I’m sure that most people started trading, thinking they will make a living of trading binary options one day. Imagine how great it is to work from home, not having your own boss, no need to wake up early and decide when to ‘work’ and when to take a break.
If you don’t want to read the complete article, then I can tell you that the answer to the question ‘Is it possible to make a living trading binary options’ is yes, but it’s not that easy.
First of all this depends on the country where you are based and the average amount of money that you need every month. For example if you live in the US, you will have to make a lot more money, to afford living there.
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This means that if you live in the US you will have to make a lot more money trading binary options, than you would need if you lived in Russia.
To make at least $45.000 a year with binary options, means that you will have to start with a huge starting capital. It’s very unlikely that you will make so much money with a deposit of only $250. I’m not sure what the odds are but I’m sure they are pretty slim.
Binary Options Strategies
We can categorize the binary options strategies into two: huge starting capital with low risk trades and small starting capital with high risk.
You could deposit $50.000 and make multiple low risk trades, thus make a small profit on most trades, or you could deposit a small amount like $300-$400 and go ‘all in’ on every trade.
We don’t recommend any of these approaches. If you do multiple low risk trades, this could lead to low quality trades and requires a lot of time. If you do few high risk trades and turn $400 into $600 and $600 into $930, then you risk losing all your money after a while. Statistically it’s almost impossible to win so many trades one after the other.
Also read: Binary Options Trader Salary
Starting to trade binary options for a living is like beginning working as an entrepreneur. It’s scary to know that you are responsible for all of your actions. If you’re not good, you’re not making money. If you make bad decisions, you will end up losing money. If you’re employed you are guaranteed a salary every month. If you’re trading for a living, then you will always think about what you will do if you fail being successful.
Trading binary options should be considered an additional income source and shouldn’t replace your salary. The risk is too big to fail.
Of course there are a few traders who are really successful at this, and who can afford quitting their job.
If you completely ignore my advice and still want to risk everything, then please consider the following:
You should have at least some trading experience
It’s a really bad idea to deposit a lot of money at a broker site that you don’t know and have no experience with. It’s also a bad idea to ignore online reviews. Reviewers usually take the time to do some research on these broker, also adding their personal experience. A good idea is to open a demo account first, and explore the broker site first. You should know how to choose a binary options broker, otherwise you risk signing up to a scam broker.
Knowledge about the market
Studying the global market is a rule of thumb. Trading binary options should be based on experience rather then theory.
Know your limits
If you see that you keep on losing money with binary options, then stop. Set at limit before making your first trade. Of course everybody can have a bad day or bad month, but losing money month after months is usually a bad sign. If you already make money with binary options, let us know. Good luck.