How to become a profitable Binary Options trader?

Do you want to place your name in the list of successful binary options traders? When it comes to earning some extra money, people try different things, like gambling and doing part-time jobs. 

However, the rapid development of technology has made it possible to try out some other things, and one such example is trading. Now it has become easier for all to explore the global financial market and try their lucks in trading.

For trading, some people prefer to go for Binary Options trading. Why? Such trading allows them to make money within a short time. And if you move wisely, you can make more money. Here, you will explore everything about Binary Options and some useful tips that will make you a profitable trader. So, let’s get started with this. 

Binary Options trading – A risky yet profitable trading option

Speaking about binary options is an extremely simple and fast financial instrument that enables traders to forecast whether the assets’ price will go down or up in the future. For example, the Bitcoin price, gold or stock, and more. 

This form of trading mostly depends on the traders’ decision on Yes or No. On the other hand, the time span for making an assumption will be around 60 seconds. As a result, you can make hundreds of trades in a day based on your budget limit. 

Before making any trade, you should know how much you can gain if you predict the current value. In general, you can earn around 70 to 95 percent. That means, when you invest around USD 100 and predict the market right, then you can get around USD 170 to USD 195. Even though it involves a high level of risk, the trading decisions will be very simple. All you need to choose between Yes or No, and you are ready to go.

Nowadays, you can also try out exchange-traded binaries where you don’t have to trade against any broker. 

Can binary options make you rich? This is a common question that all the binary options traders have in their minds. However, the answer can be negative or positive, as it all depends on how you are trading and what type of strategy you are using. 

To begin with a trading, you need to choose a licensed and regulated broker and make sure that they are offering different types of assets to trade-in. If you are a beginner and don’t know anything about this trading form, there is no need to worry as some online broker allows you to use a demo trading account to explore the trading market and how to trade. 

You all know the financial market is uncertain and you have to be very careful about this. And you should learn the secrets that successful binary options traders use. And you will explore those here. So, keep reading to get the answer to your question How do you make money in binary trading? Before diving deep into it, let’s discuss some reasons to go for binary options trading and how it works. 

Why is Binary Options trading quite popular among users? 

With time, binary options trading is getting popular. You must have heard people saying that they have earned a huge amount of cash by forecasting whether an asset will fall or rise. 

The best part of this trading is that you can enjoy binary options trading at any time and from anywhere. However, if you are looking for some other reasons to choose binary options trading, then have a look at the below-given point.

  • Less Financial Risk

All, the successful binary options traders know that this form of trading includes minimal risk. Speaking about forex trading, where you need to trade on spot metals or crude oil, this market comes with a lot of risks, and anything can happen within a few seconds. 

Different things, such as news events, slippages, leverage, or margin, can severely affect your trading. However, in the case of binary options trading, things will be a little different. How? There will be no such leverage to contend with. On the other hand, price re-quotes or slippage don’t affect the binary option. So, the risk level is very low. 

  • You Will Enjoy a Maximum Level of Flexibility

This market lets the traders trade on different financial instruments that will be spread across different commodities and currency options. Besides, you can also try your hand on bonds and indices. 

Here, the level of flexibility is more, and it provides the traders with sufficient knowledge about how the binary options trading market works? Or how do you make money in binary trading?

  • It Is Quite Simple

As discussed above, the binary options trading outcome is completely based on one parameter. All you need to do is predict whether a particular asset will go up or down. On the other hand, the trader has the freedom to decide when he should stop trading, and they can set an expiry date based on the preference. Such features are not available in the case of other markets. 

For example, loss control can only be obtained by utilizing a stop loss. Or else, the trader has to face a huge loss if it goes down. One of the simplest things about using binary options trading is you will trade without taking much stress. 

  • You, Will, Have to Better Control Over the Trades

Compared to other trading options, in binary options trading, the traders will have better control. For instance, if you want to buy a contract, you will know in advance what you can gain and what will be your loss amount if the market goes down. In the case of other markets, when you set a pending trade order, there will be no guarantee that your trade will be initiated at the entry price. 

  • The Payout Rates Are High

This is an important thing that all the successful binary options traders love about binary options trading. You can choose an online trading broker based on the payout rate they are offering. There are some brokers who offer more than 80 percent payout on the trades.  

You can attain this without putting your account at risk. Speaking about other markets, such a level of payouts will only happen if the trader doesn’t follow the rules of money management and invest a large amount to get a big payout. However, this can be a high risk for the traders. 

  • A Perfect Level of Accessibility

To trade commodities and markets, a trader must have a sufficient amount of money. For example, in the case of trading gold, a commodity with around 10,000 pips of intra-day volatility rate when the time of high volatility, may require around thousands of dollars of trading capital. But to for binary options trading, you don’t need a huge amount of money. In fact, you can easily find a broker that will let you trade by investing just USD 10. 

