How to Make Money with Binary Options Trading?
When they first became available to the public at large in 2008, binary options managed to bring about a small scale revolution in the way ordinary folk regarded trading and financial investment in general.
Up until that point, financial trading belonged in the exclusive and often elusive realm to which only the select few could gain entrance.
Today, binary options trading is still an appealing and interesting way of turning profit for numerous prospective traders around the world.
Yet, the most basic question is – is it possible to profit by trading binaries and if so, exactly how to make money with binary options trading?
The aim of this article is to provide conclusive and simple answers to those questions and in doing so pave the way for hopeful traders to achieve the ultimate goal – attractive profits.
What is Binary Options Trading?
Simply put, binary options are a fairly straightforward manner of online trading which is based on the prediction of whether the price of the underlying asset is more likely to rise or fall in the predetermined time frame. Another attraction of binary options trading is based on the fact that it is not possible to lose more than one has invested and traders do not have to deposit and invest large sums. Also, traders know exactly how much they stand to gain or lose.
Simple, isn’t is?
The response is as binary as the name implies.
Yes, binary options trading is a far simpler form of trading than say, Forex and it certainly does not demand that traders have extensive prior experience or education in finances. In fact, the information about how to trade binaries is freely given and available online and on binary brokers’ trading platforms.
However, this trading venture still demands time and effort on the part of the trader to make money with binary options.
The Crucial Importance of Binary Options Brokers
It is not an overstatement to say that this is an essential step for those who venture into binary options trading – the careful selection of an established binary options broker. To find such a broker will take time and meticulous research, and it is good to bear in mind that there are over 500 brokers currently available on the market. Sadly, not all are respectable or have traders’ best interest at heart.
The best approach to finding a reputable broker and, consequently, make money in binary options trading is to turn to broker review sites which provide extensive and detailed broker analysis.
Of course, inspecting broker sites and trading platforms is also a must for all hopeful binary traders.
Binary brokers like IQ Option, 24option, Binary Tilt or StockPair have been present on the global market for a number of years and could be a great initiation for novice traders. These brokers provide high-quality service to their registered traders in terms of a number of available assets, trade options, user-friendly trading platforms as well as well-trained customer support service, affordable minimum deposit and transparent withdrawal terms. In fact, IQ Option is one of the brokers which has the lowest minimum deposit in the industry – only $10 with the minimum investment per trade set at mere $1.
Understanding Underlying Assets in Binary Options
Prospective binary traders have to get familiar with available underlying assets which, when it comes to binaries, means four types of assets:
It is necessary to learn about the nature of each asset and what is most likely to affect the price direction.
Selection of Trade Options and Expiry Times
For those who want to learn how to make money with binary options trading, another unavoidable pit stop is learning as much as possible about trade options.
Each binary broker has a slightly different trading platform and trading software but most common trade options are Pair Options, 60 Seconds, High/Low, Ladder Options, One Touch, Boundary Options, No Touch, Long Term and Range Options. Naturally, some brokers may offer innovative new options like Kiko Options.
The point is, traders have to make an educated guess of which way the asset price is likely to go but each option provides a different take to trading binaries and traders have to find what works best for them.
The same can be said about the expiry times which move from mere 30 or 60 seconds to 150 days. Each trader has to slowly learn which expiry time works best with their particular style of trading. However, it is important to keep in mind that short expiry times like 60 seconds bring in the highest profits but they also carry the most risk, as it is difficult to predict the price movement in such a short time span.
Effective Trading Strategies and Tools
Naturally, there are also various trading strategies and tools which can help the trader to make money with binary options trading and improve the overall performance.
Strategies like Trend strategy, Pinocchio strategy, Straddle strategy or Fundamental analysis strategy can all be valuable allies in navigating the world of binary options trading and making money along the way. These strategies are also suitable for beginners, but it will take some time and learning to understand the guiding principle of each strategy and how to use it effectively in the trading process.
The same can be said about various available trading tools and features which can truly make a difference in terms of profit-making. Two of the most important tools which could make the trading process easier and more profitable in the long run is the demo account and mobile trading app.
The demo account is a fantastic trading feature which provides a risk-free admission into the world of binary trading. To put it in simple terms – traders get to have their cake and eat it! This is possible as the demo account does not use real but virtual funds so there is no risk of monetary loss. On the other hand, hopeful binary traders get to experience what it feels like to trade binary options and gain valuable experience along the way. In fact, it is smart to select binary brokers like IQ Option or auto trading software like Option Robot which provide their registered traders with a free demo account as it allows for the perfect testing ground.
The mobile trading app is a great trading tool which is now available with most binary brokers and which provides a great opportunity for busy traders to incorporate market monitoring and binary options trading into their lifestyle without major disruptions.
By using the mobile trading app, traders get to trade on the go no matter their location as well as spot and use every potentially profitable trading opportunity.
Education, Education, Education
The old adage “Knowledge is power” is still a nugget of pure gold. And, it is certainly an important element when it comes to how to make money with binary options trading. Simply charging in and hoping for the best may result in a bout of beginners’ luck but is not likely to bring in steady, long-term profit. Instead, by continually educating oneself, learning about key aspects of binary options trading and vigilant market monitoring is the best approach to long-term success. Especially, when all the educational materials are just a click away.
The Simplicity of Automated Binary Trading
Still intrigued by the attractive profits which could be achieved by binary options trading but kept away by the fear of failure?
The advanced technology which first made binary options trading available introduced another mode of binary options trading – automated trading better known as binary options robots.
Automated binary trading is a clever blend of innovative technology (trading software) and demand which appeared on the market for traders which had limited time or simply have no wish to invest time into learning about the essential aspects of trading.
What binary robots allow is for novice traders to take up binary trading and make money with it.
The binary software uses sophisticated trading algorithms which scan the market in search of potentially profitable trades which are then delivered to traders via trading signals.
What automated trading solutions provide traders is a shortcut into the possibly profitable trading experience as there is no need to invest time into constant market observation. The same is true for education, which also becomes something traders are no longer required to do in order to have a successful trade.
The most important thing to do with binary robots is to find one which has a great reputation and is connected to established binary brokers.
Binary options trading could be a great way how to make money as it is affordable, flexible and simple just as it is diverse. Both in terms of numerous underlying assets and trade options as well as the choice of using manual or automated binary trading.