Binary Options Success Stories
While looking up binary options online today, I discovered that a very common query which new traders put into Google is, “binary options success stories.” It’s understandable to want to read a couple success stories before you embark on a new investment enterprise. And you should be on the lookout for realistic stories of success which prove to you that you can indeed profit from binary options. These stories can encourage and motivate you, and the best ones are backed up by solid data. But most of the “success stories” you’ll find on the web don’t have any backing. They’re often wildly unrealistic. Instead of looking for stories by people who say, “I turned $200 into $20,000 in a week,” or “I earned 500% in five minutes,” here is what you can benefit from reading.
Realistic Success Stories
A realistic success story will not be one where you read about some average Joe who, on a whim, decided to invest $200 on a binary option, and in one minute, earned 500%. Nor is it going to be a story about some guy who thought he’d try binary options out, and within a month had turned his $200 into $20,000 and quit his day job. There’s nothing wrong with having big goals, but you have to go into binary options trading realizing that the road to investing success is a long one, especially if you want to trade for a living.
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Here is how a more realistic trading success story should read:
Joe Bloggs is tired of working in an office and wants to get on with his life and become truly successful on his own terms. Joe has heard about binary options trading, and is interested because he only has a few hundred dollars to start out with. But since Joe is not well-to-do, he knows better than to blow his limited bankroll trading pell-mell based solely on his intuition.
Joe spends several months researching the financial markets in-depth and reading about trading strategies developed by other traders. He finds a trading method which may help him to consistently profit, and backtests that method on hundreds of trades using old charts. When he achieves excellent statistics, he spends the next several months demo testing with a binary options broker which lets him do that. Joe doesn’t achieve the amazing results he’d hoped for in demo, so he goes back to the drawing board and works on perfecting and adjusting his method for the next couple of months. When he has finished with that, he demo tests again, and achieves profit this time.
Joe realizes he needs to trade conservatively, preserving his bankroll, so he waits until he has $500 to invest with a binary options site, and then opens a real account. He only trades about 5% of his account on any given trade. Slowly but surely, he builds up his capital, trading more and more money over time. After several years go by, he becomes a profitable trader. He keeps his day job, and adds more money to his trading account when he has a chance. Eventually, he makes enough money trading that he can trade for a living and quit his day job. This whole process may take him a number of years, but eventually he acquires financial independence and can live life on his own terms.
What do you notice about this story?
- Joe’s success isn’t an overnight phenomenon. In fact, long term success as a trader can take years to develop, and there are plenty of pitfalls along the way.
- Joe had to research and test to become successful, and he also had to do it multiple times before he was able to be profitable trading binary options. https://www.bestfxbrokers.com/binary-trading/guide/demo-account/ will help you find how he tested his binary options trades for free.
- Joe was cautious with the way he managed his money. Instead of betting $250 on the first binary options trade setup he saw, he invested only 5% of his account. That may not sound like much to you, but that’s actually still pretty liberal. Lots of traders won’t go higher than 2.5%.
- Joe kept his day job and was financially responsible. He made sure he was funneling money into his trading account, instead of out of it. He supported himself and his trading with his job until he was ready to trade for a living.
The lessons here are that you need a binary options strategy in order to succeed, and you also need to learn how to manage your money and your life responsibly. Real success is built on hard work and accountability.
Learn About Failure to Build Success
Lots of people look up “binary options success stories,” but we don’t see a lot of queries for “binary options failure stories.” That’s arguably even more important for you to learn about though. Finding out how others have lost money provides you with important information which can prevent you from following in their footsteps. Just because people do lose money with binary options every day, that doesn’t mean you shouldn’t trade. It just means you should learn how to trade with caution and diligence. Here are some lessons we’ve learned from reading about binary options failures:
- Trading with a bad broker will cause you to lose money. There are a lot of ways that bad brokers can steal your money. Sometimes these tactics are subtle, while other times they are out in the open. They may not give you power to close out of trades early or choose useful expiry times, or they may simply take your money and refuse to pay out when you try to withdraw. Check out five signs a binary options broker is trustworthy for advice on choosing your broker.
- If you manage your money poorly, you’re likely to blow your account very quickly. Traders who deposit $200 to open a binary options account and then trade $50 at a time will generally lose all their money after just a handful of trades. It doesn’t take long, and you’ll be surprised how quickly and how painfully you can find yourself out of the game. Instead of making huge investments, try to keep your trades down to 2.5% of your bankroll.
- If you quit your job before you are making a substantial amount of reliable, regular profit from trading which can support you and allow you to continue growing your account at a reasonable clip, you will find yourself in a tough situation. Keep that day job until you can really sustain yourself.
- Trading without a method or system will cause you to lose money, no exceptions. Even if it does not happen right away, it is ultimately inevitable if you keep trading and making random decisions. Traders who research, study, test and re-test are the ones who succeed. Those who go into binary options trading trusting only to luck and instinct will invariably end up losing money and burning out.
- Are you accountable for your trading decisions? Traders who are responsible for others and do not make themselves accountable to those who depend on them will often lose more than just money. If you support a family, you are trading not only your own money, but theirs as well. You owe it to yourself and your family to be up front about your trading activities, and you also should give your family veto power over your trading if you are trading without discipline and success. This link will show you the character traits essential for being a responsible trader.
Success is possible with binary options trading, but it needs to be built on a firm foundation of knowledge grounded in real experience. By all means, look up binary options success stories, but learn to recognize real success stories from those which are made up just to entice you. Also look up stories of failures, so that you learn what pitfalls to avoid. This will make you a more responsible and informed trader, which generally leads to more profitable outcomes.