We’ve all heard these ‘binary options millionaire stories’: someone started trading binary options a week ago, and now they’re a millionaire. But are these stories true? And if so, can you repeat it? Let’s take a 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 a myth,
- Why Binaries remain a good investment vehicle
- How to achieve long-term success.
With this knowledge, you will be able to trade binary options with realistic expectations and achieve long-term success.
Millionaire Myths: Get Rich Overnight
Stories of people who became rich with binary options are generally meant to mislead, and stories of those who became rich overnight are of little help to the traders. We recommend that you 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 advertising statement, some get-rich-quick stories are just lies. Untrustworthy brokers have set them up to lure gullible traders. Likewise, marketers will create these millionaires to encourage them to join the immoral brokers.
Brokers who use such tactics should not be trusted. If they are lying about the success of their clients, they are probably lying about other aspects of their business as well, including important aspects such as payouts and available assets.
Of course, it is difficult to tell newcomers to the world of binary options whether you can trust the stories of a broker. Our scam prevention pages highlight the tactics used. There are enough genuine, honest brokers that traders can walk away from a firm if they have any doubts.
Type 2: happiness
Some success stories are the result of pure chance. Simply put, if enough people do something, all the outcomes will be achieved – including good luck.
Accept a coin tournament with 1000 starters. After the first time there are 500 players left, after the second time 250, after the third time 125, and so on. Soon there will be only one person left.
Now, if this person put all their money on it every time, he would be incredibly rich. The coin provider will use it as a poster child to market the quick and easy money you can earn from coins. However, their success is not the result of a great investment tool or the genius of a good strategy.
Millionaire success stories
Their success is only a result of chance: if enough people do something, someone will have incredible luck. Some people have survived 13 plane crashes or a fall from a skyscraper. But does that mean you should try to replicate their actions? Rare.
If you tried the same strategy, you would fail. There is a fifty-fifty chance that if you spin all your money on every coin, you will go broke on your first trade. If you are lucky and win the point, you will sit again with the same odds. Even if you’re lucky to win ten flips in a row, the 11th flip will probably destroy you.
The same goes for binary options. People who have made a lot of money in a short period of time have used an unsustainable strategy and become incredibly lucky.
Broker tactics
There is a rumor that some brokers use this knowledge to their advantage. They give many of their employees £10 to start trading and require them to invest everything in each trade. Most of their traders will lose this money, which means the broker gets it back. However, sooner or later one employee will be lucky enough to win enough trades in a row to become a millionaire.
The broker can use it as a poster child for their next advertising campaign. On the other hand, brokers do not have to use such questionable methods. Once they have enough customers, one of them commits to creating such a story.
The point is: people who got rich overnight with binary options failed to use a strategy that could yield long-term success. While they were incredibly lucky, you’d be foolish to bet your money on the same one-in-a-million chance.
Fortunately, there is a better option available.
Using Binaries Long Term
Let’s be honest: if there was an investment tool that would make overnight millionaires, everyone would be using it. As we have already explained, these millionaire traders are generally nothing more than a marketing scam.
However, this does not mean that binary options are a bad way to invest. Just like stocks won’t make you rich in the blink of an eye, nor will binaries. But a solid long-term strategy can nevertheless create huge profits.
The most important ingredient of long-term success is a trading strategy. With the right strategy, you can successfully trade many types of assets. The great advantage of binary options is that they offer more profitable investment tools than any other type of asset.
If you want to get rich with binary options, you can. But it won’t happen overnight. What 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: A Solid Strategy
To trade financial investments successfully, you need a good strategy. Random investments will quickly ruin you. A strategy defines when you invest, how you invest and how much you invest. It also includes a plan to monitor your success and keep improving.
One of the most important points of a successful strategy is that you invest a small percentage of your total account balance in each trade. If you invest between two and five percent in each trade, you survive losing streaks and grow your capital steadily.
Traders who got rich quickly did not have a good strategy because they necessarily invested more than a few percent of their money in each trade. If you invest half your money in each trade, you have a slim chance of getting rich quick, but the infinitely more likely result is failure.
Even the best binary options traders only win about 70 percent of their trades. It’s easy enough to earn money – just like winning 70 percent of all coins would be enough. However, if you can’t guarantee that you’ll win every trade – and no one can with any kind of financial investment – you need to plan for losses. Sometimes you lose three or five trades in a row; sometimes you can lose ten trades with only a few winning trades in between.
Betting too much on a single trade will soon bankrupt you. This is why a get-rich-quick scheme is a bad strategy and why you should invest for the long term.
This site offers a wealth of information on trading strategies and the right approach to the market. Use it, and you’ll enjoy long-term success instead of quick failure.
Binary Options Success Factor # 2: Long Term Commitment
It takes time to learn a new skill. Binary options trading is the same. There is a lot to learn about the different types of binary options, your own personality and the market itself. In a world where financial advice is freely given but rarely well thought out, you need to learn how to separate reliable sources from those that just want your money.
All this takes time, effort and commitment. No one learned to speak overnight, and it takes just as long to trade.
Of course, talent is also an issue. On the other hand, binary options offer so many different trading styles – from mathematical to pattern recognition, from very safe to high risk – that almost all traders must find a style that matches their talent. Again, this website and our strategy guides can help you with this job.
The rest is up to you. Put in the time and effort, and there’s a good chance you’ll see great results. Because most traders offer demo accounts that allow you to trade completely risk-free, you have nothing to lose.
Keeping a trading journal can help you with this job. Write down why you traded, what tools you used, and what environment you were in. Monitor your success over time and find the things that work well for you. Turn everything off.
Binary Options Success Factor # 3: The Right Knowledge
Perhaps the most important aspect of success with binary options is the right knowledge. We’ve mentioned this point a few times, but we can’t stress it enough. Find a reliable source of knowledge and never stop learning.
With this website you have taken the most important step. Come back, read our articles and try the strategies we recommend. You will soon find the trading style that suits you.
Closing
Like any type of job, being a successful binary options trader requires hard work. While it is possible to get rich overnight, good strategies focus on long-term success. Quick-quick schemes work for one in a thousand merchants; the rest will eventually break. 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 earn money, switch to trading with real money.
- Keep improving.
Take this approach, and you’ll be better off than chasing impossible promises.
Leading brokers: