All Internet users have probably heard about binary options. You probably know that this is another way to make money, which is over-the-counter trading, and specially trained people are engaged in this - traders. But not everyone knows the intricacies of this direction and mistakenly consider it to be another scam. And now let's take a closer look at what binary options are and whether it is really possible to make money on them.
What is it about?
So, binary options are, in fact, resale or trading on the difference of a wide variety of goods: the commodity market, currency, precious metals or company shares. Roughly speaking, you invest 100 euros in any option and, with a favorable forecast, you get your money plus interest. Unfortunately, if this option loses in value, thenthe trader loses the entire amount of money irretrievably.
But that's just the tip of the iceberg. Before you become a full-fledged trader and think about whether it is really possible to make money on binary options, you still have a lot to learn. Let's start with the positives:
- Everyone can understand the principle of working with options. It is relatively simpler than the same "Forex".
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The trader is aware of all the risks in advance, because each transaction implies a profit or a possible loss of funds. You will know exactly the expiration date of a particular trade and your profit percentages.
- Fixedness. How many points the price will pass does not matter, the main thing is in what conditions the option price closed (above or below the initial mark).
- Opportunity to make a profit in the short term. With a favorable set of circumstances, trading turbo options can make money in 30 seconds.
As for the negative aspects of this type of trading - it's still the same fixed income. And here's the thing: if the price of your investment went in the right direction in a short time, you get 80% of the profit, which is very good, but sometimes the asset goes dozens of points before reaching the end of extraction, and in this case, the income received may not seem so high compared to the same Forex.
How much do binary options earn?
Is it possible to make money on a binary option, and what will be the income? This questionmany beginners who want to get rich here and now are asked. But it should be understood that before investing money and waiting for a return, you must be very well versed in all the intricacies of the system.
So, is it possible to make big money on binary options? No. If you have recently become interested in speculation, you should know that the main thing for you now is to lose as little as possible, and if you manage to get a small plus, it will be great.
Many brokers accept $10 as a deposit, which attracts newbies. After all, losing such an insignificant amount is not scary, but on the other hand, in this case, it will turn out to earn a little. Suppose, with a deposit of $ 10, you will invest $ 1 in various transactions, respectively, the income will not exceed 90 cents. Roughly speaking, in a month you can earn a maximum of 10-15 dollars, because, as you know, 150% profit is an excellent indicator even for professional traders.
Thus, is it realistic to make money on binary options and how much professional traders earn directly depends on investment, experience and luck. Do not forget that the same investment can bring different income, depending on where the trader trades, that is, from brokers.
Is it possible for a simple person to make money on a binary option?
It's hard for beginners in any business - it's a fact, and options trading is no exception. In order to start earning something, as in any other field, you first need to undergo appropriate training. Finding the courses you need is easy.
And even after a full-fledged training, a beginner in this business will definitely face failures and loss of money at first. Draining the deposit is inevitable if there is no experience and an earned binary options strategy.
Experienced traders advise you to try your hand at demo accounts, invest very small amounts and analyze a lot. It is worth listening to the advice and you will see, it will take a little time and you will get stronger in trading and stop being a beginner in this business.
Reasons why you can't earn money
All of the above may give you the idea that binary options trading is simple and profitable. In fact, hundreds and thousands of people drain their deposits and are left with nothing. So what's the matter, why can't you make money on binary options?
There can be several reasons for failure:
- Inability to analyze the market. It has been established that more than 90% of beginners make their first trade at random and thereby lose money. No, you can certainly rely on your intuition, but when it comes to finances, it’s better to think again.
- Trust the scammers. Remember one important truth: any trader's profit is a loss of money for the broker. Yes, there are trusted brokers that allow their traders to make good money and honestly get their money, but there are a lot of scammers on the Web. Even if the deal closes in profit, there is no guarantee that you will receive your money. What to do in such a caseand how to make money on binary options will be described below.
- Hope for the magic button. Remember once and for all: binary options are not a gold mine, and even more so - not a "freebie". Those who believe that it is enough to deposit a certain amount and start poking buttons are very much mistaken. Many traders try to find advisers, robots, programs and various strategies that would do all the work themselves, but this is simply impossible. If you are interested in how to make money on binary options, please note: no matter how much you pay for the next super-strategy, you still have to learn the essence of trading.
How to fix the situation?
What prevents a beginner from making money, we found out, now let's figure out how binary options traders actually earn. In order to understand at least the basic basics of trading, be prepared to study long and hard. On average, courses can take up to a few weeks and a couple more months of hard work before you can secure a steady income.
We already wrote that it is not easy for beginners at first, and they often drain the deposit. Here are the basic rules to help you gain experience with minimal losses:
- Learn to choose a reliable broker - this is the basis of all work. Read the reviews of other traders, look at the blacklists of information sites and try to correctly evaluate trading conditions.
- Watch the leadyourself an asset. Analyze and try to predict the fall, draw conclusions.
And most importantly - never stop there. As they say, there is no limit to perfection. Learn new strategies. Learn from the mistakes of others and try not to repeat your mistakes.
