How To Make Money On Binary Options- 10 Must Follow Word Of Advice
How to make money on binary options? I was searching for the same thing when I first decided to make money with binary trading.
Come on, who does not want to be a millionaire?
Everyone wants to know the process to fill the box with money. Even in the trading business, there is no difference. But, somewhat, there is a thin line between earning and making money.
Binary options trading is about the decision, between yes or no. However, the process is less complicated than other trading types. Traders around the world can perform binary on different assets such as forex, commodities, stocks, etc.
Besides, you won’t feel the necessity of being a professional. In the flip side, we recommend you to be the master in trading to generate a steady income.
For example, to place a trade on gold, no need to buy gold bullion. All you need to do is decide whether the price of gold expects to shoot up or go down, within a certain period.
Before deciding, go through our article how to successfully trade binary options. Especially, it will help you to take an implacable decision.
Additionally, the following 10 words of advice will make your trading life as simple as pie.
How To Quickly Wipe Out An Account - 6 Mistakes
As a trader, you suppose to know that risk management is the key to long-term success. It will also help you to grow your account. However, we will here to mention 6 things which guarantee that as a trader you will blow up your account.
- Trade large size without a strategy
- Trade more after losing
- Place trades as often as possible
- Ignore market movement
- Ignore trends
- Do not bother to have plan
10 Effortless Steps To Make Money On Binary Options
# Proper Trading Knowledge With Profitable Trading Assets:
Trading knowledge is necessary for every trader before entering the market. Having a clear basic concept of trading will help you to make the right decision in a very crucial moment.
90% of traders lose because they don’t know how to make money from a volatile market. They blow up an account within a few weeks. It is hard to recover the account if you have limited knowledge.
On the flip side, you can develop your knowledge by applying it in the real trading field. Hence, you can make good use of a demo account.
The minute you set your mind to start, choose the asset that you are willing to get involved. In general, it means to decide the asset class – stocks, forex, commodities, and so on.
Each trade holds different methods. For example, if you think the value of oil prices is going to crash soon, your choice of the asset should be commodities.
# Choose The Right Trading Broker:
Often, new traders face a dilemma to choose the right broker. All traders need to choose a broker because it will work like a bridge in the financial market. It is always good to check whether the broker is properly regulated with reputed authority or not.
But why it is important to check the broker’s regulation?
The leading advantage is that your capital will be safe. On the other hand, you can charge for the compensation if the platform attempts any fraudulent activities.
Moreover, unregulated brokers often attract customers by showing impractical offers with bonuses. But, regulated brokers run a transparent and honest trading operation.
We have a complete list of binary options trading platform from where you can check features, services, cost, etc. Additionally, you can make a shortlist with names and open a practise account to test the platform’s features.
Luckily for you, we have done all the research and sorted out the best brokers for you.
We are recommending you top 3 brokers based on the profitability and regulation such as Deriv, IQ Option, and BinaryCent.
Our Recommended Brokers
Maximum Payout: 100%
Demo Account: Yes
Maximum Payout: 93%
Demo Account: Yes
Maximum Payout: 95%
Demo Account: Yes (Paid)
# Choose The Right Expiry Time:
In binary options, expiration time determine the moment when the trade expires. Traders have to predict the right asset price within a fixed time.
Depending on the asset, different brokers may offer different expiry time. It is the most important terminology of binary options trades.
Moreover, the expiry time can be less as 60 seconds. Necessarily, traders have to choose the right expiry time to consider the extreme conditions of uncertainty.
As a result, the expiry time will decide after considering the level of risk you are ready to take. Furthermore, trading binary option is much easier than other trading classes.
Before setting the expiry time, traders need to analyze the market. Here, you can use the combination of 3 analysis to pick the right asset.
After all, the financial market is volatile. So, things can change upside down overnight. Make well research on your investment strategy until you are expecting to keep the option live.
# Understand The Potential Gains:
The potential gain varies trader to trader. In trading, investors need to invest after calculating the appropriate potential gain. Each broker is different. So, their offerings also different from each other.
