Making money on binary options
In the modern world, absolutely all people dream of an additional form of income. And the question is: “How to make money?” always remains top of the agenda. In this article we will reveal the method in detail and tell you how you can increase your income.
Today, we can definitely say that on the Internet you can find a lot of offers for income online, but when you start to get acquainted with these types of earnings in more detail, you realize that many offers are simply a scam.
For example, you can simply deposit a tidy sum into a bank account and receive monthly interest after a while. But upon closer examination of the situation, it is completely clear that such interest rates hardly cover inflation. That is, there is no need to talk about any profitability. Real estate transactions can bring good returns, but they also need to invest a lot of money, which we don’t have.
And here the World Wide Web comes to our rescue. Not everything that is offered here brings high profitability, but there are also quite good options, one of which we will consider in this article.
What are binary options
First, let’s understand the concept of binary options (BO). This concept is a special agreement with clearly defined conditions regarding the behavior of the price of a certain product over a certain time. If the terms of the agreement are fulfilled, that is, the cost of the funds for a certain period of time, which is specified in the agreement, behaves as specified, then the player receives a certain reward, in monetary terms, in the amount specified in the agreement. If these conditions are not met, the player’s loss is equal to the cost of the binary option itself.
For example, you know that one euro is equal to 1.1734 dollars, but you think that this value will not last long and literally in 15 minutes the euro will rise in value. In order for your knowledge to bring you a certain amount of money, you enter into an agreement, for example, for 100 dollars with a percentage of 80 percent of the profit. The specified time passes and the rate actually rises (by how much it rises is completely unimportant). This means you earned about $80. Well, if you didn’t guess correctly and the euro, on the contrary, fell in value, then you lose your invested money. But there are cases when the cost remains at the same level, then the invested money is returned to the player.
The earning mechanism is very simple and understandable, so even beginners can play this way. Although there are quite a few subtleties and nuances here, the mastery of which requires certain preparation, so in this matter you cannot relax in any case, no one gets the funds just like that.
- Option – Up/Down. This is one of the most common types of binary options, when purchasing which you only have to predict the direction and movement of the value of the asset. Profitability in this case depends on the currencies that you have chosen for interaction, the time interval of the event, and the market situation; it can reach ninety percent.
Let’s talk about the profitability of this kind of income?
In this article we will tell you how profitable this type of income is. Let’s talk about how much you can raise in this way. Binary options allow you to earn quite a bit of money. The maximum is ninety percent of the amount you invested. But if money were given so easily, we would be surrounded entirely by rich people, and since this does not happen, it is necessary to look for pitfalls in this type of earnings on cryptocurrency in binaries. The main thing is that you understand that the simplicity and ease of such income is only apparent, but in fact it requires the application of certain knowledge and experience in working on such platforms. Also, do not forget about self-discipline.
The first thing you need to understand is that this is work, and quite complex work, and not, for example, slot machines, where chance decides everything. It is because of this attitude that most players simply give up in the first days of working with binary options.
If you do this kind of work at random, then the probability of winning is only fifty percent. That is, half of your trades turn out to be winning, and half are losing. But since the loss is the entire bet amount, and the winnings are only a percentage of the bet amount, the outcome will still be unprofitable. For this reason, those players who do not want to study the market and undergo training in working with binary options should avoid working with binary options.
Of course, they won’t tell you that such tactics, for example, are one hundred percent winning; such algorithms simply do not exist. However, there are strategies that will help you stay at 60 percent winnings, or even higher. Thus, we can say for sure that to rise here you really just need to work and look for something new, develop your own tactics and strategies.
Probable profitability of binary options
What is the profitability on binary options? Profitability on binary options will be higher the higher the size of your balance on the platform and the higher the bet amount. Here you are taking a risk and you must always remember this. Here you can either get rich in a matter of minutes or completely blow your budget.
In order not to risk real money again, practice first on a virtual account. There is no need to rush here; pay enough attention to this training. Train on a virtual account for at least two weeks, or even better, a month. And only after you start getting positive results, switch to real money. By the way, we do not recommend betting more than five percent of your deposit on one event; this is the maximum acceptable risk.
For those who want to get an answer about the profitability of such an event as a binary option, we will give a clear example. Let’s say you
deposited ten thousand rubles into your personal account. You listened to our advice and made ten bets (transactions) in each of which you risked exactly five percent of your capital, that is, 500 rubles per bet (transaction). For example, out of ten transactions, 7 were successful, and 3 went negative. With a profitability of 80%, your profitable trades enriched you by an amount equal to 7*500*0.80=2800 rubles, and on unprofitable bets you lost 1500. Thus, the net profitability will be 2800-1500=1300 rubles. As a result, your account will not have 10,000, but already 11,300 rubles! This is the approximate calculation that will determine your profitability. This is a real indicator and you should not take too much risk to achieve excess profits.
