami, earthquake, volcanic eruption or other event in the near future that will force the exchange rate to change. Below is an example of this:
Let’s remember, for example, the tragedy that occurred in Japan in March 2011. On that day there was a strong earthquake, which caused a tsunami with a wave height of more than 40 meters. The cataclysm also affected other countries, but it was Japan that suffered the most.
Overall, the cataclysm cost global society 309 billion dollars. The event not only affected the financial markets in Asia, but also those in Europe.
Look what happened on the Asian markets:
- After the close of trading on March 11, 2011, the Nikkei 225 stock index on the Tokyo Stock Exchange fell in price by 5%. And that was before the scale of the tragedy had been assessed. By the end of the week, the drop was 9%;
- TOPIX lost 5.5% on the first day after the tsunami;
- The Hong Kong Stock Exchange Index fell by 3%.
As for the European markets:
- Within minutes, the German DAX fell by 1.2%;
- The Dow Jones Euro Stoxx 50 index fell 0.71% during the trading session;
- Stoxx Europe 600 fell 0.5% in one day, etc.
Do you think any trader could have assumed that a similar problem would occur? Certainly today, many people would lose their investments, because unfortunately, such events happen on a regular basis. Therefore, break even binary options strategies are a myth invented by those who want to profit from novices’ lack of knowledge.
Estratégia lucrativa
So we’ve discovered that there are no break-even binary options. But what if you look at the situation from a slightly different angle? If we close the majority of winning trades, then at the end of a certain period, we can consider that there is a break even in the system. Would you agree?
In that case, there is good news. These break even binary options strategies do exist. Otherwise, binarioinvista.com.br wouldn’t exist. And here you have 2 options:
First, you can search for a ready-made trading system. The second is to develop it yourself. Each option has its own advantages and disadvantages. Let’s take a look at them.
Choosing a ready-made system: pros and cons
Let’s start with the advantages:
- Easier. Everything has already been thought out for you. All that’s left is to follow the rules and not violate capital management. So this option is perfect for beginners;
- There are hundreds, or even thousands, of ready-made strategies. Dozens of them have been selected on our site (and this section continues to grow). In other words, you have a choice. You can find the vehicle that suits you best in everything.
Now to the disadvantages:
- Many strategies end up being completely useless. There are often pseudo-traders who work with a broker in affiliate programs. To attract more clients, they start talking about simple break-even binary options trading strategies. At the same time, they base the technique on dubious analysis methods, which usually break accounts. Therefore, always test ready-made systems;
- They cost money. Not always, of course, but we often come across paid trading systems. And it would be nice if they all actually worked. In the end, you get a piece of crap, full of free hits. As a result, they’ve paid for the strategy and lost their deposit. Not the most optimistic line-up.
What can we conclude? You can use ready-made trading systems. But at the same time, you need to learn how to filter them. And if you’re going to buy a system, don’t give money to the first person who comes along.
Developing your own break-even strategy for binary options
Every professional speculator analyzes the market and makes trades on their own system. However, this also has its advantages and disadvantages. Now let’s start with the cons,
There is only one disadvantage, and that is difficulty. Earlier, we talked about how to create a strategy (be sure to check out the article). So we described several points at once that a trader must fulfill. And each of them can be very difficult for a beginner.
To create your own system, you need to have plenty of experience. Otherwise, the most you can count on are the primitive trading options offered by the pseudo-traders mentioned above.
There are many other advantages to this approach:
- It’s free. The only investment is your knowledge. Consequently, the more there are, the more likely you are to create a truly break-even strategy for trading binary options;
- It’s more reliable. You determine for yourself which analysis methods are best for you. On this basis, it will also be easier for you to create your own effective methodology;
- It’s more comfortable. You choose every element of the strategy yourself. Thanks to this, the operation will really become more comfortable.
We definitely recommend that you create your own system in the future and start profiting. But if you don’t have enough knowledge and experience for that yet, master the simpler trading options. The main thing is that you don’t have to waste time looking for break even for binary options.
