How to Make Money Trading Binary Options
How to Make Money Trading Binary OptionsMarch 3, 2012
Digital options trading is on the rise, period! So obviously one would have to assume that there’ money to be made here. Well, what seems obvious to seasoned traders may not be so obvious to novice day traders and newcomers looking to invest online.
From a regulatory perspective, this industry is still reminiscent of the old days of the internet, when it was pretty much legal to do anything. So, the fact that the Wall Street bigwigs and other regulatory entities have not carved out their cut of the niche yet, doesn’t mean they don’t have their eyes on it. In fact, there are some serious financial institutions, gaming corporations, and banks that have invested heavily in developing and marketing binary options platforms to online traders.
Realistically, when comparing the odds of making money with binary options to other forms of options (i.e. vanilla options), the chances of making gains are much more significant. For example, let’s take a look at the US futures market. From an accumulated 50 years of joined experience, it is our humble opinion that approximately 4-7 percent of the various investors make money in a consistent fashion and on a yearly basis. Speaking from personal experience working for some of the more serious binary options platforms, it’s clear to see that on any given day the stats and reporting tools indicate a success ratio of approximately 40 – 50 percent for online traders wanting to invest and make money trading options.
Now usually since we are talking about a mostly unregulated market (not yet anyway), the usual trader would not be in a position to know what is the breakdown of success versus loss ratio on any given trading day. However, since we have actually seen the figures and are aware of what’s going on, its plain to see that there is much money to be made.
The writer of this article even had a personal relationship with a very serious trader from one of the richer oil-producing countries. This trader has invested over $500,000 and at the time had a cashable account balance ranging from $200,000 to $1,000,000 on any given trading day. Although this is not your usual trader, this spectacle is not such a rare occurrence and while most traders usually invest smaller sums, comparatively speaking there are much more successful trades on binary options compared to most financial instruments out there. Oh, and don’t be fooled by the term “exotic options”, once you get the hang of it you will see how easy it is to trade and make money online.
Lets bottom line it! I’m sure some of you would like a cheat sheet or an insider’s secret to making money online trading binary options. The truth of the matter is that there are no secrets in this business. It’s really all about taking the time to look for the right information (it is out there), doing all the comparative work, looking at the analysis trading tools, and asking other online investors on the trading forums what to their experience is the best trading site.Then you just need to develop and test your strategies (I recommend using a demo account before investing any real money and seeing what the outcomes are).
If you can find an experienced trading buddy that can teach you the ropes and guide you through the obstacles of trading online, that would be best. If by chance you happen to be speculating on futures, Forex options, commodities or anything else, your own market analysis and experience is very relevant and significant. Making the transition will be very easy for you. The only difference is that when start trading, you are actually purchasing options instead of futures contracts or other vehicles I won’t elaborate on.
To sum up, if you need recommendations on where to trade use the grid located at the binary options reports home page and sort according to preference.
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