How Long Do I Need to Wait to Make Money?
When you’re trading, you want to make money. Sure, trading in general is fun. It’s a test of skill, intelligence, and a little bit of luck thrown in to make it interesting. But you are trading for the sole purpose of making your existing cash into more cash. So, it’s only natural to wonder just how long it will take before you start making enough money to make your time and your monetary investment become worthwhile.
Of course, this is a loaded question. What’s worthwhile for one person might be a drop in the ocean for another. The other side of this is the question, how much money are you trading with? If you have a couple million dollars in the bank, but put $500 in a binary options account, you’re probably never going to get to a point where you are making the money you want to make. The same is true with the Forex market. Trading with a few hundred buck here is probably never going to make you rich. In this light, if you want to “make money,” then you need to put yourself in a position before you even execute your first trade to do so. Even a skilled trader is not going to be able to turn $500 in the $500,000 without an impossibly huge degree of luck on their side.
If you want to make money trading, then you need to evaluate what “making money” really means to you. Do you want to make an extra $1,000 per year? That’s pretty realistic if you start out with $5,000 in your trading account. Do you want to make $100,000 per year? You’re not going to accomplish this unless you have the money to front to make it possible to take the necessary risks. You can’t make six figures in any market unless you can take sizeable positions. Yes, your money will grow as time goes by, but this takes time.
Binary options offer a high rate of return per trade–sometimes 81 percent on a 15 minute trade–but when you’re wrong, you usually lose all you’ve risked, or 100 percent. In other words, you are gaining far less than you are losing on every trading. You need to be right a lot more often than you’re wrong, then, in order to be even a little profitable. So you should not be misled by the seemingly really high rates of return. Binaries can be really profitable, but they are not quite as amazing as the hype might lead you to believe.
Forex or Binary? What’s More Profitable?
Spot Forex trading can also be profitable, and a lot of the concepts are the same. In fact, if you look at the top 10 traded assets in any binary options brokerage, you will find that six or seven of them are currency pairs. The Forex market is the world’s biggest trading place, and the binary markets reflect that. A good Forex trader will usually be a good binary trader, and many Forex traders are going to binaries in order to escape the day to day “grind” that Forex traders experience. But this is a myth. there is a grind in the binary options market, too, it’s just not as obvious.
If you’re trying to make as much money as possible, either type of trading will benefit you, but in a different manner. Binary options entail risking small amounts per trade with a high return. You can trade $100 per trade with binaries and earn $80 if you’re right. Earning $80 in the Forex market can be tough, and you will certainly need to risk more than $100 in order to do this. Usually, a currency pair will move by less than 10 cents per day. A $0.10 move in a day would require you to risk $800 in order to achieve the same $80 gain. Luckily, Forex brokers allow you to use leverage so you can risk less of your own money. You can keep the profits, but if you are incorrect, you are responsible for losses.
Risk v. Reward
Both binary trading and Forex trading entail risk and rewards. Finding a balance that you are comfortable with and that you can work successfully with will be your best shot at making “good” money in as quick of a manner as possible.