Trade Binary Options Profitably

Trade Binary Options Profitably

How to Trade Binary Options Profitably? Is it Really Possible?

 

I have been getting a lot of feedback and lovely letters from you all.  So first of all I would like to thank everyone for your communication and keep it coming.

First of all a lot of people have been asking – how can I trade binary options profitably?  How can I  make a lot of money ?  How can I have 100% success rate in my trades?  How can I do 30 trades a day and win all of them ?

My short answer to these questions is – You can’t!  There is no way of a 100% win rate when trading but there are things you can do to reach success and make a lot of money.  It absolutely is possible to trade binary options profitably.  And here’s my experience:  I too expected a lot of money very quickly when i started trading.  And in fact I did make a lot of money very quickly but then I also lost a lot of money even faster.  The key to success when trading binary options is patience, self discipline and understanding the psychology behind it.  If you want to do it properly and actually make some money I suggest learning about the markets – why and how price moves, study patterns and understand the principles of “support & resistance”.  But more importantly you need to understand human behaviour and the psychology behind it.

If you want to trade binary options profitably, the next step is practice.  Don’t start risking with real money until you are comfortable with your strategy on a demo account.  Most brokers offer a demo account but most of them require a deposit.  If you want to practice without giving them your money you can do so with IQ Option.  The demo account is free so you can find out if trading is for you before starting to flash your cash.  Get a free demo account here.  And more importantly do not trade with money you can’t afford to lose.

I have previously written some articles about tips on how to trade binary options profitably.

Trading Psychology and Attitude

The Basics of Money Management

The Basics of Money Management Video

Support & Resistance

A helpful article from Investopedia on Analyzing Chart Patterns

 

I hope this helps.  Happy Trading!

Liina

2 Comments

  1. I agree with all of the above.

    But a few things newbies should be aware of..

    It is not rocket science for an experienced successful PA focused Fx trader, to succeed with binaries.
    In fact it may be a more profitable and efficient certainly on a VaR/RoI basis.
    If you are not the above , you are probably dead. And the only question is how long it takes for you to go bust.

    However, understand that as a winner, from every $1 you win 85-95 cents comes from a looser.
    And the remaining 5-15% is “won” by the “Broker” aka Casino/Bookmaker.
    Why? Because in BO the broker is the counter-party. When you win the broker looses.
    And the odds are considerably tilted in the brokers favor.

    Retail fx has largely progressed from this casino/marketmaker model (Broker as Principal) where the “ciient” is effectively trading against the broker, to the “Agency” model.(STP/DMA), where your Brokers business is not as counter-party, but as providing a “service”..- an aggregation channel to the real market and providing the necessary backoffice facilities to allow you that access, and making their profit from a direct and or indirect per trade charge via commission/+spread margin)

    SO.. heres the Go-Figure bit?

    ITS THE BROKER!! STUPID!.

    Why? because in the current BO Broker business model .. (MarketMaker/Broker as Principle) ….
    when you win..the broker looses.

    So don’t be surprised that your BO broker is going to be tempted to find every trick in the book to reduce your edge, frustrate your trading and reduce the efficiency of your strategy. And 90% of those tricks involve EXECUTION and Feed manipulation. And there’s ample opportunity available on most BO platforms.
    As an example…. For BO traders whose majority of trades are in short TF (60sec/5m/15m) ..? understand these are executed “At Market” and are at the mercy of manipulation through real and generated execution delay/selective execution. Feed manipulation is less prevalent but hey BO is still the “Wild West” so rule nothing out.

    So.. be aware.. however good your strategy is, if your Broker is “Off-Side”??
    Making money in BO will be a tough job. LoL.

    Cliff

    Reply
  2. I have had 16 months with a company that wanted to first know how much equity I had then did their best to get it by convincing me I would become wealthy fast. They have no demo account and do not care one iota about the customer. I made some. Then after being convinced to do the NFP’s and put up 10%, I lost cos I did not know the mechanics f NFP’s and oil trades. My confidence was smashed. Nerves and anxiety presided. That broker called 24…….., could not care less. So take heed of Liina’s lesson The main thing is one’s mental and emotional state. do everything to preserve and to strengthen your mental and emotional strength and confidence. I find IQ option favours and helps the customer and a demo account plus training, plus unhurried time, at the right time of the day, usually London hours is best, are essential. Alos need to do about 400 paper trades before putting up ones own treasures on an option.

    Reply

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