Long Shot Binary Options Strategy Tip

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The Long Shot Binary Options Strategy

The Long Shot binary options strategy is a strategy wherein a trader buys an option that is way out of the money in hopes that the price of the underlying asset will move a long distance across the strike price. Its name, long shot, means just that. This strategy has a low chance of success but can result in massive payouts when done correctly. The long shot binary options strategy requires the trader to invest only a small amount of money with the prospect of a larger payout.

The profits can be large when traders use this strategy, and the losses are much smaller. Commonly, the strategy needs to succeed 5 times for an investor to see a really big profit. However, no matter the odds, the long shot binary options strategy is undoubtedly linked with high payout ratios, often exceeding well over 300%. This attractive reward is what motivates binary options traders to stay glued to the market sentiment and master this strategy.

While the long shot binary options strategy may be known for its great rewards, it is also definitely associated with a higher level of risk. But even so, the long shot strategy only needs to pay off a few times in order produce impressive payouts after paying off the recovery from out of the money trades. With the long shot strategy, traders may just find themselves earning higher profits that is only available by entering riskier trades.

Protecting your account balance is what the long shot binary options strategy is all about because traders don’t need to shell out a fortune to earn impressive income. Traders who are prepared to risk entering trades with greater odds by implementing a ‘long shot’ strategy are provided with impressive opportunities to earn significantly higher profits than any other instrument of the same type. The term “slow and steady wins the race” applies very much to this strategy.

Mechanics of the Strategy

The long shot strategy can be deployed in any type of underlying asset. The idea is to purchase a contract with a predicted price that is way outside the strike price. Obviously, if the strike price of the underlying asset is further away, the less likely that the trade is to be successful. However, the good news is that even small investments can result to large profits should these trades end in the money. If so, the strategy would have been fruitful to the trader.

Any trader can execute the long shot strategy using any binary options broker. The objective of initiating trades that possess target prices that are located levels away from their opening values is a basic feature that any binary options broker should provide. In fact, some brokers even have payout ratios that are directly proportional to the gap between the opening and target prices. This allows the trader to determine how much to invest and to expect.

Risk ratios are set up so that greater payout is given for larger differences because it is the nature of trading where risk dramatically increases the further away the target price is from its opening. Because the price will have a much lower chance of hitting its target at least once before expiration, the odds that a trade will finish ‘ rises exponentially. But then again, traders only need to generate a limited number of wins to record a substantial profit.

Technical and fundamental analysis should be performed with this strategy. As the most basic step, the trader must be able to determine the general direction that the asset price is currently moving in. After knowing the trend, determining whether the asset price will reach a predicted price level is a much different story. Binary options brokers are aware of its difficulty. That is why they are willing to offer high payout percentages should the prediction be correct.

When a trader uses the long shot strategy in trading binary options, he will notice that the strategy will result in more out of the money trades than in the money one. But because the long shot provides a higher payout, profit can be made even if the trader is successful in only one out of five times. Traders who are able to attain a 50% success rate using this strategy will likely gain impressive profits at the end of each month.

When to trade the Long Shot

The long shot strategy is best used whenever the prevailing market conditions are volatile exhibiting large price surges or spikes. It is most effective to use when traders detect that the market is in such conditions. As such, the trader should consider executing this tool after the release of major fundamental news releases that fail to match analysts’ expectations. When market sentiment does not match price levels, tendencies are that trends will prevail.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

As the markets would not have properly such eventualities, traders will immediately have excited investors on their side. They will initiate rapid trading transactions in order to modify their investment portfolios in accordance with the new underlying trading conditions. Consequently, the markets will experience surges in volatility which are the ideal conditions for implementing the long shot strategy in their trades.

Any trader can instigate such a technique by first identifying a target level that price must hit at least once before expiration. The further this level is from the opening value of the new binary option, the larger the size of the payout ratio. More specifically, returns increase in direct proportion to the distance of the two levels. Many traders who patronize the ‘long shot’ strategy utilize technical analysis to help them determine their optimum target prices and expiry times.

Example

To illustrate how the long shot strategy works, imagine the following scenario. Say that the Bank of England has just informed the markets that it has just cut its benchmark interest rates in order to boost the struggling British economy. After analyzing the underlying motives behind this important decision, a trader deduces that the GBP/USD will plummet amid enhanced levels of volatility.

As such, the trader decides to initiate a long shot strategy. The trader then chooses GBP/USD, record the target price, the return ratio, and the quoted expiry time. As the trader has deduced that the GBP/USD will drop, he initiates a Put option that will enable him to implement the long shot strategy. Most binary options brokers allow traders to create ‘’ by using their ‘touch’ binary options. These options are available in Touch or options

After the preferences have been set, the target and opening prices of the new position will be displayed. The payouts for both ‘’ and ‘ results’ should also be shown on the trading platform. The trader then puts in his investment and activates the new PUT binary option. Depending on the binary options broker, the platform should have its own indicator or notification system with regards to the trader’s ongoing trades.

