We have all heard these ‘ binary options millionaire stories’ : someone started trading binary options a week ago, and now they are a millionaire. But are these stories true? And if so, can you repeat them? Let’s take a close look at what you can expect when you start trading binary options.
In this article you will learn:
- Why ‘Get Rich Quick’ and ‘Millionaire’ Stories Are Myths,
- Why Binaries Are Still a Reasonable Investment Vehicle
- How to achieve lasting success.
With this knowledge, you will be able to start trading binary options with realistic expectations and achieve long-term success.
Legendary Millionaire: Get Rich Overnight
Stories of people getting rich with binary options are often meant to deceive and stories of people getting rich overnight are of little help to new traders. We recommend ignoring them because they all fall into two categories: lies and luck. Let’s look at both types a little closer.
Type 1: Lies
As with any advertising claim, some get-rich-quick stories are just lies. Unreliable brokers have made them attractive to gullible traders. Likewise, marketers will create these millionaires to incentivize them to join unscrupulous brokers.
Brokers using such tactics are not to be trusted. If they lie about customer success, they may also lie about other aspects of their business, including essential aspects like payment and asset availability.
Of course, it is difficult to tell newcomers to the binary options world whether you can trust a broker’s story. Our pages on avoiding scams highlight the tactics used. There are enough honest, honest brokers around, that traders can walk away from a company if they have any doubts.
Type 2: Lucky
Some great success stories are the result of sheer coincidence. Simply put, when enough people do one thing, every outcome happens – including great luck.
Let’s say a coin flip tournament with 1,000 people starts. After the first flip, there will be 500 players left, after the second flip 250, after the third flip 125, and so on. Soon, there will be only one person left.
Now, if this person had bet all their money on every flip, they would be incredibly rich. The coin flip vendor will use them like a poster kid for quick and easy money marketing that you can earn by flipping coins. Their success, however, is neither the result of a great investment tool nor their genius nor a great strategy.
Millionaire success story
Their success is merely a consequence of the odds: when enough people do something, someone gets incredibly lucky. Some have survived 13 plane crashes or falling from a skyscraper. But does that mean you should try to repeat their actions? Hard.
If you have tried the same strategy, you will fail. There is a fifty-fifty chance that betting all your money on every coin flip will ruin you with your first trade. If you get lucky and win, you will face the same odds again. Even if you are a lucky enough person to win ten consecutive flips, the 11th turn turnwill probably ruin you.
The same applies to binary options. People who made a lot of money in a short time used an unsustainable strategy and had great luck.
Broker Tactics
There is a rumor that some brokers use this knowledge to their advantage. They give many of their employees £10 to start trading and ask them to invest everything in each trade. Most of their traders will lose this amount which means the broker will get it back. However, sooner or later, an employee will be lucky enough to win enough consecutive trades to become a millionaire.
Brokers can use them as offspring for their next advertising campaign. Brokers on the other hand don’t really need to use such dubious methods. Once they have enough customers, one of them is bound to create such a story.
The point is: people who get rich overnight with binary options don’t use a strategy that can create lasting success. Although they were extremely lucky, you would be foolish to bet your money on the same one million chance.
Fortunately, there is a better option available.
Use Binaries for the long term
Let’s be honest: if there was an investment tool that would turn millionaires overnight, everyone would use it. As we have explained, these millionaire traders are often nothing more than a marketing scam.
However, that doesn’t mean binary options are a bad investment. Just as stocks won’t make you rich in the blink of an eye, neither does binary. But a solid long-term strategy can nonetheless generate big profits.
The key component of long term trading success is a trading strategy . With the right strategy, you can successfully trade a wide range of assets. The great advantage of binary options is that they provide investment tools with higher returns than any other asset class.
If you want to get rich with binary options, you can. But it won’t happen overnight. What you need is a solid strategy, long-term commitment and the right knowledge. Consider all three of these aspects.
Binary Options Success Factor #1: Solid Strategy
To trade financial investments successfully, you need a good strategy. Random investing will quickly destroy you. Strategy determines when you invest, how you invest and how much you invest. It also contains a plan to track your success and continue to improve.
One of the most important points of a successful strategy is that you invest a small percentage of your overall account balance in each trade. When you invest two to five percent on each trade, you will survive the losses and gradually increase your capital.
Traders that get rich quick lack a good strategy as they necessarily invest more than a few percent of their money on each trade. When you invest half of your money in each trade, you have a small chance of getting rich quick, but the result is most likely a failure.
Even the best binary options traders only win about 70 percent of their trades. That’s easy enough to make money – like winning 70 percent of all coin flips is enough. However, when you cannot guarantee that you will win every single trade – and no one can guarantee that with any type of financial investment – you must plan for losses. Sometimes you will lose three or five trades in a row; sometimes, you can lose ten trades with just a few winning trades in between.
If you bet too much on one trade, you will soon go bankrupt. Here’s why a get-rich-quick scheme is a bad strategy and why you should invest for the long term.
This site provides a wealth of information on trading strategies and the right approach to the market. Use it, and you will enjoy lasting success instead of quick failure.
Binary Options Success Factor #2: Long-term commitment
Learning a new skill takes time. Binary options trading is the same. There is a lot you have to learn about the different types of binary options, your own personality and the market. In a world where financial advice is freely given but rarely thought through, you must learn to separate trusted sources from those who just want your money.
All of this takes time, effort and commitment. No one learns to speak overnight and learning to trade just takes a lot of time.
Of course, talent is an issue, too. Binary options, on the other hand, offers so many different trading styles – from math to pattern recognition, from very safe to high risk – that almost all traders should find one that suits them. match their talents. Again, this site and our strategy guide can help you with this.
The rest is up to you. Invest time and effort, and there’s a good chance you’ll see great results. Because most traders offer demo accounts that allow you to trade completely risk-free, you have nothing to lose.
Keeping a trading diary can help you with this task. Write down why you made the trade, what tools you used, and the environment you are in. Track your success over time and find what works for you. Remove everything else.
Binary Options Success Factor #3: Right Knowledge
Perhaps the most important aspect of binary options success is the right knowledge. We’ve mentioned this point a few times, but we can’t stress it enough. Find a reliable source of knowledge and never stop learning.
With this website, you have taken the most important step along the way. Come back, read our articles and try the strategies we recommend. You will soon find the trading style that suits you.
Conclusion
Like any kind of job, being a successful binary options trader requires hard work . While it is possible to get rich overnight, good strategies focus on long-term success. Get-rich-quick schemes work for one in a thousand traders; the rest will be over Ignore these stories and focus on the one thing that can bring you success: hard work.
Here’s what you do:
- Learn from the right sources.
- Apply your knowledge with a risk-free demo account.
- Once you know how to make money, move on to real money trading.
- Just try to improve.
Follow this method, and you will be better off chasing impossible promises.
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