Can I Get Rich With Binary Options Trading

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
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  • Binomo

    Good Broker. Only For Experienced Traders!

Can You Get Rich From Trading Binary Options?

You can get rich trading binary options, but most people will not. Your ability to be successful trading binary options depends upon your ability to build and maintain a successful trading strategy.

Trading profitably over time ultimately comes down to discipline and your willingness to adapt as markets change. Most people do not have the dedication needed to get rich from trading or don’t use the right tools and strategies. Only through hard work and a systematic approach will you give yourself a chance to succeed.

If you are able to trade profitably in a systematic manner the sky is the limit in terms of how much money you can make.

Get Started With Binary Options Signals/Robots

If you don’t know how to get started with binary options trading, or if you have tried it and you haven’t made any profits yet, then you should try a binary options robot (it’s free). Basically the signal providers or binary options robots will give you up to 70-80% accurate prediction on whether the price of an asset will go up or down.

Follow these 3 simple steps to make more money with binary options trading:

  1. Step1: Get a free OptionRobot account here
  2. Step2: Choose one of the brokers from the OptionRobot site and make a deposit
  3. Step3: Start auto-trading with the robot

OptionRobot – Auto-Trading Robot

OptionRobot the best binary options trading robot. This software is free if you sign up with one of their recommended brokers.

  • Average Accuracy Of 83%
  • The Minimum Deposit Is $200
  • Many Brokers To Choose From (including US/AU/CA traders)

If you are still unsure, you can read the Option Robot Review.

The key to becoming wealthy from trading binary options is to have a high enough winning percentage to maintain profitability over a large number of trades. After you are able to trade profitably, you simply increase the size of your trades, and the size of your earnings will correspondingly increase as well.

Why It’s Difficult To Get Rich From Day Trading

Getting rich from day trading is one of the hardest things for people to do. There are a number of reasons why this is the case, and it is becoming increasingly difficult over time.

  • Computer algorithms have taken away a lot of short term inefficiencies in the markets. These are the same inefficiencies that day traders used to exploit for profits.
  • Stock market transactions occur in a fractionated marketplace. All transactions used to take place on the New York Stock Exchange, Traders knew the buy to sell ratios on the books, and could make relatively reasonable predictions based upon the inventory of orders. Today, transactions occur mostly over ECN markets and dark pools, and even the NYSE now uses an electronic order matching system.
  • If a trader is using binary options as their trading instrument, they need to win on more than 50% of their trades to be profitable (assuming all positions are the same size). Binary options are designed with the idea that a brokerage on aggregate will have 50% winning trades and 50% losing trades to contend with, thereby making them money over a large sample size. A trader needs a system that maintains a winning percentage closer to the 60% mark to remain profitable.
  • Because a trader needs a high winning percentage with binary options (or they need to keep losses small when they trade other securities) trading requires an incredible amount of discipline. This is extremely hard for most humans to maintain over the course of long periods of time. As any professional day trader will tell you, a small lapse in discipline can lead to a huge loss of money.

It’s Still Possible To Get Rich Trading Binary Options

Even though it is extremely difficult, it’s not impossible to get rich from trading binary options. Binary options often pay out 70% to 90% above the trade size to a winning trade. With that sort of potential, of course it is possible for people to get rich. In order to get rich, there are some important steps that you will need to take.

Build A Strategy Using A Demo Account

It is very important for traders to have a demo account so they can test and build strategies in a sandbox environment. With a demo account, a trader has the ability to experiment without losing any real money. Only after a reliable strategy is developed should the trader move the strategy from the demo environment to the real money environment. If you are struggling to build a strategy, consider that there are 3 main directions a trader can take.

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo

    Good Broker. Only For Experienced Traders!