How to really make money on binary options
It has long been no secret that you can quite realistically make money on “all or nothing” options. The most important thing is to have the necessary knowledge and be able to use the tools available for this. A competent approach to binary options trading can bring significant profits to the trader.
Anticipating price movements is the basis of these operations. There are several types of analysis that can significantly help with this:
- technical;
- fundamental;
- psychological.
Let’s look a little more closely
Technical analysis
represents the basis for predicting price movements. This is a fairly effective and frequently used analytics method. The method is based on a graphical execution that shows the analysis of historical data of a financial instrument. Taking into account changes in price movements under the influence of various factors in the past, it is possible to qualitatively develop a strategy for future trading. Moreover, this method is easily implemented both over short periods of time (minutes, hours) and over longer periods (days, months).
Fundamental Analysis
provides a broader overview of the factors influencing price. The most popular type of this method is news trading. That is, when a company publishes its financial statements, this usually immediately affects the price of its shares, which can subsequently provoke an investor to buy or sell assets. This type of analysis is most effective when forecasting over long time periods.
Psychological analysis
involves studying the mood of market participants, which can significantly influence trading decisions. You should not ignore the psychological side of trading, since it is often this factor that is easiest to predict and use for your own purposes.
5 steps for beginners or how to easily start trading binary options
If you don’t know where to start, there are 5 simple steps that will help you decide on possible actions.
STEP 1 – Find out the rules of trading.
You may already know some of the rules, but there are also some that you have no idea about. Of course, all these rules are quite complex and will take time to understand. But this will be a prerequisite, since without knowing the rules, it will be impossible to make money in this area. Here you should pay attention to the following points:
Control over emotions. Most traders fail in trading not because they have drawn up a trading strategy incorrectly, but because they were able to control themselves. A cool head and a clear mind are 90% of success.
Strict adherence to strategy. Sudden bursts of insight are not welcome in trading. As a rule, this is the result of an unstable emotional state. A competent trader will strictly follow all strategic stages, since the established program was created specifically to achieve a specific goal. Therefore, you need to open or close a deal within the time period that was predicted in advance. This will allow you to avoid wrong decisions.
Risk control. You should not exceed the risks established in the transaction. That is, if at the beginning it was planned to risk 7% of the deposit, then this figure should remain unchanged. Risks calculated in advance will help avoid unnecessary losses. The best option is to set the risk in the range from 5% to 10% of the deposit amount.
A gradual increase in the amount is possible when the deposit amount increases. For example, the deposit amount was 1000 rubles. – the amount of risk was 50-100 rubles. The trader earned an additional 1000 rubles. and now he has a deposit of 2000 rubles. In such a situation, you can risk 100-200 rubles. This approach will not only help protect funds from unnecessary losses, but will also be a vector for increasing earnings.
Step 2. Choosing a strategy.
An effective strategy is the key to success! This is a recognized axiom that hardly anyone can argue with. The main nuance is that a competent strategy must include a process in which there will be an order of magnitude more profitable transactions than unprofitable ones. The 60/40 ratio will allow the investor to be guaranteed a good profit.
There are a great variety of binary options trading strategies. However, experienced market participants confirm that strategies with simple statistics are often the most effective. They are characterized by significant stability and can easily adapt to the situation in the financial markets.
But here it is important to understand that the strategy cannot fully guarantee the expected result. It is also necessary to take into account the accumulated experience, which can suggest one or another solution. Strategy essentially acts as an auxiliary tool. But it is in combination with the necessary knowledge and skills that the strategy will work most effectively.
The generic strategies below are not a panacea. This is just a guide that can help you develop an individual strategy. In such a situation, it would be most correct to use a demo account. 2-3 months is the optimal time during which a future investor will become familiar with the features of trading and be able to plan his own strategy.
- Strategy 1: Moving Averages.
“Moving averages” is a fairly popular indicator, on the basis of which a fairly simple strategy is formed. It reflects the average price set over a certain period of time.
To make money, you need to place several moving averages on the chart and open trades at the moment of crossing the “moving averages”
- Strategy 2: “Support and resistance levels.”Trading from support and resistance levels, as well as trend lines, is a very common strategy. The earnings will be excellent. But you need to know and use money management correctly.
- Strategy 3: “Combination of Japanese candlesticks.”A strategy that takes into account the combination of Japanese candlesticks has shown to be highly effective. It can also be combined with another strategy, using it as a specific “filter”. If you are a beginner, then you need to search for patterns (patterns) on the chart and trade according to them. Permanent, profitable and stable income is a reality.
