The best way to get the answer to this question is by opening a demo account at some of the binary options brokers like IQ Option, 01Option, and Nadex and test everything you are planning to do on a demo account.
There are a lot of ways in which you can make a lot of money and binary options are one of them but it requires time and energy to be successful, like in any other job.
Binary options are easy to understand and have relatively fewer risks (you will always know in advance how much money you might lose) and offer the opportunity for people to make a considerable income from the comfort of their own home.
You don’t have to be an economics expert to make money by trading options and that makes options trading very popular in many countries around the globe.
If you choose only the best opportunity for trading you have very good chances to win the trade.
Is trading binary options gambling?
It is more about whether you are gambling with binary options or not.
Gambling – If you make bets for the hope of getting rich quick then you are gambling.
Anyone who approaches options trading with the “get rich quick” attitude without any proper strategy will soon find themselves “getting poorer quicker”
Trading – If your strategy has a positive expectancy and your decisions are educated then you are not gambling.
Many professional traders and fund managers are making a good, consistent profit from options trading. These traders don’t make 1000% a month in profits, but they continue to make a living by trading binary options in the markets month after month, year after year.
How you can make money trading binary options
Options trading is more than choosing if the price is going upwards or downwards and getting a prediction right. There are a lot of things to learn about analysis and understanding of how indicators work. Once you learn about it, then you can get positive results.
The idea is that you can make money in binary options only if you treat it as a real form of investing. This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.
Here is some steps to make you a better binary options trader:
- You need to have a strategy that works.
- You need to put a lot of time, practicing your strategy.
- Learn how to read candlestick charts
- You need to have basic knowledge of indicators and how to use them.
- Study the past price activity of your chosen underlying assets.
- You must have money management strategy, or you will blow your account.
- You need to have self-discipline when you are trading, don’t let emotions take over your trades
Buying/selling options is recommended only if you have done your homework both on the underlying asset and the option. spent a few months trading on a demo account.