  1. Reading the market. This involves looking at the share inventories on the books and looking at the prints (or tape) of a stock and/or market. A trader tries to read the direction of the prominent order flow, and the way the market is trading each particular day (i.e. a stock is struggling to rise even if the S&P 500 is going up). To develop a market read you will need good data feeds showing prints across all ECN markets, dark pools, and all order books. You will then need to watch individual stocks, as well as the whole market very closely over time to understand how different factors affect how it moves.
  2. Using technical indicators. This is a popular method with many traders. Many people start with using indicators such as MACD, Fibonacci ratios, the relative strength index, or moving averages. More advanced stochastic or Elliot wave indicators may also be used. Whatever you use, make sure that you are applying it to a stock where the indicator is a good fit (not every indicator works for every stock). There are also certain market conditions that lend themselves to certain indicators better than others. To make money with indicators you will still need to test and hone your strategy for using different indicators at different times.
  3. Using a trade indicator tool. Some companies put software out that provides buying and selling signals for traders. Like any indicator, these do not work all the time, but may work well during certain times or market conditions. At How We Trade we recommend market club. You can sign up for a free trial by clicking the auto trade indicator on the menu.

Whichever method you ultimately use, make sure that you test and refine it in a demo account environment. Only after you can reliably win in the demo environment should you move your strategy to a “live” account.

Scale Up Your Size Steadily

If you are able to exploit a profitable strategy, you will need to increase the size of your trades steadily. It is important that you do not increase your size by large jumps (you don’t want a couple of losses to wipe out your whole account) but you want to make sure that you are consistently increasing the size of your trades. Every trader needs to accept that no strategy will be effective forever. If you have a strategy that is effective, you will need to take advantage of it as much as possible, for as long as it lasts. You will not get rich by taking small trades, but if you are able to increase your trading size enough you do have the ability to get wealthy.

Maintain A Positive Attitude Through Losses

Every trader is going to experience some losses, no matter how good they are. It is very critical to stay in a positive frame of mind even during difficult times. A positive attitude prevents you from missing winning trades that present themselves to you in the future. It also prevents self destructive behavior that a lot of trader allow themselves to engage in (reckless trading). For tips mastering your emotions while trading read here.

Recognize When Your Strategy No Longer Works and be Quick To Adapt

Many traders who used to have a working strategy make the mistake of sticking with the same strategy even after it no longer is profitable. A successful trader will realize when their strategy needs an adjustment and stop trading. Remember, losing money by trading is much worse than not trading at all. If your strategy is no longer profitable you will need to stop trading immediately and go back to the sandbox (demo account) and either adjust your existing strategy or develop a new one. Successful traders do not waste time trading with a losing strategy. Trade with a winning strategy only.

Will You Get Rich?

It is entirely up to you. While it isn’t easy, there are countless examples of traders become very rich from the markets. Binary option traders are no exception. The key is to exploit any security and every strategy as fully as you possibly can. Maintain strict discipline, a positive attitude through the ups and downs, and develop a winning strategy. If you do this, you can become wealthy.

Can I Get Rich With Binary Options Trading?

When most people consider trading and investment, they think of the large sums of money that are involved. Now, binary options trading is quite new to the world of trading. This is why it has garnered such a large amount of interest from traders. In addition to its novel approach to investment and trading, binary options does afford other advantages. For instance, it is a lot simpler to understand and execute than other types of trading.

For example, instead of owning a particular asset, you simply have to determine the direction of the value within a period of time. Most people feel more comfortable with binary options trading. This is why they assume that they can become overnight millionaires by investing in the market.

The problem here, however, is that people see simplicity and they assume effortlessness. While you may have no trouble grasping the concepts involved with binary options, it is far cry to actually becoming successful. If you really want to make it rich with binary options trading, you need to understand just how to do it. This means understanding the factors that influence whether or not you make any money. Here are some of the things you will need to know if you want to get rich with binary options trading:

Why You Should Have Adequate Capital to Get Rich

When you were starting off with binary options trading, you were probably cautioned about investing too much money in your trades. This is solid advice as you should never place all of your capital on a single or series of trades, regardless of the odds. At any given moment, you should only place a certain percentage of your capital on a trade. At the same time, if you hope to get rich with binary options trading, you are going to need the capital to back you up.

This means starting off with a considerable amount of capital. This way, you can put more towards the trades while still maintaining a healthy account. Placing small amounts on your trades will only provide you with small returns. As such, you can hope to incur a lot of money if you do not place trades in a similar fashion.

