Financial strategies for money management on binary options. Sequential programming control

Every experienced trader knows that the guarantee of productive trading in the financial markets is the presence of three key components: the presence of a reliable trading system, strict self-discipline and effective money management. Indeed, the combination of these factors determines the prospects for any successful trading, including binary options. As part of today's review, we will talk about money management, or, as they say, money management, and try to figure out how to optimize the work with personal funds in the most correct way, as well as give some practical advice that can serve as a beginner and more experienced binary options traders.

To begin with, we will reveal the content of the concept of money management. Money management is a process of optimal and strategically adjusted cash management in order to maximize profit. Despite the fact that such an approach is one of the key and obligatory, one might say fundamental, factors of successful trading in the financial markets, money management often remains neglected as something self-understood. Indeed, many beginners say: “you need to carefully approach the management of the deposit,” and after that they make ten profitable trades and one unprofitable one, which “eats up” all the profits. And even then, left without money, a person goes to look for information on how to properly manage capital and understands that trading success is determined by long-term profit, and that experienced traders often have to make three or four losing trades in order to feel the trend, correct and cover this loss for one or two profitable trades. So, in fact, money management is the science of effectively managing your personal deposit for successful and long-term trading.

As a matter of fact, there is only one recommendation at this stage of the review, but we will talk about it in detail. So, it reads: "Do not trade a deal more than 2% -5% of the total amount of the deposit." For example, if your deposit amount is $ 500, then the transaction should not exceed $ 25, and regardless of whether you are trading profitably or unprofitable? the interest rate still remains fixed in the $ 10- $ 25 range. Do not neglect this rule of money management by all means. Over time, feeling more confident in yourself, you can raise the interest rate, say, to a range of 5% -7% or even up to 10%, but never go beyond the range you set, this will instill the necessary discipline and protect your funds from emotional waste. At times it will be very difficult to resist what appears to be an apparently profitable trade, but you have to overcome yourself even in such conditions. As the saying goes: "you drive quieter, you will continue."

To begin with - a small plan, within the framework of which we will develop the topic. And so we will figure out what it is:

1. Determining the size of the deposit
2. Trade with the trend
3. Determining the ratio of profitability to risk
4. Plan your profitability
5. Losses minimization rules
6. Diversification of risks
7. Trade according to the system, according to the strategy
8. Kelly criterion or formula and flat as a money management system
9. Oscar Grind's system as a money management strategy
10. Money Management and money management - is there a difference?

As you know, a person who trades in financial markets, in particular, is called a trader. And the main quality that distinguishes an experienced trader from a beginner is the ability to soberly assess both prospects and risks. Agree, of course, you can trade with a drunken head, and sometimes even successfully, on a wave of special intellectual inspiration, but as a rule, such a practice is doomed to failure. By and large, trading is a science that expresses itself in the endless improvement of their theoretical knowledge and practical skills, and even the most enlightened traders spend a lot of time studying the subtle nuances of market dynamics, the specific features of fundamental and technical analysis, rethinking and improving their own trading system. It is this kind of fundamental and all-encompassing approach that creates traders who can make colossal profits with a straight face, using mistakes for their own benefit. A completely cold, unclouded analytical mind is what you should strive for. Just imagine that you are a machine.

1. Decide on the size of your deposit

Competent and consistent calculation of the amount of funds used for trading binary options opens up the opportunity for the trader to prudently and accurately approach each specific transaction. Again, here, as we said earlier, it is important to keep yourself within the range you set yourself.

It should be added that the deposit itself should not be formed from your last savings. In general, try to think through the various insurance strategies that will work for you personally. Every experienced trader always has a safety cushion that will allow him, even in the case of an absolute drain on the deposit, after understanding all the mistakes, to re-enter the market.

