Are Binary Options Profitable?

Are binary options profitable? Are those who engage in this activity really making money or is it all a sham? This is a common question seen in social media as well as Q&A sites. The answer is a resounding YES, but with a proviso. Binary options are profitable, but only for those who treat it as a genuine trading activity and not just as another form of gambling.

The fact that binary options is an all-or-none form of financial trading with two possible outcomes is not a license for those who trade in it to perform guesswork, since theoretically the chance of success is 50%. It is only trading activity that is planned and properly analyzed that will turn out to be successful and produce the results shown below:

 profitable

It takes more than just luck to produce profits of close to $1000 IN FOUR TRADES. It takes a combination of technical and fundamental analysis to be able to make binary options trading activity profitable.

What are the steps to making binary options profitable?

a)    Getting the necessary trading tools.

b)    Performing proper trade analysis

c)     Determining expiry.

d)    Practicing on Demo

Getting the Necessary Tools to Make Binary Options Profitable

In order to make binary options profitable, one must have the right tools. What do we mean? A binary options trader must have access to software and hardware tools for the purpose of successful trading. Things like interactive charts, indicators and expert advisors that can be used to pick out profitable opportunities must be acquired by the trader.

In terms of hardware tools, traders must invest in the mobile trading gadgets (smartphones and tablet devices) that can enable trading on the go. Why is mobile trading important?

–       It enables traders to periodically check on open positions wherever they are.

–       It enables traders to search for trading opportunities that could otherwise be missed.

–       Idle time spent in a waiting room or some other place can be utilized in studying the market and trading materials.

Performing Proper Trade Analysis

Trade analysis is the core activity that could make the difference between the binary options trading activity being profitable or not. This is where some of the software tools mentioned in the previous step will come in handy. The charts provided by binary options brokers are too rudimentary for the purpose of technical analysis, so traders will need to get access to full interactive charts from other sources. It is on these charts that proper technical analysis using indicators (native and custom), line tools and other instruments of chart analysis can be used to pick out opportunities to make binary options profitable.

Determining Expiry

The final step in making binary options profitable is to determine the duration of the expected movement of the asset, so that this can be used to either choose a fitting expiry from the default options or if the broker allows it, to set a customized expiry. In order to make binary options profitable, it is essential that the trade behaves according to expectation within the allotted time for the trade. There is no set rule for setting expiry times that will guarantee 100% success. Rather, this will be achieved with a combination of experience and some common sense. For instance, the time frame chart on which the analysis is performed will tell the trader the length of the candle as well as the projections for the expected asset moves.

Practicing on a Virtual Account

There used to be a time when no single broker in the binary options market offered traders a demo account. Now, traders can get access to demo account trading in the binary options market, albeit with some restrictions. This enables the trader to put into practice the previous three points in order to gain a level of proficiency that can sustain results.

The best combination of demo accounts is one from a forex broker and one from a binary options broker. A forex demo account provides interactive charts and tools for technical analysis of several assets traded as binary options. The result of the analysis can then be implemented on the binary options demo account.

Are binary options profitable? They are, if the proper things are done at the right time, using the right tools.

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