Options trading is one of the most popular forms of investment in the financial market today. This is an easy investment but not easy to make money. To be successful in IQ Option you will need to have effective trading strategies and plans.
For professional investors or experienced ones, when they enter this field, they will define their own goals and trading strategies. In the meantime, beginners will usually depend on the two factors:
- The first thing is luck (that won’t make you profitable in the long term).
- The other is to follow other people’s strategies.
You can find a ton of content about options trading strategies (which are claimed to be effective) on the internet with just a few clicks. There are free strategies that will help you win (it’s unbelievable). The sad fact, however, is that they won’t help you win. They will cost you money instead. First, let us review the strategies that are currently claimed to be effective, for example:
- 30-second options trading strategy
- 1-minute options trading strategy
- Martingale trading strategy
I have researched and will analyze the inefficiencies of these strategies shortly.
- 1 Why is the 30-second trading strategy ineffective in IQ Option?
- 2 Why is the 1-minute options trading strategy ineffective?
- 3 Why is the Martingale trading strategy ineffective?
- 4 Why are free trading strategies ineffective in IQ Option?
- 5 So what to do to make money from the options market?
Why is the 30-second trading strategy ineffective in IQ Option?
This type of options trading is very popular and is widely chosen by many people in IQ Option. This is because of the psychology in which traders want to make a profit quickly. However, this is also a double-edged sword. If you can make a profit quickly, you will also bear the risk of losing just that quickly. It’s especially true if you are a new trader and have no experience in this market.
One of the advantages of the 30-second strategies is that you can profit from very small movements of the chart. It is suitable for quick decision-makers.
However, as we said above, if you can profit from small fluctuations, at the same time, you can lose money from small fluctuations. Especially, if you are cautious and need time to analyze to make the correct decision, the 30-second strategies are completely not for you.
When you have not yet shaped your style of trading, you should not use this strategy. That does not make you profitable, but on the contrary, it makes it easy to lose money quickly.
Why is the 1-minute options trading strategy ineffective?
Compared to 30 seconds, 1 minute is a longer period of time that helps you to see the volatility of the market accurately and not too long to make you wait.
On the plus side, the 1-minute strategy applies only a few simple rules. It is easy to trade and you can see the result relatively quickly. The signal observation time of 1 minute allows you to consider and make decisions more accurately.
However, this strategy works only in a certain market condition. Therefore, it is very difficult for traders to make a profit if the market is volatile.
In short, the 1-minute options strategy will depend on market volatility. It cannot guarantee 100% of profits for you. Meanwhile, you can completely lose money instead of making money if you apply this strategy mechanically.
Why is the Martingale trading strategy ineffective?
Martingale has been a popular strategy for a long time that hasn’t just been applied to options trading. Previously, it has also been applied to other forms of financial investment.
This strategy is, in principle, very simple. If you invest and lose in a trade, the next time you invest, you will double your investment amount and so on. When you win any trade, the profits you make offset all the previous losses.
This strategy is really very simple and you only need to win 1 time. Then, you can get back both capital and profit for previous losses. However, the major downside of this strategy is that it requires an extremely large amount of capital. Because if you lose continuously, the money you spend on the next orders is exponential.
Suppose that for the first time, you only trade for $1. But if you lose 10 times in a row, then on the 11th time, you will need to invest $1,024 in a trade.
This strategy requires both an element of luck and an almost infinite amount of capital. It makes this almost impossible for most traders. Therefore, you should also not apply this strategy blindly and mechanically.
Why are free trading strategies ineffective in IQ Option?
In simple terms, you might think like this. If the options trading strategies listed on the internet were going to help you always win, could options brokers survive to this day?
If all the traders had won, the brokers would have been long ago closed. Therefore, you should not be under the illusion of being able to absolutely win by using whatever strategies which are for sale online. All are scams.
So what to do to make money from the options market?
As a beginner in this market, you need to understand that options trading is a high-risk financial investment. You can’t just join and expect to make money right away or even dream of getting rich in no time. To be successful, you should do the following.
Take time to learn
Currently, trading platforms always offer new traders Demo accounts that are completely free. Take advantage of this.
Use the Demo account to master your skills until you are confident that you have understood all the investment requirements. You can also start by watching trading strategies videos from reputable options trading sites in IQ Option.
Do not abuse any strategy that offers a lofty winning rate
Don’t trust and use whatever strategies that are advertised or introduced to be effective. You should find your own way of trading. The lesser-known strategies in the market, the more likely you are to win. Learn by yourself, practice yourself, find your own style of trading, and you will be successful.
You can get started in IQ Option. This is an options trading platform that is considered one of the best in the world to help you easily participate in investing.