When weighing your options and deciding whether to delve into the world of binary options trading, it is natural to ask the question whether it is possible to make money through this process, because your motive for engaging with trading is of course to win, to place successful trades and to make some cash!
Is there a straightforward answer to this crucial question then? Can you really make money through the trading of binary options? If you are looking for a short answer then the most accurate one would be “it depends”. An even better answer, “yes you can, provided that…” is followed by a series of if clauses. We will see those in greater detail below, since we do believe that making money through binary options trading is both possible and plausible, besides we have made some ourselves! But first, let us briefly see under what conditions it is not possible to make money through binary options trading.
In a nutshell, you will not make money from binary options if you approach it like a game, a get rich-quick scheme or a gamble based on random guesses. You will not make money if you don’t learn what it takes before-hand, you will not make money if you don’t have a consistent strategy and if you simply trade based entirely on robots, other people’s trades or rumours and views you find on websites or the media. In short, you will never be a winning, successful binary options trader, if you decide to trade beyond your tolerance level, using money you cannot afford to lose and also if you expect that you can make your living entirely from your trading results, especially when you are still new to the game. You need to ensure that at least at the initial stages of your trading endeavours you do have other income sources to rely on.
Having dealt with the conditions when making money is not possible, let us now see how it can become reality and what are the preconditions that need to be met to turn you into a successful, winning binary options trader. To make money from binary options you need to ensure that you conduct your trading through a legitimate binary options broker and that you only trade after you have learned the basic fundamentals of trading and you base your trading decisions on a properly devised trading strategy.
What makes binary options trading better in terms of its money-making ability, especially for newer traders, is its inherent simplicity and the fact that they payout offered are larger than other forms of investment or trading but come with fewer risks, or at least a risk factor that is easily calculated and it is known well before the trade is placed.
Making money through binary options trading is indeed possible for a very simple reason; because you can learn what it takes to trade efficiently and effectively simply by dedicating enough time and effort. You can train to become a good trader without having to spend one cent. The learning process may be tiring or even boring at times, but if you manage to remain patient and consistent and you also apply these two virtues when you are actually trading then chances are what you will succeed.
Once you are equipped with the necessary know-how, you don’t really need much more than a live account through a reliable broker to start building your portfolio and earning money. The whole money making process does not entail any other fancy or expensive procedures or tools.
So, making money through binary options entails some learning: learning how it works, learning how to read charts and learning how you can make accurate predictions about the price movements of the tradable assets.
Thus, it can be argued that trading binary options online is not as complicated as many people think it is and that in reality making money with binary options is actually pretty simple, provided the trader puts the necessary effort into the endeavor and sticks to the implementation of a simple trading strategy that will ensure the consistent generation of money. In fact, exactly because predicting the price movements of most assets does not pre-suppose or require the use of complicated theories or complex tools, but merely grasping how trends are shaped and operate and how to read and trade on news events.
Moreover, your chances of making money will increase in time, since the more you trade the more you will becoming at ease with how everything works. So don’t jump in too deep from day one but rather start with small, gradual steps and increase your trading amounts as you go along. And always remember that on a trade that ends out of the money the only money you stand to lose is the amount you have committed to that particular trade alone.
To sum it all up, almost anyone is potentially able to make money through binary options trading for as long as they engage in this in the right way, through a regulated, reputable broker to avoid being scammed, and provided they base their trading decisions on solid knowledge and consistent, logical strategies, also making the best use of other available tools such as a credible signals service or social trading facility.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.