Binary options trading is when a trader tries to predict whether the value of a specific asset will rise or fall. It’s as simple as a yes or no proposition.
Binary options trading can be incredibly lucrative. The returns that can be generated from binary options on this site can be far greater than any other investment you can make.
You can make as much as an 80% return on your investment. But with high reward comes a huge amount of risk.
If your prediction is wrong, you can lose 100% of your investment. With the right strategy in place though, you can turn a profit from binary options trading.
In this guide, we will discuss how much money can be made from binary options trading and the best strategies to use to achieve this income.
How Much Money Can Be Made From Binary Options Trading?
There is a lot of money to be made in binary options trading if you’re willing to invest a lot of capital.
How much money you make from binary options depends on the proportion of capital you invest into betting on options.
There’s an element of risk involved so it is recommended not to go overboard with your investment.
The odds of winning an options bet are close to 50-50 whereas a win gets you a return of 70%-90% depending on the broker you choose.
While losing a bet means you lose the whole amount of money you put into that option.
Top Money-Making Strategies With Binary Trading In 2024
In this section, we will discuss some of the most effective strategies in binary options trading.
These strategies are used by some of the leading trading experts and are great for a person starting out. The strategies we will discuss are:
- Following the trends
- Pinocchio strategy
- Candlestick strategy
Follow The Trends
One of the simplest strategies out of the three is to just follow the trends of the market.
If the price of a commodity is rising, then there’s a good chance that it will keep rising.
For example, if the price of gold is rising over a period of time, you can assume the price will continue this trend and hence bet on the market to keep growing.
Even though there might be a general trend (upwards or downwards) of the asset value over a longer period, the value fluctuates a lot over a shorter period.
The graph usually follows a zig-zag pattern which can make predicting the market difficult in the short term.
If a person wants to make predictions in a shorter period, they can buy a trade with a 60-second expiration with which they can make more predictions in a day.
However, if you want to predict the market on an asset with a higher expiration date, then you should follow the trends as they will give you better results.
Following the trends is the safest strategy to follow but will yield a lower amount of profit compared to other strategies.
Pinocchio Strategy
Another great strategy for a beginner is the Pinocchio strategy. It involves going against the current market trends and betting against them.
If the markets show a positive trend, it is assumed that the market will come down, which is why when the trend is positive, you bet on the market going down and buy a put option and vice versa.
You can make a lot of money with this strategy. However, it is significantly riskier than the other strategies.
Candlestick Strategy
This strategy involves reading a candlestick chart before making a trade in the market.
A candlestick is made up of different components: the real body, the wick, or the shadow.
A red candle represents a close that was lower than the open while green represents a close that was higher than the open.
A candlestick chart enables you to understand the market more in-depth compared to other charts and graphics, which results in better and more accurate predictions being made.
This strategy is a little complex since it requires a good understanding of a candlestick chart, but it gives better results compared to other strategies.
Conclusion
Although binary options have great potential for you to make a decent amount of money, that requires you to have an effective strategy in place.
This article has covered the most effective strategies that you can use to increase the odds of making the right predictions.
All the strategies discussed above are effective in their own right and are currently used by leading trading experts.
These are great for a person starting out and if used correctly, can make you a decent amount of money.
