The article is about the trade with binary options. You will find out whether it is possible to earn money here, how many traders do it already, what you need to succeed, and also a number of useful things.
What is trading?
If are dealing with trading on the stock exchange and exchange of binary options for the first time, it is worthwhile first to learn what it is and the principle of its work. In short, the point is to predict the course of a particular asset for the future. You can trade with currency, stocks, stock indices, metals or, oil. The term of the transaction is also variable, from 15 seconds to a year. To get more detailed information about exchange earnings, it is recommended to visit this case study writing service.
This kind of financial markets on the internet appeared relatively recently. Nevertheless, there are already a lot of traders trading here today. This is a very promising and profitable business. It goes without saying that preparation will be required to generate income. The principle of trade is as follows:
- You analyze the schedule of a certain asset, choose the time at which to open a position, as well as the amount you are willing to risk (the betting bid).
- You open one of the two options – Above or Below.
- When the transaction expires, it closes, and you get a profit or loss. You earn in the event that your forecast was justified, and the price really was higher/lower than the original mark.
As you can see, the principle is quite simple, but do not be fooled. The exchange of options is not easy money. In order to be able to earn and successfully forecast the exchange rate for any period, you need to prepare, have a trading strategy, and know how to use certain techniques. All this you will need to study at the preparatory stage, and only after that, you can start trading.
Exchange options – is it a casino or not?
Having considered the key principle of trade, some might have an impression that the stock exchange of options is a casino. You bet on the raising or lowering of a certain asset, if you guessed it, you make a profit, if not – you lose the bet. Yes, indeed, there are similarities, but is it possible to assign a stock exchange of options to gambling where you can’t earn steadily?
No, you cannot do this. The thing is that unlike a random event, which all gambling is based on, the direction of the price can be predicted with a certain degree of accuracy.
The Options Exchange is a casino for those who have not gotten any training and are trying to guess the direction of the price.
80% of traders lose money on the exchange – why is that?
Indeed, the statistics on the stock exchange of options, and on any other financial exchange, is very sad. Most of the newcomers, who come here to trade, do not earn anything as a result. Why does it happen this way?
The thing is they are not prepared. If a trader does not have a strategy and does not understand why the price of an asset is moving and how to predict it – he can hardly expect any success.
Any person can pass the training and only then he will be able to succeed. You will not need extensive knowledge in the financial sphere, experience in trading on the exchange, or any natural inclinations. The main thing is to take everything seriously. Devote 1–2 weeks to study all the material and follow the rules of the strategy during trading.
Also Read: Top 10 Best Cryptocurrency Apps for Android & iOS
Trading binary options: 5 steps for a beginner
What does a person need to become a successful trader? These are 5 main points, which it is recommended to pay attention to.
- Serious approach: Trading is a serious thing, contrary to the opinion of some traders. To succeed, you need to treat it accordingly. In the future, exchange earnings will be your main source of income. Don’t consider it a temporary hobby. The exchange of options is serious earnings for serious people, and you must understand this.
- A reliable broker: A broker is a company that mediates between you and the stock exchange. Not all brokers, especially online, are reliable, so the choice of the company should be approached wisely. How to distinguish scammers from an honest company? In fact, it is very difficult to do. It is recommended to trust the experience of professionals and listen to those who have already traded on the stock exchange for a number of years and know, which companies are reliable and which are not.
- Knowledge of basic information: If you decided to become a trader, you have to learn the basics. The basic knowledge is very important because without it you cannot understand the strategy or trading nuances. It is enough to devote a few hours to this and thoroughly learn the trading terms, as well as understand the key principle of trade and the simplest methods of analysis.
- A trading strategy: The strategy is your key moment when trading on the stock exchange. It is a set of rules that allow you to predict with certain accuracy the future direction. Every trader must follow these rules because this is the only way to achieve a stable profit. There are strategies for both beginners and more experienced traders. At first, it is better to use the already created strategy, and then, if you want, you can make your own. Following the rules of the strategy, you can achieve really good results and start getting stable profit, but keep in mind that you need to follow all of the rules.
- A motivated person can achieve much more than an unmotivated one: This way, you won’t stop facing the first difficulties. Motivation is extremely important for a trader. The best way to get motivated at the initial stages is to read a story of success of a person who has already succeeded.
What does trading give, besides income?
Of course, the main goal of any trading is to make a profit, but trading binary options bring many more positive things. You get a lot of useful experience, which you can use later in business and life. It is very useful to know such things as where the currency will go, the characteristic signs of the crisis at the initial stages, where it is better to invest money, and what influences market behavior.
You are unlikely to be able to master all this from the very beginning, but with experience, you will get the necessary skills and will be able to more effectively analyze the market.