Let's consider a more practical aspect: let's say the minimum amount to buy a binary option is $ 10, in this case the deposit must be at least $ 500. The logic is something like this: If you are a beginner, then a balance of 50 minimum trades will be a great help for initial training. Even if you merge 15 of the 20 original trades, the remaining balance will allow you to make up for the lost funds. Therefore, it is better to insure your deposit with a large volume, which can be broken down into a large number of small transactions.

As you know, a trend is the direction of price movement at a certain point in time. There are the following types (trends) of market movement: downtrend (when the price goes down), upward (respectively up) and flat (sideways price movement).

By opening a trade with a trend, you are most likely to receive the expected profit and prevent possible risks. That is, if we have an uptrend in front of us, then we need to open a buy deal, and in the case of a downtrend, accordingly, open a sell deal.

1. Learn to balance profit and risk

Experienced traders are constantly adjusting the balance between the benefits of a financial transaction and the risks that it may entail. At the same time, the risk limit is determined by the amount of funds at which, in the event of a lost transaction, the investor's financial condition will not suffer critically.

Today, financial markets are one of the most attractive trading platforms, which has contributed to the development of numerous technical innovations that facilitate the trader's work. The software ranges from all kinds of excel calculators all the way to special, multifunctional robotic advisors, with sophisticated algorithms for analyzing risks and benefits.

1. Plan your profitability

There are a lot of different strategies for investing in the financial Forex market. Binary options occupy a special place as a separate instrument today. An option is a great opportunity for quality investment. If a trader has an idea of ​​how and where to invest his money, it is always possible to make money with options.

However, in order to make money, you need to use a certain strategy. One of the existing ones today is a budget management strategy. This is a great opportunity to optimize your money, and to do it in such a way that losses are minimized.

It should be noted that from the point of view of psychological trading, budget management is not just about making a profit and saving the budget, but also managing your emotions.

Budget management is financial management, money management, money management. All this is practically the same, here one essence remains. But let's move on to strategies in more detail.

50% budget management strategy - what is it?
Every trader should understand that trading in the market is to allocate your budget. That is, there is no point in investing your entire deposit in one deal at once. In case this happens, it is possible to simply lose all your money. The 50% strategy suggests that it is possible to use no more than half of the entire amount on the account in one deal. In this case, it is possible to lose half. Yes, maybe this is also a huge problem for many, but this is not the whole amount at once. Here are some additions to this strategy:

• You cannot invest in binary options more than 50% of your total amount. Even if a trader is going to make several investments at once (in different instruments), it is necessary to maintain a balance. More than half of the total budget cannot be invested in any case;
• If the first investment has brought certain results, the second should contain half of all profits. If the second option also brought profit, it is necessary to invest half of the profit of the first and second trades together.

Flat investing strategy - what is it?
Flat is a fixed bet in general. For example: a trader always invests 15% of his total capital. That is, there is 100% of your capital, which means you need to invest 15% of it. If the deal is successful, the trader has already received, for example, 130% of the capital, which means that 15% of this amount must be invested.

No less effective investment is that it is possible to invest not just a certain percentage, but a certain amount. For example: an amount of $ 40. Each subsequent investment will contain $ 40 (regardless of whether it has a negative or positive effect). Is it possible to increase the investment amount? Yes, but only if the capital as a whole can be increased by 2-3 times. In this case, it is possible to avoid mistakes from the point of view of psychology, when a person literally cannot control his emotions.

Volume investing strategy - what is it?
There are times when traders start making profits actively. In this case, the psychological component, naturally, begins to actively understand that the time has come to increase the trading volumes (that is, the number of transactions in general). As soon as such a desire arises, it must be eradicated. In no case should you try to cover as many transactions as possible, since in this case there is no opportunity to analyze the market, to keep track of its results. Accordingly, the trader immediately receives his first negative trades. It is necessary to constantly monitor all volumes.

Management strategy for development - what is it?
In this case, the strategy of the 3rd variant is supported here. That is, if a trader makes a profit from 2-3 transactions at the same time, he has a desire to increase the volume of investment. In this case, you shouldn't just take and create a lot more deals than necessary. You just need to set aside 20-30% of all your profits to increase the trading volume. What will it give? This will indicate that the trader will not risk all of his capital that is at stake. If he loses it, then this is only a small percentage of what he earned.

