Probably all internet users have heard about binary options. You probably know that this is another way of earning money, which is over-the-counter trading, and specially trained people are engaged in this - traders. But not everyone knows the intricacies of this area and mistakenly consider it another scam. And now let's take a closer look at what binary options are and whether it is realistic to make money on them.
What is it about?
So, binary options are, in fact, resale or trade on the difference of a wide variety of goods: commodity market, currency, precious metals or company shares. Roughly speaking, you invest 100 euros in any option and, with a successful forecast, get your money plus interest. Unfortunately, if this option loses value, the trader loses the entire amount of money irrevocably.
But this is only the tip of the iceberg. Before you become a full-fledged trader and think about whether it is realistic 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. This is relatively simpler than the same Forex.
The trader is aware of all 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 transaction and your percentage of profits.
Fixity. How many points the price will go through does not matter, the main thing here is under what conditions the option price has closed (above or below the initial mark).
The ability to make a profit in the short term. With a favorable set of circumstances, trading turbo options can be earned in 30 seconds.
As for the negative sides of this type of trading, this is the same fixed income. But the thing is this: if the price of your investment went in the right direction in a short time, you get 80% of the profit and this is very good, but sometimes the asset goes through dozens of points before reaching the end of the expiration, and in this case the income received may not seem so high compared to the same "Forex".
How much do you earn on binary options?
Is it realistic to make money on a binary option, and what will be the income? This question is asked by many beginners who want to get rich here and now. But it should be understood that before investing and waiting for returns it is necessary to understand all the intricacies of the system very well.
So, is it realistic to make big money on binary options? Not. If you have just recently been carried away by speculation, know: for you now the main thing is to lose as little as possible, and if you manage to reach a small plus, it will be generally fine.
Many brokers accept $ 10 as a deposit, which attracts newcomers. After all, losing such a small amount is not scary, but on the other hand, and in this case you will earn a little. Suppose, with a contribution of $ 10, you will invest $ 1 each 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% of 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 depends on investment, experience and good luck. Do not forget that the same investment can bring different returns, depending on where the trader is trading, that is, from brokers.
Is it possible to make money on a binary option for an ordinary person?
In any business, newcomers have a hard time - this is a fact, and options trading is no exception. In order to start earning something, as in any other field, you must first undergo appropriate training. Finding the courses you need is easy.
And even after having completed a full-fledged training, a beginner in this business will surely encounter failures and loss of money at first. A drain is inevitable if there is no experience and earned binary options strategy.
Experienced traders are advised to first try their 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 become fully stronger in trading and will cease to be new to this business.
Reasons Why You Can’t Make Money
All of the above may give you the idea that trading binary options is a simple and profitable business. In fact, hundreds and thousands of people merge 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 is established that more than 90% of newcomers make their first transaction at random and thereby lose money. No, of course you can rely on your intuition, but when it comes to finance, it’s more advisable to think again.
Trust scammers. Remember one important truth: any profit of a trader is a loss of money for a broker. Yes, there are trusted brokers who 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 plus, there is no guarantee that you will receive your money. What to do in this case and how to make money on binary options is described below.
Hope for the magic button. Remember once and for all: binary options - this is 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 on buttons are very mistaken. Many traders try to find advisers, robots, programs and various strategies that would do all the work themselves, but this is simply not possible. If you are interested in how to make money on binary options, consider: no matter how much you pay for the next super-strategy, you still have to study the essence of trading.
How to fix the situation?
What prevented the beginner from making money, we found out, now we will figure out how binary options traders actually earn. In order to understand at least the minimum basics of trading, be prepared to study long and hard. On average, courses can take up to several weeks and a couple more months of hard work before you can secure a stable income.
We already wrote that it’s not easy for beginners at first, and they often drain a deposit. Here are the basic rules that will 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 into the black lists of information sites and try to correctly evaluate trading conditions.
Watch how the asset behaves. Analyze and try to predict a 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 were interested in this topic thanks to people who promise quick success or someone suggested a system that gives you 100% results? This is the Grail - a golden key that opens all doors to success.
