To start, let’s be clear: you can make money binary options online trading. It’s definitely possible to generate a consistent profit. Smart traders do it every day, executing binaries in everything from oil and gold to stocks and currency pairs.

The question is, is it as easy to make money as a lot of websites claim?

A casual look at a handful of binary options online brokers leaves you with the impression that all you need to do to turn a profit is to create an account. Some brokers proudly advertise that you can generate an 80% return within minutes. Moreover, you can supposedly do so over and over throughout the day. That’s hard to ignore, especially when other forms of investing offer far lower returns. But while you can make money by trading binary options online, it is critical to have a . That’s what we’ll discuss below.

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Now we come to where the rubber meets the road: profiting from binary options online trading. We’re not talking about making a killing with a single trade. Here, we’re referring to building a reliable trading system that helps you to produce a reasonable return over the long run. We’ll give you a few tips to get you started.

#1 – Learn how to read candlestick charts. A lot of the price activity you’ll see in binaries can be predicted by studying past price movements. This is essentially what candlestick charts show. The charts themselves might seem complicated at first, but are actually simple to read once you learn the basics and the common candlestick patterns.

#2 – Study the past price activity of your chosen underlying assets. Trading binary options online for profit is not like gambling. It’s not a roll of the dice nor flip of the coin. A knowledgeable trader can use data and information to pick binaries that are more likely to expire in the money. Some of the most important data are found in the asset’s recent price activity.

#3 – Watch and follow pricing trends. If the price of gold has been climbing for the past few days, resist the temptation to bet on a reversal. Likewise, if IBM shares have cratered and continue to fall, don’t assume a buying pressure is going to magically materialize and push the price upward. Betting with trends is a good strategy when trading short-term binaries. Betting against trends is asking for trouble.

#4 – Don’t bet your mortgage payment. Even if you’re absolutely certain a binary option can’t miss – that it’s going to go your way and make you rich in the process – hold onto your grocery money. There is significant risk attached to trading this type of instrument. Even if a hunch or a tip from a friend turns out to be correct, it may do so outside the expiration of your trade. Be conservative with your bankroll. Be smart.

#5 – Get some experience before risking a sizable piece of your cash flow. Several brokers offer demo accounts. (Check out TradeRush, 24Option, and Bank de Binary, all of which are on our list of legitimate binary options online brokers.) You can practice executing trades in these accounts without putting your own money at risk. You’ll also have a chance to get accustomed to the binary options online platform hosted by the broker.

3 Different Ways To Make Money Binary Options Trading

Let’s begin with a quick recap of the various types of binaries you can trade to make money. The simplest type are up or down options (also known as call/put options and high/low options). You predict whether the price of the underlying asset will be higher or lower when the option expires.

One touch options are nearly as simple. Here, you predict whether the asset’s price will “touch” a certain price before the option expires. All of the legit binary options online brokers on our list offer this type of instrument.

You can also trade range options. With these binaries, you predict whether an asset’s price will stay within, or move outside, a certain range while the option is active (i.e. until it expires).

These three types of binary options online cover the majority of instruments you can execute. They vary by expiration – some expire in 60 seconds, others in hours – and underlying asset (stocks, indices, commodities, and currencies).

3 Types Of People Trade Binary Options

The folks who trade binary options online to make money fall into 3 broad categories. Try to identify the category that best describes you.

The first is . This individual approaches binary options online trading in the same way he approaches a roulette wheel. To him, whether he profits or not is based entirely on chance (e.g. red versus black). Hence, he doesn’t look at candlestick charts, pays no attention to pivot points, and couldn’t care less about Fibonacci retracements.

In the second category we find The Investor. This individual looks at trading binaries as a method to “juice up” the return on his investment portfolio. If someone were to ask him about the things he invests in, he might respond, “IBM, Google, muni bonds, and some binary options online trading.” Investors often fail to realize the high degree of risk they assume as they chase the high returns advertised by binary options online brokers.

The third category is made up of traders who are realistic. These folks typically have experience, and are well aware of the risks associated with trading binaries. They also know that having a keen grasp of the assets that underlie the options, and a familiarity with certain aspects of technical analysis, gives them an edge. And with that edge, they know they can consistently make money trading binary options online. This is the group with which you want to identify yourself.

Advantages Of Trading Binary Options For Profit

If you’re just getting started trading binaries, you’ll be struck by some of the advantages it offers over other forms of trading and investing. For example, the potential returns are astronomical (but remember, they come with higher risks). Someone who invests in stocks may be content with a 10% annual return. With binary options online trading, it’s possible to almost double your investment within minutes.

It’s also very easy to get involved. Unlike trading conventional options or participating in forex, trading binaries is simple. You can open an account online and start trading within minutes of your deposit being credited to your account.

Another advantage is that binary options online expire quickly, allowing you to pursue additional trades. Your capital is not held hostage by the option, but instead released so you can use it to make more money. You can be in and out of a given trade in as little as 60 seconds.

To summarize, you can definitely make money with binary options online trading. A lot of people are doing it successfully each day. But it’s important to understand the risks involved, and the factors that play a role in making a consistent profit. If you want to get started today, we recommend that you visit TradeRush, 24Option, and Bank de Binary and create a demo account at each site. Get some practice trading binaries without risking your capital. You might be on the cusp of creating a new side income for yourself.



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