Advanced technologies enabled everybody to try themselves as a trader, having provided the opportunity to perform trading binary options. Most users want to make it clear how to earn with binary options minimizing risks at the same time. There are lots of strategies and numerous rules that assist traders in forecasting the trend movement; but their good chances dramatically fall without a reliable broker. Novice traders should try their hand in trading binary options supported by Bintrader broker that grants consultations even for the freshest newcomers.
Step 1. Sign up at the reliable broker here>>>bintrader.com
After filling out all fields, you will get a personal account for successful trading! Interface is extremely friendly both for a novice and an expert!
Step 2. Pick the most worthwhile trading strategy!
Novices should not fall for algorithms that assume involving several indicators, as it’s a piece of cake to get entangled analyzing them. That is why, it’s reasonable to consider using simple and time-tested methods we are going to study a bit later. Need a full list of the best strategies? Find them in the dedicated section here: Binary Options – TOP 100 Best Strategies
We strongly recommend you not to skip this step! Thorough learning significantly cuts risks to waste your deposit!
Step 3. Make a deposit and take off!
Why is Bintrader recommended for newbies? It’s because the platform enables one to trade even from $10! Ten bucks are quite fair to bring oneself to a touch-and-go affair and sufficient to start gaining with it.
Binary options. These two words are keeping Internet users on the hop. Some see a reliable and sustainable earning method in them; others perceive them as a scam that wasted their hard-earned dough. Firsts things first, there is a crucial point. Binary options are the virtual analog of a stock exchange, which enables any user to place bets on increase or decrease in any type of securities, thereby gaining with it.
When questioned “is it possible to make money with binary options”, one can frequently find blistering reviews of novice traders that have “wasted” all their money within a second. Surely, there is still a long-standing principle of binary options: all duck or no dinner. Buying an option, a trader should be frank with themselves that a forecast may fail, which will lead to money loss. However, they will get a super-profit in case of a win.
It’s mostly all about the luck, but one has to stick to strict rules, discipline, and cold blood. The key fiend of a binary option trader is the passion. Even people without special education or experience in trading on the exchange, but had been following strategy rules, finally became successful traders. Please believe it – just few trading on an ordinary stock exchange turn into millionaires. But why should all gain with binary options provided that the same system works there?
Binary options have the undeniable advantage: each and every user is able to try their hand in trading. True experts don’t wonder “is it possible to make money with binary options”. They just do it, setting a high value on their time.
A kind of capital turnover takes place with binary options. Wins are funded by losses of losers, while a broker providing the opportunity to trade, gains its due interest. A deposit-waster, or a gold-clinking lucky beggar – it’s totally up to you, where to be in the chain. Let’s look into key rules and strategies that are to help a newcomer in figuring out how to earn with binary options.
Let’s study some recommendations and tips of experienced traders. These simple methods are to show how can an apprentice earn with binary options. As often as not, novices have no clue on how to gain with binary options, that’s why strategies should be to the greatest possible extent simple, in order to enable a beginner to follow the situation in the stock market.
Japanese Candlestick chart is deemed to be the most substantial as it elaborately depicts price movement within a selected time period. The body of a candlestick shows the price range from the beginning to the end of trading, while shadows inform on how much did the price gain or lost for this timeframe.
A one who lacks understanding of binary options can also gain on the field by using Martingale principle that casino gamblers are fond of. This method is mostly win-win, however it requires a considerable deposit, as after each bad bet, the next one has to be doubled. Should you have deposited 500 bucks, you can take risks on applying this very strategy. This one shows fair results on a bullish or bearish trend. If a sideways trend occurs, a trader is in danger to waste the whole stash.
As profitability of binary options equals to 180% on the average, the Martingale method suffered some changes. So, in order to make invested funds back, each further deal amount shall be multiplied by 2.5 after a failed one. For instance, if an upward trend takes place, you call (in US dollars):
- 1 – likely-to-fail bet;
- 3 – losing bet;
- 8 – fail;
- 20 – fail again;
- 50 – fail haunts you;
- 125 – reversal of fortune;
- 313 – long hoped-for win.
Considering the average profitability of 80%, the last bet is to get 563 to your deposit. Total amount of 7 bets accounts for 520 dollars. Thus, the net profit will come to 43 dollars. Quite fair considering that the timeframe of such options can last 60 good seconds. So, one is in power to gain 43 bucks for 7 minutes. Now you know how to earn with binary options provided with the sufficient deposit amount.
