Are Binary Options a Good Way to Make Money?

Recently binary options trading have become very popular in many countries around the world. Although quiet some people still ask whether you can make profits /money in binary options. on this article, I will try my best to answer the question and solve them along with giving you some tips on how to be successful and make money through trading binary options /robot trading. It is very simple and unique answer. You can be profitable and make more and more money online with this options trading, but that is only if you trade using legitimate binary options brokers (IQ Option, 24 Option, Binary Hedge Fund or Banc de Binary for example) and acquiring skills that are necessary for binary trading and employ the accurate trading method.

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Can You Make Money With Binary Options Trading?

The form of trading is a way of investing through predicting the price fluctuations of a various commodity like USD, silver, gold, and so many other assets. It is totally said to be the same with other investments such as stock and forex trading. Although is very simpler, and has relatively fewer risks, since you will be able to know in advance about what you might lose and larger payouts can be offered.

It is very simple to make money in binary options industry since it is not that complicated as many people think. In this industry, you don’t have to be an expert in trading options you only need a small investment to get started. Making money in this field is simple and is of great benefit. Am convinced in this industry, I will reveal below why it is simple to earn money with binary options.

You can make money by using the right procedure and well-established brokers. In this industry, many brokers are licensed and approved by various binary options regulatory agencies.  For those in other countries or even if you are based in the US, you are still able to trade at TradeThunder instead. The TradeThunder is critical in making money since it is believed to be a reputable broker.

Many traders who are interested in making profits are always strict and ask many questions they venture or invest in this industry.  Asking whether you can make money with binary options? This is a perfect and legitimate question as the fact that most traders have not traded in this field before, and they believe that making money from this is an activity they consider being difficult. Many traders who are willing and interested in binary options can make money. However the primary factor which must be considered is to put more effort as discussed on above. Putting an effort in binary options implies the learning in financial management, use of indicators and mostly putting your effort in analyzing and reading of charts.

A trader who wants to generate money consistently will have to work hard and take binary options as a mandatory investment.  Some traders end up not making money because they treat it like gambling, and final results are that they conclude in losing instead of gaining. In simple term, a trader makes money if he naturally puts an effort.

A trader who follows techniques that are listed above have the potential and ability to make more profit regularly .however; the more a trader trades he/she becomes used to it and easier it gets on.  Trading financial asset will naturally come in few months to trader allow you to make profit consistently.

binary options robot helps to gain profits

binary options robot help you to make more money

How Does Binary Options Work?

In this industry all investors are allowed to predict price fluctuations various assets like currency pair, stock, commodities as well as indices. It is possible for investors to make their predictions for buying and selling of option.

The name binary option has two incomes.  The reason being the value of an asset can either go up or down in a given time frame. As an investor, you have to predict the value of an asset if it is going down or up during a particular period.

For a trader to buy and sell an option, he or she has to make an effort to invest some amount of money. Usually, an investor can not invest less than $5 and high as several hundred. By expiration, your predictions must be correct for your trade to be successful or for you to make a profit.

If your prediction is wrong, then the result is to lose the invested money. Gambling is not an option in binary options because by paying interest to what is happening in the world of business you may be able to make correct predictions. However in gambling, an investor is not able to predict on what color the roulette ball will land whatever the case. So, binary options should be treated as other financial investments and not like gambling.

For an investor to make easy money in binary options, he/she has to trade on a news event. This is the simplest strategy that any trader can without having experience in the world of binary options. You will find an example of such case below.

Long-term Trading

Typically every year around September and October, Apple is known for releasing quality products especially a new iPhone .your task will be to check on when it will happen because these events are usually announced during end months.

You can add the date to the calendar and between 1-2 days for the case by a binary option who predicts on the stock value of an apple product on whether it will go up for the next 2-3 days. As an investor, you can be sure whether your predictions are correct. An introduction to a new product in the market usually means the Apple products will increase as it is caused by the launching of other new products. These are a boom as an investor you just make profits with binary trading.

There are hundreds of known large companies such as Samsung, Microsoft, Google and Sony and many more .you just need to check out on your calendar when these famously known companies are about to launch their new product, mark it on your calendar. Usually, you will realize that 1-2 of such a major events occur every week of the year.

A dedicated investor who is using this strategy can expect to gain around 75% to 80% of the required time .though it still needs much preparation such as following new events around the world. Long term trade is the simplest strategy that novice traders can use to make money. In fact, this should be their number one trading strategy since it does not require much effort.

Short-term Trades

With your little experience, you can start trading binary options using short term trading. As you can see trading on news events it is very simple because it involves long-term trades that take several days or even weeks. Usually, a more integrated method is by using short-term deals that expire within few minutes or seconds. In short-term trades, you do not have the ability to use the news events, as occasions happen very fast for news to have an impact on assets prices.  In this, you are instead expected to take an excellent study of charts and reading of various charts of assets and look for definite trends. So what are trends? Trends are predefined patterns in the short –term variations in assets. This typically implies that if you can catch a trend in its early development, then as a trader you can be able to predict on what happens next. So if you are good, enough you will be able to make huge profits. Analyzing of trends is the best method that can be used in this industry.

binary options profits

binary options profits, a sample

Are Binary Options a Legitimate Investment Type?