Traders should know well to use a proven money strategy to assist in identifying the safest amount to wager that will not expose the account to an excessive level of risk. If there is no such facility available, then traders should limit their investment to a maximum of 2% of their equity. This gives them the opportunity to try again, just in case the first few trades end up . Sound investment is always first in trading.

While the trade is going on, prominent details of the position, such as payout ratios, option type, and invested amount, will be shown. The current GBP/USD price will also be displayed. The trader can track the option using a graph or a similar tool provided by the binary options broker. Usually, when the color of a graph, is green then this indicates that the trade is currently ‘’. Many brokers share the same configuration.

If the current price is in red, then the trader’s option is presently losing. The red horizontal line is normally utilized to identify the exact time that the option will expire. At expiration, the long shot strategy terminates. Imagine that as the price of the GBP/USD did decline and the target level was touched at least once before expiration, the trade did finish ‘’ and the trader then collects a return as advised by the broker.

Alternatively, if the GBP/USD failed to strike the target level at least once before the expiry time elapsed, then the trade would have closed , and lost the deposit. Brokers who provide a rebate could give traders some compensation. However, the secret to this strategy is to hold the position and try again. If the readings from the traders analysis are true, then he should be able to make a profit from the appropriate trades.

Learn more strategies here. Meanwhile, you can check out our list of top brokers so that you can start trading today.

10 Top Tips to Sharpen Your Skills

Are you looking for binary options tips? Well, it’s never too late to learn new skills. From new traders who are just starting to think about options trading to those who have been trading successfully for some time, there is always room for improvement. Binary option trading carries a risk; the trick is to maximise the chance of winning.

While it is a relatively easy way to make money, it also takes a lot of practice, understanding and a certain amount of responsibility. That said it is a great way to make some extra income or a full time living if you approach it with the right attitude, have good money management skills and also the right trading strategies.

Like anything, it takes time to understand what works and what doesn’t and you will find that you are better in some markets than in others. You will soon learn the trends, patterns, what to watch and what to beware of but in the meantime, it never hurts to have a few pointers to help you learn how to win and become a more profitable binary options trader.

In this guide, you will learn:

    Ten tips to help improve your profits What to look out for and what to avoid How to minimise risk and maximise rewards

Take your next step:

Our Top 10 Trader Tips

Be Patient

As tempting as it is to open a real money account, place a deposit and start trading the market on the first thing you come across it is not a good idea to rush into it. Although the principles of trading are reasonably straight forward, it does take time to find your way around. Take your time, conduct your research and get to know the different areas of trading before you begin.

Learn About The Industry

Have you just heard about binary options trading from a friend or colleague? Do you understand what the stock market is? Learn the jargon, learn about regulation, understand what is essential when it comes to trading, understand the different types of trading charts and the difference between Forex trading and day trading. What assets will you choose and how will you trade? With knowledge comes understanding and understanding what you are doing will help you to make better trading decisions.

Choose a Great Broker

There are so many binary options brokers to choose from that if you were to research each broker yourself you would be doing it for weeks before you even registered an account. Take a look at our binary trading tips and recommendations and create a shortlist of reputable brokers before you decide on the right one for you.

The trick is to maximise the chance of winning and minimise the risk of losing.

Take Advantage of a Demo

A good binary options broker will provide a demo account to new account holders. Sometimes they will give this demo or virtual account to anyone that signs up. It may only be made available to those who have made a deposit but either way it is a great way to practise trading without risking your own money. Once you have traded with your virtual account and experienced both winning and losing you will be much more prepared to trade binary options with real money.

Investigate The Bonuses

One of the most important binary options trading tips. Although this is only one factor when choosing a broker, it is always one of the top trading tricks to see what bonuses are on offer. If you take advantage of a 100% matching bonus, for example, you can allocate the bonus money differently to how you would trade with your own money. Some traders use the bonus money to try out different assets. The risk with this money is smaller because it is bonus money, so it makes sense to use this for self-improvement.

Don’t Risk Too Much

You are taking a risk when trading binary options. If it were a sure fire thing that we would win every time we trade, then everyone would be doing it, and everyone would be winning. The brokers are there to make money just as you are and on every trade someone always loses. The trick is to minimise the risk of it being you and that any money invested is not going to hurt you if you lose.

Keep Reading

Lots of the best brokers have instrumental educational sections on their websites. As well as demo accounts, where you can practise trading before you trade with real money, there are lots of valuable videos as well as regularly scheduled webinars for beginners through to expert traders. Use all the tools avaliable to improve your binary options strategy.

