This is the big question that every potential online trader wants answered is this: Can I Profit from Binary Options? The short answer is, ‘Yes, binary options trading is profitable and you can make money online as a binary options trader’.
For those people who do not know what binary options are, and what trading in binary options is, here is a short synopsis on the art and science of binary options trading.
What are binary options?
Binary options are a means of trading on the global financial markets. As the name suggests, ‘’Binary’’ means there are only two options to be considered. One is the ‘CALL’ option, and the other is the ‘PUT’ option. The other important point to note is that as a binary options trader you do not buy or sell the underlying assets, you trade on the price movement of a specific asset within a stated time-frame.
Let’s look at an example. I am a binary options trader, and I choose to trade on the price movement of a major stock such as Google or Coco-Cola. Firstly, I check on the recent price performance for these stocks. I can do this very easily with the online trading platform which shows me the price movement history in easy to understand graphic perspective. If I have questions about the information, I can consult my Stern Options Account Manager or Stern’s customer support team.
Based on the information relating to a stock’s price performance, I make a decision as to whether I am going to place a “call” on the fact that the price of Google stocks will increase in the next 5 minutes, or whether I am going to place a “put” on the fact that the underlying price will decrease in the next 5 minutes. Five minutes is used here only for the sake of example. In actuality there is a much wider range of timeframes which as a trader I can choose from. Once the time has expired, I will know whether I read the markets correctly or not. If my prediction is correct, I am ‘in the money’, and conversely, if my prediction is incorrect I am ‘out of the money’.
Partnering with the best binary options trading broker
There are many online trading brokerages. When choosing the right broker to meet your unique requirements, you are going to have to sift through a large number of online sites to find a reputable, world-class broker.
I did this exercise recently, and discovered that Stern Options is not only a registered, reputable online trading broker, they also offer a top of the range online trading platform with state of the art security, a comprehensive education centre, a wide range of underlying assets to trade on (stocks; currencies; commodities; indices), and a diligent support team who are more than able to help you solve every challenge you face.
Stern’s online trading platform is easy to use with analytical and prediction tools built into the platform. Stern promises 100% uptime of their online trading platform, allowing you to trade 24/7, 365 days per year. Their support team is also on hand 24/7 so that you can ask for help if you are facing any challenges.
How to Profit from Binary Options Trading
None of us want to lose any money. We all want to turn a profit when embarking on any income generation or wealth creation venture. Therefore, here are a couple of tips to help you make profitable trades:
• Study the materials in the broker’s education centre thoroughly and practise on a demo platform before moving onto trading on the live platform.
• Use the education centre – it’s free to use. Learn to read technical charts and technical indicators. This will enable you to study market trends and the price movement trends of the underlying asset..
• Make use of a signalling service. A trading signal is a message that Stern sends to you by email, alerting you to the fact that a profitable trade is coming up.
• Track your progress. If you find you are better at trading on Forex, for example, stick to trading on Forex. Don’t persist with securities that you do not find easy to read.
• Purchase the right expiry time for your trading style. Some traders trade more successfully by determining the price movement over a longer timeframe, and vice versa.
Hopefully the above has demonstrated that it is possible to turn a profit when trading in binary options. The most important tool in your binary options trading toolbox is the broker that you partner with. It is crucial that you partner with a reputable broker who will help you read the markets correctly.