How to earn on binary trading?
These days there is a huge amount of advertising stating that binary options trading is a Klondike, and that only those are unaware of it, who are not interested in trading at all. Traders are promised to have high returns, simplicity and easiness; but to most people, especially to those with critical approach, such prospects appear to be rather suspicious than delightful. Let’s dissect what this kind of trading is about and how to capitalize on the binary options.
The advantage here is that before concluding a deal you already know the sum you’re going to win or lose.
We won’t operate with abstruse definitions and will give a common concept of binary trading. This is a financial instrument, with which you are to make deals and to get profit in the amount that is already known in advance (provided that your forecast of the asset quotation movement is true). If the forecast is wrong, your bet is lost, but at times this doesn’t mean the loss of the entire amount, as some percentage may be returned. The advantage here is that before concluding a deal you already know the sum you’re going to win or lose. The disadvantage is that this is a no return deal, you cannot close the deal at any time.
You can trade anything – oil, currencies, gold, stocks, stock indices. This depends on the broker: the larger and more reputable companies offer greater choice.
The principle of trade
Regardless of a broker, the execution of transactions is much the same, different are just instruments and trading terms. In the section “List of Binary Options Brokers” there are many companies out of which you can choose brokers that suit you best, for example, leaders in customer confidence – OptionRally or Banс De Binary.
Step-by-step action on binary options:
- Check the list from which to choose an asset (e.g., EUR/USD).
- Set expiration time (e.g., the end of an hour).
- Make a forecast and click on the relevant button, either ‘Call’ or ‘Put’, that is, whether you expect and asset to go up or down.
- Set the preferable amount, the minimum is $25.
- Buy by clicking where necessary.
If you’re not too good in technical analysis, refer to the mathematical part, and only then do the trading.
That Is all, the transaction has been executed. You need to wait until the end in time and in case of correct prediction to get about 70% profit; if your prediction was wrong, the broker will return up to 15% of the deal amount. Basically, it is really simple and even a child could do that. The key point is to make the forecast right. You should not cling to belief you’re a lucky devil; blind choice based on intuition is nothing else but a waste of time and money. With such an approach it is better to play roulette in a casino betting on either red or black.
Systematic earning on binary options is a job that implies clear fulfillment of all the strategy nuances, taking consideration of the entry conditions, using charts’ technical analysis. Open the deals with due regard to the trading signals provided by indicators. If you’re not too good in technical analysis, refer to the mathematical part, and only then do the trading.
In option trading valued are simple strategies, trend strategies, Bollinger bands. Mastering them is not too difficult and is doable by any trader. Trading on the news is also worthy. The news is delivered promptly, this service is provided by brokers themselves, e.g. by Empire Option or Cedar Finance. You are to decide whether you should be using news in trading or not.
Is it realistiс to earn trading binary options? Sure! Some traders can do that, others can’t; the most important thing here is the serious approach, as this is not a casino, but a profession you have to master with all your attention, concentration, and discipline. Apply a proper strategy, adapt it for yourself, and you will be a success. Good hunting!