Trading Options for Living
It has been believed by thousands that from earning a little extra money to making a full time living, or making a lot of money in a short span of time, binary options trading is an excellent way to achieve all of this. So many ads of Binary brokers tell you that you get “easy money” from binary option trading!
Suppose, there is a cold beer in your hand, it’s a summer evening, no more work for the day and you’re surfing the net in search of a good laugh or some info related to your latest hobby. But your little plan gets derailed by a stupid “Make Easy Money Online” with XYZ Binary Options Broker ads that pops-up on your screen.
Let me tell you, there is no such thing as “easy money”. It doesn’t exist! All those ads telling you that a student is making 500 bucks every hour online or that a housewife works from home and makes $10K each day… and now you can do it too, if you “click here now”… are total Bogus!
As it slowly gains popularity all throughout the world, thousands are making good money with little or no prior knowledge of the subject, however, binary options trading isn’t a cake walk: success can be achieved and risks can be minimized by following the tips mentioned below:
Is it Easy to Make Cash with Binary Options?
And this takes me one step further: Is Binary Option trading a way of making easy money? I’m sorry to disappoint casino players and betting addicts, but the answer is a definite “NO!” Binary Options are a way of investing in the financial market and should be treated as such; after all, Binary Options can be traded on four classes of assets, including currencies, stocks, indices and commodities. To claim that trading, binaries are an easy way of making money online is wrong to say the least. Is currency trading easy? Is stock or indices or commodity trading easy? The answer to those questions is again “No”. So how could Binary Options trading be easy since it includes all four asset classes? Each asset class has its own particularities and ways of trading it. For example, you cannot apply all the Forex principles to stocks and gold is influenced by other factors than coffee. Ok, the main principle of Supply and Demand applies to all assets, but that doesn’t mean they move the same and traders have to adapt their style and use different techniques for each class and even for different assets in the same class. Take currencies for instance: EUR/USD moves differently than USD/JPY and both are different than AUD/USD so you need to put in some chart time to get used to their movement. You could, of course, focus on just one asset class and that would make things easier, but the most important thing you must understand is that Binary Option trading is not a quick fix for some vacation money; you cannot just step in and turn 500 bucks into 5K with no previous knowledge.
When you get it right, it’s definitely easier and more rewarding than a 9 to 5 job. That’s why it’s worth a try and by this I don’t mean just to have a look and decide if it’s right or wrong for you because that way you won’t get a clear picture. But once you really put your mind to it and take the time to properly educate yourself, only then it might become easier. Think about a trained runner: it wouldn’t be too hard for him to run 10 Km, but if you would make me do it… well, let’s just say that my eyes will pop out of their sockets and my tongue will look like the one of a thirsty dog… and all this will probably happen in the first kilometer. I mentioned turning $500 into $5K! Yes, it is possible! But you have to train and then it will probably become easier. There are no shortcuts, no magical fail proof strategy and work must be put into it. Trading Binary Options and making money online doesn’t require some sort of special talent or gift you are born with, it’s all about consistent, serious work and you are the only one who can decide if you want to make it profitable.
Get your tool box ready
First things first: you don’t need to be a little Einstein to succeed, but you do need the right Binary Options tools. That means that you have to learn the basics of the market and also to have enough knowledge about the most commonly used technical indicators like Stochastic, Relative Strength Index, MACD (Moving Average Convergence Divergence). Knowing a little about trends is definitely a must and it’s actually the key to successful trading. And most importantly, you don’t have to be a brain surgeon to get the hang of all these basic tools: if you can connect two Higher Lows or two Lower Highs, you can draw a trend line. The indicators I mentioned are not so difficult to understand either and this is valid for all three of them: when they are at the top of the window, there’s a high possibility they will come down. After all, they can’t keep banging their heads on the ceiling… and when they come down, prices will do the same. Well, actually price dictates when indicators move up or down, but let’s keep things simple: if the indicator is too high – it must come down.
Of course, what I wrote above is a crude approach to trading, but yes, it can be that easy. In fact, when I first discovered the Stochastic Oscillator I thought I found the Holy Grail of trading and I was wondering why it was free and I didn’t have to pay anything for it. And as I thought about it, I didn’t know why I started to complicate things when I got more “experienced”… every system, no matter how complicated or complex will give you losing trades so it’s better to stick to the basics. I’ve fallen many times in the trap of over analyzing charts and fundamental events only to realize that sometimes “less is more”. Keep it as simple as possible and stick to the basics.
It might be overwhelming at first, but once you learn how to use indicators and how to identify a trending asset, the fog will lift and you will see the light – sorry for the transcendental approach, but that’s how you will feel when you realize that trading is not really as hard as they say if you put in some work. After all, Binary Options are easy to understand and to trade; don’t bother trying to understand exactly what Mario Draghi or Janet Yellen are saying because you will feel they are out of your league. At least that’s how I felt when I first watched their speeches: I was thinking “Man, I really have to work on my English. I can’t understand what they’re saying.” My English was fine and although I understood each word, I couldn’t put them together and make sense of what they were trying to say… and to be honest, several years later, I still don’t understand them completely.
Remember the important rules for trading:
- The first and foremost advice to be given to any beginner trader is to select a good binary options broker for your help in this field. A good broker, who knows his work, makes all the difference. There are various comparison websites available to make this choice easier for new traders, so one can quite easily consult these websites and choose a good binary options broker of their choice.