Trading using candlestick patterns is an excellent scheme and tool that allows you to conduct successful trading and improve your financial results!
See all the latest strategies in our TOP list of strategies.
Step 3. Choosing a broker.
This point is one of the fundamental factors. Choosing a quality broker is not so easy, but without him nothing will work. A brokerage house acts as an intermediary between the trader and the markets. Thanks to it, the investor gets access to a trading terminal and the necessary financial instruments. When choosing a broker, you should be guided by the following points:
- Reliability. Before concluding a cooperation agreement with a brokerage house, you need to thoroughly check it: documentation, platform, reviews, etc. The thing is that most brokers present on the market have nothing to do with real trading. In this regard, there is a high risk of running into scammers and losing all your money.
- Contractual terms. To understand how profitable cooperation with a broker can be, you need to thoroughly check the profitability of his company’s financial assets. If the broker’s profitability is less than 80% on major financial instruments, then it would be very reckless to contact him. Under such circumstances, profitable trading is unlikely. You need to choose a broker with a profitability of 90%. This will indicate that his trading account is regularly replenished with large amounts.
- Trading terminal. It is worth paying attention to the trading platform provided by the broker. The effectiveness of the operations being implemented will depend on the convenience of the interface and the availability of all the necessary tools. This means that the terminal must have at least a basic set of functions that allow for technical analysis of certain data. The most optimal way would be to display the price in the form of Japanese candlesticks. This helps to perceive the movement of the indicator as clearly as possible.
- Easy to withdraw money. This is a stumbling block for many brokers. When withdrawing funds from the site, some unexpected difficulties begin to arise. In the best case, the intermediary will request a copy of the passport and will consider it for several days. To avoid this, clarify this fact before signing the cooperation agreement.
- Analytical data and training materials. Many brokers purposefully focus on newcomers. They create training courses, conduct various online conferences, etc. For the most part, of course, the information provided is of rather low quality, but if you wish, you can find really important data. So you shouldn’t keep the information component aside. Perhaps the broker is ready to offer something really worthwhile.
Step 4. Demo account or strength test without costs.
After a standard strategy has been developed, you need to register on the broker platform. Usually this procedure is quite simple and takes about two minutes. It is with the help of a demo account that a trader will be able to try his strategy thoroughly and identify the positive and negative aspects. This is the necessary experience to adjust forecasting.
It is better to work on a demo account for at least a month. It is necessary to bring the process almost to automation. By exploring different aspects of your strategy, you can formulate the most effective option. Ideally, most of the operations carried out should result in a profit; only after that should you switch to real money and start investing real money.
But even if you are 100% confident in the developed strategy, you should still start with small amounts. The fact is that the perception of working on a demo account is significantly different from the emotions experienced on real sites. In the test version, the user understands that all his funds are fictitious numbers, so loss or profit does not cause an adrenaline rush in him. And when it comes to real money, turning off emotions is quite problematic. This is why you need to be extremely careful, especially at the initial stage.
Step 5. Real trading.
After trading on the demo account has been successfully secured, you can move to the real site. It is worth repeating, it is pointless to immediately start real trading, without the necessary preparation it will be a 100% failure. There is no need to replace the account; the trader only needs to top up the account, and he will become a full participant in financial transactions.
The main thing is not to forget the basic rule of any novice trader: only available funds are invested. Attraction of credits and loans is excluded! You should not follow your passion, otherwise you could lose everything.
Let’s summarize and draw conclusions
Let us note something important in order to fully put together the picture of how to make money on binary options.
In fact, the most difficult and longest time in a trader’s life is the waiting period. As a rule, observation takes longer than actual operations. There is no need to do unnecessary manipulations when they are absolutely not required. After all, almost 90% of the time on the stock exchange is waiting for the desired signal. And only after this the trader will be able to implement the action – conclude a deal.
To avoid unpleasant consequences, you only need to comply with a few conditions, which are discussed above. Here is a short checklist with important points:
- Clear control over emotions.
- Smart trading strategy.
- Careful adherence to strategy, eliminating rash decisions.
- The risks of the transaction are strictly established and, without increasing the deposit amount, cannot be changed.
- Mandatory training on a demo account, lasting at least a month.
- Realistically assess your strengths without being tempted by potentially high earnings.
By remembering these simple rules, you can successfully trade binary options and make good profits.
Trading on financial exchanges requires a competent and high-quality approach. This is not a lottery, contrary to popular belief. Therefore, if you want to start trading binary options, you need to familiarize yourself with this topic in detail, otherwise you should not expect any positive results.
Do we recommend turning to such a tool to generate income? Yes. This is not the most difficult and fairly quick way to improve your financial condition. But just read the article carefully and follow the advice. Good luck!
