Binary trading millionaires
The primary reason for trading binary options is to make money ; this type of trading appears to offer the potential to make a significant amount of capital without having to raise a huge amount of capital upfront. Many people who start trading are inspired by the idea of becoming rich, but they fail to complete their research and make bad trades.
Those who have learned from their mistakes and have gained a large amount of experience trading binary options are generally very successful and are using several brokers to build their wealth. This ultimately leads to the question of whether it is possible to become a millionaire through binary options trading. There are a great many online forums which revolve around this topic. The majority of the forums have several members which will provide a range of tips designed to help other traders reach the magic goal of becoming millionaires.
Of course, these are simply discussions and tips, there are no guarantees offered and many people are left wondering whether this target is realistic and achievable.
The first step is answering this question is to understand how binary options trading actually works:. Binary options are financial products, in the same way as stocks and shares; they are controlled and regulated in many countries through the same financial controls that the country uses for other financial investments. In fact, they are legal around the world by default; a lack of regulations making them illegal allows them to be traded across the globe.
They are a very simple form of investment trading which has received a massive increase in publicity over the last few years; this has resulted in many more people trying to trade in binary options.
The process involves predicting whether an asset will rise or fall in price within a set timeframe. If it does as predicted then you will receive your investment back plus an agreed percentage return. If it does not reach the predicted price you lose our investment. In the past this kind of investment has been associated with gambling, however, to successfully trade it is essential to understand the various assets and the way the market works; this is not the same as placing a bet in your local betting shop!
Experienced traders will often choose to trade in short time periods as this can provide the fastest profits and allow multiple trades in one day. Of course, every trade has its own set of risks and it is essential to have your own set of rules which you stick to; this ensures you do not continue to trade simply to get a return on a bad day.
The best traders know that some days will not go well, but they stick to their strategy , watch the market and learn from their mistakes. Many traders do not mitigate their risk. They aim for home runs in their trade, looking for that one huge payday. They look at the glamorous cars they can buy with the huge payout, or the things that money can buy and cannot deny themselves the lure of instant gratification.
Slow and steady will always win the race when it comes to trading. The hidden principle to achieving what you see on the spreadsheet is compound interest. Albert Einstein called it the 8 th wonder of the world, and he was right. Compounding means that a little can be turned into a lot, and the higher the amount you have to compound, the greater the corresponding percentage of increase that amount will bring. Look at the spreadsheet again. There are 20 trading days a month.
Using the lowest possible risk will get you there. The key point here is risk control. You can become a binary options millionaire even with the lowest possible risk. The first step is to start. You are free to customize the plan as you wish, but do not negate the principle of controlling your risk factor to the barest minimum.