Home Investment How to Trade Binary Options Profitably

How to Trade Binary Options Profitably


The Binary Options market can be difficult to perfect. Although it’s technically simple, maintaining profitable trades is challenging. Binary Options are based on the Forex market, using the currency pairs and charts, but with a twist. Making a profitable investment is as simple as deciding whether the market will go up or down in a defined time period.

Although the Binary Options market shares the same charts and currency pairs as the Forex market, there are four significant differences:

1. The Forex market requires traders to decide on a market direction based on an analysis of trends, market sentiment, charts, and fundamentals. You set a limit for losses and a level to take profit.

2. The Binary Options market allows you to make a simple decision. Buy or sell. Although the choices are simple, making winning trades is just as challenging as in the Forex Market. You can use technical analysis to make trades, the same as in the Forex market, but Binary Options also offer an easier option.

3. The Binary Options market gives you several choices. You can choose from the regular Binary Options market, Option Builder, Option Pro, One Touch, and the 60 second option.

4. Your return rate is predetermined. Depending on the currency pair you’re trading and the platform you’ve chosen, your Return On \Investment (ROI) will be from 60% to 85%.

To illustrate how to successfully invest in the Binary Options market, we’ll use the Euro and United States Dollar currency pair, EUR/USD. You’ll use the 4 step, 60 second strategy. This strategy is simple.

1. From the Binary Options main page, check the Popularity of the EUR/USD pair. If the popularity is weighted higher on the “Call” side, you’ll be making “Call” investments. If it’s weighted higher on the “Put” side, you’ll be placing a “Put”.

2. Click on the 60 second tab and place a $5 bid. For this example, we’ll use a “Call.” At the end of the 60 seconds, your trade will either win or lose. If you win, your return rate is 70%, your payout is $8.50. Your profit would be $3.50. ($8.50 payout – $5 investment = $3.50 profit).

3. If your $5 investment loses, immediately place a $10 investment.

4. If your $10 investment wins, your payout is $17 and your profit is $2 ($17 payout – $5 – $10 = $2 profit). Your next trade is $5.

5. If your $10 investment loses, you place a $25 investment.

6. If your $25 trade wins, your payout is $42.50 and your profit is $2.50 ($42.50 payout – $5 -$10 – $25 = $2.50 profit). Your next trade is $5.

7. If your $25 trade loses, you place a $100 trade.

8. If your $100 wins, your payout is $170 and your profit is $30. ($170 payout – $5 – $10 – $25 – $100 = $30 profit).

9. If your $100 trade loses, you place a $5 trade.

Although it’s scary the first time you place a $100 trade, there’s a 90% chance that the trade will be successful. If it’s not, the next time you place a $100 trade it will most likely be successful.

Although there are no guarantees in this market, this strategy consistently provides successful results. If you’re new to the Binary Options market, it’s recommended that you start with a $400 account to give you enough room to make trades without worrying about using up your preliminary investment.

While you’re trading, your account balance will increase and decrease as you win and lose trades, but if you’re trading daily, your end of the week account balance should be larger than your beginning of the week balance.

Trading with the 4 step, 60 second strategy is not a guarantee for success, or a get rich quick scheme. If traders use an investment mindset and expect a realistic monthly increase in their investment, there is a very good chance they will experience a week over week, month over month, and year over year positive Return On Investment (ROI).