Trade on The Short Trades

One of our favourite binary options tips. It is advisable to stick with expiry times of less than an hour when trading rather than trading more longer term. Shorter-term trades tend to be a more predictable binary options trading strategy and have more profit so you wont lose money.

Treat it Like a Business

If you had your own business, you would be very careful about the decisions you make and how you spend your money. Binary option trading is no different. Rash decisions and simple mistakes can cost you money. If you treat it like a business, you are more likely to examine your choices more carefully.

Only do What is Comfortable

Don’t go too far out of your comfort zone and find yourself not enjoying the experience. Stick with what you know and make sure you are comfortable before you try new markets, assets or trades. Make sure you don’t give your money to scam brokers!

Jacob has been an author for us since our launch in 2020. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.

9 Tips for New Traders to Trade Binary Options

From earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:

9 Tips for New Traders to Trade Binary Options

  1. The first and foremost advice to be given to any beginner trader is to select a good binary options broker for your help in this field. A good broker, who knows his work, makes all the difference. There are various comparison websites available to make this choice easier for new traders, so one can quite easily consult these websites and choose a good binary options broker of their choice.
  2. Secondly, it is advisable to increase your knowledge in the field of binary options trading and to know that there is always more to learn. There are training courses available for imparting binary options trading knowledge to new traders. Reading new books on the subject matter and discussing with other traders about the matter also adds to the benefit. This type of trading is a constantly-evolving experience, hence knowledge on the matter is ever expanding.
  3. Thirdly, trading long term serves better returns, and binary options trading is a long term activity. Developing a long term plan for your binary trading and playing the right cards will ensure that you ultimately come out on top. Resist the temptation to get drawn into fads that do not fit into your overall strategies and strictly stick to your drawn plans.
  4. Fourth is to reduce your risks by resisting the urge to over-invest. Beginners tend to get carried away to make that one big score but they must employ some self control as that may be a game changer. New traders lose more money by getting carried away and over investing. Binary options brokers advise to invest not just with courage but also with rational thinking.
  5. Fifth, it is essential to keep a clear head while making any decisions about binary options trading. Beginners should avoid trading when they are emotionally disturbed, as emotions can create havoc with your trading. It is very easy to make the wrong decisions in an emotional state, so it is advisable to stay away from any form of trading until you’ve calmed down and cleared your mind.
  6. Prepping yourself before trading in binary options is the sixth advice. Studying the market and viewing graphs over time can help new traders predict behavior of any binary options asset, thereby helping them to make well-informed decisions.
  7. Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
  8. Hedging trades against each other just ends up decreasing the statistical probability of earning more profits as opposed to increasing them.
  9. Last, but not least, it is very important to have fun while trading binary options. Beginning binary options traders must ensure that it does not become a bore or a drag; if a trader has fun while trading, then he or she will be naturally inclined towards it and will pay more attention and make better decisions, thereby increasing profits.
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Marie Nelson

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Marie Nelson
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Last Updated on March 25, 2020

How to Set Financial Goals and Actually Meet Them

Serial entrepreneur and working towards Early Retirement Read full profile

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Finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. And that’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways on how to set financial goals and then actually meet them with ease.

Table of Contents

5 Steps to Set Financial Goals

Though setting financial goals might seem to be a daunting task but if one has the will and clarity of thought, it is rather easy. Try using these steps:

1. Be Clear About the Objectives

Any goal (let alone financial) without a clear objective is nothing more than a pipe dream. And this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore if you are saving today, then you should be crystal clear about what it is for. It could be anything like kid’s education, retirement, marriage, that dream vacation, fancy car etc.

Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives, however small they may be, that you foresee in the future and put a value to it.

2. Keep Them Realistic

It’s good to be an optimistic person but being a pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.

It’s important that you keep your goals realistic in nature for it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said – “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”. And this quote sums up the best what inflation could do your financial goals.

Therefore account for inflation whenever you are putting a monetary value to a financial objective that is far away in the future.

For example, if one of your financial goal is your son’s college education, which is 15 years hence, then inflation would increase the monetary burden by more than 50% if inflation is mere 3%. So always account for inflation.

4. Short Term vs Long Term

Just like every calorie is not the same, the approach towards achieving every financial goal will not be the same. It is important to bifurcate goals in short term and long term.

As a rule of thumb, any financial goal, which is due in next 3 years should be termed as short term goal. Any longer duration goals are to be classified as long term goals. This bifurcation of goals into short term vs long term will help in choosing the right investment instrument to achieve them.

More on this later when we talk about how to achieve financial goals.

5. To Each to His Own

The journey of setting financial goals is an individualistic affair i.e. your goals are your own goals and are determined by your want to achieve them. A lot of times we get on the bandwagon of goal setting only to realize later on that it was not meant for us.

