If I had a euro/us dollar each time I was asked: Can I make a living trading binary options? I’d be rich!!
So that I don’t have to repeat the same answer, I will give my opinion in this short article, and that is all it is, my opinion.
Can I make a living trading binary options? Yes
One can make a living trading binary options, because a good trader can get good returns. The profits are good. But beware, it’s not the profits that you see on some websites and videos.
No, you can’t win 100% per month, nor can you make $5,000 in the following month with $200. That is a lie!
On average, a good trader can achieve a profit of between 20% to 40%. Yes, there are months when you can profit more than 50%. But there are months when you won’t make a profit and may even have a loss.
So, the average will be within the 20% to 40% range.
But having a good strategy is not enough to have these profits. You must have discipline and rules, and you must learn.
You can only have the needed consistency to make a steady extra income with experience.
Can I make a living trading binary options? No
No, because one of the most basic rules for an investor is to diversify. If you don’t know the golden rules of investing, read it before investing.
In this sense, it is important to have other forms of income in addition to binary options, even if you are an excellent trader, and even if you have large profits every month.
You never know what tomorrow will bring, therefore we should have several ways of making money. Thus, we should never make our living just from binary options.
Especially because all investments have associated risks and we shouldn’t have all the risk in just one type of investment.
You should also keep in mind that if all your income is dependent on a single activity, such as binary options trading, there is more pressure to make a profit because you know you can’t fail.
When you are under pressure you always end up having negative results because it affects you emotionally with the fear of losing. Fear is the worst thing that a trader comes up against.
Can I make a living trading binary options? Conclusion
Don’t ever consider trading binary options exclusively even if you are an excellent trader and your results are good enough to make a living.
Invest a portion of your gains in Forex, stocks, or other applications with diverse risks so you are not dependent on just one source of income.
You never know if one day the market will change, if the rules will change, if the strategies will change. An excellent trader who today makes a good profit may not be able to do it tomorrow.
The way to reduce this risk is to diversify the markets where you have investments and income. Be it Forex, stocks, or any other type of financial application, it is important to not place your money and effort in only one type of market or financial instrument.