What is the Grail?
Perhaps you got carried away with this topic thanks to people who promise quick success or someone suggested a system that gives you 100% results? This is the Grail - the golden key that opens all the doors to success.
Is it really possible to make money on a binary option using the Grail? No, there are no miracles in trading. The maximum that you get is an invaluable experience. At the moment, there are hundreds of systems that promise you mountains of gold, but in reality only contribute to the draining of the deposit. Let's list them:
- Robots take pride of place in the grail hit parade. The essence of the program is simple: the robot itself analyzes the market and gives you a signal at the right time, and more advanced versions even place bets for you. But let's put pink dreams aside for a moment and turn on the logic: we all know what binary options brokers earn on - on the financial loss of a trader, therefore, not a single brokerage company is interested in you winning 100%. And this means that no broker will allow connecting a robot program to its platform.
- Perfect strategies are another disappointment for those looking for the magic button onbinary options. The financial market is not a competition for you, where the one with the best strategy wins. Here, first of all, you need to think and analyze a lot. Despite the assurances of the sellers, no strategy can give you even a permanent 90% success rate.
- Pamm accounts, or trust management, is another kind of grail for trading in the financial market. As soon as you light up with the desire to try yourself in this area and think to make money on binary options (Forex), a certain trading guru immediately appears, assuring you that he will easily provide you with a stable income, and in return he asks for only some miserable 10-20% of income. Let's be honest with ourselves, if he's really that good at this, then he just doesn't need you.
- Teachers and their various courses. Yes, at the beginning of the article we said that you first need to learn this business, so to speak, understand the meaning, but not all courses on the Internet are taught by experienced traders. Particularly clever "teachers" manage to tell their students outright nonsense, which can only lead to the drain of the deposit.
How to really start earning?
Now that we have figured out what mistakes beginners make, and what the Grails are, it's time to go directly to the question “what binary options can I really make money on, and how to do it?” So, here is the general instruction:
- Of course, you know that charts are needed for trading, but in no case do not use those that the broker offers you. For analysis metatrader or live charthelp you.
- Use indicators (and more than one). Just keep in mind that no indicator will give you a 100% perfect result. If quality is important to you, not quantity, don't forget to filter the signals. If you are still completely new to this business, first try to understand the basic indicators, for example, Bollinger, MACD, Stochastic.
- No indicator trading. In order to reach a stable income, you will have to follow the level of the charts and draw resistance and support levels.
- Every self-respecting trader should develop his own strategy. You can take any strategy as a basis and adjust it as you wish.
Let's talk about brokers
After the trader has been properly trained, studied all the nuances and is now ready to try his hand, he is faced with the question of choosing a broker. Experienced speculators know perfectly well who to trust, but now we’ll tell you what newbies should pay attention to:
- Pay attention to the presence of a license. In order to obtain a license, the office will have to shell out a rather large amount, therefore, those who are going to quickly raise money and then declare themselves bankrupt do not bother with formalities.
- When choosing between underground companies and larger offices, preference should be given to the latter. It is highly likely that a small brokerwill lower the interest rate and in the end simply will not let you withdraw money from the system.
- Be wary of those brokers who advertise themselves on every corner. If your mail is full of spam emails, if you see an advertising banner from a certain broker on every site, you should think about how reliable it is. The fact is that such offices are trying to massively attract traders, respectively, the quality of the services provided suffers from the number of clients.
- Pay attention to the account manager. They are also called "analysts", although in fact they do not perform any analytics. In order to make sure that the manager provided to you is adequate, ask him a few simple questions on the topic. If he starts offering you banal, well-known strategies under the guise of super-profitable ones, you should think about it.
If your goal is to make money, and not just experience adrenaline, then take the choice of a broker with all seriousness. Be sure to read the reviews of other traders, look into the blacklists more often, pay attention to the year of foundation and the size of the company.
Is it really possible to make money on binary options: people's reviews
On the Internet, you can find hundreds of reviews of people who have tried themselves as a trader. There are various forums where disputes and exchange of experience are conducted. Naturally, there are much more negative statements, but recently positive reviews have begun to appear more and more often. What is it withrelated?
Candidates for traders have become aware of all the possible risks and tricks of scammers, thus the deplorable consequences on the exchange market have become many times less. Now you can find reviews on how a person manages to get a small plus, people began to confirm that binary options are not a scam, but a real job where you can make money.
Of course, there are still a lot of people who have lost their savings, deposits and even families. Such people can only be pitied. Unfortunately, no one, even the most experienced trader, is immune from failure. In any case, it remains only to check on your own experience.
Conclusion
In conclusion, we note once again that it is possible to make money on binary options, but not everyone succeeds. Why? Many candidates for traders do not take this type of income seriously enough, believing that they can find a magic button that will allow them to continuously earn money, therefore, this only leads to a drain on the deposit. Those who intend to engage in binary options seriously need to constantly learn from their own and others' mistakes and not stop there.
