Binary options trading is a booming business of the decade but is it possible to make millions with binary options? Traditional traders and new enthusiasts are starting their binary options trading careers every day! In this promising and unique market, investors are mainly motivated by the potential to earn big sums of money by these financial instruments. Whether you are a professional trader or an enthusiast you must be asking yourself whether it’s possible to actually make millions with binary options!
Binary Options Basics
To be able to understand or even make a realistic guess on whether it’s possible to become a millionaire with binary options trading, you have to take a moment and understand the basics of the trade everyone is talking about. The process itself is rather simplified and very appealing – you choose your asset, decide whether you think it will rise or decrease in value over a set time frame, how much you want to invest in the option and wait for the expiry time to end.
With set time frames and fixed payouts, unlike actual stock trading, binary options trading returns can seem somewhat limited.
So, how to build your bankroll to millions and is it possible to make millions with binary options ?
Of course, it will not be easy. You have to dedicate time to research the trade, trading platforms, binary options brokers and assets. Based on your bankroll and developed trading style you will be able to form your preferences and ultimately pick your best strategy. You will always have to be knowledgeable with the assets you are trading, follow the economy news and the trading signals. There are a number of strategies you can implement to earn big profits, but there are even more important concepts to building your bankroll quickly.
Building Your Binary Options Trading Bankroll
To build your bankroll you will, of course, be looking to constantly win your investments. With reliable trading signals and good background knowledge on the assets you are investing in, it almost seems easy to have an optimal win rate. With a good win rate it’s possible to make millions with binary options trading.
For example, if you have a $1,000 balance and make two trades a day, investing 5% or $50 each and with 70% potential returns, your daily profit would be $70. If you continue this for a month you would be looking at $2,100 pure profit; with only 2/3 success rate you would still have $400 in pure profits. The focus point here is that your initial investment can easily multiply so that you would not use your initial deposit at all, while next month you would be able to start with an investing balance of $400 with no pressure.
Going Big with Compounding Returns
Regardless of trading strategy and trading style you choose and any signals you decide to follow to improve your binary options trading returns, you can always apply compounding. Financial compounding is probably the best known concept in binary trading and if you have ever heard of binary options, you have most probably heard of compounding returns. So let’s see what it actually means and how you can implement it.
The idea is to build your bankroll and increase the total returns with concept of compounding returns. It’s a rather simple and easy to use concept and, as stated, it can be used with any strategy. It is based on using your profits to further invest, as long as you’re winning payouts.
This means that, for example, if you invest $200 in an option with 75% returns and win the total payout of $350, you will use the payout to invest it in another option. If you lose one of the next bids, you would only be losing the initial investment of $200, with a possibility to win $612 with the second investment with 75% returns, or $1,071 with the third. It can be possible to make millions with binary options using the above calculations.
The compounding concept is highly popular with traders, especially binary options experts. However, there are many variations to it, as many traders choose to “reset” the process every day, or every six or seven trades for example.
This would mean that under the above mentioned example, by the sixth successful investment you would have made $5,744 total profit with a $200 initial investment. Provided that you win a good rate of your investments, this proves to be one of the most successful ways to boost and maximize your bankroll with minimum risks for your initial deposits.
Of course, binary options trading is a high-risk business and it’s important to be aware that even with the best signals you may sometimes lose your investments more often than you think you would.
Understanding the Risks
It’s obviously not easy getting consecutive wins with your investments and thus it’s not easy earning a million with binary options. However, the compounding returns will help significantly increase your profits and developing a viable strategy is essential to success.
By using the trading signals you can increase the probability to win any trade to about 70%, with 70% potential returns. Thus, building an agenda and a well-structured trading style should be motivation for any trader and success rate is definitely not going to fail. In answer to the question is it possible to make millions from binary options would be yes if all the above including compounding is taken into consideration.