These are some of the major reasons for which successful binary options traders don’t leave this trading option. No matter what your budget is, if you have USD 10 and more, you can start trading and earn money. Wondering about Can binary options make you rich? Or how much do binary options traders make? Have a look at the below-given points. 

Can Binary Options make you rich?

Whether a binary options trader can earn in billions or not is a controversial question. You will find many online review sites and forums where different people have posted different opinions. 

If you consider the successful binary options traders, such as Warren Buffet or George Soros, who made their fortunes by trading many financial instruments, the answer will be “Yes.” But you shouldn’t forget the caveats.

One can easily say that you can become a millionaire by this form of trading. However, in practical you may find it a little hard to attain. Remember that making money from such trading or other trading options is not a task that can be done in just one day. It will take time, patience, and most importantly, a perfect plan. And for that, you will have to learn everything about the binary options trading market. 

How much do Binary Options traders make?

Before entering the market, you should know that “How much do binary options traders make?” Some people think it will depend on your luck. But it is not a fact. Your success in trading will greatly depend on the level of trading skills you have. Have you ever wondered what the salary of a binary options trader is? Not all successful binary options traders prefer to disclose this thing. 

But when you browse through different trading forums or review sites, you may see some posts talking about their earnings. Based on that, it can be said that the traders can earn more than USD 10,000 per month through binary options trading. This is very common. Some reports have informed that there are some traders who have mange to earn USD 10,000 in a day.  

You can find different online courses that can teach you the way of doing successful binary options trading. Such courses are generally offered by the market experts and can help you a lot.

Remember that binary options trading and options trading are different. If you have a system or a strategy that can provide you with around a 65 percent winning ratio, then utilizing such a strategy, you can easily predict the move. As a result, you may be able to earn up to 95 percent commission within just 5 minutes. 

A trader can also increase his winning chances using binary options signals. If you want, you can make this trading your full-time job, but it will require experience and training. Some binary options traders think this form of trading is easy as they only need to predict a “Yes” or “No” on the currency pairs or other commodities. Even though it is true, but you should have knowledge about the market. And never leave your job to do binary options trading. 

How do you make money in Binary trading?

You can become a rich person through binary options trading, but not all traders can achieve the desired success. As per the experts, your ability to become a successful binary options trader will depend on your skill to develop and maintain a good trading strategy. 

How do you make money in binary trading? Most of the people are now looking for the secret to this. But before exploring the secret, it will be better for you to know why sometimes it can be very difficult for you to get rich from binary options trading. 

  • In today’s world, technology and advanced algorithms have removed different short-term inefficiencies. However, they can make the process complex. 
  • Every binary trader knows that all the trading transactions happen in a fractionated marketplace. And the value also changes very frequently. So, you need to keep yourself updated with the changing market trends. 
  • If you are using binary options as your trading tool, for profitable trading, you need to win more than 50 percent. In fact, most successful traders use a system that can keep the winning percentage near the 60 percent mark so that they can enjoy a profitable trade. 

Is it possible to become rich by rading Binary Options?

For a new binary trader, it can be very difficult. But if you have sufficient skills and knowledge, then it is not an impossible task for you. If you search online, you will find that such type of trading can pay out around 60 to 90 percent. Considering this, it can be said that you can get rich. Here, we have listed down some strategies and tips that you can follow to increase your chances of getting rich. 

Three major strategies to follow

In the past 10 years, in terms of trading volume, binary options trading has witnessed solid growth. Some of the major reasons behind this are its high profit margin and simplicity. In this form of trading, you will get only two outcomes, i.e., lose or win. 

Do you know why most of the traders fail to attain success in this? They do trade based on their emotions and guesswork. And in this trading, you can’t depend on your luck as this is not a game of gambling. If you really want to make a profit, then here are some effective strategies that can help you in this. There are three major strategies to consider, these are: 

  • Fundamental analysis strategy
  • Technical analysis strategy
  • Basic options strategy

Why should you follow the strategies?

Any successful binary options traders will advise you that without an effective strategy, you can’t move in this market. And trading without any strategies is just like gambling. You can’t gamble in binary options. When you have the right type of binary options strategies, that will help you to explore all the profitable investment opportunities. 

In general, tested strategies are those which are completely based on statistical and analytical data. By deploying a trading strategy, you can effectively analyze the trading market. As a result, it will be easier for you to make the right decision.

Such strategies can assist you in knowing the time to place your trades and which commodities or assets you should buy. What’s more? You will also be able to track your trading progress. 

Fundamental trading analysis strategy

This strategy focuses on studying and understanding the overall performance of the commodities or assets. As a binary trader, your primary objective is to make as much profit as you can, and this can be only possible when you have sufficient knowledge. 

