Binary options for dummies. The ultimate guide.
One of the biggest money making systems on the internet right now is Binary Options. It may be the first thing that pops up when you search up online how to make money, or simply just popping up as an advertisement everywhere around webpages all over the internet.
What is Binary Options?
This new method of investing involves you depositing a sum of money with a selected broker, then using that money to invest in stocks, commodities and currencies.
However, the method of ‘investment’ is quite unique in binary options. For example, you may select the tab of the currency USD/EUR, within this tab you are given a selection of CALL or PUT option.
This simply means you are predicting whether the current market price will RISE or FALL after a selected period of time.
These periods of times can rage from 1 minute to 1 day depending on what your broker offers. If you CALL or PUT incorrectly, then you will lose all the money you invested for that specific trade, however, a winning trade can guarantee a payback of 70%-90%- depending on the time selected and broker you’re with.
Sounds so Good, but why isn’t everyone doing this?
The main problem with binary options is; that if you’re a complete newbie to this, with no experience in dealing with market prices, then binary options can simply be called gambling.
This is because there is no REAL WAY of actually predicting the direction in which the market will go over a certain amount of time.
Unless you can see the future of course. lol.
On the other hand, professional marketers can benefit from binary options from observing patterns in previous market trends then applying a strategy in order to predict market movement.
These professional marketers probably sit in front of a computer all day long, figuring out algorithms and strategies according to the market movement.
However, like the ordinary kind of people like us adults, teens and children, we have daily needs to tend to such as work, part time jobs, college and school, that we cannot afford such time to establish our own effective binary options strategy.
To be Honest, as a beginner, it is extremely difficult to learn 80-100% effective strategies. Youtube offers many different strategies for different time frames of investments, however, once trying all these strategies myself, it is impossible to find one that can be used to generate a long term income.
Who is it for then?
Even though that said, binary options is still not a complete dead way to generate income online.
Like every way to make money, we need to be motivated and put some effort in. For binary options, it may be for you to observe and learn the fundamentals of market analysis and establishing a 75% win rate strategy.
My recommendation is to choose a broker that offers you a ‘demo account’, which allows you to employ and test your strategies with fake money in the real market before integrating real money into it.
Note that all brokers will require a minimum deposit of $50-$250 depending on which broker you choose.
If you are confident with binary options and you’re certain that you can generate a profit with the system, then investing in this would be a good options for you.
What to watch out for
There are a lot of scams out there for binary options as every site makes it look too easy to make ‘big money’.
One of the most annoying things when I came to binary options was scam brokers.
Scams brokers are brokers which act extremely nice when promoting the product to you, however after you deposit money with them, they just completely ignore you after.
The safest way to choose a reliable broker is to research whether they are licensed. Licensing for a broker means that they are approved by CySEC a financial reporting company in cyprus that investigates whether a broker is reliable.
The easiest way to do this is to read reviews about each broker.
Another huge thing to watch out for with brokers is whether they offer you bonuses. Bonuses are extra money the broker offers you for your trading that makes your initial deposit greater.
My advice is: NEVER TAKE BONUSES.
Brokers do not allow you to withdraw your money unless you make a considerable multiple of that bonus. For example, a broker will not allow you to draw out your $50 bonus unless you’ve reach a profit of $500 using that bonus.
The multiplier ranges differently between all the brokers and the only way to find out how to draw out bonuses is read the broker’s Terms and Conditions. Many people neglect that fact and don’t read brokers’ TOC which will lead to themselves being ‘scammed’.
Here is an example bonus TOC from a binary options broker and it is important to read it:
Lastly, you will hear about something called binary options signals or auto traders. These do not work, no matter how pleasing or authentic they looks. I have a tried the most popular and famous auto traders and signals of them all, and you can read my reviews on them here.
In conclusion, binary options is certainly a way to go for you if you have that initial capital to invest and you are willing to spend time into researching fundamental market analysis and establish a long-term effective strategy that will generate you daily income.
That said, the binary option industry is huge and full of scams, so always do you research for whichever broker suits your taste.
Ultimately, it is up to your hard work and how much effort you put towards this, never trust binary options auto traders or signals as they will just make you lose money.
Read my top recommended brokers for each country if you have problem choosing one. I have personally been with each of them and can guarantee that they are reliable.
Have fun out there!
If you have any questions or queries drop me a comment below!
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