A binary option is an option based on an individual’s financial status. It pays off in a very simple way, through giving out either a value of underlying security, fixed monetary amount or nothing at all. This seems so discouraging, right? It is more like gambling and that is always the rule of gambling. It is type of trading that is done and practiced by beginners and other online traders.
In this particular type of trading, the big question that we keep on asking ourselves is if a beginner can really make money using binary options?
Well, this big question is also answered in a very simple way, “hard work”. Despite the mistakes made by these beginners, they can actually make good money by working hard and strategizing their ways of trading in a unique way.
Do not be discouraged by the rule that its either you get or lose everything, do your best and make something for yourself. If you work hard and smart, you will surely get what you deserve just as they say, “hard work pays.” The best and good strategy you can actually use in this case is to control the risk of losing and remember to follow the system.
Your chance of becoming successful is range do 50- 60 percent on any particular trade you make whether an edge is something giving a trader better than random chance to make money would take.
In order for you as a beginner to make good money just make sure you are correct at above 60n percent of trades of the trades you choose to trade in, meaning that in all the trade you take if you are correct at above 650 percent, your winning rate is at above 20-30 percent.
If/when you’re sure that you really want to begin making money using binary option, the first thing you need to consider is how to get and choose a reliable broker that offers demo accounts or try binary signals provider. This can be through Option Robot, an auto trading software that does the trading for you by giving out prediction for you.
Be completely sure when trading on binary option because there will be no one to help you on this platform since they all want money. Go on a very prepared binary option so that brokers will not feast on you while you are losing. This is like survival of the fittest, so be very smart in how you trade to make money.
Note that going for bigger positions will not help you make money, instead stay small to avoid bad losses.
While trading, make sure you avoid common mistakes such as;
- Not knowing the exact reason why you are actually trading, if you base your trade on your feelings then be ready to lose. So do not let your emotion influence you whilst trading.
- It is good to learn from mistakes. Once you realise you made a mistake on your first trade then change the way you did your trading style and correct them.
- Taking way too large trades, when you do this just consider yourself a loser because it doesn’t make sense to take such risks while you are still a beginner. Remember this can affect the entire trading you will ever make or take.
- Frustration, do not feel frustrated when you lose, this is just normal because naturally no one can ever become successful without losing or without having lumps along the way on whatever he/she is doing.
The following tips will help you make money using binary options;
- Consider using a signaling service, which will actually tilt the odds into the trader’s favor.
- Consider buying the right option length for your trading style bearing in mind that there are trading styles, which will work best over short time trades, and trading styles, which will work best on long-term traders.
- Consider tracking your performance in each binary option security in that if you find a handful of option trades that you are consistently profitable in, stick with what works and increase your size because it will actually have no sense when you waste your resources (money and time) on unprofitable trading.
Making money using binary option is something that is not easy for beginners, despite being smart in their ways; they will somehow lose first before making good money in this platform.