Compare each broker to check the potential gains and what you will miss if you do not make the right choice.
Not only that but the comparison will also help you to understand the potential gains that you are expecting to get from a broker.
# Trending Options:
Try to gather the latest and most useful trading market information. At the previous time, traders need to collect trading related news from different media. Now, you can easily find the latest updates or news on the trading platform.
Traders should check the economic calendar at least once before place any order. It is crucial to understand because the market movement is unpredictable.
Getting a specific strategy of trading and sticking to the same will not help you to reach anywhere. Your trading life will be boring.
# Place Trades Instantly:
Due to market volatility, things will flip instantly. If you decide to execute a trade without considering the market movement, then you are going to blow up your account very soon.
Analyze the market properly by using different trading tools and indicators. Once you place a trade, there is no chance to take back.
If you are sure that the market will move on your favour, then there is no reason to delay in executing the deal.
# Increase The Trading Budget:
Brokers offer unique and attractive features to gain customers. In some cases, these offerings will increase your trading budget. On the flip side, depending on your trading experience, you can also increase your trading investment.
For example, some brokers offer welcome bonus during registration. Moreover, you will find a lot of brokers who offers bonuses after inviting friends.That means, if you introduce someone new to the platform, a certain percentage of their profit will be shared with you.
However, unrealistic promises will not help you to generate money. Additionally, trading tournaments are also a great source of increasing profits.
You can compete with various traders around the globe and win a prize. It will also help traders to polish trading skills.
# Hedge Your Trades:
Do not try to make money by exposing your risk to the market movement. Being greedy will not get you anywhere. Thus hedge your trades through off-setting positions and nullify your risk in the trade.
Though the profits you make through are very marginal, but it will help you to play a safe game, especially when the market is very unstable.
#Roll Forward Features:
Rolling option trades offer by a few brokers. It also available when you have a live trading account. Unfortunately, you can not apply to test this feature in a demo account.
By extending the expiry time of existing trade, roll forward feature will help traders to deal with the losing position. However, under the right circumstances, it will work as a great strategy.
Moreover, traders will get the facility, if the market moves to them.
The feature will help you to make money through binary options on existing trades, that moves in your favour. To use this strategy, a proper understanding of the financial market is very essential.
# Look For Early Exit Option
Getting into a trade with a broker who offers the early exit option is very good and beneficial. Suppose you fear about some uncertain event in the market that can take a loss on your investment.
Early Exit option will give you a chance to get out from the risky transaction with some minimal charges.
This charge will be acceptable by the trader if he thinks he will face loss on his investment from the uncertain event(s).
Some of the brokers who are offering this feature are:
Make good use of all these tips and guidance to safeguard your investment and to make money with binary options which will increase your profit-earning power!
Can I Make A Quick Money With Binary Options?
The answer is NO. Making quick money is impossible though, the trading type is less complicated. But it is not that simple you are thinking.
There are so many traders, still losing money for their poor strategy and psychological fact.
Most beginner traders scare to trade options because of the outcomes. The outcome is whether a winning payout or nothing. It brings me to the main point, that is the difference between making and losing money in binary options.
For all traders, trading practices and mindset is necessary. Furthermore, newbie and inexperienced traders see binary options as a one-time opportunity to score a big payout.
They invest a large sum of money (usually a large percentage of their investment size) on a single trade, without properly analyzing the market and asset. Finally, they gain nothing instead of losing all the initial investment.
On the flip side, traders that make money from binary options, don’t gamble at all. They carry out small trades and aim for small gains. No trader has a 100% win ratio.
So don’t be disheartened by losses. Just take the right decision at the right time with a small investment amount.
After reading this article, you won’t complain about making money when trading binary ever again.
We are mentioning again that the trading form is less complex than other forms of trading. You can pile up money within a very limited time if you know what you are doing.
Though many people are involved with trading binary options around the world, but try to understand the risk at the same time. You can make a constant profit if you trade from your head not from your heart.