We’ve all heard this ‘binary options millionaire story’ : 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 closer look at what you can expect when you start trading binary options.
In this article, you will learn:
- Why ‘Get Rich Quick’ And ‘Millionaire’ Stories Are Myths,
- Why Fixed Binaries Are Sound Investment Vehicles
- How to Achieve Long-Term Success.
With this knowledge, you will be able to start trading binary options with realistic expectations and achieve long-term success.
The Millionaire Myth: Earn More Nights
Stories of people who got rich in binary options are usually intended to mislead, and stories about people who got rich overnight are of little help to new traders. We recommend ignoring 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 simply lies. Unreliable brokers make them to attract shrewd traders. Likewise, marketers will make these millionaires to encourage them to join unscrupulous brokers.
Brokers who use such tactics cannot be trusted. If they lie about the success of their customers, they may lie about other aspects of their business, including important aspects such as payments and available assets.
Of course, it is difficult to tell a newcomer to the world of binary options whether you can trust the broker’s story. Our page on how to avoid scams highlights the tactics used. There are enough genuine, honest brokers, so traders can walk away from the company if they have any doubts.
Type 2: Fate
Some great success stories are the result of sheer coincidence. Simply put, when enough people do something, all results will happen – including great luck.
Assume a coin toss tournament with 1,000 starts. After the first flip, there will be 500 players left, after the second flip 250, after the third flip 125, and so on. Soon, there was only one person left.
Now, if these people bet all their money on every flip, they would be rich. Coin flip providers will use it as the poster child to market the quick and easy money you can make by flipping coins. However, their success is not the result of great investment tools nor their honesty or great strategy.
Millionaire Success Stories
Their success is simply the result of chance: when enough people do something, one will have incredible luck. Some people have survived 13 plane crashes or falling from skyscrapers. But does that mean you should try to replicate their actions? Almost not.
If you try the same strategy, you will fail. There is a fifty-five chance that betting all your money on every single coin will break you on your first trade. If you are lucky and win the flip, you will face the same odds again. Even if you are lucky enough to win 10 hands in a row, the 11th flip will probably ruin you.
The same goes for binary options. People who make a lot of money in a short period of time use unsustainable strategies and get very lucky.
Broker Tactics
There are rumors that some brokers use this knowledge to their advantage. They give many of their workers £10 to start trading and require them to invest everything on each trade. Most of their traders will lose this money, which means that the broker gets it back. But sooner or later, a worker 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 do not have to use such questionable methods. When they have enough customers, one of them is bound to create such a story.
The bottom line is: people who get rich overnight with binary options fail to use strategies that can generate long-term success. Even if they’re very lucky, you’d be a fool to put your money on the same one-in-a-million opportunity.
Fortunately, there are better options.
Using Binary Long Term Length
Let’s be honest: if there was an investment tool that would make you an overnight millionaire, everyone would be using it. As we have explained, these millionaire traders are generally nothing more than marketing scams.
However, that doesn’t mean binary options are a bad way to invest. Just like stocks won’t make you rich overnight, neither will binary. But a solid long-term strategy can yield huge profits.
The key ingredient to long-term trading success is a trading strategy. With the right strategy, you can successfully sell many types of assets. A big advantage of binary options is that they offer a more profitable investment tool than other types of assets.
If you want to get rich with binary options, 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 these three aspects.
Binary success option #1: A solid strategy
To successfully trade financial investments, you need a good strategy. Random investments will ruin you fast. Strategy determines when you invest, how you invest, and how much you invest. It also contains a plan to monitor your success and keep improving.
One of the most important things in a successful strategy is that you invest a small percentage of your total account balance in each trade. When you invest between two and five percent in each trade, you can survive losing streaks and gradually grow your capital.
Get-rich-quick traders don’t have a good strategy because they naturally invest more than a few percent of their money in each trade. When you invest half of your money in each trade, you have a small chance of getting rich quick, but the far greater outcome is failure.
Even the best binary options traders only win around 70 percent of their trades. That’s pretty easy to make money – just like winning 70 percent of all coin flips would be enough. However, when you cannot guarantee that you will win every single trade – and no one can guarantee that with any kind of financial investment – you need to plan for losses. Sometimes, you will lose three or five trades in a row; Sometimes, you might lose ten trades with only a few winning trades in between.
If you bet too much on one trade, you will soon go broke. That’s why get rich schemes are bad strategies, and why you should invest for the long term.
This website provides a lot of information about trading strategies and the right approach to the market. Use it, and you’ll enjoy long-term success and not quick failure.
Binary success factor #2: Long-term commitment
Learning new skills takes time. Trading binary options 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 given freely but is rarely well thought out, you need to learn how to separate reliable sources from those who just want your money.
All of this takes time, effort, and commitment. No one learns to talk overnight, and learning to trade takes a long time.
Of course, talent is also a problem. On the other hand, binary options offer so many different trading styles – from mathematics to pattern recognition, from very safe to very risky – that almost all traders should find a style that suits their talents. Again, this website and our strategy guide can help you with this task.
The rest is up to you. Invest the time and effort, and there’s a good chance that you’ll see great results. Since most traders offer a demo account that allows you to trade completely risk-free, you won’t lose anything.
Keeping a trading diary can help you with this task. Write down why you trade, the tools you use, and the environment you have. Monitor your success over time and find what works best for you. Eliminate everything else.
Binary success option # 3: The right knowledge
Perhaps the most important aspect of binary options success is accurate knowledge. We’ve mentioned this a few times, but we can’t stress it enough. Find reliable sources of knowledge and never stop learning.
With this website, you have made the most important step along the way. Come back, read our article, and try the strategies we recommend. You will find the right trading style for you.
The conclusion
As with any type of work, becoming a successful binary options trader requires hard work . While it is possible to get rich overnight, a good strategy focuses on long-term success. A get-rich-quick scheme will work for one out of a thousand traders; the rest will end. 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.
- Use your knowledge with a risk-free demo account.
- Once you know how to make money, move on to real money trading.
- Keep getting better.
Follow this approach, and you’ll be better off chasing impossible promises.
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