Binary Options Martingale Strategy, like that of Keith Jones, is a profitable trading strategy. However, it is designed for losing trades. This is quite interesting, right? With 90% of traders losing in binary options, this seems to look more realistic. Let’s see.
The Martingale Strategy
This trading technique is created to give you the chance to recover from your losses. The principle behind Martingale Strategy is this: For each trade you lose, you must increase the amount of your investment on your next trade. In the end, you will be able to get your losses back and at the same time earn small profit. It is founded on the idea of making your next investment times two of your previous stake – for each time you lose and until the time you are able to win the trade. With binary options taken as an all-or-nothing form of investment, this poses higher possibility of earning high returns and of recouping and avoiding losses.
Higher Stakes, Higher Risks
Binary Options Martingale Strategy lets you increase or double up your stake for each time you lose. Therefore, your losses are magnified each time you are not successful in the trade. What if you do not win? You will only empty your pocket. But this is not the case because the underlying principle behind this is that losing is not constant. It will definitely stop and when it does, you will surely recover all your losses and gain profit in the end. However, there’s one ‘hidden flaw’ in this rationale: Losing may run for a longer amount of time and you may lose a huge sum of money, depleting your trading account.
Being a novice trader, it is expected of you to hesitate to use Martingale Strategy. But if you have deep pocket, you can try to apply this trading technique.
Why You Should Avoid Martingale Strategy
Apparently, Martingale Strategy is not for everyone as it requires large amount of capital to start trading binary options. It is not even for you if your goal is to win and to minimize risk because as mentioned earlier, the risk is high. Doubling up your stake each time you are not successful in your trade is no joke. Who knows how long will your losing streak continue? No one has the idea. It’s true that it will surely stop – but for how long? Can the capital in your trading account afford it?
Binary Options Martingale Strategy is eyeing 50-50 result with equivalent returns. With binary options brokers offering payouts as high as 80%, this means you are required to have huge trade size to allow you to continue investing (despite the losing streak) to ensure winning and more important, to recoup your losses.
What Trading Strategy Will Suit You?
If you have no huge capital in your trading account, Binary Options Martingale Strategy is not for you. You cannot afford to gamble on losing streak and you cannot afford to wait until the time you win. So, why not go against the principle of Martingale Strategy?
The anti-Martingale technique encourages you to also increase your trade size – but not for each losing trade. This time, it is for every winning trade. You will only go back to your typical amount of investment once you lose. Anti-Martingale Strategy may be on a positive spin, but it may also experience similar concerns with the Binary Options Martingale Strategy: You will have to wait until you win.
So what’s the best substitute for Martingale? It is still best to use trading systems that will help you limit your losses.
In binary options trading, losing is a reality and you should accept that as a trader. But depleting your trading account is another thing. Just in case you decide that all the theory above is too complicated – you may try automated trading. Please check binary option robot review for the start.