Binary options have already become famous on the World Wide Web as a financial instrument that can enrich any person, regardless of his education and the amount of start-up capital. In this article, we will tell you exactly how the process of making a profit takes place, what is needed for this financial instrument to work with the intended efficiency, and we will also provide a simple and effective earning strategy.
So, the developers of binary options have done everything to ensure that traders can use them in the simplest way — there are only two options for moving quotes UP or DOWN and an extended range of contract duration periods from 60 seconds to 24 hours. That is, the option contract has only two conditions that the trader sets manually. If these conditions are set correctly, the transaction brings plus 60-90% profit from the invested amount, which theoretically promises an impressive amount of income even in one day of trading.
Probably, you immediately have a question — why, with such a simple format of work, not every trader reaches real financial heights? The fact is that it is unrealistic to predict the development of the situation in the financial market 100% correctly, since the value of assets is influenced by too many external factors, some of which are absolutely unpredictable. That is, even if you see all the prerequisites that quotes will go up after a certain time, for example, the accuracy of such a probability can reach a maximum of 90%, because suddenly an absolutely unpredictable situation can occur on the market that will direct the price movement in the opposite direction to your forecast side.
How is the process of earning on binary options
To start earning on binary options, it is enough to open an account with a brokerage company, transfer a certain amount of funds there as starting capital, and start making deals with a certain quote movement forecast. Moreover, in order for you to really make money, you must first complete a training course offered by brokerage companies for free.
With an advanced broker, you can use a stock dictionary, a book on option trading, step-by-step instructions and video tutorials for learning. For example, Binomo has all the necessary data to work:
After such a course, you can practice analyzing the market and making deals on a training account, which, with an advanced broker, allows you to use a real trading platform. Having the amount of virtual funds, you will be able to learn how to trade in real market situations without risking your own money. After such training, you will be able to start trading with binary options with greater confidence and close more transactions with profit.
Is training compulsory? A binary options trader is the same profession as, for example, a doctor or an accountant, which means that without specialized knowledge you cannot achieve success in your chosen occupation.
What is the reason for the need to use trading strategies in trading, you will learn from the training course. In simple words, with the help of strategies, you can determine the appearance on the market of prerequisites for a change in the situation, and this may be a trend reversal, correction or continuation of the market movement.
Strategies can be a description of a specific market pattern and how to determine it, or the principle of applying technical indicators and identifying their signals about a change in the situation on the asset market. As an example, let’s consider a simple indicator system based on RSI and EMA analysis tools. We apply these indicators with special settings to the chart with the M1 interval:
- MA Exponential 5 (red);
- MA Exponential 30 (purple);
- RSI 10, levels 70/30;
As a result, we get a trading template on which you can make deals on trading signals. As such, there will be a breakdown of the red line of the EMA of the purple line and a reversal of the RSI MA at one of the extreme levels. The crossing of the EMA and the reversal of the RSI must occur in the same direction, and this direction will be the forecast in the trade being made. On the chart, the described complex signal of the indicators will be displayed as follows:
By concluding transactions on such trading signals with an expiration period of 10 minutes, you can close 85% of them in profit, which will allow you to steadily increase the deposit amount. Thus, having learned to trade and armed with several trading strategies, you can really make money on binary options.