Financial cushion - what is it?
There are very different moments in the life of every trader. There are positive ones, there are negative ones. It makes no sense to say that a trader went to the hospital or lost his job. Money will come in handy anyway. A financial cushion, for example, 20 payments from a broker's account can provide about 1-2 years of comfortable living. No less significant is the fact of the possible loss of capital. If this happens in the market, a financial cushion will be a great opportunity to start earning again.

These are financial strategies for money management! With their help, it is impossible to learn about a secret strategy for making money using binary options. These are just those tips that allow you not to "drain" your capital.

If you carefully read articles or books on the topic of making money on binary options, then each of them always warns that trading is an extremely risky business. So, a priori, the faint of heart and those who do not understand anything at all, it is better not to even start trading at all. The result will only be disappointment and loss of the money originally invested.

Trusting your money under management, you must remember the well-known saying about a basket and eggs. It is better to take care of your investment portfolio in advance than after - about your future.

This is probably why trust management appeared in binary options, which has been known for a long time. In simple terms, everything happens as follows:

• first, a person who wants to invest money chooses a trader - a person to whom he will entrust the management of his savings;
• further, an agreement must be concluded between them, in which they set out all payments, interest and force majeure situations;
• all that remains is to decide at what time the investor will make a profit on the money invested.

In general, trust management is quite an interesting and promising activity in terms of making money. By choosing trust management on binary options reviews you should definitely read about the organization and about traders, so that there will be no misunderstandings in the future.

Everyone who offers management services has a so-called top managers index. In other words, statistics on the trade of all traders who are ready to take on responsibilities in the management of someone else's capital.

There, the profitability for the last week, month, three months is described in great detail. They have their own regalia, which the company ascribes itself. If the choice is not obvious, then experienced staff will help you decide on it.

In general, all traders can be roughly divided into two types: some prefer an extremely aggressive trading method, but at the same time they have a very high income. Others, on the contrary, are not used to taking unnecessary risks, while the income they offer is stable and small.

Roughly speaking, capital can be multiplied from 10% to 3000%, and the first percentage is much more realistic than the second. Accordingly, the choice remains solely with the investor - a lot and risky, or a little, but stable.

As mentioned earlier, the entire process is written into the contract. The client puts his savings at the disposal, remaining their owner. The trader only acts as a manager of these funds in the interests of the client.

Of course, such a partnership is not free of charge - the profit received will be divided in a ratio of 50 to 50. Therefore, the conclusion follows from this: the larger the deposit, the greater the income. And the longer the investment period and, if possible, it passes without withdrawal, the more efficiently the capital is multiplied.


Conclusion

Choosing trust management (abbreviated as DU), it is worth thinking in parallel about independent trading: maybe a future excellent trader is “sleeping” in you. There are cases when an investor invested a certain amount of money in a financial institution, studied at that time and, after about six months, began an independent trade. And after a while he became a manager at all.

Trading is a difficult, long, but obligatory path that every beginner must follow. If the main goal at BO is income, there is no other way. Or is it possible to do without studying literature? Can.

Today we will talk about trust management on binary options. What is this method of earning. What are its advantages and disadvantages. How much profit he can bring, and whether he can at all.

What is option management

It is not only speculators who make money in the financial markets. This can also be done by investors who understand the trading itself at the beginner's level or a little better. This is great news for those who do not want or for some reason cannot trade on their own. But first you need to learn more about this method of investing.

Trust management is the cooperation between the manager and the investor. The first trades in the money of the second. After the speculator has managed to increase capital, he returns the money to the investor along with the profit, leaving himself a certain percentage.

This is what we see.

And this is just the beginning. Below is the statistics on income for the entire time of opening an account. In addition, you can even select a specific day in order to see what result the trade brought.