How to Use Compounding Returns to Make a Profit

As mentioned above, the key to making money with binary options trading is to always have enough money in your account. This is why successful traders use the compounding returns method to retain money and make more at the same time. To explain this better, let’s take an example. Let’s presume that you have $1000 in your account. You are going to utilize 5 percent of this which comes to $50.

The odds of you being correct about a particular trade is 70 percent and you place this $50 dollar on that trade. For the sake of the example, let’s assume that your prediction is right. This means that you have won $35, in addition to your initial $50. This is a total of $85. The compounding returns strategy insists that you put all of this money ($85) on your next trade and so on and so forth.

How to Slowly Increase Your Trade Size

As you can imagine, staying stationary really will not do you much good when it comes to being productive in binary options trading. In the beginning, you will start out small to minimize your losses. If you hope to make some real money, however, you are going to need to increase the size of your trades. One of the biggest mistakes you can make, nonetheless, is growing the trades by leaps and bounds. What you need to do instead is to increase them incrementally, always hedging your bets. You should slowly but consistently place larger trades as time goes on.

The short answer to this articles is yes, you can get rich with binary options trading. What you need to be prepared for, however, is a long road ahead. It is going to involve time, patience, and strategic trades before you start seeing a real profit. So as long as you are logical and shrewd about your trades, you should be able to amass some serious wealth.

Can You Get Rich Trading Binary Options?

Could people really become millionaires and get rich trading binary options? What are some of the difficulties and what is the chances of success in Binary Options Trading?

Can You Get Rich Trading Binary Options?

2020 and 2020 are definitely the year of Binary Options Trading. Since 2020, when you google for options trading, the top results that turned up are going to be “Binary Options Brokers”.

In fact, Binary Options Brokers deployed the very best internet marketing strategies to quickly saturate potential investors and traders with messages of how common folks are becoming millionaires within extremely short periods of time and even making millions within weeks or months through Binary Options Trading and that has indeed captured alot of attention. That is also why you are reading this today, aren’t you?

However, after reading all these fantastic stories about binary options millionaires, you must be wondering “Can you really get rich trading binary options”? and that’s why you are here today reading this, right? In this article, I shall explore the odds of a Binary Options Trader really making consistent money or lots of money and explore also why its so hard to get rich trading binary options. This is not an article talking about the legitimacy of binary options or whether they are scams or not, real options trading or not. Just one which helps you decide if you could really make money from binary options trading. (Learn about what Binary Options is)

First, let us look at an infographic summarising why it is so hard to get rich trading Binary Options:

Note: Please feel free to share the above infographic on your website or blog to warn more people. Be sure to link back to our page!

Can You Get Rich Trading Binary Options? – What Are The Chances?

First of all, what is the actual number of people who actually became rich through Binary Options trading? Well, according to a recent survey, the chances of getting rich through binary options trading seem a little bleak. The report surveys a number of binary options traders to find out how many of them eventually get to withdraw more cash from their account then they deposited in their binary options trading accounts and the result was staggering. There was about only one out of almost a thousand binary options traders who managed to result in withdrawing from their account more money than they put in initially, i.e profitably. About 80% of surveyees made some initial wins before losing it all within their first few hours (not lasting even 1 day). The rest usually lose all their money over a longer period of time, or managed to actually make some significant profit and then lose it all later on before they get a chance to withdraw their profits. Finally, there is that one in a thousand who manage to end up withdrawing from their account profitably.

Are you feeling lucky? Are you typically the “one in a thousand” kind of person?

Yes, we are not saying that binary options trading is outright illegit or what but that the chances of winning or getting rich trading binary options is so low that lottery tickets sound like safer alternatives. Statistically, the chances of emerging an eventual winner from this game of Binary Options Trading is extremely low, which is why running “Binary Options Brokerages” are so profitable and why there has been a sudden surgence of so many binary options brokers in the years of 2020 and 2020. But, why is it so so hard to get rich trading binary options? Let us now explore some of these difficulties.

