Binary options are one of the newer and more and more popular derivative financial instruments (so-called derivatives). By investing in binary options we do not acquire a specific asset, but only speculate whether its value will increase or fall. Binary options are a much easier investment tool than the Forex market. With proper education and market knowledge, you have the opportunity to make a regular income – the customer can not lose more money than his deposit, but at the same time the amount of potential earnings is also limited in some way.
The biggest advantage of binary options is the extremely simple money management, which in the case of the forex market is a huge affliction of many traders and does not allow them to make regular income. In the case of binary options, we determine the amount we risk and the amount of our loss in the event of a failure will never exceed that value. Another plus is the fact that we do not have to wonder where our stop loss or profit should be.
The most popular option for binary options is to determine if the price of the instrument will increase or fall over a specific time period. It is so comfortable that even if the market is not moving from the beginning, it may be possible to do so later.
The biggest downside of binary options, which should also be mentioned, is the relatively low profit / risk ratio that at most brokers do not exceed 0.85: 1. That means that our potential profit will always be lower than any loss. So in order to be able to earn in this way we must have extremely high efficiency. Is it possible to earn via binary options?
For a long time, on the site comparic.com, I run the “Option for Today” cycle where we present the best PUT or CALL options for a selected financial instrument and its current technical analysis every day. All of the analysis from the series is based on the Price Action assumptions and can be tracked under the “Option for today” tag.
Have you asked me a few times about the effectiveness of my analyses and can you earn money on OB? So the time has come to answer this question. To show that my words aren’t groundless I decided to do the statistics of my analyses and referring to specific examples and numbers to clearly state whether it is worth investing in binary options.
To make these results somehow meaningful and have any sense, I think I will check the performance of the whole month. Taking into account all the analysis of the “today option”, which I published in August this year. I checked which made it possible to earn and which would bring a loss.
As I reported on Friday on my twitter profile, the effectiveness of my analysis in the “O for T” cycle was 78.95% in August, which means a possible return on investment of 7.12: 1.
That means that by risking 1% of your capital each month, we could earn as much as 7.12% a month. I believe that as a monthly rate of return, it is very high and should be satisfactory for most traders. In addition, the longest string of losses was only 1 and the longest string of profits was up to 7. On the Internet we can find many strategies and investment systems for binary options without problem. Are they effective? I will try to check it in the near future. Next weekend I will present one of the strategies which description I found on the internet. For the next two weeks, in addition to the traditional “options for today”, I will also publish analyses based on the assumptions of the described strategy. After two weeks, I will summarize its effectiveness and will present another strategy that I will be testing for the next two weeks, etc. In this way, I will try to test as many different strategies as possible to choose the most effective one. All analyses can be tracked on comparic.com.
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