Can you really make a living simply by trading in binary options?
Can you just sit at your computer at home on a weekday, refer the charts and your broker and rely exclusively on them to sustain you better than a regular day job? In theory, yes, absolutely.
If you have the right temperament, instinct and timing, you should be able score very well as a full time binary options trader and make a comfortable living from it.It’s the same as in forex trading.
If that happens to be your desired career, we have some information here that you might find useful.
However, bear in mind that it is strictly theoretical. Reality is not so straightforward unfortunately.
What is important to know is that it is not impossible. Therefore, you can pull it off.
The formula for making a profit in the binary options industry is simple, just make the right option so you will land in the money.
However, no one is prepared to tell you that is an easy thing to accomplish. The first step is in being a realist and not being tempted by some candy coated advertising that ultimately leads to the witch’s house where you will be eaten.
Below, we have detailed some helpful information to get you started as a full time trader.
Learn Different Types of the Trade
There are types of trades you can rest your predictions on based on how well you assess the market you are trading in.
The first you will be familiar with – high/low trades, the simplest form. Your objective with this type of trade is to accurately predict whether the price of a certain market be either higher or lower than the strike price before the trade expires. An accurate prediction will yield you a profit while an inaccurate one, a loss.
Next is the touch/no touch option.
Here, you are saying that the price of an asset will be at a certain amount before the time of expiry. You can even claim it the other way around, that the price will not be at a certain level. You can also make a double-touch trade, where you pick two levels and claim the price will hit either of the levels before time.
Finally, there is the boundary option, also referred to as the range option. In this type of trade your prediction is based on whether or not the price of an asset will be within a certain price range at the point of expiry.
Manage Your Money Well
This is imperative if you want to make the grade as a binary options trader.
It is important to remember that despite all your research and all your experience. Trading in binary options is still a risky business and investing too much into a trade can yield a tremendous loss and land you in serious trouble.
Commit just a tiny tiny percentage of your bankroll – we’re talking as tiny as 1 percent here – to get you started in training and later as your knowledge and confidence grows, you are bound to have better luck with larger amounts. Do not let the risk factor climb over 10% at the most.
Going full time on binary options trading can make you a very wealthy man. However, it is indeed a very big decision. After conducting some thorough analysis however, you should have a good idea of whether you should go for it.
Be realistic and pay due respect to the risks involved and be careful not to be in a position where you stand to lose more than you are prepared to.