Can You Get Rich Trading Binary Options? – Difficulties

So, what makes getting rich on trading binary options so difficult? Even professional poker players who are masters of the game of odds and money management finds it hard to profit from Binary options at all, many of them have quitted even trying. yes, professional poker players, quitting the game of Binary Options Trading. Lets look at some of the reasons why.

Can You Get Rich Trading Binary Options? – The Payout

One of the most publicised characteristics of Binary Options is their fixed payout. The latest most popular payout seems to be paying you 70% of your bet when you win while “returning” you 15% of your bet money if you lose. This means that when you win, you win 70% but when you lose, you lose 85%. First of all, taking away the complexities of how much skill you can apply into Binary Options Trading in order to increase your chances of winning, lets just look at the simple “Binary Probability”, which is what “Binary” in binary options mean.

Binary means having two possible outcomes, win when the price cross a certain price or lose when it doesn’t, making the binary probability 50/50, having an equal and fair chance of ending in either outcome. That leads to a very interesting situation, which is, winning 70%, 50% of the time and then losing 85%, 50% of the time, already tells you that your net outcome in such a setup is a glaring (0.7 x 0.5) x (-0.85 x 0.5) = 0.35 – 0.425 = -0.075. This is a deliberate losing setup which demands that you be able to consistently have a 55% and above winnning rate to make any money at all. That alone is a very tall call as the ability to consistently produce above 55% winnning rate is a challenge even for seasoned professional options traders. Most professional options traders or futures traders make a long term profit not from being able to consistently produce a higher winning rate but to be able to produce much higher returns on their wins than on their losses so that even in a 50/50 scenario, profit can be made. This can only be done through instruments that does not put a limit on your maximum return, such as real options or futures or even stocks. The fact that maximum profit is fixed in binary options trading and that you always stand to make a higher loss than profit already start every binary options traders off on a losing start, making a very tough game of winning through predicting future price action, even harder. Which brings us to the next reason why its so hard to get rich trading binary options.

Can You Get Rich Trading Binary Options? – The Timeframe

It is a well established fact in finance that the longer the investment timeframe, the higher the chances of a profitable outcome. In fact, an investment timeframe of about 20 to 25 years is almost guaranteed to turn out profitable. The probability of a profitable outcome decays linearly as the timeframe of an investment decreases. In my experience, I can predict long term, 1 to 3 years, price action up to an accuracy of over 90%, while my accuracy for mid term swing trading price action of 1 to 3 months decays to about 70% while short term trading to intraday trading decays to a random 50% accuracy. So, what is the common timeframe in binary options trading? A mere 60 seconds in most cases! How accurate can one get in that kind of timeframe? The timeframe along with the payout system is the perfect formula for a losing scenario but has so cleverly been marketed by binary options brokers to be conditions in which people are winning 70% of their money as quickly as 60 seconds! Talk about being able to reframe a completely negative situation into a positive one! This is another very important reason why it is so hard to get rich trading binary options. Why is it harder to profit as timeframe decreases?

The main reasons why it becomes harder to profit when timeframe decreases is that firstly, entry and exit points need to be increasingly accurate in order to profit as timeframe decreases. This means that if you are investing for the long term, you can put on a position and then wait for prices to eventually move in your favor. That can happen as slowly as a few months later and you could still be profitable. However, as timeframe decreases, you would have to be able to spot entry points that are increasingly accurate in order to make a profit. If you are investing for a week, then you need to spot an entry point where the price should move in your favor within the next few days. Now, imagine if you are investing for just 60 seconds. you need to be able to enter a position and have it immediately move in your favor! How accurate an analyst do you need to be in order to do that? Which leads us to the next point.

You simply won’t have the time to perform any comprehensive analysis at all in the first place! Yes, if you are investing in a binary option that is going to expire in 60 seconds, you need to be able to make a split second entry decisions very often without any form of technical nor fundamental analysis! Yes, real investment professionals take time to completely analyse an investment in order to arrive at an educated decision whether or not to commit capital to it. This process of analysing an investment makes the difference between investing and gambling. Investing is committing capital to a well informed and well researched opportunity while gambling is just jumping in without any such research, hoping things work out as one wishes. Now, what if you researched the underlying beforehand?