You need to know about the company’s cash flow statement, income and expenditure statement, balance sheet, and more. Besides, you also need to understand the company’s partner and employees’ satisfaction levels. 

  • Technical Trading Analysis Strategy

This is an important strategy to consider. Most of the successful binary options traders follow technical analysis strategies to place the trades. Under this strategy, you need to properly analyze the current as well as past performance of the assets that you want to choose to trade. 

When you study the past performance, you will get an idea of how that particular asset will perform during your trading period. In this trading, you need to predict how the commodities will perform and if you can predict right, then profit is yours. And for that, you should analyze the past performance.  

On the other hand, the trading time also matters a lot here. For example, market experts have said that one should trade around 60 seconds when the major things are happening. You can trade anytime you want, but your timing should be perfect. When you go through this strategy, you can analyze the old trends and decide the best trading time. 

  • Basic Options Strategy

This strategy can help the traders to prevent huge losses. Don’t think that the binary option is safe. Like other trading forms, it also involves a lot of risks. However, this particular strategy can help you to lower the chases of making losses. 

For example, if you want to trade on different currency pairs, you can use put as well as call options. This will help you to lower the loss amount even if the trend is downward. 

While keeping these three important trading strategies, there are some other tips you should consider. Successful traders depend on a proven and systematic method to maintain a profitable trade practice. 

It also depends on how you are managing your money responsibly and intelligently. Here are 12 tips that can help you in becoming a successful binary trader, not a trader who always gives importance to luck. 

#1 You need to learn all the things about Binary Options trading

In general, before starting a new task, you should have a good road map. And the same goes for binary options trading. Before jumping into this market, make sure you have sufficient knowledge of this market and learn how to trade or what trading methods to apply for making a profit. 

Remember that if you don’t take this casually, then you may not attain the desired success. So, learn as much as you can about this form of trading and move your steps wisely. 

#2 Find your broker

What are the most important things that you need to consider while thinking? How do you make money in binary trading? Most of the successful binary options traders will suggest you find a reliable and professional broker.

Choose a broker that offers you all the necessary features to make your trading successful. Do you want to know how to pick the best broker? You can find a detailed discussion after this section. 

#3 Understand the trading method

There is no doubt that every trading comes with a certain percentage of risk. You can’t completely ignore that or can’t control that. But there is one thing that you can do is finding different ways to lower the chances of loss. So, how to do that?

One of the simplest ways is by looking at the market patterns. Besides, you need to come up with a tested strategy to enter and exit binary options trading. If you do some researches, you can find various free-to-use systems that you can use to learn some effective trading methods. 

#4 Retest the trading method before applying that

If you found a trading method, you should first test that on old market data to know whether that method will work for you or not. It will not take much time, and you will save a lot of money in the future. 

#5 Don’t forget to use the demo accounts

You may not find a demo account with all the binary options trading brokers. But choose one that can offer you a demo account. If you have zero experience in this field, then a demo account can be a great tool for you to learn about the market.

You can use it to know what are the features the trading platform can offer, can use the free tools, make some rough predictions to see if they work or not, and more. Using this, you can develop a perfect level of confidence to begin your binary options trading journey. 

#6 Always try to learn and keep testing the methods

Some new traders can begin trading successfully after trying out a few methods. But that doesn’t mean that they should stop finding out new methods and learning about the market. The binary options trading market changes quite frequently, and you need to keep yourself updated and improvise your current trading method.

Remember that you can’t use just one trading method for the whole time to make a profit. Can binary options make you rich? Yes, but you need to keep this point in your mind. 

#7 It’s important to have a good understanding of the expiry times

In simple words, expiry time in trading is the point at which the trade will be closed. It has been seen that in this market, the expiry times can range from 40 seconds to 12 months. In general, the trading starts with a short expiry. 

However, it can go up if the demand increases. Some online binary options trading brokers let the users fix a certain expiry time. It can be categorized under normal, turbo or short term, and long term. 

#8 What about the types of assets?

Most brokers can offer you the facility to trade using different types of assets. Some common types are stocks, commodities, currencies, indices, and more. If you are doing trading for the first time, then it will be better for you to focus on commodities and currency pairs. Once you obtain the necessary skills, you can move to other assets. 

#9 Always maintain a positive attitude

There is no guarantee that you will attain success every time you trade. In fact, most of the successful binary options traders also have dealt with losses. But they always remain calm. 

They maintain a positive mindset during adverse situations. When you develop a positive attitude, you will be able to focus more on trading and developing new strategies. It will also help you to control your self-destructive behavior, and you can avoid reckless trading. 

#10 Your trading goals should be realistic and achievable

It is good to think about double your money within a few days. But this is not an easy task. Remember that binary options trading is quite complex, and you need to learn everything about it to avoid any mistakes. 