In binary options, reputable financial service providers and investments companies first introduce binary trading in the United States. After introducing binary trading in The United States, many countries followed this by adopting the practice making it a legal form of investing in financial trading.

Currently binary trading is regulated in many nations in the world including United Kingdom, Japan, Cyprus, South Africa, Singapore and many other countries.

For a broker to conduct binary options trading, it must be regulated by government agencies. These agencies have strict rules and regulations that an agent must follow to get a license.

However, trading financial assets online by private investors is always legal in all nations on the planet. It is, however, legal in countries whereby this option of the binary is not currently yet regulated. To our study and analysis, binary trading options are legal in any nations as we speak. so traders can trade options regardless of their nationality.

Do I have to be experienced or an educated expert to make money in this field of binary options?

As a trader, it is not my conviction to be an expert for you to be successful. A common misunderstanding is that you have to be a business and financial expert to make money in binary option. However, it is entirely wrong. Maybe it may be true if it only comes to the long ago stocks trading but currently not true in this case of binaries. Any trader can just venture in and make money. in other words, we can say binary options is designed to all people regardless of their financial status and knowledge about the market

In this industry variations and prediction of assets do not require that knowledge or being an expert. I gave a good example of Apple products and long term trades on how to make profits in binary trading. Depending on that example am convinced that as a trader you already have knowledge on one of the simplest methods that you can use to make money in binary option. There were no misunderstood economic theories used or involved.

Also based on strategy mentioned earlier, another instance occurred when the US Federal Reserve is printing money.

For more information on the news and such cases, the rate of the USD almost always reduces. In such cases as an investor you can place the correct or accurate investments on the results that the conversion value of the USD and other currencies will appreciate.

If you have followed this review collect then am sure that you can use the above strategies. The next thing, it to use them so that you can increase your chances of winning. Binary options industry is very competitive and is full of riches anyone can just venture in and make money. The only thing needed here is determination. As you can see, it is easy to make money in this industry. According to studies, binary options industry is the only sector where investors can trade with little money and without enough experience. If you do things in the right way in this industry am sure you will make fortunes.

binary option robot results

binary option robot is the best free trading tool for a newbie trader.

Learn More to Become a Winner

Education is key to everything in life. You cannot be successful without education so as the binary options industry. Many people take this industry rightly, and that is where we go wrong. To make money in this industry, you need to learn and learn more about binary options trading. There are various strategies that a trader needs to learn. The information about binary options is very ramparted on the net so to be the best you need to learn. The education you will acquire here will help you effectively learn how to trade financial assets while at the same time increase your profitability.

Avoid The Mistakes When Entering to Binary Trading

When a naïve sailor goes to the deep sea, there is a high probability of mistakes. The binary trading arena has evolved over a time, but the mistakes made by the new traders have remained the same throughout. The following text identifies the most common mistakes made by a beginner in the binary trading and how to avoid them.

Missing the purpose

This is one of the most common and most recurring mistakes made by the beginners and even in some cases by the intermediate traders. The naïve traders execute a trade out of compulsion or due to sheer boredom, which sure is going to backfire and make you lose big money. As a beginner, you should never enter a trade without a proper logic behind it. You should also ask yourselves whether your estimation is due to a gut feeling or rational thinking? Are you entering a trade because you are hoping for the best outcome or have you given enough thought to the most likely outcome?

This is not going to give you a winning trade, but will surely reduce your losing trades. This way you can minimize your losses and improve the chances of winning in the trading arena.

I do what my emotions say

The binary options trading is not for the emotional fools and to be a successful trader, you must have rational thinking. The naïve of the binary trading easily gets influenced by what they believe is right rather than what the logic says. The belief might get you some easy trades but the logic will always give you a higher probability of winning.

Also when traders are bored by something they enter into the trading just to change their mood. This is another big mistake which they make as an unplanned trade has the highest probability of losing. So while trading the binary options, just stay clear and stay focused.

I just need one trade to be big

The traders who think that they just need one trade to be a winner, are most likely to end up as a big loser. The history of traders suggests that the people who have made big by trading have made several trades including winning and losing trades, to become a successful trader in a long run. The thinking of one trade makes them invest a big amount in a single trade, and if god forbids the trade turns out to be otherwise, they lose big and then they lose their faith in the trading itself. A thumb rule is that one should never invest more than 5 percent of a total account value in a single trade. This way, the trader will have more chances to trade and hence the higher probability of having a winning trade.

To err is human, but to repeat is stupid

As we all know that as a human we are bound to make mistakes but not learning from the mistakes is the biggest mistake. As a new trader if you have lost your money on some trade using some strategy then you must analyze what went wrong and what was the mistake during that trade? We have been recommending all along to have a trading journal, to keep a note of such mistakes so that you can learn from them and do not repeat in your next trade.