Now, the next problem with an extremely short timeframe that makes getting rich on binary options very difficult is that even if you did any form of research or technical analysis, there will always be minute to minute swings! No matter how bullish an outlook the price of an underlying is based on technical analysis, there will always be numerous minute to minute price swings that completely contradicts that outlook. So, you might buy a binary call option because the underlying price action is determined to be bullish for the day based on technical analysis, you might still be losing if that minute is a pullback and it don’t even have to pullback very far, it only need to be below, no matter how little, the strike price of the binary call option for you to end up losing.

See how by combining the payout system and the extremely short timeframe, binary options brokers have already stacked all the odds of winning in their own favor? Well, even with such designs in place, there might still be those one in a thousand who could consistently predict such extremely short term price actions. this is when binary options brokers go into outright fraudulent techniques to beat these winnners.

Can You Get Rich Trading Binary Options? – The Frauds

As if profiting from Binary Options isn’t already difficult enough, binary options brokers sometimes commit outright frauds in order to stop you from pocketing any money at all. Binary options brokers could do that basically because most of them are not real legally regulated brokers in the first place. With no regulators governing what they do and how they do it, binary options brokers could do almost anything to win. Based on complains received by the US Commodity Futures Trading Commission, CTFC (Read the full report by CTFC), frauds committed by binary options brokers range from manipulation of options expiration timer to manipulation of trading robots to outright not paying you when you attempt to withdraw money from your account! Yes, as if designing the game completely in the favor of these binary options brokers isn’t enough, these fraudulent techniques makes it almost next to impossible to get rich trading binary options.

Manipulation of the options expiration timer involves secretly extending or reducing the expiration timer by a few unnoticable seconnds so that a winning price that is too close to the strike price could be turned into a losing one by expiring the binary option the moment it makes a quick dip below the strike price. This is how alot of binary options traders experience the frustration of watching a winning trade expire only to see that it is posted as a Lose when its updated.

A lot of binary options traders actually depend on trading robots to automate their trades rather than trade for themselves. However, such binary options traders usually experience the terror of the robot making a huge string of losses which all but wipes out their account within minutes before it gets back on its usually “winning rate”. Before you think its bad luck, many of such instances are actually fraudulently manipulated to be so. This is why there has not yet any real accounts of any binary options traders being able to make binary options trading into an automatic money generation machine through the use of binary options trading robots to date (apart from marketers who are marketing such robots).

As if doing all of that isn’t enough,that despite all of these difficulties, you managed to make some money, there has been reports of binary options brokers simply not paying binary options traders when they make their withdrawal from their binary options accounts. This is done primarily in two ways; one, you receive a call from the binary options broker the moment you hit that withdrawal button, promising extra “free” credits if you continue to keep the money in your account and two they simply never make the transfer. Alot of binary options traders who take up their offer of the “free” credits and keep the money in the account very soon find themselves running out of luck and losing it all to the binary options broker eventually. In respectable financial term, we call that “Reinvestment Risk”. And reinvestment risk on such extremely low probability of winning is extremely risky indeed.

Can You Get Rich Trading Binary Options? – Conclusion

Even though it is statistically possible that some people get rich trading binary options, I have yet to meet one such person in real life nor have the honor of interviewing one. The game of Binary Options Trading has been rigged right from the start to put the odds of winning in favor of the binary options broker simply through the payout and timeframe itself. As if that isn’t enough, fraudulent techniques employed by some binary options brokers made it all but impossible to get rich trading binary options. But of course, you could be that one of a thousand. are you? So, I kept comparing binary options with real options trading here, what exactly is the difference? Read Differences Between Binary Options Trading and Real Options Trading. On top of that, this is actually the most dangerous time to be opening a binary options trading account and trading binary options! Read about Why This Is The Most Dangerous Time For Binary Options Trading.

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Trading Education, Free Demo Account!
    Get Your Sing-Up Bonus Now!

  • Binomo

    Good Broker. Only For Experienced Traders!

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