And you should set goals that are achievable and realistic. There is no need to take the risk and lose all your money. Start investing a small amount, then gradually increase the limit. 

#11 Don’t forget to stay healthy

You might be thinking about how your health can affect your trading? As per the experts, if you don’t exercise or follow a healthy diet, then you may not be able to have a clear or focused mind. And when you trade with a confused and stressful mind, you can face a huge loss. Besides, this may lead you to burn out. So, consider this point seriously. 

#12 Understand the money management things

Another important thing that you need to consider is money management. It is about managing and controlling the amount of money you need to invest in binary options trading. It has been seen that some beginners invest all their money into this, and this can be a very dangerous thing. 

Before start trading, first, you need to understand how much you can earn by investing a certain amount of money. Then understand the portion of your monthly income that you can spend. Otherwise, you may deal with a financial crisis.

Some tips to choose a professional broker

  • Read The Terms and Conditions

While choosing an online options trading broker, most of the traders don’t give much importance to the broker’s terms and conditions. However, it can be a big mistake for you. Sometimes, the brokers can take advantage of this, and you can lose all your money. So, read it carefully. 

  • Experience of the Broker

The rules say if the broker has more experience, then you can trust that broker. If it has a huge trader base, that will prove that all the traders are happy with the services offered by the broker. 

  • Consider The Financial Stability

Every binary trader should focus on capitalization. Before signing up, ensure that the online broker is capitalized. And the easiest way to do that is to check if the company is regulated or not.

  • What Is the Payout Percentage?

This is something that can vary from one broker to another. However, you should always consider at least a 70 percent payout ratio. But some brokers can offer you up to 90 percent on certain assets or instruments. 

  • Type of Assets

You should choose an online broker that offers different types of assets, for example, indices, currency pairs, stocks, commodities, and more. As a result, you can trade multiple binary options, thus increasing your chances of making more profit.

  • Deposit Bonus Offered by The Broker

It has been seen that some well-known brokers can offer flexible conditions when it comes to depositing and withdrawing money. In some cases, you can enjoy up to a 100 percent bonus on your first deposit. 

  • Types of Trading Tools Offered by The Broker

Most of the trusted brokers care about their clients and offer them different things to help them in trading. They provide their users with advanced trading tools so that they can avoid costly mistakes. Make sure the broker offers tools like live currency and stock data, indices, and more. 

  • Make Sure They Offer a Demo Account

For every beginner, a demo account can be an important tool to learn binary options trading. It is the best place to practice and gain experience without risking your money.

Now, you should have an idea of how, to begin with, this form of trading. If you want to be a successful binary trader and make money, then these tips will help you a lot.  Can binary options make you rich? Yes, it can, but it will depend on your current skills. And to improve, take experts’ advice and use demo account offered by the brokers. Enjoy your trading. 

Who is the richest Binary Options trader?

Here are the top 5 richest binary options traders that you can follow to learn some useful trading techniques. 

#1 Joe Lewis

When he was just 15, he began work, assisting his father to maintain the catering business. However, after a few years, to begin currency trading, he sold that business. 

He partnered with George Soros in 1992 to start betting against the British Pound. That was a great success for him as he managed to earn around USD 1.8 billion. As per the latest report, his current net worth is more than USD 5 billion. 

#2 George Soros

While studying at school, he started doing trading. He followed a strategy of focusing on the highly-leveraged positions considering the currency rates movements. In 1992, he attained great success and became the “man who broke the Bank of England.” Some reports suggest that his net worth is around USD 8 billion. 

#3 Paul Tudor Jones

After completing his graduation, he started his career in the commodities trade. And during the market crash of 1987, he managed to make a good amount of profit. He founded Tudor Investment Corporation to help the traders. Now, the estimated value of his net worth is around 4.5 billion. 

#4 Stanley Druckenmiller

He has spent years successfully managing money for Soros. Besides, he also worked at Quantum Fun as a portfolio manager. His net worth is around USD 2 billion.

#5 Ref Wayne 

He is the richest forex and binary options trader in South Africa. He proved his skills when he identified an opportunity in a day currency market worth USD 5 trillion. 

All these traders have earned billions from the binary options trading market. And they also have proved that anyone can make money from this trading. You need to find the rights strategy and a good online binary options trading broker to begin your journey. 

Conclusion

Still, wondering How do you make money in binary trading? Talking about the successful binary options traders, they all have a common thing and, i.e., they always try to understand the market and then take the opportunity. If they are making money from this, then you can also do that. 

There are many examples of binary options traders become very rich from this. Just follow the tips mentioned above, maintain a positive attitude, strict discipline, and don’t forget to craft a winning binary options trading strategy. And always remember that the traders who rely on skills always win the trade. 

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