It is important that your goals are actually your goals and not inspired by someone else. Take a hard look at this step at all the goals you’ve set for after this step, you will be on the way to achieve them.

By now, you would be ready with your financial goals, now it’s time to go all out and achieve them.

11 Ways to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a 2 step process –

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough; and invest those savings wisely so that they grow over a period of time to help you achieve goals. So let’s get down to ensuring healthy savings.

Ensuring Healthy Savings

Self realization is the best form of realisation and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your monthly expenses. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you would be surprised to see how small expenses add up to a sizeable amount.

Also categorize those expenses into different bucket so that you know which bucket is eating the most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pump up your savings rate.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classical mistake which almost everyone of us do. We pay ourselves last!

Ideally, this should be planned upside down. We should be paying ourselves first and then to the world i.e. we should be taking out the planned saving amount first and then manage all the expenses from the rest.

The best way to actually implement is to put the savings on automatic mode i.e. money flowing automatically into different financial instruments (for example – mutual funds, retirement corpus etc) every month.

Taking the automatic route will make us lose control of our money and hence will compel us to manage in what’s left with us thereby increasing the savings rate.

3. Make a Plan and Vow to Stick with It

Budgeting is the best to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be made.

Nowadays, several money management apps and wallets can help you do this automatically. It’s easy and who knows, you may just end up doing what people fail to do.

At first, you may not be able to stick to your plans completely but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Rise Again Even If You Fall

Let’s be realistic. It’s not like the world will come to an end if you made one mistake. This isn’t called leniency but discipline.

If you fail to meet your budget for a month, don’t give up the entire effort just like that. Instead, start again.

Remember that flexible plans are the most realistic plans. So go forward and try to follow your financial goals as planned but if for some reason, the plan gets out of hand for you, do not give up on it just yet. This has a lot to do with your psychology rather than any material commitment.

All you have to do is to stay on the road and vow to stay on it, no matter how much you fall down.

5. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make Savings a habit rather than a goal. While it might seem to be counter intuitive to many but there are some deft ways of doing it. For example:

Always eat out (if at all) during weekdays rather than weekends. Usually weekends are expensive. Make it a habit and you would in turn be saving a great deal.

If you are travelling buff, try to travel during off season. Your outlay will be much less.

If you go out for shopping, always look out for coupons and see where can you get the best deal.

So the key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice which will be harder to sustain over a period of time.

6. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission. And it would be rather easy to lose the grip over your discipline.

Therefore in order to stay the course, it is advisable that you keep yourself surrounded with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

7. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

So if you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

Use this journal to write down all essential points such as your short term, mid term and long term goals, your current sources of income, your regular expenses which you are aware of and any committed expenses which are of recurring nature.

When you have a written commitment on paper, you are going to feel more energised to follow the plan and stick to it. Moreover, it is going to be a lot more easier for you to follow you and track your progress.

At this point, you should be ready with your financial goals and would be doing brilliantly with savings; now it’s time to talk about the big daddy – Investments.

Making Smart Investments

Savings by themselves don’t take anyone too far. However savings when invested wisely can do wonders and we are at that stage where we will talk about making smart investments.

8. Consult a Financial Advisor

Investments doesn’t come naturally to most of us therefore rather than dabbling with it ourselves, it is wise to consult a financial advisor.

Talk to him/her about your financial goals and savings and then seek advice for the best investment instruments to achieve your goals.

9. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about them.

Just like “no one is born a criminal”, no investment instrument is bad or good. It is the application of that instrument that makes all the difference.

Do you remember we talked about bifurcating financial goals in short term and long term?

It is here where that classification will help.

So as a general rule, for all your short term financial goals, choose an investment instrument that has debt nature for example fixed deposits, debt mutual funds etc. The reason for going for debt instruments is that chances of capital loss is less as compared to equity instruments.

10. Compounding Is the Eighth Wonder

Einstein once remarked about compounding,

Compound Interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.

So make friends with this wonder kid. And sooner you become friends with it, quicker you will reach closer to your financial goals.

Start investing early so that time is on your side to help you bear the fruits of compounding.

11. Measure, Measure, Measure

All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments; taking stock of how our investments are doing.

If there is one single step where everything (so far) can go wrong, it is at this step – Measuring the Progress.

If we don’t measure the progress timely, then we would be shooting in the dark. We wouldn’t know if our saving rate is appropriate or not; whether financial advisor is doing a decent job; whether we are moving closer to our target or not.

Do measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

The Bottom Line

This completes the list of tips for you to set financial goals and actually achieve them with not so great difficulty.

As you can see, all it requires is discipline. But guess that’s the most difficult part!

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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