Binary Options Trading is simply a process of decision-making. How you do it and the tools you use to make those decisions are critical. Actually the best strategy for binary options trading is our mind but when we use our mind to make decisions we develop tools to help us decide what we will do, how we will do it, when we will do it. For example, we discussed the Elliott Wave Theory but there is no statistical data that shows counting waves actually works. Yes, there are times that you will get trades right but the same could be true of flipping a coin. The point is if our trading decision becomes interpretative at the point of the trade then our decision-making becomes much more complex. What kinds of decisions do you make when you trade binary options?
Here are just a few:
1. The currency pairs you are going to trade.
2. The time you are going to trade.
3. The system you are going to use.
4. What your signal will be when you trade.
5. Where will you place your entry?
6. What will your position size be?
7. What other factors will I take into consideration before I enter?
Those are just some of the decisions we make and within each of those decisions are multiple other decisions. We try to take these in logical steps but that doesn’t always work so tools become important for us to be able to reorganize our decision process when something happens we did not expect. Give me a choice between a binary options trader with sound decision-making and a good system and bad decision-making and great trading system and I will take the sound decision maker every time.