Binary options have grown extremely popular with people who are motivated to raise their income online, and you have probably come across to tons of cases by successful traders and got inspired. But still, the newcomers have doubts: are options really profitable or just smoke? Let’s put the question straight: is it possible to earn $500 a day on binary options? Read the rest of the article to get the answer.
What Are Binary Options
Binary options are a plain choice between two outcomes – Yes or No. Or, to be correct with the terms – CALL or PUT. You have to predict the result of a trade, the latter doesn’t usually last longer than several minutes. If you win, you get back almost as twice as your bet. If you lose, you lose. It’s that simple.
How much can you earn on options?
- You place a call option of $100 on TSLA (Tesla) assuming the price will rise – CALL. The profit percentage is 95%
- You win and the profit percentage is added to your balance. $100 + $95 =$195
- If you lose, you lose the $100 you have bet.
Some calculations for successful deals:
$100 * 95% = $195 (+$95)
$195 * 95% = $380.25 (+$185.25)
$380.25 * 95% = $741.48 (+$361.23)
$741.48 * 95% = $1445.88 (+$704.40)
Grand Total: $1445.88 (+$1345.88) with 4 trades.
Earning On Popular Trading Assets In Malaysia/Thailand
Which Trading Brokers Are the Best For Asia?
The first thing you have to do as you made up your mind to trade options is choose a trusted broker. Here at https://trustedbrokerslist.com/ we have gathered reviews on most brokers all over the world, go on and check their conditions, such as turnover percentage, minimal deposits etc, and don’t forget to look into the Black list to check out for scam.
Apparently, the major broker for Asia is IQOption which is located in Europe and regulated by CySec. The service deals with 400+ assets including stocks, commodities, indices, cryptocurrencies, binary and digital options, and offers the best rates in the market and 95%(!) profit and also a free DEMO account. Although restricted in U.S. and Canada, it is surely the best broker, considering the conditions and reliability, for countries like Malaysia, Thailand and the neighbours.
To register and try out the instruments on a DEMO simulator, click here.
Three Decisions You Have to Make Before Starting a Trade
Before you start, you have to make three key decisions that will strictly affect the result of your trade:
- Choosing an asset
- Determining the trend
- Deciding on how much to invest
Choosing an Asset: Why Trading Stocks?
IQOption offers a large variety of assets, and it might seem quite difficult to choose the one or two to start with. Many experienced traders advise to trade currency pairs, such as USD/EUR or USD/BTC. But, as we think, stocks are the best assets for beginners. First of all, stocks are less volatile, which decreases the risks of losing a trade. Secondly, major companies’ news are on everyone’s lips, so you can catch the trend on the fly from mass-media. And, as a company’s shares go up or down, you’re going to use it in your trading.
Let’s take the three stock leaders as an example:
You might have heard in the news that Apple expanded its presence on the wearables market in the late July, 2020. Look at the graph below and see how Apple’s shares skyrocketed at that very moment. Also, the company presented iPhone in October and released the product on November, 13: check the graph for the peak dates.
In August, 2020 Tesla split its stock shares five for one which provoked a 74% shares price boost. In November, 2020, shortly after the news announced Tesla would be included in S&P 500 Index, Tesla shares soared 46.3%, and the rapid growth continued throughout December. Both events are clearly seen on the graph below:
Microsoft shares surged in August, 2020 after the software leader confirmed it was about to acquire the U.S. operations of TikTok – or, even more – the non-Chinese operations as well. Look what we’ve got on the graph:
If you keep your eyes on the ball, keep abreast of the world news and market fluctuations and apply the relevant information to your trades, you are a step close to making pile, your fortunes are looking up.
Determining the trend: UP or DOWN
The main thing about trading binary options is you should always be aware of where the market is going – up or down. When it goes up – it’s PUT (BUY), when it goes down – it’s CALL (SELL) – it’s that plain. In IQOption, there is a special instrument called the Trendline used to determine the current trend. Just follow the line when the trend is strict. The line might lie flat as well – in this case take a time and wait for a clear trend.
Deciding on how much to invest: Start Small
The general rule says: don’t invest more than 10% of your deposit per trade, otherwise the risks of losing everything multiply. Moreover, experienced traders are said to risk as much as 1-3% of the deposit. The minimal deposit at IQOption is $10 with minimal bids starting from $1. We advise to put at least $100 on your account so that you will be able to touch the real money when you win.
