Binary options give you the chance to make 70-80% return in a short period of time which can be 1 minute, 5 minute, 15 minute, 30 minute, 1 hour or more. Trading is a game of patience and discipline. In this post I am going to show you how you can start with only $200 and turn that into $1 million in 12 months by just making 4 binary options trades daily with a risk level of 2%. So you need to just 4 trades daily and grow your account with discipline and patience over a period of 12 months.
Start Small With Only $200
First it is very important for you to start small. $200 is the right amount that you should start with. Many people make the mistake of starting with $5K or $10K when they have never traded binary options before. They end up with losing most of their hard earned money. When you start small you are not risking more than you can lose plus you can fine tune your skills that will eventually help you grow your account exponentially with low risk. Trading skill is much more important than the starting capital. If you have the right skill, you can grow a small account into a big one. So focus more on becoming a better trader who wins most of the trade than on the starting capital.
Don’t Risk More Than 2% On A Single Trade
Risk management is one of the most important things in trading long term success. If you are risking big time, except a catastrophic loss at some point of time that will wipe out your account. You should not risk more than 2% on a single trade. So if you are starting with $100, you will only trade with $2. If you are starting with $200, you will only trade with $4. Once your account grows to $1000, you can trade with $20. In the same manner when you grow your account to $5K, you can trade with $100 and when your account grows to $10K, you can trade with $200. Follow this rule strictly and you can see even if you lose a lot, your account equity will not suffer much.Once you start winning, you will recover most of the loss. Never try to follow martingale which means doubling the trade size in order to recover the loss. Incase of a losing trade, you will need 2 winning trades to recover the loss. We will use this strategy. If we lose one trade, we ensure that the next 2 trades are winners by being more focused.
Select Your Timeframe
Select which timeframe you will trade which can be 5 minute, 15 minute, 30 minute or 1 hour. Once you have selected the timeframe, you should stick with it. 5 minute means the binary options will expire in 5 minutes and if you win you make 80% return otherwise you lose the investment. So if you are pressed with time, you should select 5 minute expiry for the binary option. We trade 5 minute as well as 15 minute and 30 minute.
Develop Your Trading System
The next stage involves developing your trading system that tells you when to enter into a put or call trade. Once you have developed your trading system, practice it with a risk level of 1% only. When you have consistently achieved 4/4 wins daily, you can increase the risk level to 2%.
Now suppose you make only 4 trades daily and all 4 are winners. Incase you lose a trade as I have said above you will need 2 more trades. So if you win 3 trades and lose 1 trade, you will have to make 2 more winning trades which translates into making 6 trades. For the moment lets suppose we can make 4 winning trades daily. Making 4 winning trades daily is doable. You can make 2 trades in the morning and 2 trades in the evening and with practice you will see it is easy to win all of them. Suppose we start with $200.
We start with $4 and make 80% return on it meaning we make a profit of $3.20. Four winning trades means we make a profit of $12.8. There are 20 trading days in a month so we make a total profit of $256. So we end the month with making 100% return and double our account.
We start the next month with $456. We make $8 trades this time. One trade gives us a profit of $6.40. Four trades give us the profit of $25.60. There are 20 trading days in a month, so we make a profit of $512. So we have double the account to $968. Next month we start with $18 as the trade size. Do the calculations and see that you double the account. So in around 12-14 months, you should be able to achieve your financial goal of a million dollar.
You just need to be focused daily and follow the above trading plan of 4 trades daily with discipline and in 12-14 months, you should be able to achieve your million dollar. Good Luck!