Let’s make some things clear, every trader can make many trading binary options, it is possible to have a constant flow of money, but the real question is, how much money you can make?
Most of the binary options brokers give false illusions that are only necessary to open an account, make a deposit and profit start to flow. Some brokers even step further claiming that traders can return 80% of their investment in just a few minutes. This kind of offers is hard to ignore, compared to other types of trades that offer lower income. It is important to have common sense, while you are trading binary options.
To make a profit, you need to build your experience with every new trade. We are not talking about investing in one big trade and expecting serious money; the point is to make a reasonable system that will bring you money on the longer run.
The importance of the charts
These charts monitor and record the price of the assets. It is crucial to learn how to read the charts because in them you will find the previous movement of the asset and you can predict a future price. They may seem complicated, but once you go through first one, the rest of them are just a pattern.
Previous price activity of the underlying asset is important
When you trade binary options, you should consider this as one type of gambling. Serious traders use previous data and study the prices before they make a trade. With the help of carts, they can see which type of asset will likely to bring the money. Your focus should be on the price movement of the specific asset.
Watch and follow the prices
For example, if the price of oil has been rising for the past few day, you should resist a temptation to bet on the opposite. Or if Nike shares have been dropping, don’t expect that they will rise if you buy them suddenly. Learn to go with trends, in any other case; you will be risking too much.
Don’t invest more than you can afford
If you are hundred percent sure that some trade will end successfully, don’t spend all your money on it. There are certain types of risks connected with this type of trading, even if you got a good tip from a friend, balance your bank account and be conservative.
Get some experience before you make big investments
Almost every broker offers the use of demo account; you can use this account to learn about the platform and exercise more. You will receive virtual money, so you will avoid risking your own. Many binary options brokers, such as Bank de Binary and 24Optins allow their users to create a demo account. Once you get more accustomed to one trading platform, you can use services of binary options robot, but before you start using it, it would be good to read a binary options robot review so that you can familiarize with his work.
Most people who started trading binary options, think that one day this will become their profession. But, what’s not to like here, working from home, not having a boss or other colleagues, and no need to wake up every morning early. You decide how much you want to work and when.
The ultimate question would be: “can I trade binary options for living?”, the answer would be: “yes, but not that easy.” It all depends on which county do you live; different types of countries carry different types of expenses. For example, if you live in U.S, you will need big money to through month. Annual average salary in U.S is $45,000, opposite to that, in Russia, it’s only $6,200, according to some sources.
To earn at least $45,000 with binary trading, you will need a big initial investment. Certainly, you can’t make that kind of money with a deposit of $250.
Binary option world has two common strategies, it all comes to having a big capital and making small trader or having a small capital and making big trades. For example, you can deposit $50,000 and only take small trades, or you can invest $400 and make high-risk trades. Each of these approaches has too many flaws, and we don’t recommend any of them.
If you want to make this type of job your profession, you will need to work and think like an entrepreneur. Sometimes it will be scary to know that you are responsible for all your decisions. In any case, you make a bad decision; you will lose money, on the other side if you are employed, every month you will receive a salary. Binary options trading should become your additional income, not substitute for your guaranteed monthly income. The risk of fail is too big.
Few of the traders are really good in this, and they get the chance to leave their job and fully commit to this.
After everything presented here, you still want to go with this; then you should review the following tips:
It is required to have some trading experience. You shouldn’t, in any case, deposit the money at some broker site before you review it in fully. Use online reviews as much as you can because many people before you tried that trading platform. Get familiar with demo account fist and then open a real account. It was important to make a difference between real and scam binary options broker.
Research the market on a daily basis, with a bigger experience; you will have bigger chances for success.
Learn from your mistakes; every trade is a valuable trading experience. Even if you don’t make money with every trade, for your future trades it’s important to recognize risk and mistakes and to avoid them.
Know when to stop. Set up the limit for your first trade, if constantly lose money, trade after trade, you should stop. Of course, you get to have bad day or month, but if losing money becomes your regular activity then that’s a bad sign.
