If you plan to make trading as a source of income, there are some realistic expectations to be set. While binary options trading involve a simple process, it takes a lot of hard work and patience to be good at it. With time and effort on your side, it is possible to earn a living through binary trades. Here are some points to take note of to earn profits with trading options.
There is the Classic Up/Down options that are sometimes called “High/Low” trades. These options are the most simple, and you only need to predict if the price of an asset will be higher or lower than the strike price at the end of the expiry. The payout is all or nothing. You get up to an 81% profit off of your initial investment amount for a correct price prediction, or you get nothing for an incorrect one. Simple enough? The Touch/No Touch options require predicting if the price of an asset will reach a certain level before the contract expires. You can arrange a trade on either side, picking two price levels. If at the end of the expiry the asset price hits either level, you earn instant money! The Range binary option requires predicting if the price of an asset will end up inside or outside a specific range you identified at the onset of the trade. The 60-second binary options are increasingly becoming popular among traders. Although it adds an extra level of risk, its fast-paced trading presents more opportunities to earn impressive profits in just a short time.
Trading full time will require designing your very own system, one that works well and fits the way you trade. It doesn’t matter if you follow a strategy to the letter. You can mix existing ones if you think that it will steer you to the right direction. As long as there is consistency in earning more than losing trades, then your actionable criterion works. You can make some changes to a system you adapted until it becomes your own. It may take some time before you work out your very own trading methodology.
Profitable trades are possible especially when your positions are backed by solid data. We highly recommend Trend Monitoring. This method involves examining recent historical data of asset prices, and the current trends it may show. Learning to read charts and locating trends are the cornerstone of a scientific price speculation. Otherwise, it will just be pure guesswork.
Manage your cash. This is one important skill that every trader needs to learn. This is especially true if you plan trading in binary options your primary source of income. Remember that you take risks with every binary trade. If you are just starting out, try to limit your investments to just 1% of your total trading balance. As you gain more experience, you can move on to increasing this value in small increments. Do this until such time that you can practice self-control and not give in to the urge to trade with heavy amounts. Valuable experience taught us that an effective trader does not put out more than 5% of your bankroll in one trade.