My Live Trades
- $2,700 Gain on AAPL and IBM Trades
- 8 $100 Binary Option Trades - Profit of $567
- EUR/USD Big Profit
- $630 in 1 Hour With 8 Positions
- Trading Gold and Euro - Profit for day $678
- Trading Currency Pairs and Nasdaq Future - $1,217 profit on day
You can do the same thing. Just predict if a market price of an underlying asset is higher or lower then the current price over a given time period. It is simple and just requires some knowledge on how stocks move on an hourly and daily basis.
You could easily make $250/day average for a month doing binary options trading.
Speaking to the broader audience, the answer is yes. Anyone can make money trading like this.
The key is to not get greedy. You can do small money trades and make 70% profit within a day. For example, if you think Apple will go up 4$/share within 1 hour, you can invest $100 on that.
If your prediction turns out to be correct and within 1 hour the underlying asset you bet on (in this case Apple), goes up 4$/share and past your strike price, you will earn $70 profit and get back a total of $170 dollars. Binary trades don't require a transaction cost to initiate. That saves money.
To make money, you simply open up 5 to 10 positions of $100. If you predict the stock market correctly and your underlying assets all hit the values that you predicted within an hour, you will double your total money put out. That could be a gain of $1,000 in an hour and since you have opened 10 different positions at $100 each and there is no transaction costs, it makes this a great way to make money. Anyone can do it fairly easily. Don't do super high risk predictions.
On the other hand, if you put your entire $1,000 on one binary option trade and the underlying asset you pick ends up not meeting the criteria of the contract, you will lose all $1,000. Some brokers do refund you up to 15% of your money if you pick a binary trade that is out of the money at expiration. Although, you can exercise an early closure for a percentage of the options maximum earnings. Only a few brokers allow you to do this and one that does give you this tool is the binary options broker I recommend on this site. Lets say you buy a binary option that expires in 1 hour. You know there is going to be a big report coming out that could dramatically effect the price of your underlying asset. To limit risk, close the position early so you don't end up way out of the money.
The early closure payout will change with the market price of your underlying asset. If you had a call touch option that was getting really close to the money, but you were unsure if it would surpass this in time, the value of your trade might result in a profit for you if closed immediately. This tool makes trading much easier and flexible, but you have to be with the right broker. It is a much more simplistic way to make money compared to trying to earn money trading regular option contracts. Just pick a reasonable prediction of what a certain asset will do within a given time period. If it does this, you make your profit. There is no time decay or anything like that. You make money if it hits the strikes in the correct way. You may have it setup so that within a month the stock or forex pairing has to reach past a certain price and below a certain price. If it does, you make a set profit. It doesn't matter how far above or below the stock went, as long as it went 1 pip/point over and under your high/low strikes, the binary trade will return you the set profit. You can set up a trade where as long as the asset price does not go above or below two strike prices, you will make a guaranteed profit. Do this when a stock or underlying asset is not making higher highs or lower lows.
The percentage of profit you get is set when you first enter the binary position and is based on the amount of probability that the underlying asset does what the contract specifies. For example, let's say that Apple is trading at $600/share. If you entered a high/low trade for $300 that required Apple to go beyond $625 and below $580 within 2 months, it might yield a set profit of 60%. That means you make a 60% return on your $300 initial cost in 2 months. The only thing that has to happen is the stock price goes to the high and low price levels within the time frame. Another kind of trade you could do is a simple call binary option. Let's say apple is trading at $600/share, but this time you want to invest $600 that the price will go up to $605 within the next day. You can structure a trade where you earn about 85% profit if that actually does happen to the asset value. So, to answer the question if anyone can make money trading options like this, the answer is yes. You just need to predict the correct direction or volatility of a given underlying asset. You can do it with forex pairs, indices movement, stocks, or commodities. Additionally, the broker I recommended above has an entire mobile app so you can trade binary options on your smart phone. Using these financial instruments is risky, but you can minimize your risk and maximize your probability of profit by making correct decisions based on your knowledge of the market, trends, and what may happen to cause price movement. Since there are no transaction fees with binary options, you can set up many small value trades that all can yield profit. The more you set up, the more diverse you have made your strategy and have given yourself many chances to make a profit. It is all about structuring and knowing why you are doing so. Base it on the price history and upcoming events that should result in a movement to go higher, lower, or sideways. You can make money on this for sure. Be analytic about it and use your common sense to enter into positions. Be free and earn profit.