- Secondly, it is advisable to increase your knowledge in the field of binary options trading and to know that there is always more to learn. There are training courses available for imparting binary options trading knowledge to new traders. Reading new books on the subject matter and discussing with other traders about the matter also adds to the benefit. This type of trading is a constantly-evolving experience, hence knowledge on the matter is ever expanding.
- Thirdly, trading long term serves better returns, and binary options trading is a long term activity. Developing a long term plan for your binary trading and playing the right cards will ensure that you ultimately come out on top. Resist the temptation to get drawn into fads that do not fit into your overall strategies and strictly stick to your drawn plans.
- Fourth is to reduce your risks by resisting the urge to over-invest. Beginners tend to get carried away to make that one big score but they must employ some self control as that may be a game changer. New traders lose more money by getting carried away and over investing. Binary options brokers advise to invest not just with courage but also with rational thinking.
- Fifth, it is essential to keep a clear head while making any decisions about binary options trading. Beginners should avoid trading when they are emotionally disturbed, as emotions can create havoc with your trading. It is very easy to make the wrong decisions in an emotional state, so it is advisable to stay away from any form of trading until you’ve calmed down and cleared your mind.
- Prepping yourself before trading in binary options is the sixth advice. Studying the market and viewing graphs over time can help new traders predict behavior of any binary options asset, thereby helping them to make well-informed decisions.
- Another very important piece of advice would be to keep apprised of trading news. Keeping ears and eyes open to catch breaking news about the market condition can get the binary options trader a clear view of current situations, making it easier for him to trade during market crashes. By understanding the root cause for market changes, the new trader can help corner the market when it rallies or crashes.
- Hedging trades against each other just ends up decreasing the statistical probability of earning more profits as opposed to increasing them.
- Last, but not least, it is very important to have fun while trading binary options. Beginning binary options traders must ensure that it does not become a bore or a drag; if a trader has fun while trading, then he or she will be naturally inclined towards it and will pay more attention and make better decisions, thereby increasing profits.
Find a Balance
First, you need to find the balance, the middle line between what brokers tell you and what uptight market gurus or analysts want you to believe. Here’s the thing: binary options brokers will do everything in their power to make you think binary options are easy, because they want you to jump right in, deposit, trade and hopefully for them, lose. On the other hand, some analysts or market gurus will tell you that trading is extremely, overwhelmingly, awfully… very complicated. You know why? Because they want you to come to them for education and guidance, which they will give to you in exchange of the green paper, never free. So they don’t want you to know that trading binaries is actually easier than they make it look. You have to find the right balance between these two approaches because the truth is somewhere in the middle: if you have no prior experience, you cannot wake up one morning and say “Today I will become a successful trader”. But on the other hand, you don’t have to study a lifetime to get decent results and we will give you all the tools you need – free of course.
Maintain Good habits
- Diversify Your Trades – Make sure that when you are signing up to any Binary Option site or are looking around for a suitable online trading site to become a customer of, that the site in question will let you place a huge number of different Binary Option trades.There are some sites online where you are only going to have access to Binary Option trades that the site in question wants you to place, and as such you really ought to be avoiding these sites, for by having access to the biggest range of trading opportunities then you will of course be able to pick a site that offers you the exact type of trade that you have researched yourself and one that may ensure you get a profitable trade.
- Binary Option Bonuses – One of the easiest ways for you to lock in a lot of profits when you first start to trade Binary Options online is by you taking full advantage of the many different types of new player sign up bonuses that all Binary Option trading sites have on offer.It is not uncommon for a new online Binary Option trader to guarantee they make a profit when trading options online for the very first time, and this is done by taking full advantage of several Binary Options trading sites welcome bonus offers then hedging their trades via the bonus cash at different trading sites.So if you are new to trading Binary Options online then you really ought to consider such a strategy, think long and hard about how much you can claim via these sign up bonus offers and then simply bet on both sides of any trade which takes your eye to lock in and guarantee that you will make money on those Binary Option trades, remember you are only ever allowed to claim a Binary Option sites welcome bonus offer once so you may as well make full use of those bonus offers and bonus cash!
- Forex Trading Profits – One type of trading option that can be quite volatile but one that often sees savvy traders making a lot of money is by those traders getting in early and placing Forex Trades online.There are a lot of things that can happen during the course of the day which will have a dramatic effect on the value of any currency, and if you have access to the very latest news sorties then by reacting quickly and placing Forex Trades you can often lock in lots of winning trades.It is often financial news stories and often things such as the weather that can dramatically affect the value of any currency so make sure you think long and hard about which currencies to trade against each other!
- Early Exit Trades – You will find quite a number of our featured Binary Option trading sites who will offer you an early exit option on any trades you have made, this is always going to be something of a gamble for if your trades are making a profit but you still have a certain amount of time before the trade matures then it is up to you whether to take the early exit profits which are never the full amount you will get when waiting for your trade to mature.But if you have made some sizeable early profits then it can often be the best policy to guarantee a profit by taking the early exit option for as you will soon discover when trading options, anything can and often will happen!
- Avoid Tips and Gossip – There are going to be all manner of different sites offering you Binary Option trading tips and gossip and it can be easy for a novice Binary Option trader to be taken in by such sites, and as such never take seriously any website offering you guaranteed winning trading option tips.
The bottom line
Trading Binary Options or any other financial product is difficult, but if you learn a few basic tricks, it can become a profitable business and you don’t have to be a genius to succeed. Of course, just relying on Signal Providers or blindly placing Calls and Puts will not get you very far, because there is no easy way of becoming a millionaire and the solution will not be given to you by a signal provider or some magic piece of software sold by an obscure market guru.
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