Making Money On Binary Options Consistently
Practicing on a DEMO account
- Open a DEMO account at IQOption.com
- Add some indicators to make sure you can spot the trading signals. Press the Indicators button in the left corner on the bottom. Pay attention to colors and numbers. A general way is to add MACD and RSI Indicator:
- Set the candle time period for, say, 10 or 15 seconds:
- Set the expiration time. 60 seconds to 2 minutes maximum, because we’re trading short-term:
- When we see the upgoing signal, press HIGHER:
- When we see the downgoing signal, press LOWER:
It’s high time you open a real account and start earning money on binary options consistently!
3 Ways of Making Money On Binary Options
The main thing you’ve got to have in mind while trading on a real account is a strategy. 9 of 10 newbies lose because they don’t have one. Choose your strategy, try it on a DEMO account and, when succeed, apply it on a real account.
The main approach of making money on binary options is always sticking up to the strategy.
The Bollinger Bands 60 Seconds Strategy
Bollinger bands are used as indicators for the technical analysis of the markets. The strategy was developed by John Bollinger in the 1980s. This tactic emerged with the aim of controlling the behavior of financial markets through charts.
The bands are a tool that is composed of three curves that are drawn in relation to the price of assets on a graph. Sometimes only two curves are included, the main ones.
The Bollinger bands strategy is put into practice on price charts, where three bands are located; an upper, a lower and a middle band. Many times the middle band is not usually drawn, since what we are most interested in is controlling the maximum and minimum.
The middle band works as a simple moving average that offers us the trend information and from which we can calculate the lower and upper bands using a standard deviation. The parameters are usually a simple moving average of twenty periods and two standard deviations.
So once the calculation is done, it will not be necessary to record the band on the graph. Also, the clearer it is, the better we will have it to read.
With the help of these bands we can observe price fluctuations in a more precise way on the chart. Without a doubt, these types of strategies are useful to reduce risks and increase the options of executing orders that end with benefits.
What are they for?
In practice, Bollinger bands are used to measure both the trend and the volatility in financial markets. With this strategy, we can best observe the state of the markets and determine when they are more agitated or calmer.
The key will be to observe the behavior of the bands, that is, if the bands move away from or closer to each other. This is what will provide us with information about the markets.
How do they work?
The bands work as market indicators, so it will be necessary to analyze in detail all the movements of these bands to see how it is better for us to act. Broadly speaking, the most important thing to know is the following:
- If the Bollinger bands contract, it will mean that the market is barely moving, that is, that there is a decrease in volatility.
- If the Bollinger bands expand then it means that the market is very active, or what is the same, that its volatility is increasing.
It should be noted that the lower and upper bands work as support and resistance levels.
The contraction and expansion of both Bollinger bands must be observed on the chart in order to control the market movement .
Also, it is important that you know that prices tend to always redirect to the midpoint between the bands, which causes what we know as bounces. This strategy is often even more effective when the market is more volatile and without a strong trend.
However, it can be used for both business situations.
Finally, if you want to have maximum control over the price of the underlying assets using the Bollinger bands strategy, you should not forget the following.
- If the candle falls below the lower band, the price is likely to continue its downward trend.
- If the candle breaks above the upper band, the price will surely continue its upward trend.
Hence, it is so important to observe in detail the behavior of the Bollinger bands so that the strategy works correctly and provides us with benefits.
- Go to IQOption.com and set up the Bollinger Bands indicator
- Set up the candles for 60 seconds
- Set the expiration time for 60 seconds
- Make sure you see a clear strategy for CALL or PUT
See how it works: https://youtu.be/CJqcLZ3Nv8s
The Martingale Strategy
Martingale is a system that was already used in casinos, especially roulette, to play with the odds.
As is already known in games of chance, we cannot know for sure what will happen and therefore we cannot bet with the certainty that we will be successful since the results are usually a matter of luck.
However, and taking into account the probabilities, we can get an estimated idea and propose a system of predictions that can help us.
The Martingale system was created by mathematicians in 1654 at the request of a gambling fan .
The fact is that he was looking for a system to have more options to win in the games of double or nothing and this is how the Martingale system based on probabilities came about.
As we said, in trading with options everything is reduced to two options, CALL or PUT, and therefore taking into account that it is the closest thing to a game of chance, this system can be really useful.
Although in any case, I always recommend that analysis be carried out before executing orders in the market, since investments are not a game either .
In this system, the probability of something happening and the progressions necessary to reach this result are considered. To develop the Martingale, the first thing that was done was to consider the odds of the game based on the final result.
