Updated: October 21, 2016
If you find forex trading difficult, a much simpler way to make money from the currency market is to trade binary options.
However, simple doesn’t mean it’s easy, and you will still need to learn and practice the necessary skills to earn good money from doing this.
To talk more about trading binary options, we have Elmer Moore who wrote this article to share with you today.
Let’s read what he has to say.
The binary options trading industry is one that has been criticized quite a bit; not because it’s not a good way to invest, but because of the get rich quick schemes that have shed a shadow on an otherwise bright industry.
Nonetheless, I’m constantly asked, “Is it really possible to get rich trading binary options?”
The truth is that the answer is yes. However, it’s definitely not something that’s going to happen overnight. The fact of the matter is that rich people don’t just stumble into greatness; it takes work no matter how you obtain your riches.
If anyone tells you different, they are lying to you! Today, we’ll talk about what it takes to get rich trading binary options and how realistic that goal really is.
Let’s Start By Taking Things Down To Reality
In reality, it is possible to become rich doing just about anything. In fact, I have a friend that lives in a very rural town that got rich mowing lawns and planting plants. However, he worked very hard to make that happen; often working 12 to 16 hour days.
When he had extra money, he wouldn’t spend it; instead, he’d invest it back into his ultimate goal. While mowing lawns and trading binary options are completely different fields of work, the concept is relatively similar. Here’s the reality…
You’re not going to make three trades today and wake up rich tomorrow! Things just don’t work that way.
To get rich doing anything, you’ll have to do it well and devote quite a bit of time to doing it. That goes for binary options as well!
How To Get Rich Trading Binary Options
Now for the good news. Whether you have $200, $2,000 or even $20,000 to start with, your chances of becoming rich trading binary options are the same. Really, it all boils down to you. Here are the steps to getting rich trading binary options:
- Research – First and foremost, you’ll want to do research. To be successful trading binary options, you’ll have to learn about strategy, loss prevention, how markets move, and more. So, before you spend even a dime on trading, it’s important to do research and learn all of these things. Ultimately, a trader without a trading plan that includes solid strategies for both maximizing gains and reducing risks is not likely to be a profitable trader.
- Practice – Before risking your own money, it’s worth taking a week and trading using virtual platforms. Several binary options brokers offer virtual trading accounts called demo accounts. Essentially, fake money is loaded into these accounts and traders have the ability to trade using this fake money to see how well their strategies are working. So, take advantage of this ability. Start trading using fake money to ensure that your trading strategy is working well before risking your own money.
- Trade – Once you’ve practiced using your strategy, it’s time to move on to the major league. This means that it’s time to fund your trading account and start using your own money. This way, the gains you realize are true gains; the type of gains that actually put money into your pocket. However, if you have any doubts after practicing for a week, practice more and fine tune your strategy to yield profits before trading your own money.
- Save/Reinvest – People don’t get rich by spending all of their money. When you first start to realize gains, it may be hard not to withdrawal your money and go on a spending spree. However, if you want to get rich, you’ll want to reinvest and continue the process. Ultimately, by investing more, you have a higher potential for gains!
- Trade Some More – Now that you’re realizing that your strategy is a profitable one, keep using it. Continue trading and reinvesting your money until you’ve realized your ultimate goal: to become rich!
That’s it! I know the plan seems relatively simple; and in all actuality it is. The only reason the masses aren’t doing it is because it’s hard to stay focused, to not spend the money you’re making, and to let your money continue working for you. However, if you have the discipline to follow the plan, you have the ability to make it big trading binary options!
About the author:
This post is written by Elmer Moore, a binary options trader based in United Kingdom.
Photo credit: StuartRankin