In terms of investing in trust management, binary options are still inferior to Forex. However, as we promised, below we will tell you where you can find managing traders who will offer more detailed statistics.

To the forums in search of managing traders

There are enough thematic forums on the Internet that are dedicated to binary options. There is a trust management theme on almost every one of them. It contains messages from investors who are ready to increase their income and increase the capital of investors.

Of course, there may be little information in the thread itself. However, managers leave contact details. Already in a personal conversation, you can find out everything in detail.

The disadvantage of an independent search for a manager is that both the investor and the trader will have to look for additional ways of reliable work, because all agreements will be concluded without intermediaries.

Trust management on binary options is attractive to both parties to the transaction. However, be aware of the risks. Before investing money in someone, think about whether you are ready to lose money in case of something. A managing trader must also be confident in his abilities, because he will be risking not only with his own money, but also with the capital of investors.

PAMM accounts, binary options, auto-following, copying trades - what do all these concepts have in common? In addition to the fact that they are all the most modern and profitable earning tools, they are also united by the fact that all of the above fits into the framework of a single instrument from the Binex company, called "Master accounts". Let's see what it is.

So, the Russian binary options broker Binex was the first and, so far, the only one in the industry to create a unique tool on its trading platform - a trust management service for binary options, akin to what we are used to seeing on the Forex market. The essence of its work practically does not differ from the classic PAMM accounts, with the only difference that the profit here is ten times higher.

How copying deals works

You just choose a manager whose activities seem successful to you and connect to him in one click. Further, all transactions carried out by him begin to be transmitted to your trading terminal and copied in automatic mode.

At the same time, you are free to refuse it at any time, or even cancel copying any transaction if it seems unsuccessful to you. Moreover, if any aspect of a trader's trading strategy does not suit you, then no one forbids you to correct it manually, ensuring yourself the maximum profit.

This is an order of magnitude better than the notorious robots for binary options, in which transactions are concluded by a soulless machine, a priori unable to analyze the current market situation and acting only within the framework of the set program. Here everything is done by an experienced trader who is interested in success himself. He will not work at a loss.

In order to make it easier for its clients to choose a suitable investment account, the broker has created a convenient rating by placing it directly on the trading platform.

Here you can see the amount of profit that the trader received, the number of trades he made, as well as the number of investors who thought this manager was the most promising.

You can also choose a certain type of assets if you like to work only with stocks, commodities, etc.

And the display period, changing it from one day to one month.

In doing so, pay attention to the amount of profit that managers receive. Almost $ 300,000 in just one week! These are simply inconceivable numbers!

As of today, when this article is being written, the first five managing traders of Binex have earned more than a million rubles each.

In one day. My head is spinning from such prospects.

Naturally, these traders trade in large volumes, which are not available to every investor, but this does not mean that their trades cannot be copied. You can start with just 3,000 rubles, which, taking into account 70-80% of successful transactions, will quickly multiply and increase several times.

At the same time, you do not need to pay for using the Master account, just as you do not even need to deduct a percentage of the profit. This is really nonsense for trust management.

How to connect to the Master account

In order to start making money on Binex PAMM accounts, you need to go through the registration procedure with the company by opening a deposit there. Everyone gets access to the Master Service, even the holders of the minimum account type. The only thing is that for the owners of VIP-accounts there are their own PAMMs that are inaccessible to the rest. And, honestly, given the profitability of ordinary accounts, it's scary to imagine what they offer to VIP clients.

After registering with the company, go to the appropriate section of the trading zone, indicate the amount of investment, as well as the period during which you intend to copy transactions. It can be a week, two, one month, or unlimited.

At the same time, let me remind you that you can refuse auto-follow or make changes to it at any time.

Summing up, we can say that Master Accounts from Binex are a truly unique service of trust management in binary options, which has brought something fundamentally new and, most importantly, profitable to this industry. At the same time, even beginners who, so far, cannot trade independently, can work with it. And so you learn and make money at the same time.

Best regards, Arkady Romanov