And that is how the concept that we define today as Martingale came to be.
How does the Martingale work?
The Martingale system is designed to increase the chances of making small gains while increasing the chances of losing larger amounts of money.
This system is a progression system and the objective is to double the bet each time it is lost, since at the moment of winning it will be possible to recover all the accumulated losses and at the same time enjoy the benefits that we initially expected to obtain.
It arose precisely for double or nothing games because in the case of roulette, for example, the player – within the various betting options – has the possibility of betting their chips on red or black.
So you have two options to choose from, with a corresponding chance of hit and win or miss and incur losses.
Well, as for gambling, the Martingale system can now also be used for binary options trading. It has been taken into account that when dealing with all or nothing options, this system can also be considered with the same results.
This strategy is designed to work as a complement to others , that is, we will have to have a main strategy and combine it with the Martingale .
The main strategy will have to help us determine the most appropriate moment to enter the market, and provide us with information on which operations are best for us to perform.
Once we are clear about how we want to act in the market, the Martingale strategy will help us with the issue of probabilities.
The approach is very simple, and is as follows: every time an operation is made and we fail, then the next operation must be towards the same trend but doubling the amount to invest plus two (double + 2).
How to use the Martingale system
To use the Martingale strategy we have two ways; The first, as we have already advanced, is to double the investment every time we fail. It is a simple system, but actually quite effective.
And on the other hand, we can also seek support on the charts , specifically through Japanese candles. These can help us to know when is the best time to invest and help us determine how many times to bet to recover the money invested.
There are those who like to have the situation under control and analyzing the graphs helps a lot.
Of course, how in this system it is about doubling the amount to be invested, it is important to start with the minimum amount required, so we can gradually increase the amount.
As for the probabilities of success of this system, it can practically be said that they are 100% since at some point you will be right and you will get the money back. Although it is important that you have enough capital to support your operations and not leave the system in half.
- Make a $100 deposit
- Make a CALL of $1
- If you lose, make a $3 bid in the opposite direction, that is, PUT
- The sequence is $1, $3, $8, $19, $40, $90
- Every time you lose, you make a bid in the opposite direction multiplying your bid
- No matter how many times you lose, you will recover your losses and gain your profit
See how it works. The author claims he earns $400 per day easily: https://youtu.be/WG5BNSL4Y3o
The Williams Indicator Strategy
Williams Index shows the area of active overbought and oversold traders and can be used in technical analysis with different time frames. Perhaps this is why it became popular and loved by many traders.
And here is a Williams% R live graph:
Williams Index opens in a new window below the chart. It looks like a curved line, moving on a scale from -100 to 0.
What you should pay attention to
– From 0 to -20 (overbought zone). If the success indicator is marked -20 up down it is an open PUT option
– From -80 to -100 (oversold zone). If the indicator reached the -80 mark from bottom to top, option not open CALL .
Follow the divergence. This is when the price of the asset, for example, moves upwards showing a new value, but an opposite curve indicator begins to fall. This indicates that the imminent change of trend change and the cost of the asset.
It is best to apply the Williams% R indicator on the flat, lateral trend. Based on the statistics of more experienced traders, the Williams Percent Range Indicator is used on higher time frames. Although the signals will be less, but they will be with a higher percentage of profitability. And in the lower 1-5 minute time frames, the moving average behaves erratically and unpredictably.
You can change the period settings to the desired one. The default is 14, this will suffice for newbies. According to the creator, it is this period that makes the MA most sensitive.
Note that when your MA enters the zone above 80 or below 20, you should not open trades immediately. Wait for the confirmation and the final reversal of the trend.
- Choose the 10 seconds candles
- Set the expiry time for 2 minutes
- You pay a set price at the open of the trade, you are only exposed to that amount of loss, and have a fixed return upon the expiration of the contract. All that is required is to move the underlying asset in the direction of choice.
See how it works. Isn’t the girl awesome? She made $2000 out of $500 in 5 minutes! https://youtu.be/5yP72YHLlyI
So, finally, is it possible to earn $500 a day on binary options?
The answer is yes, when you are experienced enough. And, moreover:
- You have to drill your skills and strategy on a DEMO account first
- You should stick up to the strategy when trading on a real account
- You must stay cool and never go emotional, no matter you win or lose
- You ought to be aware of up-to-date financial, social, political news in the world
- You are going to make trading your main job
One can waste months and thousands of dollars before he/she comes to solid everyday earnings. Good luck!
Register at IQOption.com and start earning money on binary options today!