I bet that most of you must have heard of binary option trading but I doubt anyone of you did make money from it in the past. The problem with most binary trader is that they tend to treat it as a gamble and not a trading platform.
Most binary trader do not have a strategy that produces genuinely good winning percentage which is actually the key to profitable binary trading. Unlike forex trading where you can have a good risk reward ratio in each trade, binary option trading have risk reward of less than 1 which means that you have to win more trades in order to be profitable.
The reason why I decided to write this blog post is to share with you guys an email that I have received from one of my binary option student & forex street university student.
The advantages of binary option trading is that it gives us quick profit and do not need to worry about where to place your stop loss or target profit. It is a great tool to complement those of you who are trading currency and that is why I go into it initially.
With my forex experience, I started to try out several strategies for binary option and slowly fine tune it to make more winning trades than losing trades.
In about 6 months time, I started to make consistent income from trading binary option and this income has now became my source of income for my family expenses. This allows me to keep my forex account intact so that I can grow the money in it.
Personally forex trading is a good way to grow wealth while binary option trading is a good way to make money to pay your bills. Therefore let me share with you 2 tips on how to stay profitable in trading binary option.
1) Good Winning Percentage – In order to make good profits from trading binary option, your strategy must have a good winning percentage. In fact, your strategy must have at least 70% accuracy in order for you to be able to make profits in binary trading every month.
For example, if you trade 50 trades and there are 35 winning trades and 15 losing trades, below is what you will make if you trade $200 per trade with 80% payout per winning trade.
35 x $160 = $5,600
15 x -$200 = -$3,000
Total Winning will be $2,600
Anything less than 70% will have a negative impact on your trading.
2) Stay Focus – One major problem of most binary traders is they tend to trade a lot of currency pairs at one go and this is one of the main reason for their losses. Therefore if you are currently trading binary option, I will suggest that you stick to one currency pair. For me, I only trade the EURUSD for the binary option and that is also one of the reason why I manage to make profits from trading binary option.
The above are 2 tips that I want to offer to you guys.
However there are lesser and lesser legitimate binary broker in the market and therefore I have stopped doing that now