Binary options is a kind of online trading that has disentangled the way a particular individual can trade online and benefit from trading from the comfort of their own home. Nowadays, the wealthiest binary traders are regular Joe’s, like you and me, who have never worked for enormous institutions (e.g. Goldman Sachs). Truth be told, skilled home traders can generate between $10,000 and $20,000 every month by and large, with some winning much more than this sum. I would remiss if of course I didn’t mention the risks, because along with high rewards always come high risks. Whenever you trade, make sure you only use money you have available and are ready to lose.
Be that as it may, to accomplish profits, you will have to figure out how to accurately foresee whether the price of an asset will go up or down. This implies that you need to keep up with the latest market news and follow each asset closely.
When trading binary options you will come across 4 main asset types. These are Stocks like Apple or Google, Currencies like the EUR/USD, commodities like gold and oil, and Indices like the Nasdaq or FTSE.
No matter which type of asset you are trading you will have to learn more about it to understand the way in which it is expected to move. If for instance you are trading stocks you will need to keep on top of the following: what are an organization’s profits and expected profits, is an organization anticipating enlisting more staff, and is a firm hoping to grow to new regions/markets, et cetera. This kind of news together with monetary information and reports, obviously demonstrates where a stock price is heading and can give you a reasonable sign on the bearing of an asset’s cost.
Choosing the Right Investment by Payouts
Classic Binary Options
The least difficult binary options to trade are called “up and down” or classic options. In these options you need to foresee whether the price of an asset will climb or drop from the present price. On the chance that your prediction is correct, you will obtain profits or if you’re wrong, otherwise lose your wager. Payouts for this type of trading are usually around the 80-85% return mark. This means that If you place a trade for $100 and you are right, you will see $185 in to you account. The $85 profit plus the original wager.
The next type of option is called the Touch or No-Touch. In this sort, you anticipate whether the asset will touch a specific value point or not. If you are right you can make an incredible 200-400% on your investment. The reason being is that it is much more difficult to predict correctly than the classic option type. If you trade with $100 you can get up to $400 and sometimes more back from a quick trade. There are no other markets in which you can see these kinds of returns.
Speedy Trades Payouts
There are additionally speedy trades (60 seconds). These trades close within a minute or two and you can see a 60-70% profit. As the trade is so quick you can place more trades consecutively which of course can mean more profit in a quicker time span, but again be careful, because wherever there is reward there is risk.
Whichever option type you choose, if you are an amateur you should start by practicing on a free demo account with the goal of eventually helping your bottom line.
Educate Yourself First
As a binary trader, while the profits are tempting it is worth first spending some time to educate yourself on the markets and various trading strategies. What is true is that the more you learn and practice the better your trading profits will be. Some brokers offer free demo accounts to practice on, in my opinion it’s well-worth going in this direction first.
Of course if you prefer not to learn about trading you can always get a robot to trade on your behalf. In this article I outline the way trading robots work
Trading systems and trading strategies are there to help you maximize profits. You can have a betting system, like the Martingale, which guides you as to your betting strategy. For example with the Martingale Strategy you place a bet of say $1, if you lose you double your bet to $2, if you win the trade you keep the bet amount the same. On the next bet if you lose you double again eg. $4 and so on.
Trading strategies including spotting trends in the market, using indicators like the RSI, MACD and many more. While you may consider that this is for advanced traders, actually the beginner traders that know how to use support and trend lines find this greatly impacts their bottom line. In order to implement a strategy like this you will simply need a free charting package or platform that comes with the ability to add trend lines.
Utilize Signal Services
Signal services are an excellent way of improving your profit lines. Signal services simply send out trade alerts to you by email, text or Skype that you must action. For instance if you get a signal that says place a PUT on the EUR/USD 10 minute option at 1pm. This means, open up your broker platform to the correct trade, in this case the EUR/USD. Take a 10-minute expiry which starts at 1pm and press PUT (UP trade). Signal services usually work on a subscription base eg. $99 and for that you might get 5 trade alerts a day. In short this kind of service uses expert traders that have identified high potential opportunities, which of course can greatly help your bottom line.
CopyTrading and Robots
Copytrading is another kind of service where you literally copy the trades of another, more experienced trader. First you choose which traders you want to mimic, based on their risk appetite and past success. Then simply click follow to piggyback off of their trades.
Robots is slightly different. With this tool, the robot, which will actually trade on your behalf, is programmed to track the markets, identify opportunities and then to act upon them. If you find a good robot to work with, this can be an excellent way to bring in extra profit.
Strategically increase your income
Everyone wants to be wealthy, and there is no get-rich-quick scheme. Trading requires patience and the mastery of your emotions. Greed and fear bring on losses much quicker than a calm mind and a good, solid strategy. Remember not to trade more than you lose, and it’s a good idea not to put more than 5% of your capital on a single trade.