When we talk about the world of stock trading, we’re talking about a complex and highly unpredictable system that many try their hand in and only a few greatly profit off of. This is the beauty of publicly traded companies, though.
Those who are tuned in and constantly putting in the work to be better always get the payoff. This is true for all investments. There was no literature on Bitcoin 12 years ago, yet those who paid attention to what was bubbling got their payoff in 2017. This is true across the board, especially with Binary Options trading.
Binary Options Trading, In A Nutshell
Binary options trading is, in essence, putting money on a prediction about the price of a certain asset within a given time frame. Let’s say, for instance, you want to put $100 on Company X’s stock price going from $50 per share to $55 per share in two weeks. If you get that right, you can make upwards of $75 on that trade. There are dozens of different types of ways one can do this.
One of the simplest ways is to simply predict if a stock price will be above or below its opening price at the end of the day. Another way to do this is to make a decision based on predetermined boundaries—basically a high and a low, and decide whether or not the market will close with the stock price between said boundaries or not.
There are plenty of options out there through a whole host of different brokers. What one might not be aware of though, is that there are bonuses available that can help maximize one’s profits. Being a Binary Options broker is a highly competitive business. It’s in their best interest to have as many people trading through them as possible. This is why many offer pretty sweet deals and bonuses in trade.
A bonus in the world of binary trading is usually a percentage placed on top of when you deposit. So if you deposit $1000, they can throw in another 5% to make it $1050. That might not sound like much, but $50 free money for doing nothing but using their service? That’s an amazing deal anywhere. When it comes to this model of bonus, the wisest choice is to treat this as you would a cash bonus.
Any kind of free money through binary option bonuses should be treated as a staple. If you’re trying to profit, treat the $50 more as earnings from the get-go, and not something to further trade with. Yes, using it will get you more in the short term, but building your bankroll early gives you something to show for. Trade and trade again. Once you’ve been able to match the amount that was given by the broker, immediately take out that $50 and consider that profit.
If you’re not trying to pay immediate taxes on that $50 (yes, you will be taxed on every transaction no matter what) leave it in there as a growing digital bankroll that you can decide to pull out when it benefits you the most. The best part is, some go as high as a full deposit match. That’s the level of confidence some brokers have in their platform.
Not only do brokers give out free money, but some have also gone as far as to set up incentive packages for their customers. This can be anything from shirts to iPhones. It all depends on the tier of deposit you fall in as well as the amount you’re trading on average. They may offer you a brand new laptop to trade with.
Whatever it takes to keep you on board, they’ll do. Now, once again, this option is not open to everybody. They’re usually offered to people who throw in big deposits and perform above and beyond. They know the value of an individual who gets lucky in Binary Trading Options. They wouldn’t want to lose you.
Long Term Strategy
One strategy you can use to maximize your own personal profits is to find a broker that offers big cash bonuses, put in the bare minimum, refuse the bonus initially and then negotiate a bigger bonus based on a bigger deposit. This takes a bit of charm and conversational Jiu-Jitsu, but a straight-line approach can get you more than you thought you could, just with a well-placed phone call.
In the end, trading options is about you and the money you can make. It’s about finding the best deal from the biggest possible offers. It takes a while to find them and weed out the nonsense, but when you do, it will ultimately pay off big time.