I’ve noticed an increasing trend in the number of people trying out binary option trading as opposed to the more traditional forex trading. So a few months ago I decided to give binary options a go and see if it was possible to make money from binary options.
Can you make money from binary options?
I spent around 2 months trading binary options. My win rate was around 60% which I don’t think was very good, but good enough that I made around $220. I started with $500 deposit.
How do you make money?
Trading binary options is really simple. You’re basically betting on whether or not a option will go up or down in a certain period of time. You can trade on stocks, commodities, indicies and forex. Unlike regular forex or stock trading, binary options are time limited. So you’re position will close after a set amount of time. If you were correct then you receive a payout. For example the payout might be 80%. Which means, if you had invested $100 and your trade was successful you would make $180. If you were wrong, then you would lose the $100 you invested.
It’s important if you are new to binary trading, you don’t start placing trades that are too big. I recommend you start with the smallest amount your broker will allow. This way you can familiarise yourself with the platform and with how trading works before you try making actual real money.
Try Stock Trading first
Before jumping into binary options, I recommend starting with regular stock trading first. Why? Because you need a solid grasp of the markets. There is no point trying binary options without knowing anything about trading. In fact, I believe it’s more difficult than stock trading.
Binary options is a great way for experienced traders to make money, but not so great for beginners. So do yourself a favour and start trading stocks or forex first. You can even trade these with practice accounts.
Use a Signals Service
To give you the upper edge you can make use of a binary options signals service. These services use algorithms to try and predict the direction of a stock. Now while these services are never always right, they can be used as a useful tool.