Profitable Binary Options Traders – Real or Just a Myth?
Are there any profitable binary options traders? Answers to some of the most common questions a newbie wants to ask a profitable trader.
If you are new to the world of binary options trading or trading in general, you might be slightly skeptical to whether this business is profitable or not. In fact, you might have read that about 95% of the traders actually lose money! Is this a true fact or a much exaggerated myth? If it’s true, what are the 5% of traders doing so well ? In my pursuit to get answers to these questions and others, I joined CommuniTraders and asked a few questions here: “Questions for profitable traders!”. It soon became an interesting thread because many traders actually cared to share their information and evolved into a kind of interview with some of the hot traders here on BOTS. This article is a summary of the answers I received.
Why We Should Ask These Questions
Some questions are frequently asked. For example; are there actually any profitable binary options traders? How much was your investment? How long did it take to become profitable? Are you trading for a living and which strategy are you using? But why do we need to ask these questions?
I would say we like to boost our confidence. Knowing other people have made it makes us more determined to succeed and we want to find out what their secret is! In this industry, just like others, you’ll get bombarded with exaggerated commercials so it’s easy to doubt whether you can actually make money or not.
Is The Failure Rate Really 95%?
I found out that the 95% failure rate is a bit exaggerated. However, it is true that most traders lose money at the beginning of their trading career and many of them wash out. How many of these traders later join the successful minority depends on how much time and effort they put on trading and education. Obviously, the group that sees trading as a business rather than a game or as gambling is more likely to make money from trading. After reading many comments and stories on the forum I realized the average time for someone to become profitable is about a year. It took me about 6 months before I went from losing to growing my account and I am still learning today.
How Much Experience Do The Pros Have?
On CommuniTraders the profitable traders experience ranges from about a year up to decades! Some with experience from Forex trading and others that started from scratch, the latter in my case. Most people have either a full-time or a part-time job and trading is either a partial income or the majority of their income. The full-time traders on the other hand, completely rely on the income they make from trading.
What’s Your Background, How Did You Start Trading?
Having years of trading experience is good but what about education, and where you came from? I was curious whether a college degree in finance would play a role and to my surprise I found out that CommuniTraders is full of traders with all kinds of backgrounds; architects, engineers, IT technicians, designers and full time day traders. And let’s not forget two of the more familiar names in the forum; a jurist Bogdan G and a trained chef Michael Hodges (“the Geek”) which bring us insightful articles about trading each and every week. This vast diversity clearly indicates that your background really does not matter. All these traders have in common is a desire to trade and trade well. In fact it’s how you proceed with your trading career that matters the most.
What Strategy Do You Use?
You are probably, just like I was back then, very eager to know whether there is a super-secret profitable strategy that we all use. Unfortunately there is no such thing and it might come as a surprise when I tell you how it is. Believe me when I say everyone basically has their own unique trading techniques. This in fact, is the secret of these profitable traders, they all depend on their own personal experiences, knowledge and special skills that they’ve gained through the years. Another common foundation for each of them was a correct trading education!
How Much Should I Deposit?
Another very common question is about the “investment amount”. We have a few articles covering this subject already and I think the article “Minimum Deposit Means Minimum Risk? Ask the Geek” explains things well. The advice from the pros is that the less you risk the better but if you want to make thousands of dollar you need a much bigger deposit than the regular minimum deposit. The real question is how much should you trade? The pros all agree on one thing, it’s best to use strict money management and only risk a small percent on each trade.
How Does Trading Affect You?
One interesting question a member asked recently was whether trading had changed our lives? I think I can answer for all of us and say that indeed it has. We learn to understand risks and learn to manage them, we learn how to deal with stress, manage our money and educate ourselves on our own. Fully or partially living on trading income obviously does change your life because then you don’t work for anyone else and have more time to spend with your family or dedicate to trading. Simply put, you learn a lot about yourself when you take on trading and by learning about yourself you change, usually for the better.
Come Find out for yourself!
In conclusion,there is no one secret answer to what makes a profitable trader. They come from different backgrounds and have different approaches to the market. Two of the things they do have in common is trading education and money management. These two things, along with hard work and a lot of practice, is the only sure fire “secret weapon”. If you have questions be sure to ask them yourself, all you have to do is join the forum. While you are there remember to check the link below to view the pro trader’s answers and visit their profiles to read more about them!
Please log in to view the staff’s profiles:
- Michael Hodges
- Bogdan G
- Martin Kay