Can Binary Options Trading Be Profitable?

by burnsij on January 21, 2013

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When looking at making money online, especially if you want to make money very quickly, then you can’t ignore binary options trading.

First let me take you through what it is just in case you haven’t heard of it before and then we’ll get into if you can make profit from it. Options trading is a very simple way of day trading in certain commodities markets. These include stocks and shares, forex trading, oil, coffee and a multitude of other things.

Once you’ve picked the market that you want to trade in all you then have to do is to choose whether the value of it will go up or down before a certain amount of time is up. You can choose how long it will take for your trade and if you get it right you earn money, if you get it wrong you lose money.

Simple right? In principle yes but whether you can make money is another question.

Is it Good as an Investment?

When you are putting money into this venture you have to understand a few things first. The most important one being that you understand that you are not going to make money on every trade. You are going to lose money sometimes, its unavoidable. This is a very volatile market place and prices can change in an instant.

Another hindrance to you making profit is that when you win you usually make 70-80% profit depending on which broker you use but you have to consider that when you lose you lose 95-100% of your original investment so you have to win consistently over a long period of time. If you can only win 50% of the time then you are going to lose all of your money eventually

So to answer the question ‘is it a good investment’ I would have to say no. It is not an investment it is day trading which is a high risk venture.

How to Make a Profit From Options Trading

There are so many different strategies to try when it comes to options trading that it’ll make your head spin. I’m going to share mine with you now. I make no guarantees but its worked for me so far in the few months I’ve tried it and it’s incredibly simple.

First of all I have a look at this site which shows you quite a few different charts of trading commodities. What you are looking for is a chart that has a clear trend either up or down on the 5 minute chart. Here are some examples of uptrends and downtrends:

Uptrend

uptrend

Downtrend

downtrend

Once you see either of these and they are clear then you check on the 1 hour chart. If the trends on the 5 minute chart matches the trend on the 1 hour chart then that is when you should start trading. Start your trade in the direction of the trend so if it is a down trend you place an option that the commodity will go down. I usually set the time scale for about an hour from when I start the trade and that way I don’t have to monitor it for to long but I also have time to adjust the trade before its to late.

Anyone who is experienced with forex or stock trading is probably shouting at the screen right now saying that this system is to simple to work. I haven’t used any indicators or monitored any resistance points but it has worked for me and takes out the stress of regular forex trading.

Should you try Binary Options Trading?

I would say that if you have some spare money and you want to try a high risk way to make money fast then give it a shot. You CAN make it big and if you do some research and learning you can increase your chances of winning. I wouldn’t recommend however that you spend your last pennies on this hoping that it will get you out of trouble. If thats the case put your money somewhere safer.

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