Posted by MJTM | Posted in Investment | Posted on 25-09-2016
Binary options have gained the reputation as a get rich quick scheme. This is simply advertising designed to appeal to anyone looking to make good money with minimal investment. In principle, it is actually possible to make a fortune very quickly from binary trading. However, in practice it takes more than luck to place the right trade each time.
To generate funds you will need to purchase a binary option trade. This is a contract between you and the broker. You buy the contract which states that the price of a specific share will move in a certain direction. Every trade has a specific expiry time, if, at the end of the expiry time the price has moved as you indicated then you can receive a good rate of return. As a trade can last just sixty seconds it is possible to place many trades throughout the day. If you are right then you can generate a significant income through the course of the day. Of course, it is difficult to get every trade right but, in theory, you could get rich quickly.
When you place a trade you will either lose your capital or earn an income. The percentage you can earn remains the same regardless of the funds you place on a trade. The more funds you wish to generate the larger the value of your initial investment; eighty percent return on $100 is $80, but on $10,000 it is $8,000.
However, do not be deceived by the broker’s statement that you can generate this amount every time you trade. If you win the broker must pay you from their own funds, if you lose then they take your funds. The fact that brokers continue to trade, shows that they win more times than they lose.
This does not mean it is not possible to generate an income; you should ensure you choose a reputable broker and understand the basics of binary option trades.
The key to creating your own get rich scheme, although it may not be as quick as you hoped, is to develop a strategy. This can be done by educating yourself on how binary options work and devising a set of rules which you will need to stick to when you trade. It is essential to keep your emotions away from your trades. Always restrict the amount of funds you will commit on any one day and to any one trade. Choose your trades by studying the markets or responding to signals you trust and, by being consistent you will be able to make money purchasing binary options. And before starting your binary options trading career – take some time and read binary options trading guide