24 May How to Trade Binary Options Profitably | Definitive Guide 2020
Now most of us have always dreamed of a way to supplement our income by trading or even be a full-time trader, earning a very nice income simply by trading from the comfort of our homes. Trading Binary Options is one of the ways in which you could be profitable trader over a long period of time earning some pretty impressive returns.
However chances are most people will never be successful at trading for a living, simply because they lack strategy, direction or the expertise to do so. Most traders too may sometimes make a few profitable trades, but would be unable to make the same trades consistently.
However in this definitive guide, we aim to shed some light to how you could trade Binary Options and earn returns of more than 90% on your investments, that’s right we did say 90% ROI (Return on Investment)!
What is Binary Options?
Now the first question we would like to answer is what is Binary Options? Binary Options is a financial trading instrument that depends on the outcome of a “yes or no” proposition, hence the name “binary.”
In the Binary Options trading that we’d be discussing in this article, would be based on an underlying instrument. The underlying instrument could be nay sort of forex, stock, commodity etc. Forex Binary Options is the simplest and most widely traded form of Binary Options trading.
In forex binary options trading, using for example the USD/CAD forex pair, the outcome of the trade depends on the movement of the USD/CAD forex pair’s chart.
- Binary options depend on the outcome of a “yes or no” proposition.
- Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.
- Binary options set a fixed payout and loss amount.
- Binary options don’t allow traders to take a position in the underlying security.
Choosing the Right Binary Options Broker
In recent years, numerous reports of traders losing money to unscrupulous brokers has emerged in the news, this has resulted in some negative news surrounding the trading of Binary Options. However if you looked a little closer the these reports, the main reason has always been the fact that these brokers traded with unlicensed or unauthorised brokers to offer Binary Options trading.
Hence choosing the right broker to open your account in order to trade Binary Options is one of the most important and critical factors to your success as a Binary Options trader.
We at Marketpotentials.com only advocate opening your account and trading with fully licensed and reputable brokers such as IQ Option, which is fully licensed in the European Union (EU) and is a certified Binary Options broker for more than 7 years now. From about 950,000 accounts in 2014, IQ Option has grown to more than 33 million accounts to date. From around 200,000 trades per day in 2014, they now handle more than 5 million trades per day. It has also grown from a monthly trading volume of $10 million in 2014, to more than $15 billion flows through the brokerage on a monthly basis, right now. As for the reliability of them as a reputed broker, more than $15.8 million is withdrawn from active investors account on a monthly basis.
In Europe, IQ Option operates under IQ Option Europe Ltd. Its official address is located at Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus. The firm is regulated by CySEC (Cyprus Securities and Exchange Commission), bearing the license number 247/14. A CySEC licence covers residents living in Europe who trade with IQ Option.
For a full review on IQ Option, read this ARTICLE HERE.
Trading Binary Options
Trading Binary Options essentially involves a few key steps as follows:
Step 1: Choose an underlying instrument to trade with
This can comprise of a number of instruments such as forex, commodities, etc depending on what your selected Binary Options broker is offering. One of the most popular types of Binary Options trading involves trading forex pairs in Binary Options.
Step 2: Analyse the trade and make you selection
After you analyse the chart of the particular instrument you’re looking to trade on, you’d have to enter the binary options trade before the designated ‘Purchase Deadline’ by selecting ‘HIGHER’ or ‘LOWER’
Once you do that you’re committed to the trade and will then have to wait for the chart movement to hit the designated ‘Expiration Line’ where the outcome of the trade would be made known.
Step 3: Profit from trade
Should you be successful in the trade, one the chart movement hits the designated ‘Expiration Line’ your account would be credited with the displayed return of investment of the trade. Typically for Binary Options trading returns of around 80% to 90% is the norm. Meaning that an investment of say $100 would yield a return of $80 or more!
However should the trade not be successful, you’d stand to lose the deposit amount at the expiration line, although some brokers do allow you the option to exit the trade beforehand albeit with some losses.
You can check out some of the recent trades we have executed at Marketpotentials.com below.
Do Subscribe to our Youtube Channel for more daily trading videos.
Trading Binary Options Profitably
Now trading Binary Options profitably all comes down to identifying the right opportunities at the right time. You can see form the videos above that identifying the right opportunities using Technical Analysis is one of the most critical factors that would affect your success as a Binary Options trader
You can check out some of the resources below for details on Technical Analysis for Binary Options Trading.
The key decisions that would impact your success in Binary Options trading is learning how to employ technical indicators in your favour to forecast the direction of a binary option trade accurately.
Another important factor would be the timing of the trade entry, ensuring that you enter a binary trade as close as possible to the Purchase Deadline would mean that you’re able to minimise risks as well as use all available data at hand at making the right choice in trading.
Always try to time your Binary Option trade entry within 5 seconds or less to the Purchase Deadline. You can check out the video below to see how that’s done.
Getting Started with Binary Options
To get started with trading Binary Options today, simply sign up for your FREE Trading Account HERE. Go ahead and try out the demo version of the account to get a feel of the platform.
Once you have come up with a solid trading style and understand the use of the technical indicators to make profitable trades, simply make a minimum deposit of just USD 10 to start trading on the LIVE Trading Account.
Returns of over 90% could be yours in no time at all, so what are you waiting for?