Beginners often use this type of trading, but how successful they are? The answer they all want to hear is very. Their perception is often limited, and they think that they need to follow their gut and go with one hot stake. It isn’t enough to make a few wins in a row to become binary options expert. People are looking a different kind of ways to become richer, but how often does that happen in reality?
How to start?
If you are a beginner, you should choose a broker that offers good deposit bonuses and offers. Many broker houses try in this way to attract more customers, by offering them the bonuses they can hardly refuse. Many of them have 50% to 100% policy, which means the money you invest will be enlarged for that percentage.
It wouldn’t be easy for beginners
You need to realize that many brokers won’t be in business if every beginner would make money. Beginners are often guided with a beginner’s luck and with a thought that they can outsmart the platform, but reality is often harsher. It takes a lot of time, dedication, and actual learning to accomplish some result. Every win or loss should be your hard learned lesson. Never take a trade, if you are not willing to learn something from it.
Common mistakes – avoid & fix them
If a beginner enters in binary options world without some background knowledge, the broker house will use that to its advantage.
Beginners often take trades based on the gut, and this only makes broker richer.
Never conduct a trade without a plan and reason, use your common sense before making every trade. Validate your reasons and make sure that they are strong enough. Estimate very trade and make a difference between the best win and possible win. Your every trade should count.
They let their emotions influence their judgment
If doesn’t matter if they are good of bad emotions, it should never overcloud your judgment. Trading is a cold and rational activity that is designed to make a profit.
Beginners often choose trades way above their league
Every beginner needs to understand that losses are an integral part of every trade, even professional traders have them. One wrong trade can significantly damage your account balance. Good advice would be, never take trades bigger than 1/20 of your account value.
Not realizing your mistakes and repeating them over and over
Every trade must be learning experience for you; it doesn’t mean if it has a positive or negative outcome. Write down few sentences in you trading journal for every good or bad trading; it will help you learn quicker and avoid mistakes.
Don’t let loss discourage you, even before you try
The line between earning a big cash and losing everything is very thin. Frustration is pretty common part of binary options trading. Don’t let it standing in your way before you make a final goal. Keep in mind that there will be hard moments along the way, but learn to overcome them.
In the recent years, binary options have become quite a trend; many people tend to use them to make money in the easiest possible way and without too effort. But, are they that easy, and can an average person earn some money? Follow the steps below and find out.
In the beginning, you need to understand fully everything about binary options and what they are. Most people only have a basic idea about binary options, but they neglect the risks which binary trading carries. The key thing for traders is to understand that buying a fixed asset is a completely different thing compared to binary options.
Traders need to familiarize with different types of brokers because you will use them to trade. Many of them have various conditions every trader must comply and different types of the asset they offer. Review each broker house and choose one according to your needs. Among the most respected ones are Banc de Binary and 24Options.
We come to the point where you start making money, most of the broker houses will compete with each other, to attract more clients. You can use this as an advantage because many of them will offer special bonuses and convenience. Our advice would be to compare their offers before you decide for a specific broker. It could be beneficial in the longer run, but pay attention to the hidden conditions you must comply to acquire bonuses.
The next thing to come is your dedication. In some way, you will need to fully research this topic, and this means you will need to have a nose for this thing, you can’t just start trading without previous knowledge. It will make a huge impact on your future trading, and it will be a difference between losing and making money. Follow daily financial reports and stories that are connected with an asset you are trading. The more you are informed, the better decision will make, and you will move from a beginner’s position in no time.
When you are in the binary trading world, you will often have a situation where your trading will be in just a few minutes or maybe few hours. It is important to know your limitations and liabilities and those are crucial in short term trades. Forget about long term trading and go for the success with the short term.
Now every binary trading will end up with a profit, several of them or more will result in a loss. But, it’s important to learn from mistakes and with the time, you will learn to avoid them and become more successful in trading.
Every serious binary options broker will let you use a demo account, which means you will get a chance to get to know with a platform and to see how it works. You will receive a virtual money, and you will have a chance to experience all options of trading platform, which is especially good for beginners.