The shortest answer is no; you cannot become a millionaire trading binary options. We urge you to do a simple Google search of binary trading millionaires if you doubt this. You will likely not come across any real binary options millionaire in your life.
Most people who have become millionaires from binary options are owners and operators of binary brokers and trading sites. They make a lot of money in service fees. Meanwhile, only 0.1% of binary traders can withdraw more funds than their initial deposits.
The reason behind this is that binary options are like gambling products.
They carry high risk, and the odds usually favor the house (which is brokers in the case of binary options). While gambling products have a house edge which ensures casino always wins, binary options are fixed-odds trading instruments that deliver an average of 60-85% in returns. That means the “house edge” for binary options ranges from 15% to 40%, which makes slot machines appear more appealing.
When you can consider forex trading, which has produced billionaires like Warren Buffet, George Soros, and Paul Johnson; it is fair to say that there is something fundamentally wrong with binary options trading. It is probably the case that brokers manipulate binary trading algorithms, systems, and odds.
All in all, it takes a great deal of time, patience, and resources to make money trading binary options. You will have to devise and implement a solid trading strategy. Moreover, it would be best to use technical analysis tools, indicators, loss-limiting software, and other resources. Despite all these efforts, we are yet to hear about many binary trading millionaires.
How to Turn Yourself into a Millionaire from Trading Binary Options
The best news is that many investors and day traders have become millionaires from binary options trading. The downside is that they did not become overnight millionaires – they put in the hard work and sweat. Besides, there is a laundry list of disappointed investors and broke traders for every successful binary options millionaire.
More crucially, you need to invest significant starting capital, lots of practice, and time to build consistent returns from binary options trading. Ample profits are possible with these key nuggets, along with compounding interest on your capital.
Binary Options Trading Strategies for Success
Aspiring binary options investors may hear stories about traders winning millions of dollars from a few lucky transactions. However, while this is an alluring idea, it is rare. Instead, many seasoned traders use compound interest to fuel their expansion.
Compound interest is based on the premise that you receive interest on both your original investment and the interest itself. This simple principle, dubbed the “eighth wonder of the universe” by Albert Einstein, fundamentally says that you may earn substantial returns with low capital input. The figures below assist you visualize the idea.
Mistakes to Avoid When Trading Binary Options
We have pieced together a few hidden mistakes you should watch out for if you want to be a millionaire trading binary options. The three top ones are:
1- Using fly-by-night binary options brokers
Bogus brokers might steal your money. Unfortunately, the binary options industry has attracted a slew of fraudulent brokerages over the years. Only open accounts with trustworthy sites to prevent them.
2- Falling prey to beginner’s crash
Going through the learning curve can be costly. Many wannabe investors lose money early on, and becoming a profitable trader takes time. Adopt an effective strategy to money management, as discussed above, to guarantee you reach this position.
3- Emotional trading
Allowing your emotions to guide your investing decisions might result in costly losses. Greed and anxiety might cause rookie traders to start positions too early and abandon transactions too late.
Binary Options Trading Tips for Success
The journey to becoming a millionaire binary trader starts with a single stride. We have pulled out below some of the biggest tips and strategies you can use to get up and running in no time:
Try multiple strategies – Be ready to fail. You learn more from failures than from wins, so prepare to try a few different approaches before settling on the best one for you.
Create a trading journal – Write about your small & big victories and defeats, as well as the factors that inspired them. You may then go back and review your results to enhance your strategy. Consider your entry and exit point, transaction size, contract type, profit and loss, market variables, and other aspects.
Learn from the failures and successes of others – Read from the script expert traders and learn from them. Some binary options millionaires and seasoned investors, for example, disclose their success strategies on internet forums.
You could even be able to replicate the positions of more experienced traders.
Go for quality trades over quantity – Beginners, in particular, have a tendency to focus on placing many transactions on different markets to determine what works. Instead, spend more time analyzing the US stock market, for example, and concentrate on enhancing the performance of your initial investments before casting a wider net.
Work on managing the risk – If you want to become a binary options millionaire, you must be able to handle your money effectively. A calculated approach to risk will allow you to maximize rewards while limiting losses. Risk management is one of the most important skills you need to learn from the get-go as a binary options trader.
Practice often on demo accounts – Before putting money at risk, use free paper trading accounts to test and develop methods. Most of the leading brokers provide demo accounts to beginning traders. Take advantage of these free solutions so that you can build your knowledge base and toolkit before you trade binary options for real money.
Diversify your portfolio – Many trading millionaires do not just invest in binary options. Instead, when the time comes, they diversify their portfolio by investing in equities, FX, commodities, and even cryptocurrency.
Can I be a millionaire in binary options?
Truth be told, you are not likely to become a millionaire in binary options. The odds of binary options are stacked heavily against traders and investors, favoring binary brokers and exchange sites instead. When you consider that only one in around a thousand binary traders can withdraw more money than they deposited, it is pretty easy to conclude that you may not be able to become a millionaire with binary options.
Bet that as it may, you can use a combination of strategies and tips to boost your chances of making money trading binary options…
Diversify your binary options trades – Don’t just focus on short-term binary trades like 60-second, five-minute, or 10-minute binary trades. You should consider 30-day long-shot trades, as well. Likewise, don’t concentrate your trades on just one market; try trading binary in stock indices, forex, commodities, EFTs, and more.
It starts with picking the perfect trading broker – There are good, bad, and ugly binary brokers. You should check credentials, reputation, and trustworthiness to work only with trusted and legitimate binary brokers with a good track record of delivery and credibility. Avoid any brokers that have been associated with online fraud, scams, and identity theft.
Practice regularly – Utilize resources like a demo account and virtual cash to practice binary trading in your own spare time. You will improve your trading skills, strategy, and expertise with time.
Watch your money – Becoming a millionaire in binary options is no joke. You have to monitor your trading and use proven money management strategies like setting a budget, creating win limits, and not chasing losses.
Do market research – Conduct market studies can help you discover the latest news and investing strategies that can affect underlying assets on the market.
Have a trading plan and strategy – Every successful binary strategy starts with a good, well-structured plan. Set realistic and smart goals for your binary trading right at the beginning.