However, not everybody is blessed to deposit 520 dollars and take continuous risks at hard-earned money – steel nerves are the myth. And if the 7th bet fails, one will need 783 extra bucks to remedy the situation. As you can see, this is a significant amount for a novice.
This earning strategy is rather simple and efficient at the same time. The key point is to timely recognize the Pinocchio’s nose. Most beginners striving to know how to make money with binary options, successfully use Pinocchio in trading, as this very method does not require learning additional indicators – the one thing one needs is to have a Japanese candlesticks chart with timeframe switching supported.
If you see a short-body and long upper shadow candlestick on the bullish trend, this is a clear signal that a trend is to transform into the bearish one. Quite the opposite occurs when a short-body candlestick with a long lower shadow appears against the bearish trend, it can be supposed that the former will turn into the bullish one. Deals should be made when the next one appears to confirm the trend reversal.
The key rule of the Pinocchio strategy states that at least 5 candlesticks shall appear in the chart during the deal. Statistics show that in case of correct signal recognition with Pinocchio, about 85% deals are crowned with success.
One should realize that the option price is directly related to demand for it. When a price falls to the bottom, traders start buying extensively – the demand produces the price jump. When a price reaches the maximum, traders hurry to sell, and the cost difference constitutes their honestly-gained profit. From the above, a price cannot rise or fall for too long, therefore, the trend reversal will take place at some time. Such trend reversals have formed the basis of this binary option strategy.
Let’s see the details the question “how to make money with binary options” by using the trend reversal. If bullish candlesticks took the strong position in the chart, a bearish candlestick is likely to appear soon, and it will get beyond borders of the previous, bullish one. This is a good signal to put. If such a situation occurs in the downward chart, and a bearish candlestick is being replaced by a long-body bullish one, it’s the evidence that a soon trend reversal (upward) is to occur, so a corresponding bet should be placed! Some binary options traders keenly using this strategy can wait the whole day for a trend reversal, and then place highest-possible bets – this is their way to gain much.
Another simple way to give accurate forecasts for price movements. It’s commonly known as the 3 Touches strategy. The keystone is quite comprehensive. In case of an upward trend, draw a line based on 2 bottom prices of the bullish trend. Usually, the price bounces off, just like a ball, from this line; one needs to call after the third bouncing. However, it is not recommended to place bets before the third touch.
The principle for the downward trend is similar. The only difference is that the line is drawn through 2 max-value points; and one should put after the third touch. The method is very popular not only among novices, but also among the high-skill traders.
So, though the TOP 4 beginner’s best and simple strategies were described in simple words, it’s still difficult to visually perceive information, correctly and on the first try.
Novice traders often wonder how to cut risks in trading binary options. Anyway, making money with binary options, you will have your deposit at stake, but you get a fair chance to become a wealthy man. Following several key rules, one can mitigate risks, multiply the capital, and stably gain with binary options.
Rules telling how to cut risks in trading binary options are elementary, while each and every trained trader must follow them in order not to end up with nothing:
- Do not haste to enter the market without the full-scale and elaborate analysis. Deals should be made provided with reliable signals assuming high chance for success. One should trade on those quotes that they can easily forecast.
- One shouldn’t make a one deal for a grave amount. If a forecast fails, there is a considerable risk to waste a bulk of money. Thus, it’s by far more profitable to place a series of low-price bets – this way, the win will compensate bad-forecast deals.
- The common money management law states that one cannot take risk on more than a half of the deposit. If your deposit exceeds $20, the max risk limit must be not higher than 10 dollars. This principle saved the deposit of most traders, thereby enabling them to gain further.
- It’s essential to choose a reliable and tested broker that supports early closing failing deals in order to mitigate losses.
- Martingale strategy also provides for risk mitigation. Its only drawback is that a solid deposit is required, which could provide for six-time 2.5x multiplication of the initial price.
We hope that the present article will help you realize how to earn with binary options, and bring some enthusiasm for those who want to make money trading binary options, as the security market is subject to certain rules. Analyzing the latter, one is likely to forecast the short-term price movement. We have considered the simplest rules that can assist a beginner in saving the deposit at the early stage, and even in multiplying it. However, there are numerous binary options trading strategies, more complicated and accurate, which use various indicators – such are applied with rich-experience experts.