Is it possible to make money on a binary option using the Grail? No, there are no miracles in trading. The maximum that you receive is an invaluable experience. At the moment, there are hundreds of systems that promise you the golden mountains, but in reality they only contribute to the drain of the deposit. Let's list them:
The place of honor in the charts of graals is occupied by robots. The essence of the program is simple: the robot itself analyzes the market and at the right time gives you a signal, and more advanced versions even make bets for you. But let's postpone pink dreams for a moment and turn on the logic: we all know what binary options brokers earn - the financial loss of a trader, therefore, no brokerage company is interested in making you win 100%. And this means that no broker will allow connecting a robot program to his platform.
Ideal strategies are another disappointment for those who are looking for a magic button on binary options. The financial market is not a competition for you, where the one who has 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 ever give you even 90% success.
Pamm accounts, or trust management, is another kind of grail for trading in the financial market. As soon as you are tempted to try yourself in this area and are thinking of making money on binary options (Forex), a trading guru immediately appears, assuring you that he will easily provide you with stable income, and in return asks for some kind of miserable 10-20% of income . Let's be honest with ourselves, if he is really so good at this, then he simply does not need you.
Teachers and their various courses. Yes, at the beginning of the article we said that you first need to learn this business, to understand the meaning, so to speak, but not all courses on the Internet are taught by experienced traders. Particularly clever “teachers” manage to tell their students frank nonsense that can only lead to a drain of the deposit.
How to really start earning?
Now that we have found out what mistakes newcomers make and what Grail is, it’s time to go directly to the question “what binary options can you really earn and how to do it?” So, here is a general instruction:
Of course, you know that you need charts to trade, just do not use the ones that the broker offers. For analysis, a metatrader or live chart will help you.
Use indicators (and not one). Just take into account that not one indicator will give you a 100% excellent result. If quality, not quantity is important to you, do not forget to filter the signals. If you are still completely new to this business, first try to figure out basic indicators, for example, Bollinger, MACD, Stochastic.
Indicatorless trading. In order to reach a stable income, you will have to monitor the level of 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 as you wish.
Talk about brokers
After the trader has passed the appropriate training, has 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 whom to trust, but here are some things to pay attention to for beginners:
Please note that you have a license. In order to obtain a license, the office will have to pay out a rather large amount, therefore, those who are going to quickly raise money and then declare bankrupt do not bother with formalities.
If you choose between basement companies and larger offices, preference should be given to the latter. It is likely that a small broker will underestimate the interest rate and, as a result, simply will not allow you to withdraw money from the system.
Be wary of brokers who advertise themselves on every corner. If your mail is full of spam emails, if you see an ad banner from a particular broker on each site, you should consider 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 customers.
Pay attention to the account manager. They are also called “analysts,” although they essentially do not do any analytics. In order to verify the adequacy of the manager provided to you, ask him a few simple questions on the topic. If he begins to offer you commonplace, well-known strategies under the guise of super-profitable, it’s worth considering.
If your goal is to earn money, and not just experience adrenaline, then take the choice of a broker very seriously. Be sure to read the reviews of other traders, often look at the black lists, pay attention to the year of foundation and size of the company.
Is it possible to make money on binary options: reviews of people
On the Internet, you can find hundreds of reviews of people who have tried themselves as a trader. There are various forums where debates 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 the reason for this?
Candidates for traders began to realize all the possible risks and tricks of fraudsters, thereby the deplorable consequences on the stock market became many times less. Now you can find reviews about how a person manages to get into a small plus, people began to confirm that binary options are not a scam, but a real job that can be earned.
Of course, there are still a lot of people who have lost their savings, contributions and even families. Such people can only regret. Unfortunately, no one, even the most experienced trader, is immune from failure. In any case, it remains only to verify first hand.
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 are not serious enough about this type of earnings, believing that they can find a magic button that will allow them to earn money continuously, therefore, this only leads to a drain of the deposit. Those who intend to seriously engage in binary options need to constantly learn from their own and others' mistakes and not stop there.