We’ve all heard ‘The Story of a Binary Options Millionaire’. Someone started trading binary options a week ago and is now a millionaire. But is this story true? If yes, can it be repeated? Let’s take a closer look at what you can expect when you start trading binary options.
In this article you will learn:
- Why the ‘get rich quick’ and ‘millionaire’ stories are myths?
- Why binary remains a solid investment vehicle
- How to achieve long-term success.
With this knowledge, you can start trading binary options realistically and achieve long-term success.
The Millionaire Myth: Get Rich Overnight
Stories of people rich in binary options are usually meant to be misleading, and stories of people who got rich overnight are of little benefit to new traders. It’s better to ignore them, because they all fall into two categories: lies and luck. Let’s take a closer look at both types.
Type 1: Lies
As with any blurb, some rich stories are just lies. Unreliable brokers created them to attract cheating traders. Similarly, marketers will make these millionaires and encourage them to join unscrupulous brokers.
Brokers using these tactics cannot be trusted. When you lie about your customers’ success, you’re also lying about other aspects of your business, including essential aspects like payouts and assets available.
Of course, for newcomers to the world of binary options, it’s hard to tell whether you can believe a broker’s story or not. The page on how to avoid scams highlights the tactics used. There are enough good and honest brokers around, so traders can walk away from the company if in doubt.
Type 2: Luck
Great success stories are the result of sheer chance. Simply put, when enough people do the work, all consequences, including big ones, happen.
Assume a coin flip tournament with 1,000 starters. After the first flip, after the second flip 250, after the third flip 125, etc. 500 players are left. Soon, there will be only one person left.
Now, if this person bets all their money every time, they will be incredibly rich. Coin flip providers will use it as a poster child to market the quick and easy money that can be made by flipping a coin. However, their success is not the result of great investment tools, genius or strategy.
Millionaire Success Story
Their success is just a result of odds. When enough people do something, someone will have incredible luck. Some people have survived 13 plane crashes or falling from skyscrapers. But does that mean they have to repeat their actions? almost.
Attempting the same strategy will fail. Betting all your money on every coin flip has a 50 chance of ruining you on your first trade. If you’re lucky enough to win the flip, you’ll face the same odds again. Even if you are lucky enough to be able to flip ten times in a row, the 11th day flip will likely destroy you.
The same applies to binary options. People who make a lot of money in a short period of time have gotten incredibly lucky using unsustainable strategies.
Broker Tactics
Rumor has it 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 every trade. Most traders lose this money, which means the broker gets their money back. But sooner or later one employee will be lucky enough to win enough trades in a row to become a millionaire.
Brokers can use it as a poster child for their next advertising campaign. On the other hand, brokers really don’t have to use such questionable methods. If you have enough customers, one of them should create such a story.
The point is, people who got rich overnight with binary options didn’t use a strategy that could bring them long-term success. While they are incredibly lucky, you would be foolish to bet your money on a one-in-a-million chance.
Fortunately, better options are available.
Using binary long terms
To be honest, if there was an investment tool that would make you an overnight millionaire, everyone would use it. As we have explained, these millionaire traders are usually nothing more than marketing scams.
However, this does not mean that binary options are a bad way to invest. As if stocks don’t make you blink or make binaries. However, a solid long-term strategy can generate huge profits.
A major factor in long-term trading success is your trading strategy. With the right strategy, you can successfully trade many types of assets. The great advantage of binary options is that they provide an investment tool that is more profitable than other types of assets.
If you want to use binary options in abundance, you can. But it won’t happen overnight. All you need is a solid strategy, long-term commitment and the right knowledge. Let’s look at all three of these aspects.
Binary Options Success Factor #1: The Solid Strategy
Successfully trading financial investments requires a good strategy. Random investments will ruin you quickly. A strategy defines when to invest, how to invest and how much to invest. It also includes a plan to monitor success and continuously improve.
One of the most important aspects of a successful strategy is that you invest a small percentage of your overall account balance on every trade. Investing between 2 and 5% on each trade will allow you to lose the line and gradually grow your capital.
Traders who became wealthy did not have good strategies because they invested more than a few percent of their money on every trade. When you invest half your money in every trade, your chances of getting rich quickly are small, but the infinite outcome is failure.
Even the best binary options traders only win about 70% of their trades. That’s enough to make money – winning 70% of all coin flips is enough. However, one cannot guarantee that he will win on every single trade and no financial investment can guarantee that he will have to plan his losses. Sometimes, you will lose 3 or 5 trades in a row; Sometimes, you might lose 10 trades with a few winning trades in between.
If you bet too many on a single trade, you’ll soon be bankrupt. This is why the rich rich strategy is a bad strategy and should be invested for the long term.
This website provides a wealth of information on trading strategies and the right approach to the markets. By using it, you will enjoy long-term success instead of quick failure.
Binary Options Success Factor #2: Long Term Commitment
Learning new skills takes time. Binary options trading is the same. You have to learn a lot about the different types of binary options, their personalities and the market itself. In a world where financial advice is free but rarely thought of, we must learn to distinguish between trusted sources and those that only want money.
All this takes time, effort and dedication. No one learns to talk overnight and it takes a long time to learn to trade.
Of course, talent is also an issue. Binary options, on the other hand, offer so many different trading styles, from math to pattern recognition, from very safe to risky, that almost every trader should find a style that suits their talents. This site and strategy guide can help you with this.
The rest is up to you. If you put in the time and effort, you have a good chance of getting great results. Most traders offer demo accounts that allow you to trade completely risk-free, so you have nothing to lose.
Keeping a trading journal can help you with this. Write down why you traded, what tools you used and what environment you are using. Monitor your success over time and find what works best for you. Remove everything else.
Binary Options Success Factor #3: The Right Knowledge
Perhaps the most important aspect of binary options success is the right knowledge. We’ve mentioned this a few times, but we can’t stress it enough. Find a reliable source of knowledge and never stop learning.
On this site, we’ve taken the most important step. Come back, read the article, and try the strategies we recommend. You’ll soon find the trading style that suits you.
Conclusion
As with any type of work, it takes a lot of hard work to become a successful binary options trader. It’s possible to get rich overnight, but good strategies focus on long-term success. The rich-quick-quick scheme works for one out of a thousand traders. The rest will go bankrupt. 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, switch to real trading.
- Keep improving.
Follow this approach. What would be better than following through on impossible promises.
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