Make it a habit to jot down everything from the winning trades and most importantly from the losing trade, so that you can always go back and evaluate the problem and rectify them not to make the same mistake again.

Frustration

This is one of the biggest hurdles in becoming a successful trader. You must understand that winning and losing is a part of the trading, and you cannot avoid the losing trades. But losing too many trades in a row can be frustrating and may lead to leaving the trading. By doing so, you will keep yourself away from realizing your ultimate goal. We recommend that whenever you have a bad trade, take a break and evaluate the trade, and before entering again, make sure that you don’t repeat the mistake you had made in the last losing trade.

Carried Away

In the same way as frustration, the new traders get carried away by the winning trades and puts the higher amount to risk on the next trade. This is also not a good tactic, as it might become the losing trade and eventually making a loss for the day. So, you must control your emotions in the trading to realize your ultimate goal of becoming a successful trader over a period of time.

Finally, the above mentioned are some of the major pitfalls where the beginners fall and never get up and hence we recommend you to read the above points again and again until you memorize them, so that you make fewer mistakes and make more gains.

How Can a Beginner Make Money in The Binary Options Trading?

The pitfalls discussed above are for real and anybody can fall, but even with so many possibilities of messing up, the beginners can make money if they are disciplined and follow a systematic approach. The key to success is to manage the risk. Hypothetically, the traders have equal chances of winning and losing and to be a successful trader he must evolve a way to improve the winning chances. A way in here is called the edge over other traders.

The following text enlists some of the most important aspects which a beginner should consider before entering the trade.

Take a help from the Signaling service provider

There are several signal service providers in the binary arena and the help of such services will turn the tide in your favor. This will help you gain the initial advantage before you completely comprehend the binary trading.

There is no alternative to learning

If you jump into a pool without knowing how to swim, you are definitely going to be doomed. The same way the trading is a long-term activity, and you must put in serious efforts to learn every aspect of the binary trading before starting. Technical indicators give you an edge in the trading and if you can find a suitable technical indicator for your preferred asset, then it will definitely improve your chances of winning. The most commonly used indicators are moving averages, Bollinger bands, MACD, relative strength amongst others.

You must put substantial efforts to learn technical and fundamental aspects of the binary trading before jumping to the real account.

Practice before the actual trading

Most of the binary broker provides demo account for practicing the trades. As a beginner, you must utilize this service to test your learned technical indicators and strategy before jumping onto real money accounts. This will help you master the strategy and learn from your mistakes so that when you enter your real money trade than you are less likely to make mistakes.

Trading journal is a must

Each and every trader in the binary arena is unique and each one of them has different likings. Also, they are better at some stocks or assets then the others. The reason is that each underlying moves differently compared to others because of their unique characteristics. The trading journal will keep track of each and every transaction. On a long run, it will help you identify the most profitable assets and strategies for you and sticking to them will help you further improve your chances of winning trades.

Some trading styles are suitable to short-term trades while others are for a long-term expiry. The trading journal will also help you identify the most suitable expiry for your profitable assets and in turn, help you improve the winnings.

Finally, the above-mentioned aspects along with the pitfalls mentioned in the previous articles will definitely help you better the online binary options trading. Any form of trading is not easy and requires lots of dedication and consistent efforts to master the art of trading.

Remember The Difference

Though it looks similar to the forex trading, the binary options trading has some of the unique features, and as a beginner, you must remember to understand it better.

  • The binary options trading does not provide any leverage
  • The amount at risk is known before placing the trade, and you cannot lose more than the amount you risked in a single trade.
  • The amount of price movement will have no impact on the returns you make.
  • The amount of money you are going to make, in a single trade, is known to you beforehand.
  • There are some brokers who offer early closure of a trade, but you must remember that it will only minimize the losses.
  • Trading in the binary options requires you to predict the movement of assets and your payout will remain the same for a 1 pip movement or for a 100 pip movement.
  • The payouts in the binary arena range from 70 to 85 percent.
  • Trading in the binary options is relatively simpler compared to the other forms of financial trading.
  • There are no hidden costs.
  • The binary options trading does not require you to be an expert in the field in order to make money.
  • There are only two options in the outcome of binary trading – one or the another and hence called the binary.
  • You actually do not own the asset you are buying, you just betting on the price movement of an asset.

Conclusion

Binary options industry is very attractive has a high potential. Due to this fact, many people jump into it without even knowing a single strategy. Most of these traders fail while a small number make it. As you can see the industry is very open, and any trader can join regardless of financial background and education but to be successful one need to master fundamental techniques used in the market. Play smart by ensuring you do all right things correctly. Remember not all traders make it in this industry because not all have what it takes to be successful.

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Michael Allen

Michael Allen is the main author at www.binaryoptionrobotinfo.com. He holds a PhD in Economics and has worked in investment banking for 24 years.