Do people make money from binary options?
Do people make money from binary options? The answer is yes. But before I give the reason to the answer I must say that all of you that keep saying with confidence that binary options is a scam are losers in this type of investment, just because you don’t find it profitable doesn’t mean it’s a scam. You just don’t have the right strategy and tools to make you consistently profitable. I must admit that there are quite a number of unreliable brokers out there that will take away your cash but there are very good brokers available that will make it easy for you to be successful in binary options. Trading binary options and forex is both profitable but the profitability is different between the two.
You can make a huge amount of profit in binary options in just a short period of time unlike forex trading where making the same amount of profit you made in binary options will take a longer time, but in the long run both are profitable types of investments. I’m not gonna explain the pros and cons of both types of trading but I just want to make a point clear to readers that are starting to think that binary options is a scam because of the majority of people here speaking against it. Binary options is not a scam and you can make an extremely great income out of it, only if you have the right trading tactics for it and that’s a fact! If you don’t know what you’re doing, you’re surely gonna lose but if you know the behavior of the investment option I assure you that you’ll be consistently profitable.
Now let’s talk about how I myself trade binary options. I’m gonna share with you a strategy that may or may not help you, there are several other strategies that you can use to trade this type of investment and this may or may not suit your needs but I’m gonna share it anyways, it will work out for someone out there just like it does for me. I use pure price action trading binary options. I figured, if price action works for forex trading why not on binary options? So here’s how the strategy goes:
•I use the 1 minute candlesticks.
•Secondly, I spot a trend on a currency pair then;
•I mark the support and resistance zones (I’m assuming you know what these are)
•After I mark these zones, I wait for price to touch these zones. Support and resistance zones are areas where price has a potential of reversal.
When price reaches these zones I wait for a candlestick confirmation (pin bar, engulfing formation etc.) When that happens I place a call/put option.
Now I use 5 minutes expiry time, that is for the 1 minute candlesticks. You can use higher tomeframes and expiries if you like. But I must tell you that the expiry time must be higher than the expiry time for the best results of this strategy. I hope this works for you.
Note that you must not risk more than 1% of your capital on your trades, that’s a universal rule.
And to all those that say binary options is a scam, you’re just a bunch of lazy people that have failed to take the time to learn and understand this type of investment.
I am a full-time medical student and I trade binary options making about 2–7 bets weekly. It supports my living costs, but I live in central Europe now, so they are not that high. It takes me about 20 minutes a day to analyze the market, for making a proper bet and I only take bets where the odds are greatly in my favor. This is why only 2–7 trades per week, people usually just go for the 1-minute bets, big mistake.
Now, I know you have heard that binary options are probably a scam. Complete bollocks. They were some brokers but this does not happen anymore. Most do not understand what Binary Options are. For some, it is like going to a casino, but if you understand the markets, the odds are greatly in your favor.
Now, it took me some time to get to this point. If you’re trying to become a millionaire, it won’t happen. But I do make about $400 — $2000 per week now. Which considering where I live now, where $1000 per month is considered an average salary, is a really good income.
If you are interested in Binary Options, you should first get to understand Forex market, because the underlying assets that you are betting on are the same. There is a difference between Forex and Binary Options trading, I don’t want to get into the details here, google can save you. Do not use Robots in binary trading!!
Now how does this relate to becoming a millionaire?
Well, understanding Forex markets means you actually (or you at least one should) understand how other markets work, or at least how are they interwined. You can not dodge learning in this, otherwise, you’ll waste your money.
I am now a final year medical student, I have earned about € 20.000 per year in the last 3 years since I started learning and trading.I now I am not even close enough to a millionaire, but I am on my way. And this is the way for me, knowledge about markets gives you so many ways to invest your money, it is crazy.
After you spend some time learning how to trade and not just gamble, you can actually make money trading binary options. I make an average of 30–50% return on investment per month but I have been doing this for over two years now. Now to your question, “how much”. That depends on a few things. So let’s pretend you mean how much you can make per month; Q1. How big your deposit is (account balance) Q2. How big/small your money management is Q3. How many trades you do per day Q4. How good is your win rate — –
Suppose your deposit is 1000$. Suppose minimum investment is 20$. I always recommend not investing more than 3–4% per trade but keep it under 5% at least. That would mean you would place around 30–50 per trade so in average 40$. Trading volatile currency pairs could yield around 80% — with some brokers even higher, (I have 85% as the highest so I only trade that asset). As a good trader, on the long run you should be able to maintain a win rate above 60%. Mine is usually around 67–80% per month so let’s just go with 70% and 4 trades a day and 80 trades a month. So you would expect to win 70% that’s 56 trades and that means you would lose 24 trades out of 80. Now let’s calculate profit vs loss assuming you would win 80% return on each 40$ trade (=32$):
Win= 56*32=1792 Loss=24*40=960$ Total: 832$ in profits Initial Deposit: 1000 Total balance= 1832$.
You can now play with the numbers a little bit, increase the payout/deposit for example to your own asset 85% or 76%, increase or decrease your winrate and increase or decrease amount of trades and how much your risk per trade and see the outcome. I have created an excel sheet that does all that but to be honest I don’t use it because I think you should not focus on how much you can make but you should focus on analyzing charts and doing the best trades and a decent money management. These types of calculations are often silly because reality is different, you never know how much you can win or lose and when you become experienced like me, you won’t need to think about these thinks anyway. Most newbies think they can turn a 250$ account into hundreds of thousands, that I think is one of the biggest problems in this industry, but number one is crooked brokers.
Do people make money from binary options?